The Israeli broker eToro is an investment company focused on social trading (social investing), which provides financial and copy trading services as part of a wide asset class. The company’s headquarters are in Israel, but its offices are scattered all over the world: Cyprus, the UK, the United States and Australia.
eToro has regulations from local oversight committees in these locations. In Cyprus, the license of the Cyprus Securities & Exchange Commission (CySEC) number 109/10, in the United Kingdom the authorization of the Financial Conduct Authority (FCA) number 7973792, and in Australia the regulation of the Australian Securities and Investments Commission (ASIC) number 491139.
eToro debuted on the market in 2007 under the name RetailFX, as a creation of two brothers – Yoni and Ronen Assia and David Ring. Yoni Assia is still the president of the company, which in 2021 generated revenues of $ 1.2 billion. Valued at $ 8.8 billion in 2022, eToro is undeniably one of the largest retail brokers in the world.
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*eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
eToro Broker – Offer
eToro is a contracts for difference (CFD) broker, but tries to build its offer around a proprietary investment platform, focusing on social investing and copying transactions.
At eToro you can take advantage of the knowledge of millions of users from over 140 countries and follow their trades or become an investor yourself, who will be followed and whose portfolio they will want to replicate.
As part of the Popular Investor program, you can choose investors to suit your needs: depending on how high the risk you want to take and whether you invest in the long or short term.
Here you will find a complete overview of the markets available on eToro.
Social trading offer on eToro (Source: eToro)
eToro copytrading thanks to the CopyTrader service
EToro’s CopyTrader technology is an extension of social trading tools that allows you to automate your trading processes and copy trades from the best. The average annual profit of the most frequently copied investors exceeded 30% (data for 2021).
Details of the Copy Trading offer can be found here.
Copied Investors are paid under the Popular Investor program. If you want to join him and earn money with eToro go to this link.
Forex at eToro
eToro offers access to 49 of the most popular currency pairs. Spreads start at 1 pip.
In the main panel of the platform, the investor can see currency pairs with recent price changes, buy and sell prices as well as moods among other eToro clients regarding the currency pair.
Cryptocurrencies in eToro
Cryptocurrencies in eToro mean access to all the most popular tokens (79 in total) and a portfolio of cryptocurrencies built on the basis of these assets. The platform also offers access to NFT through its proprietary delta platform.
When you buy cryptocurrencies on eToro, you become their owner (so you do not buy CFDs). eToro, on the other hand, charges a single 1% fee which is added to the market price. The prices of digital assets in the case of the platform are based on Bid-Ask spreads, i.e. the differences between the buying and selling prices of assets from orders placed through an internal system resembling a market maker.
When you open a new cryptocurrency position on eToro, you will immediately see a loss in its case. This is because the P / L ratio shown includes the aforementioned 1% purchase fee and then the 1% sales fee you pay when you close your position. Fees are included in the price right away, so you’ll know exactly how much you’ll gain (or lose) when you deduct them.
Commodities
At eToro, you can trade 27 different CFDs on the commodity market, i.e. commodities and raw materials. The offer includes the most popular ones, including gold, silver, oil, etc.
Stocks and indices
EToro offers 19 largest stock exchange indices from around the world, mainly from the American and European markets. When it comes to stocks, the offer includes the largest companies from the US stock exchanges, but also the largest stock exchanges on the Old Continent, or the Hong Kong stock exchange.
Equity investments do not bear any commission (0%), and the broker does not impose transaction limits on investors. Rolling over a position also does not involve additional fees, nor does additional brokerage services.
An equity investor can take advantage of a total of over 3,100 CFDs and real stocks from NYSE, NASDAQ, London, Hong Kong, Frankfurt, Paris, Sydney, Zurich, Stockholm, Madrid and Milan.
Cost of buying stocks (Source: eToro)
ETFs
The ETF group is another extensive category of instruments in the offer of the eToro broker. There are 265 of them in total and these are the most popular instruments: again mainly from the American Wall Street. eToro offers ETFs both as underlying and as CFDs.
eToro Commissions and Fees
The eToro broker offers one type of account for all its users and as mentioned above, when describing the offer of individual instruments, the fees in the vast majority of cases are zero.
Opening and maintaining an account is free, instrument management fees are not charged, and when trading in the stock market, the eToro broker does not charge extra. There are no additional fees associated with the use of CopyTrader or Smart Portfolio.
However, eToro has a list of “other fees” which shows that they charge a commission of $5 on each withdrawal. As broker explains, he does it in order to cover part of the expenses related to international transfers. The minimum withdrawal amount is $30. Platinum, Platinum+ and Diamond members are not subject to any withdrawal fees. These clubs can be joined by investors who have capital on the platform of at least $25,000.
The fee is also charged for inactivity of the user and amounts to $10 a month. It is charged when the investor has not logged into the account for 12 months. However, in order to cover the fee, the eToro broker does not close the position.
Here you will find all information about fees.
Additional fees on eToro (Source: eToro)
The table on exchange fees is also important for investors who do not use dollars.
eToro investment platform
The eToro broker has its own proprietary investment platform, to which you can register by entering your username, e-mail address and password or using your Google and / or Facebook account. Before completing the account details and depositing funds, the platform will operate in the form of an “eToro demo”, allowing you to familiarize yourself with its functionality and all the necessary tools.
The platform is available in many languages, but you have to change it manually from the profile settings. The main screen of the web platform is as follows:
Investment platform (Source: eToro)
Going to the selected instrument, we see basic information about it, the latest news and a simplified chart, as well as other users’ social posts related to the asset. The full chart view, on the other hand, gives you access to drawing tools and technical indicators.
eToro also offers an application for mobile devices, available both from the store for Android and iOS. In addition to the basic eToro application, you can also download the eToro Money application, which is used to store cryptocurrencies and cheaper cash transfers to and from the platform.
eToro Demo
The eToro broker also offers access to a demo version of its platform and account, allowing you to practice investing on an account that is credited with virtual 100,000 dollars.
You can set up a free demo account at eToro in three simple steps by clicking here.
With the demo account, you can invest in over 3,000 markets eToro offers, including stocks, cryptocurrencies, commodities, currencies, indices and ETFs.
eToro reviews
The eToro website contains “real eToro user reviews” posted through the Trustpilot app. Out of a total of over 17,000 reviews, the broker received an average score of 4.3 on a five-point scale, which seems to be a positive result.
In app stores, eToro has an average rating of over 4.1 out of a total of 125,000 reviews.
The broker is considered safe by traders, mainly due to regulations in the most respected financial agencies in the world.
FAQ
Below you will find the most common questions asked by eToro customers.
What fees does eToro charge?
The eToro broker does not charge any additional fees for transactions and deposits. Fees are charged for withdrawals, spreads, rollovers and currency conversions from a currency other than dollars.
Does eToro offer CFD trading?
You can invest in eToro on the basis of underlying assets as well as contracts for difference, i.e. CFDs, in terms of currencies, commodities, indices, stocks, cryptocurrencies and ETFs.
Which stocks are eligible for the zero commission offer?
For clients in the CySEC and FCA regulated region, all stocks are commission free. By contrast, for those regulated by the ASIC, only US stocks. Zero commission only applies when buying stocks without leverage and does not apply to CFDs.
How to copy others on eToro?
eToro offers a CopyTrader feature that allows you to view the activity of professional traders and copy their trades in real time. eToro also offers ready-made investment portfolios that can be copied as part of the Smart Portfolios service.
How much does Copy Trading cost at eToro?
eToro does not charge extra for copy trading, however spreads for trading and transaction fees apply.
Can other users copy me?
If you set up a public profile, other investors will also see your trades. However, if you want others to be able to copy you, you must join the Popular Investor program, which guarantees additional earnings.
Do I buy real stocks when investing on eToro?
Yes, you have the option to buy real shares. However, it is also possible to buy CFDs on stocks.
Does eToro pay dividends?
At eToro, holders of real shares will receive a dividend proportional to the number of shares they hold. Of course, in the event that a given company pays a given dividend.
How can you withdraw funds from the platform?
What is the minimum deposit on eToro?
It is $ 50. However, deposits by bank transfer must be in excess of $500. Business accounts, however, must make the first minimum deposit of $10,000 hole.
