Intro

eToro is a well-known Israeli fintech company and social trading broker, established in 2007. A social trading platform is a service that lets you copy other people's trades, which can be a useful strategy for beginner traders.

eToro USA LCC does not offer CFDs, only real Crypto assets available.

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 $10
🕖 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

If you want more in-depth information about eToro, check out our detailed review!

eToro offers commission-free stock trading. However, its non-trading fees are high as there are fees for withdrawal and inactivity. Withdrawals can be slow and USD is the only currency you can hold your cash in – this means that conversion costs on your deposits and withdrawals can be high if you use a currency other than USD.

In our experience, the account opening process at eToro is fast and seamless. eToro's platform is intuitive and easy to use even for beginners. It also has innovative features like social trading. Additionally, eToro offers many cryptos to trade as well.

We would recommend eToro for its social trading feature, crypto offering and zero-commission stock trading. We selected eToro as Best broker for cryptos and Best broker for social trading for 2023. Check out the complete list of winners.

If you are unsure what some of these financial terms mean, don't worry, we put together a short glossary at the end of the review for better understanding!

eToro is a multi-asset platform where you can invest in stocks or crypto assets, as well as trade CFDs.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% 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.

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eToro is considered reliable as it is regulated by top-tier financial authorities like the UK's FCA, and Australia’s ASIC, as well as CySEC in Cyprus. We consider being regulated by a top-tier regulator a good sign of safety for investors. However, eToro is not listed on any stock exchange and does not have a bank parent, which weakens its transparency.

eToro Review for Beginners
Fees

Overall, eToro's trading fees are low. The broker offers free stock and ETF trading, while its forex and CFD fees are low. eToro provides zero-commission trading for real stocks. Since May 2020, this is valid for all countries; however, for clients from Australia commission-free trading applies only to US stocks.

Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.

Here is an overview of the fees charged by eToro:

eToro fees snapshot
eToro
US stock fees class Low
EURUSD fees class Low
S&P 500 CFD fees class Low
Europe 50 CFD fees class Average
Inactivity fees class Low
eToro non-trading fees
eToro
Withdrawal fee $5
Deposit fee $0
Inactivity fee Yes
Account fee No

eToro has high non-trading fees, which are charges not directly related to trading, like withdrawal fees or inactivity fees.

  • eToro charges $10 per month after one year of inactivity – however, this is easy to work around, as simply logging into your account counts as an activity.
  • There is also a $5 withdrawal fee.
  • There could be high conversion fees if you deposit or withdraw in a currency other than USD.
  • The required eToro minimum deposit is $50 for most European countries, while for UK and US residents it is only $10. Make sure to check your country, as fees could vary. Note however that the minimum amount for a bank transfer is $500.

Learn about fees in detail in our in-depth review of eToro.

eToro Review for Beginners
Deposit & Withdrawal

Depositing money with eToro is easy. Be aware however, that as only USD accounts are available, you may pay a high conversion fee if you deposit or withdraw in another currency, like EUR or GBP.

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

Deposit and withdrawal options are quite varied: you can choose between bank transfer, credit/debit card or electronic wallets.

eToro Review for Beginners
Safety

Investor protection means that up to a certain limit, you get your money back if the broker goes into bankruptcy or commits fraud. The investor protection amount defines the limit of protection. This can vary from country to country, and also depends on the regulator that oversees the broker.

Investor protection at eToro
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 countries €20,000 + €1,000,000 Cyprus Securities and Exchange Commission (CySEC) eToro (Europe) Ltd.

eToro 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). We at BrokerChooser consider being regulated by a top-tier authority a good sign in terms of safety.

Note that 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.

eToro Review for Beginners
Glossary

Here is a quick glossary to help you with some terms in our review:

Inactivity fee: a fee that is charged when a customer has not done any buying or selling on their brokerage account for a specific amount of time determined by the brokerage.

Deposit fee: this is charged when you send money to your trading account at a broker. The fee may differ depending on the method of transfer (i.e. bank card, bank transfer, e-wallets, etc.).

Withdrawal fee: an amount you need to pay when you withdraw money from your trading account, e.g. to your bank account.

Regulators: these are established by governments or other organizations to oversee the functioning and fairness of financial markets, including markets, exchanges and firms. They also oversee that investors are not fooled by scams, and in case of wrongdoing, they try to provide some level of financial and legal backing.

Investor protection: this means that up to a certain limit, you get your money back if the broker goes into bankruptcy or commits fraud.

Non-trading fees: charges not directly related to trading, such as deposit/withdrawal fees or inactivity fees.

Trading fees: these are charged when you trade; for instance, in the form of a commission, spreads, financing rates, margin rates or a conversion fee.

eToro Review for Beginners
Where to find out more?

If you want to learn more about eToro, go to our detailed review.

Learn how you can open an account at eToro.

See if eToro is good for beginner traders.

Read about eToro’s fees in detail.

Learn more about eToro’s safety features.

You can find out more about investor protection in our dedicated article.

To understand more about CFD trading, go to our expert’s explanation.

In our article on brokerage fees, you can learn what these fees mean and what they entail.

Risk disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Disclaimer: 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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.

Author of this article

Gyula Lencsés, CFA

Author of this article

Gyula Lencsés, CFA has more than 10 years of experience in the financial industry. He spent most of his career in the wealth management business as a portfolio manager of mutual funds. He has a trading experience in a wide range of asset classes, including stocks, ETFs, bonds, commodities, forex and derivatives markets.

Gyula Lencsés, CFA

Head of content

Gyula Lencsés, CFA has more than 10 years of experience in the financial industry. He spent most of his career in the wealth management business as a portfolio manager of mutual funds. He has a trading experience in a wide range of asset classes, including stocks, ETFs, bonds, commodities, forex and derivatives markets.

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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