CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets. Please note that 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. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

Pros
  • Free ETF and stock trading
  • Social trading experience
  • Access to almost 10000 financial instruments
  • Gives access to 26 cryptocurrencies
  • Easy to use
Cons
  • Only one account base currency

14 minutes

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Trading has gone online these days. Different online trading platforms are working to make trading easier for investors. eToro is a well- known name in the market for online trading.

eToro is a famous fintech company established in 2007. It is a social trading platform. It offers different tools for everyday investors interested in doing trading. 

This eToro review has all the necessary information about eToro. So, without any further delay, dig into the article.

What is eToro?

eToro is a social trading platform. The company has offices in Israel, Cyprus, USA Australia and the UK. It offers both simple trading options  and also social trading options. 

As part of social trading, eToro mostly allows its clients to follow the activity of other clients and using their Copytrader system. In other words, you can replicate everything that they do in real life. eToro functions in full transparency display the gains, risks, and portfolio composition for each user. 

For manual traders, eToro provides multiple options to trade such as currencies, stocks, commodities, ETFs, and cryptocurrencies. It provides tools for you to track your investment and its activity.  Moreover, it eToro has a vast deposit methods.

It also has CopyPortfolios, which is a ready-made investment portfolio that contains either top traders of the platform or various financial assets following a market strategy.

For the top performing traders on the platform, they can join eToro popular investor program. The program enable top traders the chance to earn more money if other investors copy them.

This is what users say about eToro:

etoro reviews

How does the Copy system works?

Copy system is consist of two types as following:

CopyTrader Explained

The basic idea of the copytrader tool is simple. You need to choose the trader you wish to copy, decide the amount, and then copy everything they do automatically. 

Important points to consider before Copying:

  • The minimum amount that you can invest in a trader is $200
  • The maximum number of traders that you can copy simultaneously is 100
  • The maximum amount that can be invested in one trader is $2,000,000
  • The minimum amount is $1 for a copied trade.

eToro CopyTrader tutorial

Copyportfolio features

Copyportfolio is an option for long-term double-digit returns. It aggregates several assets or different traders and is optimized by professional machine algorithms.

General portfolio considerations:

  • The minimum investment amount is $2000 (in some cases $1000)
  • The default stop loss is 10%.
  • The weight allocation can change with time.

Copyportfolios tutorial

eToro´s Crypto offering

It offers different formats of trading in cryptocurrencies. Cryptocurrencies are categories by:

Supported cryptocurrencies Coins

eToro cryptocurrencies

Covering top 26 cryptocurrencies, with the ability to buy the real crypto or for those who like to speculate they can easily do it by trading crypto derivatives( CFD’s)

eToro supported cryptocurrencies are as follow:

  • Bitcoin (BTC)
  • Ethereum (ETH
  • XRP
  • LITECOIN (LTC)
  • DASH
  • EOS
  • Bitcoin Cash (BCH)
  • Ethereum classic (ETC)
  • Cardano (ADA)
  • IOTA
  • NEO
  • TRON
  • Binance Coin (BNB)
  • Tezos (XTZ)
  • Chainlink (LINK)
  • Uniswap (UNI)
  • Stellar (XLM)
  • Zcash (ZEC)
  • Dogecoin (Doge)
  • AAVE
  • Compound (COMP)
  • Yearn.Finance (YFI)
  • Decentraland (MANA)
  • Algorand (ALGO)
  • Polygon (MATIC)
  • Basic Attention Token (BAT)

*Owning real cryptos or trading crypto CFD’s varies from one regulation to another with eToro. It might also vary based on the country registration due to different  crypto regulations and guidelines.

eToro coins

Commodity crosses

eToro currency only offers Gold/BTC as CFD, which is a unique pair. The traditional safe-haven gold trading vs the new potential safe haven.

eToro crypto commodities

Crypto Crosses

eToro offers 16 CFD’s cryptos pairs.

eToro crypto crosses

Crypto Currencies

63 different trading pairs crypto-fiat markets for GBP, CHF,NZD, EUR, CAD and some more. In the image below, you can see some of the 63 crypto markets at the platform.

eToro crypto currencies

The social trading platform offers CopyPortfolios which means that you have a basket of several cryptocurrencies that you can invest passively. 

CopyPortfolio, CryptoEqual: 

eToro

This portfolio allocates leading crypto assets from eToro’s asset universe. Each selected asset is weighted equally. The portfolio will be rebalanced at eToro’s discretion, pending market conditions.

CopyPortfolio, Crypto-Currency

eToro

This Copyportfolio offers exposure to Bitcoin and Ethereum based on marketcap dominance.

In addition, it offers exposure to the largest crypto assets by market cap today, Bitcoin and Ethereum. Both assets are allocated in this portfolio according to their respective market caps.

This portfolio provides investors with an easy single-click allocation to the world of crypto through a straightforward allocation weighted according to traditional market approach.

The portfolio will be rebalanced annually, or at eToro’s discretion, pending market conditions.

Social Trading Platform features:

The dominant and main feature of the social trading platform is having the facility of Copytrading and CopyPortfolios. The following attract the retail traders to this unique trading platform. CopyTrading enables the user to assign a portion of their capital for the purpose of copying others. Each trader keeps full control and can even exit positions. Copytrading serves as the success of the social trading platform and its community represents itself as one of the largest online trading platforms. 

Copyportfolio functions the same as copytrading except it allows copy portfolios that are similar to mutual funds or other groups of assets. The eToro investment investment committee handles all the copyportfolios risks and allocations. 

Another feature of eToro is the popular investor program. This program offer an additional revenue stream for social traders who has some solid copiers. This means that popular investors can generate additional income.

The more successful the popular investor is the more likely for him to attract users to allocate their money with him.

As the popular investor asset under management grows, so also his additional income.

To be a successful investor, you must have good consistence gains.

eToro Leverage

When opening a position, leverage refers to borrowing money from a broker.

  • Forex & Currencies –  Leverage is up to 1:30
  • Indices & commodities – Leverage is up to 1:20
  • Stocks– Leverage is up to 1:5
  • ETF – Leverage is up to 1:20
  • Cryptocurrency – Leverage is up to 1:2

Who eToro is best for:

If you looking to gain access to cryptocurrencies, eToro can help you achieve that. With their intuitive and simple interface platform. eToro is outstanding in the trading of social copies and for cryptocurrencies. In addition, eToro offers an easy-to-use web platform and mobile app that is great for casual investors, including beginners.

Alternatives of eToro

eToro is a top-of-the-line trading site with a diverse range of products and features. A few other trading sites with similar products and features are listed below.

Trading Platform Fees Leverage Review Promotion Website
1xtb review Zero commission*
  • Spread from 0.1 pips
Up to 1:500*

Varies per instruments type and client type
  • None Available at this time
2vantagefx Zero commission*
  • Spread from 1 pip
1:30*

Varies per instruments type and client type
  • None Available at this time
3Admiral Markets Review (2) (1) Zero commission*
  • Spread from 0.7 pips
Up to 1:500*

Varies per instruments type and client type
  • It offers 100% bonus and cash back.
  • *It is not applicable for CySEC clients.
4plus500 Zero commission*
  • Spread applies
Up to 1:300*

Varies per instruments type and client type
  • Welcome Bonus* (Only for Australian users)
6Skilling-min Zero commission*
  • Spread from 0.7 pips
Up to 1:500*

Varies per instruments type and client type
  • None Available at this time
7black bull Zero commission*
  • Spread from 0.8 pips
Up to 1:500*

Varies per instruments type and client type
  • None Available at this time
8vantagefx Zero commission*
  • Spread from 1.4 pips
Up to 1:500*

Varies per instruments type and client type
  • 50% Welcome Bonus
5Libertex Commission applies
  • Spread from 0 pips
Up to 1:999*

Varies per instruments type and client type
  • It offers 100% bonus and cash back.
  • *It is not applicable for CySEC clients.

eToro fees:

You can make an account on eToro for free. There is no management fee on stock investment and charges no commission at all. It also doesn’t have any clearance fee. Please see below the breakdown of eToro fees:

For stocks and ETFs, the fee is 0.09%

Commodities, the fee starts from 2 PIPS

Cryptocurrencies, the fee starts from 0.75%

Indices, the fee starts from 100 PIPS

Currencies, the fee starts from 1 PIP

Other fees that can be charged are a $5 withdrawal fee (Waiver for Platinum and above customers)

Conversion fee starts from 50 PIPS (Waiver for Platinum and above customers for Wire transfer)

eToro vs competitors:

There are similar platforms that offer online trading such Robinhood and PrimeXBT. The social trading platform is still the lead among all its competitors.

eToro Minimum deposit

Country Minimum Deposit eToro
Europeeurope $50
USAamerica $50
Australiaaustralia $50
Rest of the worldRest of the world $200
Algeriaalgeria $5000
Israelisrael flag $10000

*After your first deposit, there is a minimum deposit amount of only $50.

The minimum for the following countries is $1000.

Azerbaijan, Bahrain, Cayman Islands, Costa Rica, Dominican Republic, Egypt, French Polynesia, Georgia, Gibraltar, Iceland, India, Isle Of Man, Jersey Island, Jordan, Kazakhstan, Kenya, Kuwait, Lithuania, Morocco, New Zealand, Oman, Palestinian Territory, Qatar, Reunion Island, Saudi Arabia, Senegal, Ukraine

Is eToro legit?

With over 15,000,000 traders from 140 countries and a $162 million funding amount on its platform, eToro social trading platform proves to be one of the top social trading platforms. It expanded its branches to the cryptocurrency sector in 2018 and growing ever since it has been established.  

Moreover, In Europe, it is regulated by the Cyprus Security and exchange commission (CySEC). In addition, eToro U.K. is regulated by the Financial Conduct Authority (FCA). In Australia, it is regulated by (ASIC) Australian Securities and Investments Commission and in the USA it is regulated by FinCEN.

eToro takes transparency seriously and it is a safe and secure platform according to the users.

All the necessary documents are available on the website. So we can proudly call eToro a legitimate platform. 

How does eToro make money?

There are 3 ways through which eToro makes money. Firstly, it is a market maker broker that operates on the STP-NDD hybrid model. That means the platform gets to profit from losing trades although they balance it to make sure no conflict occurs. Secondly through trading spread for cryptocurrencies, commodities, and stocks. Finally, it earns by non-trading fees such as $5 withdrawal fee and $10 inactivity fee. 

Conclusion

eToro is an online trading platform founded in 2007 in Israel and it is a zero-commission and safe broker. It allows investments in stocks, CFDs, currencies pairs, indices, ETFs and commodities. Opening an account is simple and easy. To get started you will need at least $200. It charges no deposit and management fee. You can also access the demo account, to get yourself familiar with zero risks until you decide to invest.

In short, it is a multi-asset platform that comes in 26 different languages. Simply put, eToro social trading platform is the best social trading platform with zero-commission trading. Make sure to understand CFD trading that is certainly not appropriate for all the investors.

eToro FAQ

Is eToro safe?

eToro is reliable and meets the standards of the top financial authorities. eToro is supervised by the federal financial authorities. These include the Financial Conduct Authority (FCA), the CySEC , the US FinCEN , and the Australian Securities and Investments Commission (ASIC)..
 

How can eToro make money without taking a fee from real stocks (securities)?

eToro is able to offer commission free trade options trading because of their success in other revenue channels. Traders over time contribute revenue through the form of commission, spreads, or other fees. Tiny fees collected on millions of trading transactions add up. The flexibility allows zero-commission stock trading without worry.
 

Who can trade equities and ETFs  without paying commissions?

Buying and selling stocks and ETFs without commission is possible.There are a few exceptions. There are free commission stocks and some costs stocks and ETFs. eToro provides trading from 17 different  exchanges. There are several laws that change based on where you are registered from. If you are a customer of eToro AUS Capital Pty Ltd, you are able to trade only with commission free  stocks listed at the NYSE and NASDAQ. If you are a customer under CySEC(Europe) and FCA (UK), opening any stocks from the following 5 exchanges  would be open as a CFD (derivative) . These markets are in Italy, Saudi Arabia, Finland, Denmark, and Norway. If you open a trade from any of the 12 exchanges, you can trade with real stock, and enjoy free commission.
 

Is eToro a commission-free trading site?

In some cases. With that said, eToro does not charge commissions in all situations. This applies when trading among different companies within CySEC, FCA, and ASIC regulations. As far as commissions and fees go, eToro acts just like any other broker.
 

How do I avoid eToro conversion fees?

Only U.S. Dollar accounts are available from eToro. This means that if you wish to avoid the conversion fees then you must deposit in USD and not your local currency.
 

Does eToro pay dividends?

Yes they do. You will receive either a trade credit  trading a stock, ETF, or index that pays a dividend. If you hold a BUY position you will receive your dividend payment.
 

How much does eToro charge?

The eToro commissions are competitive and encouraging. On foreign exchange these are 1 pip, on cryptocurrency they are 0.75 percent, and for real ETF’s and stocks the rate is zero but you must be eligible for the service. .
 

What is the Spread?

All products on the platform will have two prices: one for buy and one for sell.  The spread is the difference between the two prices. The spread will include the broker-commission that you are charged for your trade. As soon as the trade is opened, your BUY price will be the current SELL price, and your selling price will be the current BUY price.
 

What is the eToro Club?

The eToro Club is a loyalty program that offers various services and tools to enhance our clients trading experience.Membership is granted automatically to clients who have a minimum investment of $5,000. There are five levels, starting in Bronze and ending in Diamond. Entry into each level is dependent on your equity and contains added benefits. .
 

What are overnight fees?

An overnight fee – which is similar to a rollover fee – applies if you have an active open position. This is essentially a rental fee for the extra credit you use during the overnight period.Overnight fees are in alignment with industry standard and reflect general market forces.The fee rates vary according to position (BUY or SELL). In certain cases, you can get a refund.
 

Does eToro offer Crypto staking?

Yes they do! Staking with eToro is a process in which users are compensated for holding supported coins for simple rewards. eToro manages the automated staking process for its users. The rewards are more in cryptos, which means that users grow their token holdings, enjoying a similar mechanism to that of earning interest on money.
   

What is eToro CFD?

CFD trading is the buying and selling of contracts for difference, which is called a CFD. CFDs enable people to speculate on financial markets such as stocks, forex, indices, and commodities without having to invest in the underlying asset. Instead, when someone trades a CFD, they are agreeing to exchange the difference in the price of an asset from when the contract is opened to when it is closed. The main benefit of CFD trading is the ability to speculate on price movements in either direction. You make profits when your forecast is correct, and the losses are proportionate to the extent to which your forecast is inaccurate.
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