Take a closer look at eToro with this comprehensive overview. We’ll explore their products, education, and customer service in detail, sharing complete information about their platform, withdrawals, and deposits. Let’s determine if eToro lives up to its reputation for dependability.
A Short Background About eToro
As for today, eToro is the official leader thanks to its easy-to-use trading platform, which allows traders to duplicate the trades of other experienced investors or alternatively receive special benefits for sharing their trading strategies. eToro was established in Israel in 2007 as a developer of financial trading technology and is a pioneer in social copy trading.
Right after the release of its first product, eToro flourished and now serves over 13 million registered users. With a customer base covering 140 countries, its innovative and evolving platform has become one of the largest social authorities in the world. Despite the slightly higher price than the rest of its competitors, eToro offers an impressively thorough trading experience, including a broad variety of (over 3000) tradable symbols, CFDs, Forex and exchange-traded tradable on the stock market.
Let’s take a moment to swiftly review a few key facts:
- This broker offers a low-risk trading environment due to its regulation in two tier-1 jurisdictions and one tier-2 jurisdiction.
- The research materials and tools are quite limited when compered to other company’s.
- eToro is an excellent platform if you’re looking for both social copy trading and cryptocurrency trading.
- This broker customer base covering 140 countries.
- For customers in the EU, Australia and the UK, eToro offers indemnity insurance coverage of up to EUR 1 million.
- eToro charges an inactivity fee if there is no trading activity on the account for a certain period.
- The requirement for stop-loss and take-profit orders may obstruct the execution of particular trading strategies.
Markets and Products
When it comes to market and products, eToro, as a multi-asset broker, goes out of its way to ensure a hassle-free trading experience for its traders. For instance, the trade-ticket window on eToro, allows traders to choose between trading CFDs or the underlying assets, which is a small yet beneficial feature.
Traders can trade cryptocurrencies through CFDs or buy the underlying asset. It’s important to note that its US platform provides more limited offerings, while the global versions give a much broader range.
Yet, eToro’s cryptocurrency offering is relatively limited compared to other platforms. Traders with a specific interest in investing in lesser-known or niche cryptocurrencies may find the options on eToro need improvement. Traders must evaluate whether the available cryptocurrency selection matches their investment goals and individual preferences.
Among all the advanced tools that traders can benefit from on eToro, the CopyPortfolios feature is one of the most popular; it combines traders into funds for more efficient copy trading. For those who favour of more passive approach, CopyPortfolios can bridge the gap by enabling them to create a portfolio exclusively based on one or more CopyPortfolios. Even self-directed traders can benefit from using CopyPortfolios to diversify their trading portfolio, making it a potentially valuable tool for all clients.
On the other hand, While this feature can benefit beginners or those looking to learn from others, it can also lead to over-reliance on external strategies. Depending solely on the trades of others may hinder the development of your independent decision-making skills. It’s essential to strike a balance between social trading and making your own informed investment choices.
All trading in eToro is conducted in long positions only. There are no futures contracts, Forex or mutual funds. This means that there is no short sale, but you do have access to other assets, such as:
- 2,096 stocks
- 263 ETFs
- 24 cryptocurrencies
- Options trading
- Cash management through eToro Money
- Portfolio automation through Smart Portfolios
- Fractional share investing for amounts above $10.
Please note that these numbers are approximate and may change over time. It’s advisable to visit IC Markets’ website for the most updated information.
eToro offers a learning academy and a blog that provides articles, videos on its YouTube channel, weekly webinars, and market analysis, categorized by groups based on experience level. However, it is essential to reflect that their level of quality and quantity of educational resources do not meet the standard set by industry leaders such as Saxo Bank, IG and AvaTrade.
Although eToro’s research remains competitive and advances annually, it has yet to be award-winning. A few drawbacks of the platform are the absence of daily video updates with market analysis and limited access to features until specific account tiers are reached.
Among the many resources eToro offers are an economic calendar, an earnings reports calendar, news headlines, daily market analysis series, and podcasts. However, it’s worth noting that some of these features are not fully integrated into the platform. Not all clients have access to Trading Central. It’s exclusive to eToro club members who have attained a specific tier status.
Those who have funded their accounts on eToro can access stock research reports. eToro seamlessly integrates fundamental analysis into its platform for share trading and in the articles published on its blog. The absence of technical analysis on the platform puts it at a disadvantage compared to category leaders like Saxo Bank and IG. It detracts from the quality of its Analyst Weekly articles.
For beginners, eToro puts an extra effort by providing additional information alongside each symbol on its platform, such as trading instrument details (like the EUR/USD currency pair) and general investment factors to keep in mind.
The offered platform is simple and very intuitive. Even though it is not guaranteed to make profits, its interface is still less challenging than other more sophisticated trading platforms, making it an ideal choice for beginners. The main difficulty for beginners is conducting proper analysis to identify investors to copy. It’s essential to recognize that there is more to consider than just the trader’s returns. To decide which trader to copy on eToro, you should consider several factors, including the investor’s risk score, average weekly trades, profit, loss, and holding time.
Proper regulatory licensing, a solid operational track record, suitable financial capital to ensure solvency, and a proven record of outstanding customer service are among the critical factors contributing to trust in financial services. In every one of these aspects, eToro has demonstrated its ability to earn the trust of its clients beyond doubt. The Australian Securities & Investment Commission (ASIC) and the Financial Conduct Authority (FCA) are the tier-1 regulators authorizing this broker.
On the one hand, eToro ensures the protection of user data through technical, organizational, and security measures, including encryption, firewalls, and access controls. The platform also states that it does not sell or rent user information to third parties for marketing purposes. On the other hand, eToro may share user information with select third parties, such as service providers and regulatory authorities, for specific purposes, including identity verification, fraud prevention, and legal compliance. In that case, users have the right to access, rectify, and delete their personal information, as well as the option to unsubscribe from marketing communications.
Additionally, to prevent excessive risk-taking and potential losses, eToro has implemented certain risk management features. These include the ability to set stop loss and take profit levels, as well as predefined leverage restrictions for specific instruments. These features aim to assist traders in managing their positions and minimizing potential losses.
eToro has a comprehensive Financial Policy in place to ensure transparency, security, and regulatory compliance in its operations. The Financial Policy covers various aspects of deposits, withdrawals, fees, and other financial matters.
Regarding deposits, eToro provides multiple convenient methods for users to fund their accounts, including bank transfers, credit/debit cards, and various online payment platforms. The minimum deposit amount may vary based on the user’s location and the chosen payment method.
When it comes to withdrawals, eToro strives to process requests promptly and efficiently. Users can initiate withdrawal requests through their accounts, and the funds are typically transferred back to the original deposit method. However, certain withdrawal conditions and fees may apply, and additional verification or documentation may be required to ensure security and compliance.
eToro implements a transparent fee structure, which is clearly outlined on its Fees page. The platform charges fees for various services, such as spreads, overnight financing, and withdrawals. The fee amounts may vary depending on the specific asset being traded and other factors. Users need to review the fee schedule to understand more clearly the costs associated with trading on eToro.
Furthermore, eToro adheres to regulatory requirements and maintains compliance with relevant financial authorities in its operating jurisdictions. This includes implementing robust measures to prevent money laundering, fraud, and other financial crimes. eToro may request additional information or documentation from users to ensure compliance with these regulations.
eToro’s Financial Policy aims to provide users with a transparent and secure trading environment. By adhering to established financial standards and regulations, eToro seeks to foster trust and confidence among its user base. It is recommended that users review the Financial Policy thoroughly to gain a comprehensive understanding of the platform’s financial practices and procedures.
Web & Mobile Trade Platform
Users can access two mobile apps that serve different needs – the eToro app for trading cryptocurrencies and eToro Money for hassle-free transfers. These apps are available for download on both Android and iOS devices.
The mobile app delivers an exceptional user experience with a high ease of use factor, it mirrors the web version interface and incorporates useful features such as synchronized watchlists and customizable themes. This feature enables a unified cross-device platform experience, allowing users to trade efficiently and familiarly. However, the mobile app only has five indicators compared to 67 on the web, and it lacks drawing tools, which would be a useful addition to the platform.
The eToro wallet, called eToro Money, is a standalone mobile application designed for depositing and withdrawing cryptocurrencies. The wallet’s secure services are provided by eToroX, which safeguards the private keys of crypto assets. This feature has a similar user interface to the eToro mobile app and includes social trading features. If you’re an investor who wants to withdraw their underlying crypto assets from, you can use this app. Using a multi-signature scheme, this app functions as a custodian and closely resembles the Forex mobile app of the brand.
Each financial instrument on eToro has a Twitter-like wall feed that displays collective commentary of other traders within the eToro network. Since its public feed content is sourced from its users, its quality can be inconsistent. However, content produced by in-house staff or third-party professionals is usually of better quality. The fundamental aspects of the web platform experience are its simple design, making basic operations straightforward and pain-free.
With eToro, traders can access functions such as watchlist creation and instrument addition by searching available markets. The charting features are at their best when you activate the ProCharts mode, which includes 66 indicators, 13 drawing tools, and the option to save and select from pre-existing layouts.
eToro’s CopyPortfolios is a useful tool for all clients. This feature groups traders into single funds, providing an efficient way to engage in copy trading and diversify investments by grouping traders into single funds, closing the gap between active and passive investors.
Using trades made by top traders on its platform to generate sentiment data, eToro offers a specialized and more precise analysis than other brokers, similar to CMC Markets. At eToro, fully automated trading systems, such as those available on MetaTrader, are prohibited. Every trade placed by a trader you copy on eToro is made manually, ensuring its authenticity. Unlike other social trading platforms that combine the performance of traders and allow manual trading as well as automated strategies.
In addition to its benefits, eToro’s Web & Mobile Trade Platform has a few potential drawbacks. One such drawback is the limited customization options available in terms of design and layout. This means that users who prefer a highly personalized trading experience may find the platform’s interface somewhat restrictive.
Another potential drawback is the platform’s charting tools. While it offers basic charting features, more advanced technical analysis tools may be lacking. Experienced traders who heavily rely on advanced charting techniques may find the platform’s offerings insufficient for their needs.
Currently, the means of communicating with eToro customer service is limited to online channels, which include the Customer Service Center and Live Chat. The service page provides customers with a streamlined and user-friendly interface that serves as a one-stop-shop feature for tracking the progress of their open tickets and related concerns.
The Live Chat functionality offered is currently limited to eToro Club members only. Although the service operates 24 hours from Monday to Friday, on weekends, the service is inactive.
Additionally, eToro offers a help and information centre with various articles and FAQs related to multiple potential inquiries.
- eToro does not charge commission fees on trades, making it a cost-effective platform to use.
- eToro is regulated by top-tier financial authorities, such as the FCA and CySEC.
- eToro offers a demo account for users to practice trading without risking real money.
- eToro’s spread fees can be higher than other trading platforms, making it more expensive to trade.
- eToro does not offer the popular MetaTrader platform.
- eToro’s withdrawal options are limited, which may make it difficult for users to access their funds.
Retail traders who desire to gather investment ideas efficiently through the copy trading mechanism can find eToro an excellent platform for highly experienced active traders that want to be recognized for sharing their ideas with other traders. Less experienced traders that require some level of handholding may find the friendly platform an added benefit.
That said, eToro is not the best suited for high-volume traders. Limitations may arise due to limited trade sizes and wider spreads. Similarly, algorithmic trading is not supported.
eToro is a decent choice for social copy trading and crypto trading.
Written: Gloria Simone
Edited: Olive Harper
Fact-checked: Ella Sparks