Summary

Recommended for traders interested in social trading (i.e. copying other investors’ trades) and zero commission stock trading

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eToro review summary

 

eToro is a well-known Israeli fintech company and a social trading broker, established in 2007.

eToro serves UK clients through a unit regulated by the Financial Conduct Authority (FCA) and Australians through an Australian Securities and Investment Commission (ASIC) regulated entity. All other customers are served by a Cypriot unit that is regulated by the Cyprus Securities and Exchange Commission (CySEC).

eToro is not listed on any stock exchange, does not disclose its annual report on its website and does not have a bank parent.

eToro is considered safe because its UK and Australian arms are regulated by top-tier financial authorities and it is a well-known fintech company.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Our overall eToro rating

Compare this broker to the best eToro alternative

Best broker for cryptos Best broker for social trading

We selected eToro as Best broker for cryptos and Best broker for social trading for 2021, based on an in-depth analysis of 70+ online brokers that included testing their live accounts. Check out the complete list of winners.

Overall Rating
4.7
Fees
4.4
Account opening
5.0
Deposit and withdrawal
3.5
Trading platform
4.8
Markets and products
3.8
Research
3.5
Customer service
3.3
Education
3.5

eToro pros and cons

eToro offers commission-free stock trading. Account opening is fast and seamless. It has innovative features like social trading, which lets you copy the strategies of other traders.

On the negative side, eToro's non-trading fees are high as there are withdrawal and inactivity fees. Money withdrawals can be slow and USD is the only currency you can hold your cash in. Lastly, it's difficult to contact the customer support.

Pros Cons
Free stock and ETF trading High non-trading fees
Seamless account opening Only one account base currency
Social trading experience Customer support could be improved

eToro main features and highlights
🗺️ Country of regulation UK, Cyprus, Australia
💰 Trading fees class Low
💰 Inactivity fee charged Yes
💰 Withdrawal fee amount $5
💰 Minimum deposit $200
🕖 Time to open an account 1 day
💳 Deposit with bank card Available
👛 Depositing with electronic wallet Available
💱 Number of base currencies supported 1
🎮 Demo account provided Yes
🛍️ Products offered Stock, ETF, Forex, CFD, Crypto
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eToro review
Fees

4.4
To find out more about its trading and non-trading fees, visit eToro
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eToro offers free stock and ETF trading, while forex and CFD fees are low. On the negative side, non-trading fees are high, including a $5 withdrawal fee.
Pros Cons
Low trading fees High non-trading fees
Free stock and ETF trading
Low forex and CFD fees
eToro fees snapshot
Assets Fee level Fee terms
S&P 500 CFD Low The fees are built into the spread, 0.7 points is the average spread cost during peak trading hours.
Europe 50 CFD Average The fees are built into the spread, 3 points is the average spread cost during peak trading hours.
EURUSD Low The fees are built into the spread, 1 pip is the average spread cost during peak trading hours.
Inactivity fee Low $10 per month after one year inactivity. Inactivity means that you don't log in to your account.

How we ranked fees

We ranked eToro's fee levels as low, average or high based on how they compare to those of all reviewed brokers.

First, let's go over some basic terms related to broker fees. What you need to keep an eye on are trading fees and non-trading fees.

In the sections below, you will find the most relevant fees of eToro for each asset class. For example, in the case of forex and stock index trading the most important fees are spreads, commissions and financing rates.

We also compared eToro's fees with those of two similar brokers we selected, XTB and Trading 212. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of eToro alternatives.

To have a clear overview of eToro, let's start with the trading fees.

eToro trading fees

Is Etoro worth it? eToro trading fees are low.

We know it's hard to compare trading fees for CFD brokers. So how did we approach the problem of making their fees clear and comparable? We compare brokers by calculating all the fees of a typical trade for selected products.

We have chosen popular instruments within each asset class:

  • Stock index CFDs: SPX and EUSTX50
  • Stock CFDs: Apple and Vodafone
  • Forex: EURUSD, GBPUSD, AUDUSD, EURCHF and EURGBP

A typical trade means buying a leveraged position, holding it for one week and then selling. For the volume, we chose a $2,000 position for the stock index and stock CFDs and $20,000 for the forex transactions. The leverage we used is:

  • 20:1 for stock index CFDs
  • 5:1 for stock CFDs
  • 30:1 for forex

These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Let's see the verdict for eToro fees.

Stock fees and ETF fees

eToro offers zero-commission real stock trading. Since May 2020, this is valid for all countries, but clients from Australia can only trade US stocks commission-free. Note that with the free feature, you're buying the real stock, not a CFD product and you cannot use leverage. eToro used to be primarily a CFD broker and they let you trade stocks and ETFs as CFDs, too, if you set the leverage to greater than one. For this CFD product, eToro charges low fees, i.e. the spread (the difference between the ask and the bid prices) is low.

Stock and ETF commission of a $2,000 trade
  eToro XTB Trading 212
US stock $0.0 $10.0 $0.0
UK stock $0.0 $12.0 $0.0
German stock $0.0 $12.0 $0.0

eToro review - US stock trading fees comparison

CFD fees

eToro has generally low CFD trading fees.

eToro CFD fees for a $2,000 long position held for one week
  eToro XTB Trading 212
S&P 500 index CFD fee $1.7 $1.5 $4.1
Europe 50 index CFD fee $2.9 $1.8 $6.3
Apple CFD fee $6.7 $17.3 $17.5
Vodafone CFD fee - $20.8 $17.3

Forex fees

eToro forex fees are low.

eToro forex benchmark fees of a $20,000 30:1 long position held for one week
  eToro XTB Trading 212
EURUSD benchmark fee $8.7 $8.5 $26.0
GBPUSD benchmark fee $8.1 $6.1 $20.3
AUDUSD benchmark fee $7.9 $6.7 $15.0
EURCHF benchmark fee $12.9 $9.0 $17.5
EURGBP benchmark fee $12.9 $8.3 $24.8

Non-trading fees

eToro has high non-trading fees, as it charges $10 per month after one year of inactivity, but simply logging into your account counts as an activity. The withdrawal fee has been recently lowered to $5.

eToro non-trading fees
  eToro XTB Trading 212
Account fee No No No
Inactivity fee Yes Yes No
Deposit fee $0 $0 $0
Withdrawal fee $5 $0 $0

eToro review
Account opening

5.0
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Account opening at eToro is seamless and very fast.
Pros Cons
Fast None
Fully digital
Low minimum deposit

Can you open an account?

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What is the minimum deposit at eToro?

As a temporary measure, eToro raised its minimum deposit in February during a volatile market period but it has been lowered and the required eToro minimum deposit is $200 as of the 8th of March, 2021.

Note however that the minimum amount for a bank transfer is $500.

For some countries the minimum deposit requirement is different though:

  • If you are from Israel, the minimum deposit is $10,000.
  • For residents of Australia and the US, the minimum first-time deposit is $50.
  • For residents of the following countries, a minimum deposit of $1000 applies: New Zealand, Ukraine, South Korea, Bulgaria, Lithuania, Greece, Slovakia, Colombia, Hungary, Peru, Estonia, Latvia, Iceland, Malta, Argentina, Slovenia, Kuwait, Luxembourg, Costa Rica, Jordan, Oman, Isle Of Man, Qatar, Dominican Republic, Ecuador, Taiwan, Guernsey, Bahrain, Uruguay, Bolivia, Jersey, Croatia, Kenya, Egypt, Gibraltar, Cayman Islands, Reunion Island, Kazakhstan, Azerbaijan, Georgia, Senegal, French Polynesia

Account types

eToro offers two simple account types: there is a live account, as well as a demo (or virtual) account, where you can test the platform with play money.

Open demo account

How to open your account

The account opening process is hassle-free and fully digital. It is fast, too, as we were able to open an account within one day

You have to start by registering with your email account or with your Facebook or Google+ account.  And that's basically it, you can immediately access the trading platform and start to trade with a $100,000 demo account.

If you want to go further and fund it with real money, you have to verify your identity and residency by uploading the required documents:

  • Proof of identity: a copy of your passport or personal ID.
  • Proof of residency: a copy of a utility bill or bank statement.

eToro review - Account opening

eToro review
Deposit and withdrawal

3.5
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Depositing money is free and easy, with a lot of available options, including credit cards. However, there is a withdrawal fee and only USD accounts are available.
Pros Cons
Credit/Debit card available Only one account base currency
No deposit fee $5 withdrawal fee
User-friendly Conversion fee for non-USD deposits

Account base currencies

eToro only allows USD accounts, which means that your funding will be converted by eToro to USD. For example, if you deposit EUR by bank transfer, a 50 pip fee will be applied at funding (which is around 0.46% of the deposit amount) and the same fee will also be charged, when you withdraw EUR by bank transfer. For other methods, like credit cards, a higher fee applies for some currencies. Alternatively, you can deposit in USD, e.g. using your credit card. In that case, your bank will make the conversion at its own rate.

Base currencies at eToro vs similar brokers
  eToro XTB Trading 212
Number of base currencies 1 5 9

Why does this matter? For two reasons. If you fund your account in the same currency as your bank account or you trade assets in the same currency as your account base currency, you don't have to pay a conversion fee.

A convenient way to save on currency conversion fees is opening a multi-currency bank account at a digital bank. Digital banks offer bank accounts in several currencies with great currency exchange rates as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

Compare digital banks

However, eToro states that you can use your Revolut account to deposit and withdraw in GBP and EUR. Revolut payments in USD are not supported, so this means you cannot save Etoro's USD conversion fee with Revolut.

Deposit fees and options

There are a lot of deposit options, however, some are not available in certain countries:

  • Bank transfer
  • Credit/Debit card
  • PayPal
  • Skrill
  • Neteller
  • China UnionPay
  • Klarna / Sofort Banking
eToro deposit options
  eToro XTB Trading 212
Bank transfer Yes Yes Yes
Credit/debit card Yes Yes Yes
Electronic wallets Yes Yes Yes

For some countries, eToro may require the first deposit to be made with credit/debit card or bank transfer and only subsequent deposits can be made with electronic wallets.

A bank transfer takes 4-7 business days, and there is no maximum deposit. In comparison, while credit/debit card and electronic wallet deposits are instant, there are per transaction limits: $40,000 in the case of credit/debit cards, and either $10,000 or $30,000 (Klarna) in the case of electronic wallets.

You can only deposit money from funding sources that are in your name.

eToro charges no deposit fees, but they have currency conversion fees, which might be high, for example, as much as 2.4% for depositing EUR by card. Note that a 50 pip charge is not the same percentage in AUD to USD conversion as in EUR to USD conversion, so in the table below we added an estimation of the percentage charge as well.

etoro's deposit & withdrawal currency conversion fees
  USD  EUR GBP  AUD
Bank transfer none 50 pip, approx 0.46% of the deposit amount 50 pip, approx 0.4% of the deposit amount 50 pip, approx 0.77% of the deposit amount
Other methods none, your bank will charge for conversion, if your card is not in USD 250 pip, approx. 2.4% of the deposit amount 50 pip, approx 0.4% of the deposit amount 100 pip, approx 1.56% of the deposit amount

eToro review - Deposit and withdrawal - Deposit

eToro withdrawal fees and options

eToro has a $5 withdrawal fee, which is high, compared to other CFD brokers. In addition, eToro has a $30 minimum amount limit on withdrawals. 

Withdrawal options are the same as the funding options: you can withdraw money using bank transfer, credit/debit card or electronic wallets, similar to other CFD brokers.

eToro withdrawal fees and options
  eToro XTB Trading 212
Bank transfer Yes Yes Yes
Credit/debit card Yes No Yes
Electronic wallets Yes No Yes
Withdrawal fee $5 $0 $0

How long does it take to withdraw money from eToro?

We tested withdrawal by bank transfer, and it took 2 business days.

How do you withdraw money from eToro?

  1. Click on the 'Withdraw Funds' tab in the left-hand menu.
  2. Enter the amount you wish to withdraw (in USD).
  3. Complete the electronic withdrawal form as required.
  4. Click 'Submit.'

You can only withdraw money to accounts under your name.

eToro review - Deposit and withdrawal - Withdrawal time

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eToro review
Web trading platform

4.4
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eToro offers a user-friendly and well-designed web trading platform. Social trading is available, too. On the other hand, customizability is limited.
Pros Cons
User-friendly Limited customizability (for charts, workspace)
Clear fee report
Two-step (safer) login
eToro platforms to choose from
Trading platform Score Available
Web 4.4 stars Yes
Mobile 4.9 stars Yes
Desktop - No

eToro's platform looks like a modern platform should in this day and age.

The web trading platform is available in many languages:

eToro platform languages
Arabic Chinese (simplified) Chinese (traditional) Czech Danish
Dutch English Finnish French German
Italian Malaysian Norwegian Polish Portuguese
Romanian Russian Spanish Swedish Vietnamese
Thai        

Look and feel

eToro's trading platform is a pleasure for the eye. With its clean design and great functions, eToro successfully combined good design with functionality. The menus and buttons are where you expect them to be, everything is labelled correctly and the color scheme is pleasant.

It is hard to customize though, as the panels are fixed. One exception is the watchlist, which is easy to configure.

eToro review - Web trading platform

Login and security

eToro has an optional safer two-step login system. This can make it more complicated to log in, but, in turn, it provides you with added security.  

Search functions

The built-in search is predictive and easy to use. Type in a company or product name and you can see the results. You can search easily via tickers, too. 

eToro review - Web trading platform - Search

Placing orders

Placing orders is self-explanatory.

You can use the following order types: market, limit, stop-loss, trailing stop-loss.

If you are not familiar with order types, read this overview.

eToro review - Web trading platform - Order panel

Alerts and notifications

You can set price alerts and notifications easily. eToro's alert function lets you know when an asset reaches a price target, and you also get a notification when your order is fulfilled. On the web platform, this is in the form of an icon update or a browser notification. On mobile, it is a push notification. 

Portfolio and fee reports

You will surely want to know how your portfolio is performing and how much fees you paid. You can decide how you want to see your portfolio reports: a list of your assets or a pie chart showing your current portfolio.

Finding the fee report is quite complicated, at first. Click on the 'Portfolio' tab, then go to 'History,' and under the gear icon at the top right, you can access and download your account statement. This is a well-structured pdf file showing all your cash flows, including fees. When you are following someone, you will see all trades separately. However, fees are not added up, but listed individually per fee deduction. 

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eToro review
Mobile trading platform

4.9
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eToro's mobile platform is well-designed and intuitive. It is a pleasure to use.
Pros Cons
User-friendly No Touch/Face ID login
Two-step (safer) login
Good search function

The eToro mobile trading platform is available for iOS and Android. We tested it with iOS.

It's available in the same 21 languages as the web trading platform.

The mobile platform has the same great functionality as the web platform. It uses mobile-specific intuitive functions, such as push notifications or good touch interactions. For example, you can swipe left and right in your portfolio to access charts or open a new trade.

eToro review - Mobile trading platform

 

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eToro review
Desktop trading platform

eToro does not offer a desktop trading platform.

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eToro review
Markets and products

3.8
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At eToro, you can trade CFDs and forex, as well as real stocks, ETFs and many cryptos. Innovative services like social trading and CopyPortfolio are also available.

eToro is primarily a CFD and forex broker. However, you can also trade real stocks, ETFs, and a lot of different cryptos. eToro also has some unique features, such as social trading (Copy People) and CopyPortfolio.

At eToro, if you reside in the United States, the only product that you can trade is cryptocurrencies.

Let's break down eToro's markets and products.

All non-leveraged long positions in stocks, ETFs and cryptocurrencies are traded as real assets. This means that when you buy equities, ETFs or cryptos without any leverage (i.e. leverage is set to one), you will buy real stocks, ETFs and cryptos and not CFDs.

All other positions are CFDs:

  • leveraged long positions and all short positions in stocks, ETFs and cryptos
  • all positions of forex, commodities and indices

We do not recommend eToro for long-term investors focusing on collecting dividends from US stocks. This is because eToro deducts the 30% default US dividend tax, rather than the – usually lower – tax treaty rate deducted by most other brokers. Instead, we suggest you check out the best discount brokers.

Within CFDs, in addition to the traditional way of trading, you can

  • follow and copy other traders' trading (this is Copy People, also called social trading)
  • invest in a compiled CFD portfolio (this is CopyPortfolio).

To learn more about CFDs, read our CFD trading tips.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

At eToro, you can trade an average number of products. The same can be said about currency pairs and commodities. On the other hand, eToro offers a wider range of stock and ETF CFDs than its closest competitors, and you can also trade many of the most popular cryptocurrencies.

eToro product selection
  eToro XTB Trading 212
Currency pairs (#) 47 49 184
Stock index CFDs (#) 13 42 51
Stock CFDs (#) 2,000 1,800 1,700
ETF CFDs (#) 145 114 28
Commodity CFDs (#) 14 22 45
Bond CFDs (#) - - -
Cryptos (#) 16 25 -

You can change the default leverage level of the products.

Changing the leverage manually is a very useful feature when you want to lower the risk of a trade. For example, instead of trading with 5:1 leverage, only trade with 2:1 leverage in the case of stock CFDs. Be careful with forex and CFD trading, since the pre-set leverage levels are high.

CopyTrader

eToro has two distinctive innovations, CopyTrader and CopyPortfolio. Both are great.

CopyTrader is the so-called social trading feature. What is eToro really good at? Well, this is it! One by one you can copy the portfolio of traders who also trade with eToro. This can be quite useful. You can browse through the profiles of other eToro traders, checking their previous performance on an annual and a monthly level. Their portfolio is public information. Additionally, eToro also applies a risk score to each trader. There are tons of more stats for each profile, like trades per week, average holding time, performance on charts, and you can also see their detailed profiles as well as their news feed comments. Imagine Facebook profiles, but with fewer inspirational and more market quotes.

The minimum amount you can invest in one trade is $200, while the maximum is $500,000. Furthermore, you can copy a maximum of 100 traders simultaneously.

There is one drawback of CopyTrader: you cannot close part of your position, only the full amount.

Etoro review - Markets and products - Copy Trading

Disclaimer: Indicative prices; current market price is shown on the eToro trading platform. Past performance is not an indication of future results. The trading history presented is less than 5 years old and may not suffice as a basis for investment decisions. This post is not investment advice.

CopyPortfolio

CopyPortfolio is basically an investment fund, but under the hood, it is a CFD portfolio. While with CopyTrader you were following one trader, with CopyPortfolio you can invest either in a theme or in a portfolio of top eToro traders.

  • Investing in themes means, for example, investing in a portfolio of big banks or cryptocurrencies. The Crypto Portfolio, for instance, consists of the biggest cryptocurrencies, weighted by market cap.
  • Another way to invest via CopyPortfolio is to invest in a portfolio comprised of multiple "star" traders.
  • There is also a crypto CopyPortfolio available.

Etoro review - Markets and products - Copy Funds

Disclaimer: Indicative prices; current market price is shown on the eToro trading platform. Past performance is not an indication of future results. The trading history presented is less than 5 years old and may not suffice as a basis for investment decisions. This post is not investment advice.

The proportion of CFDs in the specific CopyPortfolio is clearly indicated. You can check performance and asset distribution, and read the investment strategy. CopyPortfolios are built around a theme by eToro's algorithms or by eToro external partners. This might all sound a bit complicated, but at the end of the day, this means you can invest easily in a quasi-fund. There is a minimum investment amount for CopyPortfolio, which is $5,000. eToro also checks your financial knowledge to determine whether CopyPortfolio is right for you.

Stocks and ETFs

If you buy stocks or ETFs without leverage, you are buying the real asset, not a CFD. Usually, this feature is not offered by other CFD and forex brokers. In that sense, eToro's selection of 17 stock markets to access is great. However, compared with stockbrokers like Saxo Bank (~35 markets) or Interactive Brokers (~80), it is poor. Note, that if you're going short (selling a stock that you don't already have), you're always trading a CFD.

eToro stock and ETF selection
  eToro XTB Trading 212
Stock markets (#) 17 17 9
ETFs (#) 145 220 200

At eToro, you have access to the following 17 stock exchanges: 

  • Amsterdam
  • NYSE
  • Nasdaq
  • Euronext Brussels
  • Euronext Lisbon
  • Frankfurt
  • London
  • Paris
  • Madrid
  • Milan
  • Zurich
  • Oslo
  • Stockholm
  • Copenhagen
  • Helsinki
  • Hong Kong
  • Saudi Arabia

However, you can only trade the more popular stocks. For example, the number of tradable stocks on the Nasdaq with eToro is currently 370, which is only around 10% of the listed companies on the Nasdaq exchange.

Why would this matter to you? If you only trade the most popular stocks, like Microsoft or Apple, you probably won't notice the lack of smaller stocks. eToro will, from time to time, make new stocks available for trading, usually in a batch. For example, on the 30th of March they added 185 new stocks, among them, was a very trending one, Zoom Technologies. However, if you had to wait for eToro to add the stock, you missed the early rally in the stock.

Cryptocurrency

eToro offers the following methods to trade and own cryptocurrencies: Crypto CFDs, Spot crypto, Crypto exchange (eToroX) and Crypto wallet.

However, not every method is available in each country. For example, UK residents don't have access to Crypto CFDsPlease refer to our spreadsheet for a detailed breakdown of which crypto product is available in your country.

The general rule of thumb with eToro is that when you go long in any virtual currency, you will own the real coin. When you go short, it is a CFD.

However, there are some country-specific rules as discussed above. For example, as a US resident, you can only go long on the real coin; trading CFDs and therefore going short on cryptocurrencies is not allowed.

Cryptocurrency prices can fluctuate widely and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework, such as MiFID. Therefore, when using eToro's Cryptocurrencies Trading Service you are not eligible for any investor protection

Etoro review - Markets and products - Cryptocurrencies

Disclaimer: Past performance does not guarantee future results. Trading history presented is less than 5 years old and may not suffice as a basis for investment decisions. Indicative prices; the current market price is shown on the eToro trading platform. Highly volatile unregulated investment product. No EU investor protection. Your capital is at risk.

You can trade a wide variety of cryptocurrencies on eToro. Along with LINK, UNI and DOGE, traders have access to BTC, ETH, BCH, LTC, XRP, DASH, ETC, ADA, XLM, EOS, NEO, TRON, ZEC, BNB, XTZ and MIOTA. Check the table below for a breakdown and some other minor virtual currencies.

eToro Cryptocurrency selection
Cryptos as real assets (for non-US residents) Cryptos as CFDs (for non-US residents) Cryptos as real assets (for US residents)
AAVE ADA AAVE
ADA BCH ADA
ALGO BNB ALGO
BAT BTC BAT
BCH DASH BCH
BNB DOGE BTC
BTC EOS COMP
COMP ETC DASH
DASH ETH DOGE
DOGE LINK EOS
EOS LTC ETC
ETC MIOTA Ethereum
ETH NEO LINK
LINK TRX LTC
LTC UNI MANA
MANA XLM MATIC
MATIC XRP MIOTA
MIOTA XTZ NEO
NEO ZEC TRX
TRX   UNI
UNI   XLM
XLM   XTZ
XRP   YFI
XTZ   ZEC
YFI    
ZEC    

To dig deeper, read eToro's CFD description. We would also recommend reading BrokerChooser's how to invest in Bitcoin 101.

eToro review
Research

3.5
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eToro has good technical analysis tools. There are some analyst recommendations and market sentiment indicators available, but no comprehensive fundamental data.
Pros Cons
Good interactive chart No fundamental data available
Trading ideas No/poor quality news flow
User-friendly
Analyst recommendations

Research is available in 21 languages (the same languages that are available on the web and mobile trading platforms).

Recommendations

For some popular stocks, you can find recommendations, like analyst consensus (buy/hold/sell), average price target, hedge fund sentiment and insider trading sentiment. In some cases, you can also read the analyst reports. Unfortunately, these research features are available only for a limited number of stocks.

eToro review - Research - Recommendation

Fundamental data

Some basic fundamental data on stocks is available on eToro's platform. This includes the profile of the company and some very basic indicators and ratios such as P/E, EPS, dividend yield and beta. No fundamental data is available for asset classes other than stocks. 

You can also sign up for a daily market analysis newsletter, in which you get a useful list of the market highlights. 

Charting

eToro's charting tool is quite good and you can use many, ca. 70 technical indicators. We liked that charts are automatically saved, so you don’t have to waste your time setting up your indicators time and again. On the downside, you can only see the data for the past ca. 6 months, you cannot set a longer time horizon.

eToro review - Research - Charting

News feed

The news feed is not really an official news feed. It is more like a market-themed Twitter feed, showing messages posted by eToro users and analysts. Hashtags (#) are used for themes and dollar signs ($) for assets. We were not a huge fan of this feature, but it certainly adds some social aspect for trading.

 

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eToro review
Customer service

3.3
To find customer service contact information details, visit eToro
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eToro customer service is average: you can reach it on several channels and get quick and relevant answers. On the flip side, you can't reach them on weekends and it's difficult to find the live chat service on the webpage and they are often offline.
Pros Cons
Live chat No phone support
Fast response time No 24/7 support
Relevant answers Live chat is offline quite often

You can contact eToro's customer service via live chat and a web-based ticketing system, where you will get a response by email. It was always quick and reliable when we tested it.

On the flip side, the customer service cannot be reached on the weekends, and it's difficult to find the live chat function on the website as it is hidden in the FAQ section under the 'Help Center' link.

eToro customer service, in theory, is available in all 21 languages the web and mobile trading platforms offer. We tested customer service only in English. 

eToro review - Customer Service

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eToro review
Education

3.5
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eToro's education tools are limited, offering only a demo account and some mediocre videos about investing.
Pros Cons
Demo account Basic educational videos
Intro guide to the platform

To practice, you can use a demo account. Other education tools are not really strong at eToro. There is one short tutorial video on how to use the platform, and some basic educational videos about investing and the financial markets.

You can also sign up to webinars. 

The content discussed is intended for educational purposes only and should not be considered investment advice. 

eToro review - Education

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eToro review
Safety

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eToro is regulated by top-tier financial authorities like the FCA, and ASIC as well as CySEC. However, it is not listed on any stock exchange and does not have a bank parent.
Pros Cons
Majority of clients belong to a top-tier financial authority Does not hold a banking license
Negative balance protection Not listed on stock exchange
Financial information is publicly available

Is eToro regulated?

Yes, it is regulated by the Cyprus Securities and Exchange Commission (CySEC), the UK's Financial Conduct Authority (FCA), and the Australian Securities and Investment Commission (ASIC).

eToro is based in Israel and was founded in 2007.

Is eToro safe?

To be certain, we highly advise that you check two facts:

  • how you are protected, if something goes wrong
  • what the background of the broker is

How you are protected

eToro operates three legal entities and serves customers based on their residency. This matters because the entity you belong to defines the amount of protection you get.

  • Citizens of the United Kingdom can open an account at eToro (UK) Limited and thus they will be protected by the FCA. If eToro becomes insolvent, eToro UK clients can expect to be compensated by the maximum amount of £85,000 guaranteed by the Financial Services Compensation Scheme (FSCS).
  • Australian clients are served by eToro AUS Capital Pty Ltd, ABN 66 612 791 803 AFSL 491139, which is regulated by ASIC, the Australian financial authority. ASIC however does not provide any obligatory investor protection for a pre-set amount
  • Other investors will have their live trading accounts with eToro (Europe) Limited, which is regulated by the Cypriot watchdog, CySEC. The amount of investment protection coverage at eToro Europe is a maximum of €20,000. This threshold is set by the Cypriot Investors Compensation Fund.

All clients onboarded to these three entities above are eligible for eToro's private insurance. It is a £/$€ 1,000,000 insurance for cash, securities, CFDs. It is provided by Lloyd's and is provided if in an event of eToro's insolvency. This is a great addition as not all brokers provide another layer of protection above the regulatory one. Of course, could be withdrawn by eToro at any time.

Here is a handy summary table for easy comparison:

eToro investor protection
Country of clients Protection amount Regulator Legal entity
United Kingdom £85,000 + £1,000,000 Financial Conduct Authority (FCA) eToro (UK) Ltd.
Australia $1,000,000 Australian Securities and Investments Commission (ASIC) eToro AUS Capital Pty Ltd.
Other clients €20,000 + €1,000,000 Cyprus Securities and Exchange Commission (CySEC) eToro (Europe) Ltd.

There is no investor protection for cryptos.

eToro also provides negative balance protection for forex spot and CFD trading, but only for retail clients from the European Union and Australia. Professional clients are not covered with any negative balance protection

For more details, check eToro's Regulation and License page.

Background

eToro was established in 2007. The longer track record a broker has, the more proof we have that it has successfully survived previous financial crises. This means that it has already survived one crisis, which is a good sign. eToro is a privately-owned fintech startup, with owners including venture capital funds like Commerz Ventures Gmbh, the VC arm of Commerzbank, as well as Israeli US, and Chinese investors. eToro is lead by Yoni Assia, its well-known founder and CEO.

In addition, there are financial information publicly available.

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eToro review
Bottom line

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How eToro works? eToro offers zero-commission stock trading. The account opening is swift and seamless. It has a lot of innovative features, like social trading and copying other (successful) traders.

It has some drawbacks, though. Non-trading fees are high and eToro only allows USD accounts, which means that conversion costs on deposits and withdrawals can be high in some cases. Live chat is hard to reach and their educational materials could be better.

So is eToro good? Overall, we would recommend eToro for its social trading feature and zero-commission stock trading.

Risk disclaimer

eToro is a multi-asset platform that offers both investing in stocks and crypto assets as well as trading CFD assets.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Cryptoassets are volatile instruments that can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading crypto assets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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eToro review
FAQ

How does eToro work?

eToro is primarily a CFD and forex broker, but you can also trade with real stocks, ETFs and many cryptocurrencies. It is well-known for its social trading feature, with which you can follow and copy the portfolio of a trader who also trades with eToro.

Who owns eToro?

At the time of this eToro review, it is a privately held company, therefore it is not required to publish its ownership structure. What we know is that eToro does not have any banking parent company (little chance for a bailout in case of bankruptcy), and it is currently operating under two legal names. The well-known founder and CEO of eToro is Yoni Assia.

eToro is funded by venture capitalists. Here are a few of them:

  • Anthemis Group, UK
  • BRM Capital, Israel
  • CommerzVentures GmbH, Germany
  • Cubit Investments, Israel
  • MoneyTime Ventures, USA
  • Ping An, China
  • Spark Capital, USA

Who regulates eToro?

eToro is regulated by financial authorities in Cyprus, the UK and Australia. Corresponding to one of the three entities, eToro operates under:

  • eToro (Europe) Ltd. - Cyprus - is regulated by CySEC (the Cyprus Securities and Exchange Commission) under license # 109/10, for servicing EEA (European Economic Area) member states, and countries outside of it.
  • eToro (UK) Ltd - UK - is regulated by the UK financial authority, the FCA (Financial Conduct Authority).
  • eToro (AUS) Capital Pty Ltd - is regulated by the Australian watchdog, ASIC (Australian Securities and Investments Commission).
  • eToro (USA) LLC. -  this entity is regulated by state regulators only, as it only concerns crypto trading.

How does eToro make money?

eToro makes money through various fees, and the trading services they provide on their website. Although eToro does not make its financial statements public, the main source of revenue for eToro is likely to be:

  • Spreads: Spreads are the gap between the price you and the broker buys/sells at. To put it simply, if an Apple stock costs $100 at market price, eToro will charge $100.1 for it. The difference of $0.1 per CFD is kept by eToro. For further info, read how CFDs work.
  • eToro overnight fee: For this, you need to understand two things, leveraged trades and loans. Leveraged means that you can trade with more money than you actually have. Let's say you want to trade Apple with 1:10 leverage and you have $10. This means that using leverage you can buy $100 worth of Apple with your ten bucks, as the missing $90 will be lent to you by eToro, which will charge you a fee (interest) for this loan.
  • Other non-trading fees: eToro charges fees for several services on their website, which are not directly related to trading, also known as non-trading fees. Some examples of non-trading fees are:
    • Withdrawal fees ($5/transaction): pay to withdraw your money
    • Conversion fees: pay when eToro converts money to fund your account

Can eToro be trusted?

eToro is regulated by CySEC in Cyprus, ASIC in Australia, and the FCA in the UK. This is a good thing. eToro is not listed on any stock exchange, nor does it publish its financial data. Overall, BrokerChooser's view is that eToro is not a scam, but it is not a fully transparent broker either.

How does eToro copy work?

eToro copy, a.k.a. CopyTrader, is a tool for social trading, which works by you copying the trading decisions of other people, or other people copying your trades. You can search for traders and other users, and see how their portfolio has performed historically. Once you found a trader you like, you can copy their trading decisions, which is handled automatically by the platform. You can decide how much money you want to invest in copying another trader, and you can close your investment whenever you wish. If you want, you can also make money by having other traders copy you.

Are eToro profits taxable?

If you make profits by trading on eToro, these can be subject to taxation laws and regulations. This always depends on the country of your origin. For further information about eToro and taxes, we recommend contacting your local tax authority.

Can I use eToro in the USA? Can I use eToro in Canada?

Currently, people from the USA cannot use all features of eToro because US regulation (the SEC) does not allow brokers to provide CFD instruments (eToro is a CFD broker) for US residents. This means no regulated broker will accept retail clients from the USA to trade CFDs, so it is not only eToro that cannot serve US residents in this field. However, crypto trading is available on eToro in the United States only. 

eToro cannot be used by the residents of the following countries:

  • United States of America* (residents and citizens, including its incorporated and unincorporated territories)
  • Afghanistan
  • Albania
  • Bahamas
  • Barbados
  • Belarus
  • Bosnia and Herzegovina
  • Botswana
  • Brunei
  • Burundi
  • Cambodia
  • Canada
  • Chad
  • Congo Republic
  • Crimea Region
  • Cuba
  • Democratic Republic of the Congo
  • Ethiopia
  • Fiji
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Guyana
  • Iran
  • Iraq
  • Jamaica
  • Japan
  • Laos
  • Libya
  • Mali
  • Mauritius
  • Mongolia
  • Montenegro
  • Myanmar
  • Namibia
  • Nicaragua
  • North Korea
  • North Macedonia
  • Pakistan
  • Palau
  • Samoa
  • Serbia
  • Somalia
  • Sri Lanka
  • Sudan
  • Syria
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Uganda
  • Vanuatu
  • Yemen
  • Zimbabwe

*Except for crypto trading.

Below you can find links to all aspects of eToro in this comprehensive collection.

Lower fees, lower costs?

We detailed this in our eToro fees article.

What about the minimum deposit?

Our ultimate guide to the eToro minimum deposit is updated regularly.

How to start your eToro account?

Look no further than our evaluation of the eToro account opening.

How's their trading app?

Here's our expert view after checking the eToro trading app.

Is the quality of customer service satisfactory?

All you need to know about the eToro customer service.

Legit or scam?

Is eToro legit features all the key aspects you need to look at to see if a broker is safe and legit.

Free or premium? Or both?

A glance at actual costs and whether eToro is really free.

Is this broker good for beginners?

We checked it in Is eToro good for beginners.

Should you buy your silver bullets on eToro?

Research for silver bugs in the Silver buy on eToro guide

I want to trade options, are they available at eToro?

We explored the topic in Can you trade options on eToro?
 

eToro: further reading

 

Author of this review

Gergely Korpos

Author of this review

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Gergely Korpos

Co-founder, CPO

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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