eToro
eToro Review 2024
Secure, regulated, and tested by TradingCraft
Top Rated Broker at TradingCraft
Recommended for Beginners
Quick summary of eToro
eToro is a fantastic option for newcomers, thanks to its intuitive platform and reasonable pricing. It’s especially well-suited for those looking to invest in stocks and ETFs. One of its standout features is the copy-trading function, which truly shines when compared to similar tools offered by other brokers. That said, if you're a short-term trader, you might find the fees for CFDs a bit on the high side.
Just a heads-up: Cryptocurrency trading isn’t available in countries like Denmark, Finland, Norway, and several others. Also, Spain doesn’t offer CFD trading through eToro. Always check the availability of services in your region!
Pros
User-friendly Platform
Social and Copy Trading
Commission-Free Stock and ETF Trading
Cons
Currency Conversion Fees
Withdrawal Fee
Somewhat Limited Customer Support
Account opening at eToro
Score: 5/5
Opening an account at eToro is smooth and quick, with a hassle-free process. The minimum deposit is also fairly low in most countries, making it accessible to a wide range of users.
Pros
Fast
Seamless Onboarding
Low minimum deposit
Cons
Limited Selection of Base Currencies
What is the minimum deposit required to start trading with eToro?
In many countries, you can start investing with a minimum deposit of US $50.
After your first deposit, there is a minimum deposit amount of US $50
(US $10 in the UK; US $1 in the USA).
All deposits via Bank Transfer must be at least US $500.
The amounts above apply to personal accounts only. The minimum first deposit amounts for corporate accounts can be found here.
Country-specific minimum deposits at eToro
Account types
eToro offers two straightforward account options: a live trading account, where you can invest real money, and a demo account, also known as a virtual account.
The XM demo account comes pre-loaded with $100,000 in virtual funds, providing an unlimited time for users to explore the platform, practice strategies, and become familiar with trading tools without financial risk. This feature is ideal for beginners or for testing strategies before moving to live trading.
How to open your account
1 - Head to eToro's website and click on the "Sign Up" button located at the top right corner of the homepage.
2 - You can either sign up using your email address, or you can log in through your Google or Facebook account for faster registration.
3 - You'll need to provide some basic information such as your full name, username, email, and set a password.
4 - Verify Your Account: To ensure compliance with regulations, eToro will ask for a few documents for verification purposes, such as a government-issued ID and proof of address (like a utility bill). This step is crucial for account security and regulatory purposes.
5 - Deposit Funds: Once your account is verified, you can deposit money. eToro accepts a variety of deposit methods, such as credit/debit cards, bank transfers, and PayPal. The minimum deposit required will depend on your country of residence.
6 - Start Trading: After the deposit is processed, you can begin trading with your live account. If you prefer to practice first, you can use the virtual account that comes pre-loaded with $100,000 in virtual funds.
eToro; create account
Fees
Score: 4/5
eToro offers a straightforward fee structure designed to be transparent and easy to understand. With zero commission on stock trades and competitive spreads across other asset classes, eToro aims to provide traders with cost-effective trading options. However, it’s important to be aware of certain fees like withdrawals, inactivity, and currency conversions to avoid surprises.
Pros
Low overall trading fees.
Flat $5 withdrawal fee
No deposit fees
Cons
Inactivity & Withdrawal fees
Currency conversion fees
eToro offers zero commission on ETF trading and no deposit fees. There’s a $5 withdrawal fee and a currency conversion fee for non-USD transactions. An inactivity fee of $10 per month is charged after 12 months of no activity. Overall, the fees are transparent and competitive.
Commission on stocks
A commission fee of $1 or $2 may apply when opening and closing a stock position, depending on your country of residence and the stock exchange on which the asset is traded.
In the table below, you’ll find example prices for stock trading fees in some countries. For a complete list covering all countries and up-to-date fees, check eToro’s fees page.
Fees on Stock Trades
Spread fees
eToro earns from spreads, with varying rates based on the asset. For instance, currency pairs start at 1 pip, while other assets like crypto and commodities have different spread rates.
Spread Fees on Currencies on eToro
Withdrawal Fee
A flat $5 fee is applied for each withdrawal, with a minimum withdrawal limit of $30.
Inactivity Fee
If no login occurs for 12 months, an inactivity fee of $10 per month is charged, only deducted from available funds
Currency Conversion Fees
For most users, it is only possible to hold a USD account on eToro. However, clients in the UK and Europe can hold funds in either GBP or EUR accounts, depending on their region. If you deposit or withdraw in a different currency than your account's base currency, a conversion fee will apply
Additional Fees on eToro
In addition to conversion and withdrawal fees, eToro may charge overnight fees for holding leveraged positions, and the market spread is applied on all trades. While deposits are free, your payment provider might apply its own fees.
For more detailed information, you can visit eToro’s official fees page.
Safety
Score: 4.5/5
eToro ensures a secure trading environment through regulation by top authorities like the FCA and CySEC. With features like two-factor authentication and negative balance protection, it provides strong account safety.
Pros
Strong regulation
Investor protection schemes
Two-Factor Authentication
Cons
No Negative Balance Protection for Professional Clients
Limited protection for cryptocurrencies
eToro’s Regulatory Status
eToro is a well-regulated broker, providing multiple layers of security and investor protection. It operates under the regulation of trusted financial authorities such as the Financial Conduct Authority (FCA) in the UK, Cyprus Securities and Exchange Commission (CySEC) in the EU, and Australian Securities and Investments Commission (ASIC) in Australia. For U.S. clients, eToro USA is regulated by FINRA and SEC, adding an additional layer of security for investors
Is eToro a safe place to trade?
To ensure a brokerage is secure, we recommend verifying some key factors:
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Investor Protection: eToro offers protection schemes like FSCS in the UK and ICF in the EU, ensuring compensation if the broker faces insolvency.
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Regulation: The platform is regulated by major financial authorities, including the FCA, CySEC, and ASIC, providing strong oversight.
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Established Reputation: Founded in 2007, eToro has a long track record and is globally trusted by millions of users across over 100 countries.
The table below outlines the protections eToro offers based on client type and region, including negative balance protection for retail clients in the UK, USA and Australia and all other countries. Note that professional clients and cryptocurrency traders do not receive the same protections.
Country of clients | Protection amount | Regulator | Legal entity |
|---|---|---|---|
United Kingdom | £85,000 | Financial Conduct Authority (FCA) | eToro (UK) Ltd. |
Australia | $1,000,000 | Australian Securities and Investments Commission (ASIC) | eToro AUS Capital Ltd. |
United States | $500,000 ($250,000 cash limit) | Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA) | eToro USA LLC |
Other countries | €20,000 + €1,000,000 | Cyprus Securities and Exchange Commission (CySEC) | eToro (Europe) Ltd. |
eToro also offers negative balance protection for retail clients in the European Union and Australia, ensuring they cannot lose more than their initial investment when trading CFDs. However, professional clients do not have this protection and are exposed to greater risk. Additionally, there is no investor protection for cryptocurrencies, leaving crypto investors without the same safety net as those trading traditional assets
Two-Factor Authentication (2FA)
eToro implements two-factor authentication (2FA) for an extra layer of account security. This requires users to input a verification code sent to their mobile device in addition to their login credentials, significantly reducing the risk of unauthorized access
Encryption and Data Protection
All sensitive information on eToro is safeguarded using SSL encryption technology, ensuring that financial data and personal details remain secure from cyber threats. The platform abides by strict data protection regulations in all jurisdictions where it operates
eToro is a safe and secure broker, with robust regulatory oversight, strong investor protection mechanisms, and advanced security features like 2FA and encryption. For most retail investors, it provides a reliable and secure environment for trading.
Safety Considerations for eToro Users
When it comes to safety on eToro, it’s important to note that cryptocurrencies aren’t covered by compensation schemes, so there’s no protection if issues arise. Additionally, while the platform offers strong security features like two-factor authentication (2FA), it's crucial to enable them for full account protection. Also, negative balance protection isn’t available for professional traders, so risk management is essential for advanced users.
You can read more about eToro's safety features and investor protection here.
Deposit and withdrawal
Score: 3.9/5
Depositing funds on eToro is straightforward, with a variety of payment methods available, including bank transfers, credit cards, and e-wallets. However, there is a $5 withdrawal fee, and since eToro accounts primarily operate in USD, currency conversion fees may apply for transactions in other currencies. Additionally, a $30 minimum withdrawal is required
Pros
No deposit fees
Multiple deposit options
Simple withdrawal process
Cons
Currency conversion fees
$5 withdrawal fee
$30 minimum withdrawal limit
USD is the primary currency
eToro primarily operates in USD for most clients, meaning deposits and withdrawals in other currencies, such as NOK or AUD, are typically converted to USD. However, users in the UK and Europe can now hold accounts in GBP or EUR based on their region, which helps avoid conversion fees for those currencies. For all other currencies, conversion fees apply depending on the method used
Alternatives
To avoid eToro’s currency conversion fees, you can consider converting your currency before depositing. One option is to use a multi-currency bank account from a digital bank like Wise or Revolut, which allows you to hold and exchange currencies at competitive rates. By converting your funds to USD within these accounts, you can deposit in USD directly into eToro, bypassing eToro’s conversion fees.
Another alternative is to use currency conversion services through traditional banks or third-party services like TransferWise, which offer better rates than those applied by eToro for deposits made in non-USD currencies. These options can help you save on conversion costs and give you more control over the exchange rate.
eToro Deposits
eToro does not apply any fees for deposits, regardless of the payment method used.
To deposit money on eToro, users can utilize various methods, including eToro Money.
With eToro Money, users can deposit and hold funds in EUR without any currency conversion fees. They can buy EUR-based assets directly or only convert funds when purchasing USD-based assets, optimizing their currency management.
Additionally, eToro supports various other deposit methods, including bank transfers, credit/debit cards, and e-wallets like PayPal, Skrill, and Neteller, providing flexibility for funding accounts.
Deposits are usually processed instantly, especially for card and e-wallet transactions, while bank transfers may take a few days. It's an easy process, and there are no deposit fees for most methods.
However, keep in mind that currency conversion fees will apply if you're depositing in a currency different from your account’s base currency (USD, GBP, or EUR). For most users, accounts are denominated in USD.
eToro withdrawals
When it comes to withdrawing money from eToro, the platform charges a flat $5 withdrawal fee for each transaction, regardless of the amount. Additionally, there is a minimum withdrawal requirement of $30.
However, for occasional withdrawals, the fee is reasonable compared to competitors.
It’s also important to remember that if your account currency differs from USD, you will incur currency conversion fees. These fees vary by withdrawal method, with eToro applying 50 to 150 pips depending on whether you're using a bank transfer or an e-wallet.
The process of withdrawing funds from eToro is very straightforward and can be completed quickly in just a few steps. Simply log in to your account, select "Withdraw Funds," enter the amount you'd like to withdraw, and choose your payment method.
Usually withdrawals are processed within 1-2 business days. While most methods ensure quick transfers, bank transfers or credit/debit cards, can take up to 10 days for the funds to appear in your account
eToro Mobile app
Score: 4.5/5
The eToro mobile app is available on iOS and Android, offering a seamless and intuitive interface. It allows users to trade various assets, track portfolios, and access real-time market updates. Key features like copy trading and push notifications make it ideal for both beginners and experienced traders
Pros
Improved Usability
Safe
User-Friendly
Cons
Translation Inconsistencies
Our test was conducted on an iPhone 15 running iOS, and we tested the app in both Norwegian and English languages.
The eToro mobile app supports a wide range of languages, making it accessible to users globally. The app is available in English, Spanish, French, Italian, German, Dutch, Chinese (Simplified), Russian, Polish, Portuguese, and Arabic.
Design and experience
The mobile trading platform is incredibly intuitive, making navigation seamless even for beginners. Its sleek design, paired with well-organized features, ensures that users can quickly execute trades, monitor their portfolios, and access real-time data with ease. The platform’s smooth functionality enhances the overall trading experience, whether you’re a seasoned trader or just starting out
eToro - Mobile trading platform English and Norwegian
Security
The eToro mobile platform prioritizes security by implementing several key measures to protect users' data and accounts. It includes two-factor authentication (2FA), which adds an extra layer of security beyond just a password.
Additionally, the app uses SSL encryption to safeguard all personal and financial information during transactions. eToro adheres to strict compliance with international financial regulations, ensuring that user accounts remain protected from fraud and unauthorized access.
Functionality
The mobile app provides full access to key features, such as real-time market data, portfolio tracking, and trading across multiple assets, similar to the desktop platform.
The eToro mobile app offers comprehensive functionality, providing users access to all the essential features available on the desktop version. Users can trade a variety of assets, including stocks, cryptocurrencies, and CFDs, while monitoring their portfolios in real time. Additionally, the app includes advanced tools like charting and technical analysis, enabling traders to conduct in-depth market analysis directly from their mobile devices. This ensures that whether users are beginners or experienced traders, they can make informed decisions on the go
With its sleek interface, the app also allows for seamless copy trading, where users can replicate the trades of experienced investors, making it a highly versatile tool for diverse trading strategies.
Push Notifications
Users can receive real-time alerts and notifications for price changes, market movements, and portfolio updates, allowing for timely decision-making.
Account Management
The app allows users to fully manage their accounts, including depositing and withdrawing funds, checking balances, and accessing customer support when needed
51% of retail CFD accounts lose money
Web trading platform
Score: 4.2/5
The eToro web platform combines ease of use with advanced tools, making it ideal for both beginners and experienced traders. It offers access to stocks, crypto, and CFDs with real-time charts and market analysis, all in a user-friendly, customizable interface.
Pros
Fairly Advanced Trading Tools
User-Friendly Interface
Safe
Cons
Limited Customization
The eToro platform supports a wide range of languages, making it accessible to users globally. The app is available in English, Spanish, French, Italian, German, Dutch, Chinese (Simplified), Russian, Polish, Portuguese, and Arabic
Design and experience
The design and experience of the eToro web platform are highly user-friendly, offering a clean and intuitive layout. While customization options are somewhat limited compared to more advanced platforms, users can still personalize key elements like watchlists, chart settings, and notifications.
The platform is designed for simplicity and ease of use, making it ideal for both beginners and intermediate traders, though more advanced users might find the customization options somewhat restrictive. Overall, it strikes a good balance between functionality and accessibility.
eToro - Web trading platform Home Screen
Security
The eToro web platform prioritizes user safety with features such as two-factor authentication (2FA) and SSL encryption to secure all data and transactions. As the platform operates under the regulation of leading financial authorities, including the FCA, CySEC, and ASIC, users can trust that their data and funds are protected by strict compliance standards.
Functionality
The eToro web platform offers a comprehensive range of assets, including stocks, cryptocurrencies, ETFs, and CFDs. Users can manage portfolios, execute trades, and analyze markets with real-time data, advanced charting and TradingView charts directly on the platform. Social trading features allow users to follow and copy experienced traders, and the platform includes essential tools like risk management and order types, making it accessible for both beginners and seasoned traders.
Notifications
It offers customizable push notifications and email alerts for important events, such as price changes, market movements, and updates on your watchlists. These notifications ensure that traders can respond quickly to significant market events, helping them stay on top of their portfolios.
The system is straightforward to configure, allowing users to tailor the alerts based on their trading preferences and strategies
Customization and Advanced Trading Tools
The eToro web platform offers a good balance of customization and flexibility, allowing users to personalize key features like watchlists and notifications. While not as deeply customizable as some advanced platforms, it still provides essential tools for effective trading.
Additionally, users have access to advanced trading tools, including real-time charting, technical indicators, and risk management features, helping both beginner and experienced traders make informed decisions.
Product Selection on eToro
Score: 3.5/5
eToro offers a diverse range of assets, including stocks, ETFs, cryptocurrencies, forex, and CFDs across various asset classes. With unique features like CopyTrader and Smart Portfolios, users can easily follow successful traders or invest in themed portfolios.
CFDs and Forex
As a primarily CFD and forex broker, eToro provides access to 52 currency pairs and a broad range of CFD options across stocks, indices, commodities, and ETFs. You can trade both long and short positions with leverage, depending on your regulatory region.
Real Stocks and ETFs
eToro allows users to trade real stocks and ETFs without leverage, making them true ownership assets instead of CFDs. The platform supports 17 stock exchanges, including major markets like NASDAQ, NYSE, and the London Stock Exchange.
Real Assets vs. CFDs
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Non-leveraged long positions in stocks, ETFs, and cryptocurrencies are considered real assets. This means that when you buy these without using leverage, you own the actual asset, not a CFD.
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Leveraged long positions, all short positions, and all trades involving forex, commodities, and indices are traded as CFDs.
Cryptocurrencies
eToro offers access to over 100 cryptocurrencies, making it one of the largest crypto offerings available on mainstream trading platforms. You can trade both crypto CFDs and real assets, with the ability to go long or short on positions.
Disclaimer: Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Learn more here
Smart Portfolios and CopyTrader
Two of eToro’s standout features include Smart Portfolios and CopyTrader.
Smart Portfolios
Previously known as CopyPortfolios, Smart Portfolios allow users to invest in thematic portfolios managed by eToro’s algorithms or external partners. These portfolios group together multiple assets—such as stocks, ETFs, cryptocurrencies, or even other traders—based on specific themes or strategies, like renewable energy or crypto markets.
Investing in Smart Portfolios provides a diversified approach, as each portfolio is designed around a clear, predefined strategy. You can monitor performance in real-time, review the asset breakdown, and evaluate the strategy behind each portfolio before investing. The minimum investment for Smart Portfolios is $500, making it accessible for those looking to take a more hands-off approach to their investments
Copy Trader
Disclaimer: Copy Trading does not amount to investment advice. Your investments value may go up or down.Your capital is at risk.
CopyTrader is one of eToro's most innovative features, allowing users to automatically replicate the trades of successful investors. With CopyTrader, you can select a trader to follow based on their past performance, risk score, and trading history. Once you start copying, any trades that the selected investor makes are mirrored in your portfolio in real-time and in proportion to your allocated funds. The minimum amount to copy a trader is $200, and you can copy multiple traders at once to diversify your strategy.
Additionally, you have control over the copy process: you can pause or stop copying, adjust the allocation, and even set a stop-loss to limit potential losses from any copied trades. This makes CopyTrader a flexible tool for users who want to learn from or mimic top-performing traders without needing to manage each individual trade
Copy Trading does not amount to investment advice. Your investments value may go up or down.Your capital is at risk.
Leverage on eToro:
How It Works and What to Know
You have the option to adjust the leverage on various products to suit your risk preferences. This flexibility allows traders to lower or increase leverage depending on their strategy and market conditions.
Manually adjusting leverage is a valuable feature that allows traders to control the risk level of each trade. By lowering the leverage, for example, from 5:1 to 2:1, you significantly reduce your potential exposure to losses, making it a safer option for those who want to mitigate risk, especially in volatile markets like stock CFDs.
However, while reducing leverage can lower risk, it also limits the potential for larger gains. In contrast, higher leverage can amplify profits but equally magnifies losses, making trades riskier. This is particularly true for forex and CFDs, where default leverage levels are set high, and trading with high leverage can lead to substantial losses if the market moves against your position. Therefore, it's essential to find the right balance between potential rewards and the increased risk that comes with higher leverage
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% 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 communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indicator of future results.
Copy Trading does not amount to investment advice. Your investment's value may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Some of this content has been translated and may not be suitable for all recipients. Additionally, certain products may be restricted in your region. Please note that some information might have changed or could be inaccurate. Updates may have occurred since the review was written. Always verify the latest details before making decisions.
FAQ
Is eToro Safe?
Yes, eToro is widely considered safe due to its regulation by several reputable financial authorities around the world. eToro is regulated by the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) in Europe, the US Securities and Exchange Commission (SEC), and the Australian Securities and Investments Commission (ASIC). These regulations help protect users and ensure eToro operates within strict legal frameworks.
Your protection depends on your location:
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UK clients are covered by the FSCS (Financial Services Compensation Scheme), offering protection up to £85,000 in case of insolvency.
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US clients benefit from the SIPC (Securities Investor Protection Corporation), which provides coverage up to $500,000, including $250,000 for cash deposits.
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European clients have coverage up to €20,000 through the Cypriot Investors Compensation Fund.
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Australian clients are regulated by ASIC, although they do not receive investor protection with a guaranteed amount.
Additionally, eToro offers private insurance of up to €/AUD 1 million for select clients, covering cash, securities, and CFDs in the event of eToro's insolvency. This is available for Platinum+ and Diamond Club members of eToro (Europe) Ltd and eToro AUS Capital Ltd.
While eToro is generally considered safe and regulated, some users have noted that the platform may not be 100% transparent in certain areas. It is crucial for users to thoroughly review the platform’s terms, fees, and conditions before trading and to assess whether the services align with their financial needs.
Overall, eToro's strong regulatory oversight and additional private insurance make it a secure platform for users, although the level of protection varies depending on where you are located.
Always exercise caution and perform your own research before making investment decisions.
Can I buy real stocks on eToro?
Yes, you can buy real stocks on eToro, but there are some important details to be aware of. When you open a non-leveraged, long position in a stock, you're buying the real asset and not a CFD (Contract for Difference). This applies to both stocks and ETFs, meaning you own the underlying asset without using leverage.
However, there are some limitations:
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Dividend Tax: eToro applies a 30% withholding tax on dividends from U.S. stocks, which is higher than what many other brokers offer through tax treaties. This can reduce your overall return if you’re focusing on dividends.
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Stock Transfers: eToro does not allow the transfer of stocks to or from other brokers. Any positions you open must be closed within eToro, meaning if you plan to move your investments to another platform, you’ll have to sell the stock, which could incur taxes or timing issues.
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Private Insurance: For higher-tier users (Platinum+ and Diamond members), eToro offers private insurance of up to €1 million in case of insolvency. This insurance covers cash, securities, and CFDs, but it's not available to all users
In summary, eToro allows you to buy real stocks and ETFs with no commission in many countries, making it a good option for short-term trading or active management. However, long-term investors who rely on dividends or require the flexibility to transfer stocks may find other platforms more suitable
Can you buy fractional shares on eToro?
Yes, eToro allows users to buy fractional shares, which means you can purchase a portion of a stock rather than having to buy a full share. This is especially useful when investing in high-value stocks, such as Amazon or Tesla, where the price per share can be quite high. On eToro, you can start investing in fractional shares with as little as $10, depending on your location and the specific asset.
When you buy fractional shares on eToro, you still benefit from proportional dividends and can also exercise voting rights if applicable, although these rights might be limited for smaller, fractional amounts. This flexibility allows you to build a diversified portfolio, even if you have a smaller investment budget.
Keep in mind, however, that you cannot transfer fractional shares to another broker, and any fractional shares held on eToro must be sold if you wish to move to a different platform
In which countries is eToro available?
eToro operates in over 76 countries, including regions in Europe, Asia, Oceania, and the Americas. Some of the key countries where eToro is available include:
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United States
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United Kingdom
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Germany
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France
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Australia
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United Arab Emirates
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Spain
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Brazil
However, there are also countries where eToro is not available due to regulatory restrictions or business decisions. For instance, eToro is not available in:
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Canada
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Japan
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Turkey
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Russia
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India
Additionally, while eToro is available in the United States, it is restricted in some states like New York, Nevada, and Hawaii. It’s important to check your local regulations or eToro’s support page to confirm if the platform is available in your region.
Keep in mind that the availability of certain features, such as cryptocurrency trading or leveraged products, may also vary depending on the country you are in(
For the most up-to-date information, always verify on eToro's support page.