eToro, an Israeli fintech company that also acts as a broker for social trading, was established in 2007. It is a popular choice for its simple-to-use copy trading platform. This allows traders to copy trades made by experienced investors or get perks for sharing trading strategies.
eToro has over 3,000 tradable symbols, which includes CFDs and forex. It also offers exchange-traded securities.
CFDs can be complicated instruments that could lead to rapid loss of money due to leverage. This provider is responsible for 68% of all retail investor accounts losing money trading CFDs. It is important to understand the basics of CFDs and assess your ability to afford to lose your money.
eToro Trading platforms
Mobile Trading Platform
Mobile trading platforms eToro are available for Android and iOS. It was tested with iOS.
It is available in 21 languages, just like the web trading platform.
The mobile platform offers the same functionality as the web platform. It has mobile-specific intuitive functions such as push notifications and good touch interactions. To access charts and open new trades, you can swipe left or right in your portfolio.
The mobile app supports two-factor authentication. However, you will only receive a text message to your phone. Biometric authentication is not available.
Ease of use: The eToro mobile app retains the same look and feel as the web version. This includes useful functions like dark and light modes, synced watchlists, and other features that unify the platform experience across all devices.
Charting: Although the charts are responsive and match the experience on the web platform, only five indicators are available compared to the 67 found on the web. The app is missing drawing tools, which would be a welcome addition to a cleanly designed and well-integrated mobile application.
Cryptocurrency wallet: The eToro Money app, also known as eToro Money is a separate mobile application that allows users to deposit and withdraw actual cryptocurrencies and money. eToroX is the custodian for your crypto assets. The eToro Money Wallet is very similar to the eToro app and supports social trading.
eToro Web Trading Platform
eToro is a well-designed and user-friendly web trading platform that allows for social trading. However, customization is not possible on the platform.
eToro’s platform makes it easy for even beginners to use. You can also access the web trading platform in multiple languages.
The web trading platform’s clean design and many great features are things to look forward to. The buttons and menus you are looking for are available.
The panels are fixed so it is difficult to customise. The exception to this rule is the watchlist. This is very easy to set up.
Login and security: eToro offers a safer, two-step login option. Although it can be more difficult to log in, it will provide you with additional security. A text message will be sent to your mobile phone. Unfortunately, biometric authentication cannot be used.
Search features: The search engine’s built-in search can be used to predict and find the right product. You can search for a company name or product name by entering it. Tickers are also useful for searching.
Orders: Placing orders can be done by anyone. There are four types of orders: Limit, Stop-loss Trailing, Market. It is quite odd that you can’t edit limit orders that are pending. If you have a limit or order for company X, at $20 per share you can cancel it and create a new order in order to change the order to $21 per share.
Notifications: Set price alerts or notifications easily. eToro’s Alert function allows you to be notified when an asset reaches a target price. You also receive a notification when your order has been fulfilled. This is done via a browser notification or an icon update on the web platform. It is a push notification on mobile.
Portfolios and fees reports: You’ll want to see how your portfolio performs and what fees you have paid. You have the option to choose how you would like to view your portfolio reports. A list of assets or a pie diagram showing your current portfolio.
The first time you need to find the fee report, it can be quite difficult. Click on the “Portfolio” tab. Next, go to the “History” section. You can then access your account statement by clicking the settings icon in the upper right. This pdf file contains all of your cash flows and fees. All trades will be visible separately if you follow someone. Fees are not added together, but each trade is listed separately by fee deduction.
Other trading platforms from eToro
eToro’s most innovative feature is the integration of self-directed and copy trading into a single trading experience. It’s a winning combination.
Overview of platforms: The eToro platform is easy to use and simple in design. Basic operations are straightforward and painless. Traders have access to features such as the ability to create watchlists and the option to add instruments by simply searching for available markets. These design characteristics helped eToro to rank Best in Class for the Ease-of-Use and Beginners categories in 2022.
Charting: When you activate eToro’s ProCharts setting, you can bring its full functionality in charting to life. ProCharts includes 66 indicators and 13 drawing tools, as well as the ability to save and select from predefined layouts.
Trading tools: Another innovation from eToro’s platform is the CopyPortfolios feature. This allows trades to be grouped into single funds and can be used for copy trading. CopyPortfolios are a way for passive investors to make use of eToro. They can create a portfolio based on any one or several CopyPortfolios. CopyPortfolios can be used by self-directed traders to diversify their trading. This makes it a useful tool for all eToro clients.
Cryptocurrency tools: eToro customers can search for crypto-trading strategies and copy other traders from the 108 supported pairs. eToroX provides the eToro Mobile wallet application for investors who wish to withdraw underlying cryptocurrency assets from their eToroX account. This app acts as a custodian and has a multi-signature scheme. It closely matches the brand’s forex mobile application.
Copy trading structure: Fully automated trading systems (i.e. eToro does not allow algorithmic trading such as MetaTrader. You can therefore be certain that any trades copied by another trader on eToro are being placed manually. This information is very useful, since many social trading platforms that aggregate performance of traders allow discretionary (manual), trading as well as automatic strategies.
eToro has a minimum trade amount of $10 and a minimum deposit amount of $10 if you use a debit card or connect to your bank account. You can purchase fractional shares of stock with any amount above $10.
eToro Trading and Transaction fees
eToro charges a 1% commission for the purchase or sale of crypto assets through its platforms. There is no commission for stocks or ETF trades. Brokers pay regulatory transaction fees when you are selling a stock. For partial or full transfers, there is a $75 account fee.
More than 30 cryptocurrencies are available for trade on eToro.
Crypto-to-crypto Trading Pairs
U.S. citizens are not able to trade directly crypto-to-crypto. There is a crypto-to-crypto conversion option that Coinbase offers, which is available for Bitcoin Cash, Ethereum, Stellar, Litecoin and Bitcoin Cash.
Digital Wallet Options and Security
eToro offers a digital wallet that can store cryptocurrency for free. It is called eToro wallet and it is available in iOS as well as Android. Converting crypto to fiat currency (which are U.S. Dollars) or vice versa costs 5%. This can be costly for some users, and could reduce any potential profits. Minimum transaction is $125, maximum is $10,000.
Although users can transfer cryptocurrency to their digital wallets from the eToro platform, eToro coins coin transfers are only one-way. This means that any coins transferred cannot be returned to the eToro trading platforms.
eToro’s Android and iOS apps are available and have received mostly positive feedback.
eToro Customer Support
eToro’s standard customer service has limits. It offers only email contact and a support ticket option. eToro Club members have the option to contact customer service via phone or live chat. However, this depends on your club membership level. Members at the Silver level or above can only call to speak with a representative. This requires equity of $5,000 and higher.
eToro, a market-maker broker, lists a typical variable spread at 1 pip on EUR/USD. This is slightly more than the industry average. Retail traders choose eToro not for its spreads but for its social copy trading platform capabilities.
VIP accounts: eToro has a VIP Club (called eToro Club). It offers five tiers of membership, ranging from Silver to Diamond. These tiers are available to traders with balances between $5,000 and $250,000. They offer varying benefits depending upon the level of membership. VIP perks include access to Trading Central, discounted withdrawal and deposit fees, and a dedicated account manager, among other VIP-style perks.
Popular Investor Program: eToro’s Popular Investor Program (for traders who allow others to copy their strategies) has four levels. These levels range from Cadet to Elite and traders can be eligible for various perks. You must have at least $1,000 in account equity and attract $500 in customer assets to copy your strategy. Popular Investors can enjoy spread rebates, monthly payments and even a management charge for elite status.
eToro’s prices for cryptocurrency trading are close to industry averages when it comes to trading physical cryptocurrency. Users pay a fixed fee of 1% for each trade, regardless of whether it is an open or closed position.
Although trading bitcoin is now more expensive than its earlier pricing of 0.75%, eToro has evened the playing field for nearly 200 crypto assets by offering a 1% flat rate commission. This can be very helpful when trading emerging cryptocurrencies which would otherwise have been more costly (on its old fee schedule).
Converting from crypto to cryptocurrency at eToro costs 0.1%, plus the prevailing spreads. The eToroX platform offers lower fees if you solely have interest in trading cryptocurrency. However, it does not offer CFD trading nor the same range of markets as the main eToro platform.
eToro is the No.1 broker for crypto trading, with its vast array of assets (both CFDs as well as the underlying assets). For 2022, eToro is the No. 1 broker in Crypto Trading.
CFD Securities: eToro offers CFD trading, but also zero-dollar commissions for U.S. stock trades (not available to U.S. Investors) and fractional shares.
Pros and Cons
|A majority of clients are members of a high-ranking financial authority||Do not have a banking licence|
|Protection of the negative balance||Stock exchange not listed|
|Financial information is available publicly|
Although the eToro Learning Academy blog offers a lot of videos, articles and weekly webinars each week, the quality and quantity trail educational leaders such as AvaTrade and Saxo Bank.
Learning centre: eToro’s online trading academy offers a variety of videos and articles, arranged by category and level.
Integrated educational tidbits: eToro offers additional details about each symbol on its platform for beginners, such as information regarding trading instruments (such as the EUR/USD currency pairing) and other facts to consider before you invest.
Room for improvement: Although eToro has a good number of videos on their YouTube channel, including archived webinars, market analysis and market analysis videos, it was difficult to differentiate between educational, promotional and research videos. Organising educational content by playlist would allow eToro to separate platform tutorials and financial market education.
How does eToro operate? eToro offers zero-commission stock trading. It is also quick and easy to open an account. You can social trade and copy other successful traders. eToro also offers many cryptos for trading.
However, there are some downsides to this service. There is a $5 withdrawal charge and eToro does not allow USD accounts. This means that conversion costs for deposits and withdrawals may be high if you do not have USD. It is difficult to reach customer support. Their educational materials could have been better.
Is eToro a good platform? We recommend eToro’s social trading features, crypto offer, and zero-commission stock trades. A traditional stockbroker may be more suitable if you are a long-term stockholder. Some of the drawbacks to eToro, such as not applying reduced withholding taxes on dividends in the US, might outweigh any benefits.