eToro was introduced in 2007, this trading platform is one of the market leaders. eToro is best known for offering “zero fees” when buying and selling stocks. Is eToro a reliable online broker? In this article, we have tested this trading platform to provide you a complete and honest opinion.
Who is eToro?
eToro trading platform is one of the market leaders, it was launched in 2007. A pioneer in social copy trading, eToro was founded in Israel in 2007 as a developer of financial trading technology. After launching its first product, it has grown to over 15 million users with an innovative platform that is continuously being developed to grow into one of the largest social networks in the world with customers in more than 170 countries.
eToro may act as a market maker or broker, depending on the eToro entity that manages your account and other elements. Market brokers act as counterparties to trades, while agent brokers pass orders to other market makers for discounts, profit sharing, expanded margins, and commissions.
eToro Review- Pros & Cons
- Data and Transaction Security
- Fast and instant delivery
- Accessible to all types of sellers
- eToro Academy Training Center
- Copy-trading and social trading concept for copying the best traders
- Diverse and rich business assets
- A comfortable and intuitive platform
- Multiple payment options including PayPal
- Demo account to learn
- Very professional customer service
- Transactions cannot be changed or canceled.
- Lost cryptocurrency cannot be recovered
- High spread
eToro is a trading platform regulated by three major financial market regulators worldwide.
- UK Financial Markets Authority (FCA)
- Cyprus Securities and Exchange Commission (CySEC)
- Australian Securities & Investments Commission (ASIC)
It also provides risk management features that allow traders to invest safely.
eToro- Financial Products
eToro is the best overall investment Broker in the UK. Traders can invest in over 2000 stocks available on eToro without paying any fees including Apple Shares have access to eToro. You can trade several CFD in this, it also allows you to buy any kind of traditional shares and ETFs. In eToro minimum deposits start at $50 around 36.26 Euros Overall eToro allows you to buy fractional shares of Facebook rather than whole Facebook shares purchases meaning you can buy facebook shares in fractions. eToro is always the first choice of many investors. This is the direct reason for the popularity of this platform, it has more than 15 million users all over the UK.
This broker offers almost 50 currency pairs for this purpose, This is one of the best forex trading platform. The most popular of which are EUR / USD and EUR / GBP. So we understand why there are so many traders on this exchange platform.
You can trade the following currencies:
- US Dollar
- British Pound
- New Zealand Dollar
- Australian Dollar
- Swiss Franc
The platform provides six commodities to trade:
This exchange offers its users 13 stock indices to trade. These individual stocks reflect the state of a particular sector of the stock market.
An exchange-traded fund (ETF) is a financial product distributed by a specific financial institution to provide stable returns to investors.
eToro offers over 250 ETF trackers. ETFs are also known as trackers, index funds, or exchange-traded funds. ETFs are mutual funds that allow you to invest in the stocks of various companies on the stock market with a single click. However, don’t limit yourself to this, as some also consist of government bonds.
An ETF’s primary job is to track the performance of its benchmarks. In some cases, you use leverage to perform replication, and in other cases, you do the opposite. The latter may be the best-known global stock indices or another index that shows sectoral trends.
List of the best ETFs UK 2021
- SPDR S&P 500 ETF
- iShares Core FTSE 100 Index ETF
- SDPR Gold ETF
- iShares Core US REIT ETF
- SPDR Dow Jones Industrial Average ETF
- Vanguard Short-Term Bond ETF
- Vanguard Growth Index Fund ETF
- FTSE All-World UCITS ETFs
- US Petroleum Funds ETFs
- iShares Core High Dividend ETF
eToro has selected the 26 most popular cryptocurrencies to invest in, allowing you to trade cryptocurrencies in the form of leveraged CFDs or buy them directly and send your tokens to your wallet for free.
Social Trading Review
eToro is the first exchange platform to introduce social trading. The platform has had a social commerce network since 2010. Members of this community have access to the commercial activities of others. Social trading systems work in the simplest way. The platform selects the best performing traders based on their skills and displays their trading skills.
This means that from now on, each trader can follow his own approach, specifying the financial instruments he prefers, success rates, fluctuations in his portfolio, and more.
Copy Trading Review
Therefore, each Popular Investor copied can receive a reward and be equal to 2% of the assets under management. The trade copy feature allows investors to view and copy the activities of key traders on the platform.
This system is useful for beginners who have not yet mastered the trading strategies of the trading platform. They then use the experience of the most successful traders to expand their operating portfolio.
eToro CopyPortfolios is a portfolio management product that can be used to distribute funds across multiple portfolios. There are many wallets available to users with a minimum investment of $2000.
For example, if you invest in CryptoPortfolio, it distributes your money in several cryptocurrencies. This broker determines the amount allocated to each cryptocurrency based on the capitalization of the cryptocurrency.
eToro prides itself on offering transparent and understandable pricing. Rather than charging a complex two-part fee structure like some of its competitors, it monetizes its platform through a spread between the requested price and the requested price.
Fees for stock and CFD ETFs
There are no stock fees if you buy shares with cash without leverage. There are no brokerage fees whether you open or close a position. For stock CFDs and ETFs, only the spread looks like a fee, which is the difference in the sale price of an asset at any given time.
Fees for Indices
Index fees vary by market. Spreads, for example, start at 100 pips at CAC 40 but increase elsewhere.
For currency or foreign exchange fees, only spreads need to be considered, for example, EUR/USD and USD/JPY starting at 1 pip.
Even if there are raw materials, there are no commissions or brokerage fees, only the spread is considered. For example, 5 pips for oil and 45 pips for the spot are very low currencies.
Besides spreads, there are no fees for cryptocurrency trading on eToro. However, in the case of cryptocurrency, it is expressed as a percentage. This difference is 0.75% for Bitcoin, 1.90% for Ethereum, and does not exceed 2% for the most common cryptocurrencies.
Various fees may apply when using your account.
As soon as you withdraw your winnings, the system will charge you €5. So it makes sense to withdraw when the payout is large.
These daily storage fees are charged when traders use leverage. H. 2.9% of sales, 6.4% of purchases. In addition to the escrow fee, there is also a LIBOR fee that represents the interest rate.
If you do not log in for 12 months, you will be charged a monthly dormancy fee of $10.
How can I open an account with eToro?
Opening an eToro account is simple. Follow the steps below to register in almost any country in the world.
- Open an eToro Account
- Create your eToro Profile
- Verify your eToro account
- Deposit the funds
Step 1: Open an eToro Account
First, follow this link to go to the eToro official website. Click the “Sign Up Now” button to bring up the registration page. You will then need to fill out a registration form and indicate the following:
- Your name
- Chosen nickname
- Your email
- Phone number
Step 2: Fill out your profile
We confirm positive comments about eToro as the eToro broker is regulated by the official stock exchange. Because of this, you must complete your profile by answering a series of legal questions. It is to determine your financial situation. For example, you will be prompted to determine the motive for the transaction.
This action limits the risk in any case. At the end of the survey, the exchange will calculate the maximum deposit limit according to the investor profile. From then on, you have the option to fund your account with as little as $50.
Step 3: Verify your account
Although the final step of opening an account is not mandatory, we recommend that you increase the limit on how you can fund your account. This is a three-step verification process.
- First, you need to verify your mobile phone number with the verification code received via SMS.
- Then load the front and back sides of the CRF. Please note that currency exchange sites do not accept minors.
- Finally, you must prove your address by submitting documents such as a minimum three-month bank statement, gas bill, telephone, electricity, or personal income tax assessment.
Step 4: Deposit the funds
To add funds to your account, simply click on the “Deposit” section. This site only accepts deposits in US dollars. This corresponds to the assumption that deposits in other currencies are converted to dollars at the current exchange rate. Therefore, you will need to pay a conversion fee to your business account.
eToro- Available Payment Methods
There are various ways to deposit funds to the eToro exchange. The two most popular methods are still credit cards and PayPal. In addition to these main methods, there are other alternative payment methods such as:
- China UnionPay
- Credit card
- Instant bank transfer
- clama bank
- Fast delivery
- Internet money
- Wire transfer
- Giro Pay
- Western Union
- Perfect money
Deposit processing is similar when withdrawing funds from your eToro account. You can withdraw your winnings by credit card or bank transfer within 1-2 business days.
Is eToro secured?
eToro is considered low risk with an overall confidence score of 92 out of 99. eToro is licensed by two Level 1 regulators (high confidence), one Level 2 regulator (medium confidence), and one Level 3 regulator (low confidence). eToro is licensed by the Australian Securities and Exchange Commission (ASIC) and Financial Conduct Authority (FCA), Tier 1 regulators.
eToro- For Whom
This broker is a great option for beginners. The trading platform is easy to learn and not too complicated. eToro nicely balances useful tools and features on an easy-to-use web platform and mobile trading app. Being good for beginners doesn’t mean making money is easy, but using eToro is easier than with more sophisticated trading platforms. One of the challenges for eToro beginners is doing enough analysis when deciding which investors to copy and looking beyond the absolute returns made by a particular trader.
eToro Trading Education Reviews
This trading platform offers financial education. The importance of the eToro Academy is well known. You can then learn how to trade Forex and all other types of assets with different types of training.
- Live webinar
- Commercial video
- PowerPoint and PDF files
In which countries is eToro available?
eToro serves more than 150 countries worldwide. Certain legal restrictions may result in the withholding of certain products by retailers in certain countries.
eToro Customer Service Reviews
If you have any questions about how this broker works, it’s best to read the FAQ first. You will surely find the answer to your concerns there. The detailed FAQ is organized by topic and filled with important information.
And you need to open a ticket to contact eToro customer service. A representative will contact you and help you find a solution to your problem. Your request will be processed within 48 hours at the latest. It’s still a pity that there is no live chat or phone support. We are still just improving our eToro reviews, so we expect the platform to address this issue in the future.
Can eToro be trusted?
Trusted by over 5 million traders worldwide, eToro is licensed to hold client funds and provide brokerage services in several countries. Following the $10.4 billion mergers, eToro plans to go public on the NASDAQ in the third quarter of 2021. To avoid becoming a victim of scams, you should choose only well-known regulated brokers and eToro is a safe broker.
Factors determining trust in financial services include adequate government licensure, operating history, sufficient financial capital to ensure solvency, and a track record of providing excellent customer service. In all of these areas, eToro has proven to go beyond earning the trust of its customers.
In our opinion, eToro is a suitable platform for both beginners and experienced traders. In fact, this broker has democratized the financial markets. It is ideal for retailers who want to use copy trading to generate investment ideas or very experienced active traders who want to be rewarded for sharing their ideas with other traders.
An easy-to-use platform can be an added advantage for less-experienced traders who need to get their hands on one. However, we do not recommend eToro for active or high volume traders as higher margins and small maximum trade sizes can be limiting factors.
When it comes to social copy trading and cryptocurrency trading, This trading broker will continue to be our first choice in 2022 and won the award for Best Trading Community.
During our testing, we were impressed with the following features:
- Copy transaction
- Popular investor
To be honest, eToro will be the number one trading platform and world leader in social trading in 2022.
Frequently Asked Questions
Can eToro be trusted?
Yes, we would like to mention that the broker is controlled by a world-famous financial institution.
Is eToro available in the UK?
Yes, it is available in the UK. And it is regulated by the Cysec.
Do I pay taxes to my eToro account?
You do not have to pay any taxes when transacting on the eToro platform. Also, opening an account is completely free.
What are the risks of trading eToro?
We must not forget that trading is a financial asset with a risk of loss. When you trade with leverage, you win or lose faster.
What devices is eToro available on?
You can access it through a browser on your computer, smartphone, iPhone, tablet, etc.
How can I trade on eToro?
Trading on eToro is not a miracle or an experience. All you need to do is to open a free trading account and use the financial products available on this platform.
How much money can you make with eToro?
Profits cannot be known in advance on the online trading platform. Your investment strategy should play an important role in your trading. We know that the financial products offered by this broker can bring you cash income.
Does eToro have an app?
The social trading platform has a mobile application that allows you to trade anywhere.