CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% 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.

eToro

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eToro Review

eToro was established in 2007. Since then it has grown to be one of the leading social trading platforms for major financial markets such as equities, FX, and cryptocurrencies. The effort made by eToro to guarantee that its platform makes online trading accessible to as many individuals as possible is one of the reasons for its popularity.

eToro provides traders with both short and long-term trading alternatives, all of which are accessible through the CopyPortfoliosTM service, which allows traders to create a diversified portfolio. They also offer a variety of trading products with varying levels of risk, as well as a web interface and a mobile app.

Furthermore, eToro has developed the CopyTraderTM technology, which allows users to duplicate the trades of other users, allowing clients to possibly benefit from the aggregate experience of the company’s network of traders. Beginner traders will also receive a series of instructions when they first begin trading online.For instance, eToro provides new traders with a free practice account that allows them to trade online without risking any real money.

eToro is fully regulated by CySEC, the FCA, and ASIC, and has worked with major financial institutions including Russia’s Sberbank and China’s Ping An Group to encourage online trading and financial education in these areas. This content is not applicable to users in the United States.

Pros

  • Segregates client funds
  • Established in 2007
  • Regulated by FCA, CySEC and ASIC
  • Min. deposit from $1

Cons

A minimum deposit of $1 is required for a live account. eToro, on the other hand, provides a free demo account that you may utilize to experiment and familiarize yourself with their platform.

Regulated by the Financial Conduct Authority, UK (FRN: 583263), CySEC (Licence: 109/10), and ASIC (AFSL #491139), eToro client funds are held in a segregated bank account and they work with tier-1 banks.. eToro has been established since 2006, and their head offices are in Cyprus and UK.

Before we get into the specifics of eToro’s spreads, fees, platforms, and trading tools, you might want to open their website in a new tab by clicking the button below to get the most up-to-date information directly from the company.

Visit eToro

Disclosure: If you sign up with a broker through one of our links, we may receive a commission.

What are eToro’s spreads & fees?

eToro, like most brokers, charges a fee based on the spread, or the difference between the bid and ask price of an instrument.

The commissions and minimum spreads shown here are taken from eToro’s website. 

ForexeToroCity IndexXTB
EUR/USD(Average: 0.7 pips)3.0 pips0.1 pips0.6 pips
GBP/USD(Average: 1.1 pips)4.0 pips0.1 pips0.9 pips
USD/JPY(Average: 1.1 pips)2.0 pips0.2 pips0.7 pips
AUD/USD(Average: 0.8 pips)1.0 pips0.2 pips0.6 pips
USD/CHF(Average: 2.3 pips)3.0 pips0.2 pips1.5 pips
USD/CAD(Average: 2.9 pips)3.0 pips0.3 pips1.7 pips
NZD/USD(Average: 3.6 pips)5.0 pips0.3 pips2.0 pips
EUR/GBP(Average: 2.4 pips)4.0 pips0.1 pips0.9 pips

The spreads are variable and are displayed for information purposes.

As you can see, eToro’s minimum EUR/USD spread is 3 pips, which is high when compared to the average EUR/USD spread of 0.70 pips.

The table below compares the costs of trading one lot of EUR/USD with eToro vs. similar brokers.

SEE ALL SPREADS

How much does eToro charge to trade 1 lot of EUR/USD?

You would likely spend $36 if you bought one standard lot of EUR/USD (100k units) with eToro at an exchange rate of 1.1719 and then sold it the next day at the same rate.Here’s a quick rundown of the fees and how they compare to IG and XTB.

eToroIGXTB
Spread from:$ 30.00$ 6.00$ 2.00
Commission:$0.00$0.00$0.00
Total cost of a 100k trade:$ 30.00$ 6.00$ 2.00
$24 less$28 less
VISIT ETOROVISIT IGVISIT XTB

Fees and quotes are displayed for information purposes and could change.

What can you trade with eToro?

Over 1,000 different instruments, including over 47 currency pairs, are available to trade at eToro. Below, we’ve summarized all of eToro’s several types of instruments, as well as the instruments given by IG and XTB for comparison.

FX / CurrencieseToroIGXTB
# of forex pairs offered479048
Major forex pairsYesYesYes
Minor forex pairsYesYesYes
Exotic forex pairsYesYesYes
Cryptocurrencies*YesYesYes
Commodity CFDseToroIGXTB
# of commodities offered63421
MetalsYesYesYes
EnergiesYesYesYes
AgriculturalYesYesYes
Index & Stock CFDseToroIGXTB
# of stocks offered900+80001606
UK sharesYesYesYes
US sharesYesYesYes
German sharesYesYesYes
Japanese sharesYesYesYes
SEE ETORO’S INSTRUMENTSSEE IG’S INSTRUMENTSSEE XTB’S INSTRUMENTS

Visit eToro

What’s the eToro trading experience like?

1) Platforms and apps

eToro provides a user-friendly custom trading platform that can be accessed through a browser.If you’re looking for a MetaTrader broker, check out our MT4 broker comparison.

They offer Android and iOS mobile apps, making it easy to keep track of and execute deals while on the go.

SEE ETORO’S PLATFORMS

Still not sure?

Open a demo account and learn how to trade.

2) Executing Trades

You can trade as little as 25$ trade with eToro. Depending on the account you open, this may differ. eToro allows you to trade up 20% of your equity on a single trade. You can expect tighter spreads and more transparency over the amount you pay to execute your trades because eToro offers STP execution.

Etoro, as a market maker, may have lower entrance criteria than an ECN broker, which benefits from the bigger number of trades and often has higher capital and minimum trading requirements.

Market makers usually offer a lower minimum deposit, fewer minimum trade requirements, and zero commission trading.

Margin requirements vary by trader, account, and instrument, as they do with most brokers. On their website, you may see the most recent margin and leverage details.

We have included a list of some of the most common funding options that eToro provides to its traders.

Trading Features:

  • Offers STP
  • Low min deposit

Accounts offered:

  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account

Funding methods:

  • Credit cards
  • Bank Transfer
  • PayPal
  • Skrill
  • Payoneer
  • Neteller

3) Client support

eToro offers support in many languages like English, German, Spanish, French, and Italian.

4) What you’ll need to open an account with eToro

Because eToro is regulated by the Financial Conduct Authority, ASIC and CySEC, every new client must pass a few simple compliance tests to confirm that you are aware of the risks associated with trading and that you are permitted to trade. You’ll probably be asked for the following information when you register an account:

  • a color copy of your passport, driver’s license, or other government-issued identification
  • a three-month utility bill, bank or credit card statement that shows your current address

You’ll also need to answer a few questions regarding your trading experience, so set aside at least 10 minutes to finish the account opening procedure.

You may be able to explore their platform right away, but you will not be allowed to make any transactions until you pass verification, which depending on the circumstances could take from a few hours up to a few days.

To begin the onboarding process with eToro, you can go to their website.

What is eToro’s Platform?

The eToro platform is a social trading app and an online trading platform rolled into one.

eToro’s social trading platform was created separately from the normal web trading platform in 2011. The CopyTrader was used to automatically duplicate their trades into the followers’ accounts, while the old web trading platform was used to seek for traders to follow.

In 2015, eToro simplified the process of finding and following elite traders, as well as duplicating their moves. The two platforms were combined into a single platform, the eToro Platform, which is still available today via eToro.

The web-based trading platform is based on the JAVA programming language and can be accessed from any computer with an internet connection. There is no need to download it because it is a web-based program. The trader can use any of the common online browsers to access the platform, including Chrome, Mozilla, Firefox, and Internet Explorer.

The website includes a comprehensive set of technical indicators and interactive charts, as well as the ability to trade stock indexes, crude oil, cryptocurrencies, and gold. eToro’s platform is linked to the company’s social trading platform, allowing traders to mimic trades from top traders on the leaderboard.

eToro platform  is a market maker, with trades being executed by a dealing desk.

What mobile apps do eToro offer?

eToro has a mobile trading app for iPhones, iPads, and Android phones and tablets. The app is available for download in the relevant app stores (iTunes and Google Play store).

What is eToro CopyPortfolios?

The eToro CopyPortfolios program is a managed portfolio account system in which traders can simply deposit funds and have a top trader make all trading choices for them.

To participate, a trader only needs to fund their trading account, discover a CopyPortfolios that matches their investment goals and strategy, and click to join the portfolio.

Traders can trade in one of two types of CopyPortfolios: 

  1. Top Trader CopyPortfolios, which are comprised of eToro’s most successful and long-term traders.
  2. Market CopyPortfolios are collections of assets such as stocks, commodities, and exchange-traded funds (ETFs) that are grouped together according to a trading strategy.

Traders have the choice to trade in two types of CopyPortfolios:

  1. Top Trader CopyPortfolios, made up of eToro’s best performing and most sustainable traders.
  2. Market CopyPortfolios where assets comprising stocks, commodities or ETFs are bundled together under a chosen trading strategy. Portfolios for trading cannabis stocks, renewable energy stocks, vegan stocks, self-driving vehicle stocks, CRISPR stocks, and more are available on eToro.

Traders can get a managed portfolio with CopyPortfolios by simply duplicating a CopyPortfolios that makes sense for them.

Frequently asked questions about eToro

The following section contains some relevant information about eToro trading:

Do eToro charge a commission?

eToro does not impose commissions on trades; instead, the spread is marked up. Example eToro trading fees for popular instruments:

1.5% for Bitcoin

5% for Bitcoin cash

0.09% spread per side for Stocks and ETFs

2 pips for Copper

45 pips for gold

3 pips for EUR/USD

6 pips for GBP/JPY

150 pips for UK100

600 pips for DJ30

What are eToro’s trading hours?

From 9pm GMT on Sunday until 9pm GMT on Friday, the eToro platform is open for trading 24 hours a day, 5 days a week (Monday to Friday).

What leverage and margin do eToro offer?

eToro offers the following leverage rates in compliance with ESMA requirements:

  • 30:1 for major currency pairs (such as EUR/USD)
  • 20:1 for non-major currency pairs (such as NZD/USD), gold and major indices
  • 10:1 for commodities with the exception of gold and non-major equity indices
  • 5:1 for CFD stocks
  • 2:1 for cryptocurrency CFD

What’s the minimum and maximum I can trade on eToro?

On eToro, the minimum trade contract size is 1,000 units of the base currency, which corresponds to 0.01 lots for currencies, 10 units for commodities, and 1 unit for stock indices. The maximum contract size that can be traded is unlimited.

What is the market depth offered by eToro?

Because eToro is a market maker they offer only Level I market depth. The eToro platform, on the other hand, allows a trader to see what other traders on the eToro social media platform are doing in the market, and a successful trader’s trades can then be imitated using eToro’s CopyTrader feature.

What risk control features do eToro offer?

Despite the fact that the eToro platform allows traders to alter leverage, the firm currently has a responsible trading policy that limits a trader’s overall market exposure to 50% and sets the following leverage limits:

30:1 for major currency pairs (such as EUR/USD)

20:1 for non-major currency pairs (such as NZD/USD), gold and major indices

10:1 for commodities with the exception of gold and non-major equity indices

5:1 for CFD stocks

2:1 for cryptocurrency CFD

How to trade on eToro

eToro is a social trading platform.

As a result, the eToro Platform’s design differs from most other platforms, which present traders with charts and indicators.

Rather, the user interface appears like follows:

The watchlist can be used to choose the assets that the trader is interested in trading. The watchlist is featured in the screenshot above as part of the trader’s navigation bar.

The watchlist displays the bid and ask prices, a line graph of the asset’s recent price movement, and market sentiment (% of buying and selling interests).

Trading an Asset: What Does the Social Community Say?

A new window appears after an asset is selected for trade.

In the feed section, members of the eToro social trading community express their opinions.

Before making a trading decision, a trader can access the opinions and sentiments of other eToro traders.

By selecting ‘Chart,’ you may see the chart for the selected asset.

The following is an example for the Bitcoin asset (BTC):

You would click the ‘Trade’ button in the top right-hand corner of the screen to make the trade.

eToro is a multi-asset platform that allows you to trade CFD assets as well as invest in equities and cryptoassets.

Please keep in mind that CFDs are sophisticated instruments that have a high risk of losing money quickly due to leverage.

When trading CFDs with this supplier, 75% of retail investor accounts lose money.

You should think about whether you understand how CFDs work and whether you can afford to risk losing all of your money.

Cryptoassets are highly volatile instruments that can move dramatically in a short period of time, making them unsuitable for all investors.

Trading cryptoassets, other than through CFDs, is unregulated and thus not monitored by any EU regulatory framework.

Past performance does not guarantee future results.

eToro USA LLC does not provide CFDs and makes no representations or warranties as to the truth or completeness of the content of this publication, which was created by our partner using publicly available non-entity specific information about eToro.

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