eToro Review
Copy experienced investors
Pros
- Large Social Trading Platform
- Copy experienced investors
- For starting and experienced investors
- User-friendly platform
Cons
- No MetaTrader platform
- Spreads cryptocurrency quite high
Introduction
eToro (founded in 2006) is one of the most innovative CFD brokers thanks to a wide range of services and possibilities. The purpose of this is to familiarize the novice investor in the world of CFD trading. The special thing about eToro is that it is not only a CFD broker, but also the largest social trading network in the world. Here you connect with other successful traders where advice is given and you can follow investors. Click on the link if you first want to know more about what are CFDs? In this eToro review we explain clearly what this broker has to offer and for whom this is the ideal broker.
Target audience
eToro is the ideal broker for starting investors because of the social trading network where you can follow experienced investors. However, there are also opportunities for experienced investors. If you are a successful investor and have many followers on the social trading network you can become a "Popular Investor" and get paid to invest.
Is eToro reliable?
Etoro Ltd. is based in Cyprus, where it is regulated by the Cypriot Securities & Exchange Commission (CySEC). eToro also has a branch in London named eToro (UK) Ltd. where it is regulated by the Financial Conduct Authority (FCA), one of the strictest financial regulators in the world, so that you are certain of a safe trading environment. eToro therefore receives a reliability score of 5 stars.
Trading instruments
With eToro you can trade CFDs in shares, indices, forex, commodities, ETFs and cryptocurrencies with a maximum leverage of 1:30. The minimum deposit for trading CFDs is £200, which is fairly high. The range of CFD instruments in general is relatively small. However, the selection of CFDs in cryptocurrencies is quite large. The range will be more than enough for the novice investor. This broker has some educational material available for the beginners. There are e-courses, live webinars, and a trading guide available. The point at which eToro distinguishes itself from other CFD brokers is the social trading network where successful investors can be followed and copied. The trading platform offers more than enough analysis material for most investors and is user-friendly.
Forex
Stocks
Cryptos
Commodities
Indices
ETFs
eToro CopyPortfolio
At eToro you can take investing to the next level by participating in various CopyPortfolios. You choose a certain strategy and determine the size of your investment. There are two types of CopyPortfolios:
- Top Trader CopyPortfolios which comprise the best performing traders on eToro, according to a predefined strategy. This portfolio can give high return on your investment, but also high risks are involved.
- Market CopyPortfolios which bundle together a select combination of CFD stocks, commodities or ETFs, according to a predefined theme.
After you have chosen one of the above, eToro then manages your investment with the chosen strategy. This is done with various investment products such as CFDs and shares, so that the risks are limited as much as possible. The minimum investment is £5,000 so that eToro can open enough positions to spread risks. You can end the investments at any time. The advantage is that you do not pay any transaction costs here. You only pay for the spreads. Click here for more information about the CopyPortfolios. In the image below you can see different Market CopyPortfolios. Return rates and risk levels are included.
Fees
Spreads
At eToro, spreads are at a medium to high level. Average spreads apply to forex and commodities, but spreads are very high for cryptocurrencies. Using another broker for this category will be better.
Other costs
As mentioned above, stock trading is free. However, you do pay conversion costs. The currency of eToro is in dollars, so costs must be paid for a conversion to pound. In addition, you also pay a withdrawal fee of 5$ if you want to withdraw money from your account.
Demo account
eToro gives the possibility to use a free demo account that works exactly the same as the real mode. Only the money you bet is virtual.
In short
The Social Trading Network, CopyPortfolios and the wide range of educational material makes eToro the ideal broker for beginners. However, for highly experienced investors, eToro also offers opportunities such as getting paid for being a "Popular Investor". eToro might also be interesting for stock trading due to the 0% commission.
- Social trading platform
- Copy professionals
- No MetaTrader platform
- High spreads on crypto
# Active investors
400,000
Reliability
Trading platform
- MetaTrader 4
- MetaTrader 5
- Social platform
- Type of investor
Allround
- Functions
Average
- Mobile app
Spreads
Average
Spread EUR/USD*
3
Tradable assets
1,200
CFDs in shares
1,000
CFDs in forex
57 pairs
CFDs in cryptos
92
CFDs in commodities
13
CFDs in indices
13
CFDs in ETFs
21
Loss-making investors
62%
Customer service
Education
Usability
Inactivity fee
£10 PM after 1 year
Bankoverschrijving
Creditcard
PayPal
- Excellent platform
- Low spreads
- Also share dealing
- High trading fees
# Active investors
Unknown
Reliability
Trading platform
- MetaTrader 4
- MetaTrader 5
- Social platform
- Type of investor
Active
- Functions
Professional
- Mobile app
Spreads
Low
Spread EUR/USD*
0.5
Tradable assets
2,200
CFDs in shares
2,000
CFDs in forex
67 pairs
CFDs in cryptos
6
CFDs in commodities
26
CFDs in indices
43
CFDs in ETFs
57
Loss-making investors
75%
Customer service
Education
Usability
Inactivity fee
£10 PM after 3 months
Bank transfer
Credit card
PayPal
- Very user-friendly
- Competitive spreads
- No MetaTrader platform
- Fewer analysis tools
# Active investors
200,000
Reliability
Trading platform
- MetaTrader 4
- MetaTrader 5
- Social platform
- Type of investor
Beginner
- Functions
Average
- Mobile app
Spreads
Low
Spread EUR/USD*
0.6
Tradable assets
2,000
CFDs in shares
1,900
CFDs in forex
50 pairs
CFDs in cryptos
14
CFDs in commodities
22
CFDs in indices
30
CFDs in ETFs
95
Loss-making investors
76.4%
Customer service
Education
Usability
Inactivity fee
£10 PM after 3 months
Bankoverschrijving
Creditcard
PayPal
- Social trading platform
- Copy professionals
- No MetaTrader platform
- High spreads on crypto
# Active investors
400,000
Reliability
Trading platform
- MetaTrader 4
- MetaTrader 5
- Social platform
- Type of investor
Allround
- Functions
Average
- Mobile app
Spreads
Average
Spread EUR/USD*
3
Tradable assets
1,200
CFDs in shares
1,000
CFDs in forex
57 pairs
CFDs in cryptos
92
CFDs in commodities
13
CFDs in indices
13
CFDs in ETFs
21
Loss-making investors
62%
Customer service
Education
Usability
Inactivity fee
£10 PM after 1 year
Bankoverschrijving
Creditcard
PayPal
- Low spreads
- Good education
- Trading instruments
- No price alerts
# Active investors
200,000
Reliability
Trading platform
- MetaTrader 4
- MetaTrader 5
- Social platform
- Type of investor
Allround
- Functions
Average
- Mobile app
Spreads
Low
Spread EUR/USD*
1.7
Tradable assets
1,300
CFDs in shares
1,200
CFDs in forex
57 pairs
CFDs in cryptos
5
CFDs in commodities
15
CFDs in indices
18
CFDs in ETFs
Loss-making investors
74%
Customer service
Education
Usability
Inactivity fee
£5 PM after 3 months
Bank transfer
Credit card
PayPal
*This was the spread on 1/1/2020
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.