eToro Review

Copy experienced investors

Pros

Cons

Contents

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.

Customer experiences on Trustpilot
2.2/5
Customers are generally not very positive about eToro’s service. This broker gets a rating of 2.2/5 stars on Trustpilot which is not very good. Customers complain about the long time it takes to open an account, and the amount of $5 you have to pay to refund money. There are also some surprisingly good reviews saying that eToro is grossly undervalued. They praise the low cost and the beautiful trading platform.

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

0
pairs

Stocks

0
#

Cryptos

0
#

Commodities

0
#

Indices

0
#

ETFs

0
#

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:

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 and commissions

Miscellaneous 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. 

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. Below are the costs of a number of common transactions with different CFD brokers. These are long 20:1 CFD and 30:1 forex positions held for 1 week (source: brokerchooser.com). For a complete cost comparison you can check out the CFD comparison page.

£2.000 Apple CFD

£2.000 Europe 50 Index CFD

£20.000 EUR/USD 

£20.000 GBP/USD 

£6.30

£2.70

£19.60

£16.20

£8.90

£1.30

£17.90

£14

£0.90

£1.60

£17.30

£18.20

£6.40

£2.50

£24.50

£25

£3.40

£2.40

£17.10

£13.80

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.

£ 0
minimum deposit

# Active investors

400,000

Reliability

4/5

Trading platform

4.5/5
  • 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

75%

Customer service

4/5

Education

3/5

Usability

5/5

Inactivity fee

£10 PM after 1 year

Bankoverschrijving

Creditcard

PayPal

300x250

Compare eToro with other CFD brokers

£ 0
minimum deposit

# Active investors

Unknown

Reliability

4/5

Trading platform

4.5/5
  • 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

3.5/5

Education

5/5

Usability

4.5/5

Inactivity fee

£10 PM after 3 months

Bank transfer

Credit card

PayPal

£ 0
minimum deposit

# Active investors

200,000

Reliability

4/5

Trading platform

4/5
  • 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

4/5

Education

4/5

Usability

5/5

Inactivity fee

£10 PM after 3 months

Bankoverschrijving

Creditcard

PayPal

£ 0
minimum deposit

# Active investors

400,000

Reliability

4/5

Trading platform

4.5/5
  • 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

75%

Customer service

4/5

Education

3/5

Usability

5/5

Inactivity fee

£10 PM after 1 year

Bankoverschrijving

Creditcard

PayPal

£ 0
minimum storting

# Active investors

200,000

Reliability

4/5

Trading platform

4/5
  • 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

4/5

Education

5/5

Usability

4/5

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.