Recommended for investors who want to trade real stocks without commission or copy a professional trader with social trading.
|⚖️ Regulation||FCA (UK), CySEC (Cyprus), ASIC (Australia), BaFin (Germany)|
|💲 Trading commissions||No|
|💲 Inactivity fee charged||Yes | $10 per month|
|💲 Withdrawal fee amount||$5|
|💲 Minimum deposit||$200|
|⏰ Time to open an account||1 day|
|💳 Deposit with credit card||Possible|
|💸 Depositing with electronic wallet||Possible|
|💱 Possible account currencies||EUR, USD, GBP, AUD|
|🕹️ Free & unlimited Demo account||Yes|
|📊 Available Instruments||+4000 | CFD (equity, index, crypto, commodity, forex), Real stocks|
Video content is one of the most wished-for types of content from our website visitors. This is why we include promotional videos or our own video reviews here too.
We rank brokers based on how they compare to our other reviewed brokers. We want to make sure that you understand the fees which may arise, here is a list of what you should consider:
In the following sections, we will present the most relevant fees for eToro. Usually, for most traders, the most important fees are spreads, commissions and financing rates. To give you a better idea of the fees, we also compare eToro’s fees with those of two similar brokers, Markets.com and Capital.com. We selected those brokers as they have a similar offer, profile and fee structure. If you want an in-detail comparison, you can find a eToro alternative here.
In the following comparison chart you will find the spread for opening a trade in the instruments EUR/USD, Apple, Silver and S&P500. Usually the spread is the most important factor for short term trades.
We calculate the actual costs of a trade with the following parameter:
In the following chart, you can check the costs of each trade by hovering or clicking an individual bar. A smaller bar is better, as that indicates a more favourable fee structure of the broker.
We do not publish concrete data about the swap fees, as they are flexible and change daily. However, rest assured as we take a look at the swap fees and compare them internally, which influences the total rating of the fees.
eToro has zero commissions, but they make most of their money from a spread markup. The spread is the price difference between the buy and the sell price of an asset. The spread is variable and changes depending on the liquidity of the instrument you are trying to trade.
eToro has medium non-trading fees; there are charges of $10 per month after one year of inactivity, but simply logging into your account counts as ‘activity.’ In the past, eToro had high withdrawal fees, but they have been lowered to “just” $5. There may be conversion fees or third-party fees when you deposit or withdraw money.
eToro offers commission-free stock and ETF trading. You can even invest in shares with as little as $50 per share, as eToro offers fractional shares. There are no swap fees if you are not using any margin (CFD trades with leverage).
However, long term investments at eToro are not the best choice, as eToro keeps 30% of the dividends paid by US stocks.
In this eToro review, we want to highlight the social trading or so-called copy-trading function at eToro. Beginners can easily copy the trades of professional or more experienced traders to participate in the financial market without any prior knowledge. Copytrading does not come with any extra fees or costs. You still pay the same amount as you would trade or invest the same amount yourself. You can decide between thousands of traders and sort them by performance, risk, investment type or location.
If you think it is too risky to invest in just one person, then CopyPortfolios are the right choice. With copy portfolios you can either invest in something similar to an ETF, where many assets are bundled together.
It is not only possible to copy a single trader, you can also invest in a group of traders to diversify your investments.
On top of private traders offering their knowledge and trading strategy, professional investment firms even offer their services on eToro as well. You can choose between hand-picked investment professionals.
As a market-maker with a webtrader eToro had trouble with a fast and orderly execution in the past. There have been numerous cases where the platform or the trades had issues. The main reason is probably the insane user growth of eToro. From 2018 to 2020, eToro grew by 7.5 million users. In 2021 eToro topped the 20 million user mark. In our experience, this situation got a lot better in recent months. But due to the past events, we gave eToro a slight decrease in the rating.
Overnight interest charges (swap) are lower than most other brokers. Spreads are usually around average for CFD & FX trades, which is okay for heavy traders. If you are mainly trading stocks, you should probably stick to buying without leverage, as there are lower spreads if you don’t do any CFD stock trades. However, this only works for buy positions as sell positions count as CFD trade (even without leverage).
eToro does not offer any spread betting or guaranteed stop loss.
eToro is a safe and trustworthy broker as it has multiple regulations, an external auditor and strict privacy and data security protocols. eToro is listed as a public company under the ticker FTCV (FinTech Acquisition Corp. V Cl A). eToro used a vehicle to get a quicker and less complicated stock listing. eToro still publishes all the regulatory filings necessary, which makes it more transparent than other brokers who are not stock listed.
If you are interested in the multiple entities of eToro, here is a short overview
eToro is trustworthy and not a scam. eToro is on top of the ASIC, FCA, CySEC and BaFin licences regularly audited to comply with stock listing requirements. eToro is fully compatible with PCI Data Security Standards. This means that your funds are only routed through the most secure data environments. eToro encrypts and protects your information with Secure Socket Layers (SSL) and Transport Layer Security (TLS), which is replicated in real-time and backed up daily.
Your money is safe at eToro. But if you are wondering about the unlikely case of a bankruptcy of eToro, there is an investor protection under certain regulations. Whether you are covered by investor protection and to what extent depends on the regulation/legal entity your account is registered with.
If you are unsure about the regulation or entity that you belong to, you can simply get in touch with a support agent. In the case that you have a large trading account, it’s usually a good practice to split it between brokers to minimize any potential risk.
However, eToro has purchased an insurance policy from Lloyd’s of London for its clients’ benefit. The insurance covers claims of Eligible Clients (of eToro (Europe) Ltd., eToro (UK) Ltd. and eToro AUS Capital Limited) suffering losses in the unlikely event of eToro’s insolvency and in case of Event of Misconduct. The insurance covers up to 1 million Euro, GBP or AUD and covers cash, all CFD positions, and securities. Note that cryptoassets trading (non-CFD) is not covered by this insurance.
So far, there have been no public hack incidents at eToro. We also recommend you use a strong password and enable two-factor authentication (2FA) for an extra layer of security. 2FA adds an extra code that will be created dynamically and send to your phone or e-mail. This extra layer of security means that it will be very unlikely that your account will be compromised.
eToro has are zero deposit commissions. All fees incurred by you when transferring money to your account are charged by your bank or payment provider. In addition, Capital.com will handle the conversion of any foreign currency not supported by your chosen payment method.
The following popular payment methods are available at eToro.
eToro has a club system to enhance the trader experience with tailored benefits, personalised services and exclusive access to sponsored sports, financial and cultural events for Club members. Privileges are unlocked according to club level.
Membership in the eToro Club is based on the user’s net worth. Provided you meet the equity requirement, you will automatically be accepted or upgraded. The classification is as follows:
Membership levels are determined by realised equity and not by unrealised equity. Realised equity is calculated using the following formula: The value of all uninvested funds in your account + the original value invested in all open positions, not including the P&L of all open positions.
In the event that your realised equity qualifies you for a tier and open positions in profit cause your unrealised equity to meet the requirements of the next tier, you will not be automatically upgraded until these positions are closed and your realised equity meets the criteria for membership.
You remain a Club Member as long as you meet the equity requirements for a particular tier. In the event that your equity falls below the minimum, your current membership status will remain for a period of three (3) full calendar months.
Opening an account at eToro is straightforward. You can register with your E-Mail & desired password.
Afterwards, you can make your first decision. You can either
There is similar to other CFD & FX brokers, a questionnaire which you have to fill out. It should assess your knowledge of CFD & FX trading and that you are aware of the risks.
By regulation, every new client must go through some basic compliance checks to ensure that you understand the risks of trading and are admitted to trading. When you open an account, you will probably be asked for the following items, so it is good to have them handy:
You will also need to answer a few basic compliance questions to confirm how much trading experience you have. It is therefore best to take at least 10 minutes to complete the account opening process. Although you can explore the demo account immediately, it is important to note that you cannot make any real trading transactions until you have passed compliance, which can take up to several days depending on your situation.
Deleting your eToro account is easy and can be done in the user dashboard, once you are logged in. Simply manoeuvre to Settings → Account and then press the close your account button at the bottom of the page.
eToro only offers their proprietary webtrader and app. There are no other trading platforms and the number of analytic tools are a little more limited than what other platforms offer. But their platform is extremely beginner-friendly and easy to understand. Most beginners do not need any tutorial as most of the functions are self-explaining.
The buying and selling is done via this order mask. There are multiple things you can do:
The downside of having a single webtrader connected to their infrastructure became quite clear in the past. Due to the growth of eToro, the webtrader often faced issues when volatility picked up. In recent months, this situation has improved however.
eToro offers various asset classes and over 3000 different trading instruments. Certain CFD Futures without swap fees are available as well.
These include but are not limited to.
eToro launched its own trading and investing academy in 2021. The best thing about it is that you can access it even without having an eToro account. As of September 2021, the academy is mostly in English, with parts translated into French.
Courses about investing, trading, crypto topics or tutorials about the eToro web platform. You can sort by levels (beginner or advanced) and filter by the type of content (guides, podcasts, webinars, videos)
Service is the biggest negative point at eToro. Due to the strong user growth, the service has fallen by the wayside. There is a dedicated contact person for $10,000+ (previously $5000+) customers, but otherwise, you have to resort to a ticket system, which involves very long waiting times.
There is no public service telephone or contact form/email. Everything is handled via the ticket system. We hope that this will improve in the future, but due to the Corona crisis, the service points were even more sparsely staffed. All in all, our service experience with eToro was rather negative.
We are doing our due diligence on this review, that is why we highlight positive and negative points on every single review. If you want more information on how we write reviews, you can check out our methodology.
The main advantage of eToro is the large selection of tradable products. As the world’s largest social trading platform, new traders whose trading strategies can be copied are added all the time. With more than 18 cryptocurrencies offered, eToro is also very strongly positioned and offers the possibility to buy / hold cryptos without leverage. The same applies to stocks, which can either be bought with leverage (i.e. with financing costs) or without leverage (without financing costs and with dividends). The eToro webtrader is clearly designed and beginner-friendly. The eToro demo account provides an easy entry point for complete trading novices.
The size of eToro has been its biggest weakness in the past several months. Due to the high influx of new customers, eToro lacks the service/support to personally look after each customer. So far, the fees for withdrawals are another negative point. The trading fees could still become cheaper for some trading instruments. The eToro Webtrader is as much a plus as a weakness. With higher volatility, the possibility to trade is often limited. In addition, there is the slow execution of orders and the comparatively poor handling of the chart software.
In summary, eToro is the ideal social trading platform for CFD traders. Due to the large number of traders and followers/copiers, it offers a great opportunity for traders who would like to present their strategy. For trading beginners, copying is also very interesting. Negative aspects are the slightly above-average fees, the withdrawal fees and the poor personal support. All in all, eToro is worth at least a second look due to the huge selection of trading instruments. However, eToro is probably not recommended for heavy traders, as it also lacks suitable trading software.
eToro maintains a competitive trading environment and is the world leader in social trading.
eToro is a regulated broker operating under FCA, CySEC, ASIC and BaFin oversight. As long as there are no changes here, you can consider eToro trustworthy.
eToro is a legit broker operating under FCA, CySEC, ASIC and BaFin oversight. No scam warning has been issued on the regulatory websites. eToro is also stock exchange listed and quite transparent.
No. To date, eToro has not been the victim of a hack and no customer data has been compromised.
The minimum deposit at eToro to open a live account is $200.
eToro offers their proprietary WebTrader and a trading app.
Yes. eToro offers an unlimited demo account for trading beginners or testing purposes.
You can simply close your eToro account in your user dashboard. However, you should withdraw all of your funds before closing it.
About the review author
Andreas is an active investor and trader since early 2014. With his passion for the financial markets, he quickly started writing articles about anything related to stocks. Due to his interest in trading, he quickly advanced to forex and CFD trading as well.
Please give reasons for your comments if you make negative or positive statements. We are not responsible for the accuracy or timeliness of comments. If you, as a provider, feel that comments unfairly reflect badly on you, please send us a contact message with your reasons.
We ask you to read our risk notice and disclaimer carefully before making any investment or action. The analyses provided are for information purposes only and cannot replace an individual discussion with a competent person. Liability for direct and indirect consequences of these proposals is therefore excluded. However, the offers that the user finds on this website are expressly not directed at persons in countries that prohibit the provision or access to the contents posted therein, in particular not to US persons within the meaning of Regulation S of the US Securities Act of 1933.
There is always a relationship between high returns and high risks. Any type of market or trading speculation that could generate unusually high returns is also exposed to high risk. Only excess funds should be exposed to the risk of trading, and anyone who does not have such funds should not participate in trading leveraged products, futures, CFDs and forex products or the like. Trading foreign exchange and futures or CFDs on margin is associated with an enormous risk of loss and therefore not suitable for every investor! We assume no responsibility for any losses or profits. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65-90% 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.
Broker-Rank may contain advertising, sponsored content, paid listings, affiliate links or other forms of monetization. Broker-Rank adheres to the standards of word-of-mouth marketing. We believe in an honest, sincere & transparent presentation. The remuneration received may influence the advertising content, topics or contributions on this website. If available, these contents, advertising spaces or contributions are clearly marked as paid or sponsored contents. Broker-Rank uses affiliate links wherever possible. It is safe to assume that when you click on a link it is an affiliate link. If you click on an affiliate link and make a purchase or registration, we may receive a referral fee. The views and opinions expressed on this website are solely those of the authors. If we claim or appear to be experts in a particular subject or product or service area, we will only support products or services that we believe deserve such support because of our expertise. Any product claims, statistics, offers or other representations about a product or service should be discussed with the respective provider.
Apple, the Apple logo, iPod, iPad, iPod touch and iTunes are trademarks of Apple Inc., registered in the U.S. and other countries. iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.