eToro Review [2023 Update]

Our full eToro review will help you overcome the daunting prospect of trying to understand if eToro is a scam or not. Online trading can be daunting for first-time and amateur traders, given the numerous factors that require consideration. Primarily, making good investments and trades means finding the right broker that lets you flourish. However, choosing a broker can be tough, with so many available to pick from. Before you make an account with just any broker, it’s recommended that you look into their reviews.

That is why this eToro review will cover everything you need to know and guide you through the process. We have listed all the benefits of using this broker as well as the possible shortcomings. This eToro review will include the fees of the broker, and the security traders can expect. We will answer any questions regarding their availability in different countries and much more. 

Who Are eToro?

In 2006, eToro was founded in Tel Aviv, Israel. This online trading platform allows traders to participate in a variety of different copy trading and financial services. As a broker, eToro has become renowned as a leader in social trading. 

You can trade in commodities, forex, cryptocurrencies, indices, and stocks on this platform. Along with copy trading, eToro has also released the eToro OpenBook in 2010 for social investment. 

They have a convenient Android app that lets you purchase and sells through your mobiles. As of 2018, users can also use eToro’s cryptocurrency wallet for Android and iOS.

This company has raised $31.5 million between 2007 and 2013 through 4 different rounds of funding. They raised an additional amount of $100 million in 2018 from private funding. In total, eToro has raised over $162 million in investments. Investment firms like SBI Holdings, Spark Capital, CommerzVentures, China Minsheng Financial, and Korea Investment Partners has invested in eToro. 

eToro has been continuously growing since its inception. By the end of 2017, they had 8 million open accounts on the platform. They are available in multiple countries, and their trade through cryptocurrencies makes them very popular. 

eToro also has a non-profit community project called GoodDollar that seeks to decrease wealth inequality around the globe. 

Who Founded eToro?

No eToro review would be complete without detailing the founders. eToro was founded by two brothers, Ronnen and Yoni (Jonathan) Assia, as well as David Ring. Yoni Assia serves as the CEO of the company, while Ronnen Assia is the Chief Product Officer. David Ring is the Chairman of eToro USA. 

Benefits Of Trading With eToro

While multiple platforms exist for Bitcoin and CFD trading, eToro is one of the only platforms that allows both. Users can be assured of the quality of eToro’s products as well. These are not only fun to use but also thoughtfully designed. 

our eToro review found that they kept up with newer trading patterns of investment in cryptocurrencies. This is something that many trading platforms haven’t been able to execute. Their unique social trading features are another addition that revolutionizes your trading experience. This means that users with any kind of trading knowledge can enjoy trading and learn as they go along. 

eToro allows successful traders to be copied with their consent as long as they follow risk-control rules. Retail trading accounts can similarly make their trades and frame trading strategies. This happens in real-time and allows for dynamic trading. However, keep in mind that copy-trading does not come with any guarantees. There is a stop-loss level option that allows users to reduce the risk of losses when they copy-trade. 

With a fee ranging from $200 to $500,000, you can copy any user you like. At one time, you can simultaneously copy 100 traders. You don’t necessarily have to use copy trading to participate in social trading. Users can also spectate millions of other traders, their stats, portfolios, and risk scores. Keep in mind that U.S. traders can only copy trade other U.S. traders, although they can view any public profile.

U.S. customers can also trade in over 15 cryptocurrencies. This includes well-known names like Ethereum, Bitcoin, Ripple, and more. 

Their user-friendly website and mobile app are more or less identical. Users can trade on the go from any location on their phones. 

What You Should Know About Trading With eToro

eToro is a popular online platform that has made its name in the field. They have always complied with the regulation and expanded greatly in just a few short years. They offer multiple trading methods and special features at lower rates than most companies.

You can start trading with just a minimum deposit of $200. This is a decent value to start with for beginners. Users can make a deposit of up to $2000 to trade with if they have a standard account. Your account will have to be authenticated through ID and proof of residence. Once this is done, you can deposit much larger amounts without any constraints. 

Users can expect safe trading on eToro no matter what they trade with. Not only is your financial information kept safe thanks to eToro’s privacy policy, but trades are also fair and authentic.  

eToro is available all over the world and provides quality service everywhere they have customers. There are only a select few countries where eToro is not available. Traders in the following countries cannot open or use an eToro account:

• Turkey
• Iran
• Japan
• North Korea
• Brazil
• Syria
• Sudan
• Cuba

Is eToro Safe To Trade With?

eToro is regulated by several bodies like CySEC, FCA, and ASIC. These bodies have rules that mandate that trading platforms have measures in place to keep investor’s resources secured. This means that eToro users don’t need to worry about their money as it is segregated and safely kept in established banks. SSL encryption secures every user’s private information as well. 

You can avail of an option for Two Factor Authentications (2FA) on eToro for heightened safety. An SMS with the verification code will be sent to your phone. You will be required to enter this code to log into your account. 

Another concern with financial brokers with regards to safety might be manipulation of trading. This is highly disadvantageous to users on those platforms. However, this is more prevalent in the case of Market Maker brokers who compete with users on the platform. 

Fortunately, eToro is an STP (Straight-Through-Processing) broker with an NDA (No Dealing Desk) system. This means that there is no possibility of tricking traders by changing prices at the last minute. Since users are directly connected with the market in real-time, their security is assured.

Pro’s & Cons Of Trading With eToro

Every online trading platform will have some ups and downs. This eToro review covers both the pros and cons you need to know before you make an account. A comparative analysis can put things into perspective so that you are aware of what to expect. 

eToro Review – Regulation And Licensing In More Detail

Multiple international and national bodies govern the functioning of eToro. The regulatory body in charge differs depending on where you are trading.

In Europe, eToro is regulated as per international directives on client security and company operations. 

In the UK, the Financial Conduct Authority (FCA) monitors this trading platform. 

In Cyprus, the Cyprus Securities and Exchange Commission (CySEC) regulates eToro. CySEC is also licensed for brokering currencies and derivatives in Australia. 

The Markets in Financial Instruments Directive (MiFID) regulates eToro’s operations in both the UK and Europe. 

In the US, Tradonomi LLC owns eToro. Tradonomi LLC is registered as an associate of the NFA and comes under the CFTC. 

eToro, as a company, has a strong set of rules for ensuring fair trading on its platform. For data encryption purposes, it provides an industry-standard secure socket layer (SSL). 

As per the company’s privacy regulations, customer data is never to be shared with any other institutions or individuals. This includes credit history and other financial details. 

eToro Review – Awards

eToro is an award winning broker that was one of the first visual FX trading platforms. Their financial products are visualized for traders to easily grasp what they are trading in. 

They also became the world’s first social trading platform in 2010 when they launched their Openbook tool.

In 2011, eToro was awarded the Best Social Trading Network by the World Finance Awards. They were also selected as the Best Trading Software Provider and the Best Mobile Trading Platform. The World Finance Awards are a reliable body in this regard. They aim to give out awards to the best organizations in the business and finance world.

Over 40,000 decision-makers from the industry voted for eToro in these categories, proving their popularity and worth. 

eToro Review – Commission And Fees Explained

eToro is an online brokerage platform, and most online brokerages charge lower fees than traditional brokerages tend to charge. The reason for this is that the businesses of online brokerages are scaled much better. That is, an online broker isn’t necessarily affected by the number of clients they have. 

However, this does not mean that online brokers do not charge any fees. They charge fees of varying rates for various services to make money. There are mainly three types of fees for this purpose. 

The first kind of charges to look out for are trading fees. When you make an actual trade, like buying a stock or an ETF, you are charged trading fees. In such cases, you are paying a spread, financing rate, or a commission. The kinds of trading fees and the rates differ from broker to broker. 

Commissions can be fixed or dependent on the traded volume. On the other hand, a spread refers to the difference between the buying and selling price. Financing or overnight rates are those who are charged when you hold a leveraged position for longer than a day. 

Apart from trading fees, online brokers also charge non-trading fees. These are dependent on the actions you undertake in your account. They are charged for operations like depositing money, not trading for long periods, or withdrawals. 

In general, eToro does not charge high fees in comparison to other online brokers. For operations other brokers charge for, they either do not charge a brokerage fee, or they charge a smaller amount. This is beneficial for those who often trade, such as weekly or daily trading. 

However, non-trading fees charged by eToro are relatively higher. As a result, you are charged more for non-trading activities in your trading account, like deposits and withdrawal. These are not related to the purchase and sale of assets. 

This eToro review breaks down each of the relevant non-trading fees for you in detail. 

eToro Review – Minimum Deposit

The minimum deposit you need to get started on eToro is $200. This is a decent amount for those just starting out. You can make more advanced deposits as you go along. However, ensure that you know how to make the most of your money before investing larger amounts. 

eToro Review – Withdrawal Fees Explained

eToro charges a fixed withdrawal fee of $5 when you make a bank transfer. Every time you transfer money back into your bank account, these withdrawal fees become applicable. Whether this is considered a high or low amount for withdrawal is determined by how much money you are transferring at a time. 

Withdrawal of money is possible at any time from your eToro account. You can withdraw sums up to the amount of your account balance, keeping aside the margin used. One thing to keep in mind is that you don’t necessarily need to have any money in your account. 

Moreover, the withdrawn money will be transferred directly to the account you use to make deposits. Thus, if you used a credit card for deposits, the withdrawn money will be sent to the card. eToro will ask you to provide other withdrawal methods in case your details have changed since your deposit.

The minimum withdrawal amount is $30, and the flat fee of $5 will be charged during all such transactions. In case you are withdrawing money in different currencies from USD, a conversion fee is also applicable. The conversion fee will depend on the currency you are choosing to withdraw in. 

Additionally, some withdrawal methods are treated on a priority basis. Withdrawing money onto a credit card happens faster. This is followed by transfers to PayPal accounts. Lastly, withdrawals to bank accounts take the longest. 

eToro Review – Inactivity Fees Explained

eToro charges relatively low inactivity fees if you haven’t traded on the platform for some time. You will be charged an inactivity fee after one year of inactivity. The fee charged amounts to $10 per month after a year passes. 

If you strategize your trading accordingly, you can avoid inactivity fees altogether. Although these are low, they are still detrimental for buy and hold investors. 

eToro Review – Deposit Fees Explained

When you transfer money into your trading account from your bank account, a deposit fee is charged. Most brokers do not charge too much money for this operation. eToro takes this to the next level by charging 0 deposit fees no matter the amount.

Depositing money on the eToro trading platform is simple and free. You just need to finish a single-user profile questionnaire to begin depositing amounts up to $2000. You will have to give an identity proof and proof of residency to deposit large sums. There are no additional deposit fees for this either, and you can deposit through the following channels:

• Webmoney
• Credit/Debit Card
• PayPal
• Skrill
• Bank Transfer
• Neteller

What Can You Trade With eToro

eToro is a broker that allows you to trade with versatile financial assets from multiple categories. These include stocks, crypto assets, indices, currencies, and ETFs. Depending on which asset category you trade with, your investment strategy will differ. 

eToro Review – Stocks

If you’re interested in medium to long term investments, eToro offers to trade in stocks. There are plenty of options in the stock market for traders to look into. Differing market circumstances can influence the rising or depreciation in the value of any stock. Things like product launches, competitor’s stock, press publicity, earnings reports, and so on are some determinants. 

When a company receives profits, shareholders are often given dividends at a fixed rate per share. You can buy stocks on eToro by opening a BUY (long), non-leveraged position. This entails that you are investing in underlying assets. The stock will accordingly be bought and kept in your name.

Another option available on eToro is CFD trading. This involves opening a SELL (short) position. This entails using leverage and purchasing fractional shares. By using the eToro platform, you will be able to invest less in stocks that actually cost more.

eToro has some popular stocks from companies like Google, Amazon, Tesla, Apple, and Facebook. 

eToro Review – Crypto assets

Crypto assets have become exceedingly popular lately. These include big names like Ethereum and Bitcoin. Many traders prefer trading in cryptocurrencies because of their relevance in the market.

eToro has a growing number of cryptocurrencies available on its platform. Additionally, they have a one of a kind CryptoPortfolio investment strategy. This allows traders to gain exposure to the market and is overseen by eToro’s investment committee. 

Keep in mind that Crypto assets are usually highly volatile to trade with. In 24 hours, you can commonly witness a double-digit percentage fluctuation. Usually, the benchmark in the cryptocurrency market is the original Bitcoin. It is still the largest crypto, and other crypto assets are seen to move in the direction Bitcoin sets out. 

Investing in crypto assets on eToro entails an investment in the underlying assets. The crypto you buy will be kept in your name by eToro. Traders of crypto-assets do not have leverage. Additionally, the sale and purchase of crypto are not regulated, and there is no investor protection offered. 

Although long (BUY) crypto assets are unregulated, SELL (short) positions opened for crypto asset trading involve using CFDs.

 These are regulated as per FCA and CySEC standards. 

eToro offers investment in Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), XRP, and Cardano (ADA), among many others. 

eToro Review – Commodities

Commodity trade is one of the oldest and most established forms of trading. These are different from other forms of trading since they are part of the physical trading of items. Commodities include oil, energy resources, precious metals such as gold, and so on. Commodities are real-world items and accordingly impacted by real-world situations. This includes a drop in prices if there is a surplus of the commodity. 

Depending on the commodity, your investment might be more or less secure. That is, some commodities are more stable than others. 

On eToro, users can only trade commodities as CFDs. The underlying asset does not need to be bought for you to trade with them. These are leveraged trades and entail fractional ownership. Unlike traditional trading, on eToro, you can invest lesser amounts in commodities than they would actually cost. 

eToro allows you to trade with some popular commodities like Platinum, natural gas, oil, silver, and gold. 

eToro Review – Currencies

The foreign currency exchange market is the largest marketplace in the world. More than $5 trillion is traded daily. However, this market is also highly volatile and can change in just a few seconds. 

Currency traders are active, given the dynamism of this particular market. Deals are often opened and closed in just a matter of minutes. Movements in currency are tracked in pips, which are a small unit. These require much greater capital to actually result in substantial profit. 

As a result, currencies are usually offered as leveraged transactions on most trading platforms. They have a fixed ratio. However, leveraging has certain losses as well. Although you can make investments with lesser expenditure, losses are also leveraged. 

Currencies are impacted by several factors that might depend on interest rates of central banks, national export, and so on. 

On eToro, currencies are only traded as CFDs. This means that you won’t be purchasing the underlying asset in order to trade. You can open a SELL (short) position and partake in leveraged trading. This is possible even for those assets that don’t offer this option in traditional trading. 

A few popular currencies on eToro are USD/JPY, GBP/USD, EUR/USD, USD/CAD, and AUD/USD, etc. 

eToro Review – ETFs

ETF is Exchange-Traded Fund and comprises multiple assets together to act as a single tradable entity. Depending on the ETF, market strategies will differ. Strategies or indexes are designed to correspond with hedging requirements of certain financial institutes or to afford low-risk options for investing. 

Financial institutions employ experts to create ETFs to make each entity suitable for a specific goal. Assets in this kind of fund are owned by those who create the ETF. Much like stocks, dividends are shared with investors on a timely basis. 

These are usually a long-term investment and are meant to be low-risk for generating steady profit with time. 

On eToro, you can invest in ETFs by opening a BUY (long) position, which will be unleveraged. You will be investing in the underlying asset as a result. The ETF will be bought and kept in your name. 

Another option is to use CFD trading on eToro to open SELL (short) positions. This way, you can buy fractional shares and use leverage accordingly. You will be investing less for assets that cost much more. 

A few popular ETFs on eToro include VXXB, QQQ, SPY, HMMJ, and TLT. 

eToro Review – Indices

An index or multiple indices tell you the position of a certain part of a market. Any major stock market will have one or more indices. They usually have higher stability than individual stocks. This is because they include numerous assets that balance out rises and depreciations. That is, while one stock may fall, the competitor stock will rise. An index will thus remain balanced overall. 

Varying stocks from companies of different market caps and sizes will impact the index differently. Some companies have a greater impact than others. A larger company could influence the value of the whole index with a rise or depreciation in stock price. 

On eToro, you can trade with indices as CFDs. This means that indices are not direct investments as financial assets. You will be able to open SELL (short) as well as BUY (long) positions. With a SELL (short) position, you will be partaking in leveraged trading. 

Some of eToro’s popular indices are FRA40, NSDQ100, GER30, SPX500, and DJ30. 

What Accounts Do eToro Offer?

eToro is a trading platform that offers three different kinds of accounts, depending on your purpose. These are 3 live trading accounts that you can actively use, in addition to their demo mode.

eToro Review – Retail Account 

Retail clients are non-professional clients who are trading on their own. You require a minimum deposit of $200 for a Retail account. With this account, traders will have access to multiple financial instruments. 

Retail Clients can trade through Copy Trade as per their choice or through manual trading. They will have access to all of eToro’s trading assets for this purpose. Although leverage is limited to this kind of trading account, there are some kinds of protection offered. 

Retail Clients are protected by coverage by the Investor Compensation Fund. They are also protected under the Financial Ombudsman Service. Additionally, they receive margin closeout restrictions and have negative balance protection. 

eToro Review – Professional Account 

A Professional account on eToro is meant for those professional traders who have passed a test. This test is meant to scope out their qualifications as a professional client. It is only after certain criteria are met that traders can be approved for this account. 

The minimum deposit is again $200. However, there is a leverage of up to 1:4000 for certain financial instruments. Professional clients will get a waiver on selected ESMA protections. This includes Investor Compensation Funds as well as recourse to Financial Ombudsman Service. You are also given a reduction in margin rates as a Professional client. 

In the case of a negative balance, Professional clients will continue to be protected. Much like Retail accounts, Professional clients will have their equity reset to zero. This means that eToro will absorb the losses. 

eToro Review – Islamic Account

Apart from the two standard live accounts, eToro also has an Islamic account option. This requires a minimum deposit of $1000 to begin with.

The rules of trading under the Islamic account are framed by eToro in accordance with the Islamic faith. Since charging interest is usurious, this aspect is eliminated through the Islamic account. There is no Riba in the case of an Islamic account as long as the contract persists. 

That means that traders must buy and sell immediately without waiting for open positions to be rolled over. Currencies must be directly transferred into accounts from sellers to buyers and vice versa. Whatever the cost of the trade, it should be paid without any delays. Most importantly, no interest should be charged on trade. 

In the case of usurious intent, contracts will be held invalidated. 

eToro Review – Can I Try eToro Before I Buy?

Given how overwhelming trading might be for beginners, a trail run is always preferred. You can gain trading skills and experience by trading in risk-free environments before using a live account. Most brokers offer demo accounts for this purpose so that even those without prior knowledge can try their hand. 

eToro also offers a demo account that you can use before partaking in a live trade. A demo account is beneficial since you won’t risk losing any money irrespective of how you trade. Additionally, you will have every freedom to trade with the use of virtual money. Over time, you will be able to develop successful trading strategies that you can use in real-time. 

Another great advantage of eToro’s demo account is for advanced traders to try out the platform. You can explore what this broker has to offer before you start buying with a live account. 

Keep in mind that eToro does not have a separate demo account. When a trader signs up on the platform, they have a single account. This account gives them the option of switching between ‘virtual’ and ‘live’ modes of trading. The virtual mode is the demo version of the account. 

Thanks to this convenient design, users don’t need to separately convert their demo accounts to live ones. They can simply switch modes once they are comfortable with the way the platform works. 

eToro Review – Funding & Withdrawal Methods

When it comes to trading, adding, and withdrawal of funds is an essential aspect to consider. Different platforms offer varying methods of funding and withdrawal. Before deciding to perform any such action, you must be sure about the policies of that specific website.

Funding at eToro is a hassle-free process. Login to your account, choose the option of ‘deposit funds,’ and select your preferred mode of payment. It is that easy. Moreover, eToro uses Secure Socket Layer (SSL) features to ensure the safety of your transactions.

eToro recognizes the needs of its users and offers multiple payment methods, most of which are available for every country. Options like credit and debit cards, along with wire transfer, are available all around the globe without any limitations.

A few of the options are limited to some specific countries. Paypal, Skrill, and Neteller, though international, are not present everywhere. There is yet another category of funding methods that are offered only to specific countries. This includes Online Banking, Rapid Transfer, iDeal, and Sofort Banking.

Note: Every deposit that you make must be equal to $50 or more except through wire transfer ($500 or more). Furthermore, the required amount for the first time deposit may vary according to your country.

The withdrawal process is as simple as the deposit. The only difference here is that it may take several days for the transaction. If you choose wire transfer, credit, or debit card, you will have to wait for 3-8 business days. Online Banking, Neteller, Paypal, and Skrill transactions will only take 1-2 days for the transfer of your funds.

Note: Every time you perform this action, a fee of $5 will be charged. Additionally, if you want your money in a currency other than USD, you will need to pay an extra conversion fee.

How Can I Start Trading with eToro?

eToro has made its processes simple and easy to provide a smooth trading experience for all its users. The website is very informative, offering you a number of tips and answering all your trading questions. The eToro review further explains each step in detail for your complete understanding.

So, your first step at eToro will be creating an account. Once you open the eToro website, here’s what you need to do.

Step 1: Click on the ‘Join Now’ or ‘Trade Now’ button.

Step 2: You will be prompted to fill an electronic form. Enter all your details carefully and thoroughly read eToro’s terms and conditions along with privacy policy.

Step 3: Once you are satisfied, you can agree with the terms and click on the ‘Sign-up’ button.

Once you complete the sign-up process, you need to verify your eToro account by providing documents for proof. It may take a few days for your account to get verified. Once it is done, you are ready to start trading. You can use the virtual account for practicing before you trade.

For opening a trade, you will first need to choose the instrument you want to trade. You can do this from the ‘Trade Markets’ page or the search bar. Once you click ‘buy,’ you can enter the amount that you want to invest. Alternatively, you can also enter the units that you want to trade.

Click on ‘Open Trade.’ Viola! You have made your first trade. However, there is more to trading with eToro. Read on to know.

eToro Review – Performing Trades With eToro

There are several decisions that you will have to make regarding your trading practices. First and foremost, you must choose a financial instrument. eToro offers a plethora of different options under several categories. The major areas include cryptocurrencies, indices, commodities, and exchange-traded funds (ETFs).

Each of these instruments has various characteristics and carry different risks and profits. Once you have chosen your securities for trading, you need to understand the buy and sell process. After studying the market, you can decide whether you need to buy a particular instrument or sell it.

You must formulate trading strategies to gain profits. eToro offers options like Stop Loss (SL) and Take Profits (TP) to support your trading practices. These options automatically close your position when it reaches a specific loss or profit. It supports your buying and selling processes.

eToro offers several other built-in tools and features to make your trading process easy. Some of them are:

CopyTrader: You have the option to follow the trading practices of another trader. It helps you to observe and learn through live trades.

One-Click Trading: You can ascertain a specific amount of leverage, SL and TP, and investment. Once you determine, you can apply these stats on every future trade of that instrument.

CopyPortfolios: If you are looking for a long-term investment, you can invest in Market, Top Trader, or Partner Portfolios. These are bundles of assets grouped by the Investment Team of eToro.

Apart from the aforementioned, several other eToro features are discussed in detail in the following sections.

eToro Review – Leverage and eToro CFD’s

Are you falling short of funds for trading? eToro offers leverage in the form of a loan to help traders smoothly create a trading position. You may opt for eToro leverage for a trade that requires a greater amount of funds than what you have.

If you are a Retail Client, you can leverage stocks by up to 5x. It means you can trade stock worth 5 times your investment. Alternatively, if you are a Professional Client, you have the option of getting the eToro leverage of 10x or 20x.

You must note that leverage is like a two-edged sword. On one hand, your profits will get multiplied but, in case you incur losses, they will multiply too. At eToro, you can apply for leverage while trading stocks, currencies, commodities, indices, and sometimes cryptocurrencies.

At eToro, every leveraged trade is considered to be a CFD (Contract For Difference). It refers to the process of trading conducted through a broker. Though CFDs may lead to huge losses, it has multiple advantages as well.

CFDs provide greater flexibility. It helps you diversify your trading activities by granting access to foreign markets and assets. Additionally, you get the choice of trading more with less capital by choosing leveraged trading. Apart from that, you can make the most of market movements by short selling, etc.

Do you think it is a risky process? Read on to know how eToro helps in limiting the risk while trading.

Limiting Your Risk When Trading with eToro Negative Balance Protection

Do you think Forex trading is all about gains? Well, you may be wrong here. Some trades may prove to be profitable, while others may lead to losses. Worst case scenario, your balance may become negative. It may happen due to the deduction of fees, huge losses, etc.

At eToro, you are protected from such trouble. If your Equity balance becomes negative, the company absorbs the losses. Yes, you heard that right. Your negative balance is waived off by eToro. However, it may have some repercussions.

In case your equity balance becomes negative, you will get a margin call from eToro. Here, the website gives you the option of depositing funds to make balance your equity. If you leave it on eToro, it will close all your ongoing trades. Your losses will be absorbed, and your equity will be set to zero. This is available for both—Retail and Professional client accounts.

In this way, you will not lose any funds that you have not deposited eToro. Additionally, features such as Stop Loss and Take profit can also help you limit risks. It is explained in the next section.

Limiting Your Risk When Trading with eToro by using Stop Loss and eToro Stop Limit Orders

Stop Loss and Limit Orders are risk management tools that help you incur huge losses during trading. These features are helpful in controlling losses when the market price is not in your favor.

You can set a stop loss (SL) rate at the start of a trade. Here, you will need to set a particular amount, which would signify the loss that you are ready to bear. If the market price goes beyond your specified rate, the stop order will trigger. It will automatically lead to the closure of your trade. Thus, you will be saved from further losses.

At eToro, it is necessary for you to specify an SL order. You can choose the percentage that you wish. It is recommended that you study the market and stipulate the rate accordingly. Further, eToro gives you the option to set your SL based on the market rate or in monetary terms. However, in case you are creating a non-leveraged position, you can choose not to set the SL.

By default, your SL will be set at 50% of the amount of your created position. It means, if your trade amount reaches below 50% of your invested amount, your transaction will be closed. What’s more? eToro gives you the chance to change the SL rate whenever you want. Still, it should be done before your trade closes.

Note: When the market is highly volatile, your SL rate may not be traded. In such situations, the next available SL rate will be considered to stop your position. Thus, you may sometimes incur higher losses than anticipated.

eToro Review – Education Resources Available

If you have recently entered the trading field, you are sure to have multiple questions about it. eToro offers detailed information about its offerings, features, processes, and much more. Even if you have been trading for a while, this platform provides several useful tips to ace your trading.

eToro also covers general trading questions like how to create a position, benefits of trading, CFDs, leverages, and more. You can find a plethora of FAQs, guides, and articles on its websites. Whether you are an experienced professional or an amateur beginner, the platform has something for every trader.

The eToro Learning Lab is the site’s primary source of educating people about trading. The page presents a multitude of videos and images to help you understand the trading procedure in detail. From topics such as general financial markets to trading instruments and securities, you can gain all the information at this portal.

What’s more? The platform educates you about techniques to improve your trades. With options such as CopyTrader, you can study popular investors to level-up your trading game. Yet another helping tool by eToro is its virtual account. It is the best way to practice and enhance your trading skills. With a plethora of provisions, you can quickly master the trading world!

eToro Review – Customer Support at eToro

Are you confused about the trading process at eToro? Do not worry. The platform has an informative FAQ section to solve all your problems. If you are still confused about some features, you can contact the eToro customer service. Furthermore, you can also lodge a complaint by opening a ticket. 

Live Chat at eToro

eToro gives you the option of chatting with one of their representatives to clear your doubts. You can find this option at the bottom of the ‘help center’ page. The option of live chat is at your disposal 24 hours a day, except for the weekends. That is, you can connect to eToro representatives from Monday to Friday.

Phone Support at eToro

If you want to talk with one of the customer care executives, you may call at the following numbers.

Phone no.: +44 203 150 0308

Phone no.: +44 203 868 7213

E-mail Support from eToro

To explain your query in detail, you may choose to send a mail to eToro. Here are the e-mail addresses to which you can address the mail.

salesuk@eToro.com

bizdev@eToro.com

You can also find eToro at social media platforms such as Facebook, Twitter, Instagram, YouTube, and LinkedIn.

eToro Review – What You Will Need to Open an Account with eToro?

Opening an account at eToro is a fairly simple process. First, you will need to sign-up on the website. Before completing this process, you must read its policies in advance. Since trading is a serious affair that involves millions of dollars, you should be sure about the portal’s terms.

You can do this by reading the Terms & Conditions, Privacy Policies, and General Risk Disclosure present on the website. Additionally, reading the Regulation & License as well as Cookie Policy of the company is also recommended.

Once you agree with all of these policies, you will need to complete the KYC. Here, you will need to provide a Proof of Identity (POI) along with Proof of Address (POA).

Upload Your POI: You can upload any ID issued by a government authority. It must display your full name, a clear photograph, date of issue, and expiry (if any), and date of birth. The preferred POI is the passport. However, you can choose to upload other documents such as a driving license, etc.

Upload Your POA: A valid POA document must contain your address along with your full name and the issue date. You can choose to provide a utility bill, bank statement, tax-related document, etc. given that it meets the requirements. Make sure that it is clear and not older than 6 months.

eToro will further request you to fill a questionnaire. It is a part of the KYC process and is done to know your trading preferences. It may include questions related to your professional status, knowledge about financial markets and investment, risk management, etc.

Once you have completed the process of creating and verifying your account, you can go on to add funds. Depending upon your country, the minimum requirement of the first time deposit may vary.

How To trade on eToro Platforms?

eToro is a trading platform that offers a plethora of trading options and features. Once you understand its procedures, trading will be a hassle-free process for you. eToro review explains the trading procedure in detail with the help of images. Let’s dive in!

eToro Review – Dashboard Explained

eToro has designed a pretty simple dashboard to ease your experience. You can access this from a PC or a mobile device. It is user-friendly and can direct to your required page. Each of its aspects is further described in detail.

My Watchlist

The first tool on your dashboard, the Watchlist will appear right under your username. By default, eToro will display the top financial instruments such as cryptocurrencies, indices, commodities, etc. You can alter the list by deleting or adding the securities according to your trading preferences. Refer to the image given below.

The Watchlist displays buy and sell prices, overall market sentiment, and the current percentage change in the price of securities. Furthermore, you can see a toolbar at the bottom that shows your trading details. It includes your available and allocated funds, along with the profits that you have gained. This totals up to your current equity.

Note: This is the main screen that you will see as soon as you log in to your eToro account.

As you scroll down, you can find a list of various popular investors to CopyTrade. When you visit the profile of these people, you can gain access to their feed, stats, portfolio, and charts. It will further help you to learn and improve your trade.

https://i.pinimg.com/originals/92/26/67/92266774a571b6ed198e2c44a0b249dd.jpg

You can remove the existing ones and add the investors that you would like to follow.

Portfolio

The second tool on your dashboard menu, your portfolio displays all your investments.

As you can see in the image, it shows the amount invested in each security along with various other stats. This page also gives you the option of checking your trading history. It is helpful in making future trading decisions.

Profile

Your eToro profile displays the overall information about your account. You can access it by clicking on the username from the main menu. It displays your latest posts (feed) along with investment stats and charts.

As you can see in the image, you will get a look at your overall equity chart on your profile. It helps you to observe your past and current performance.

Other Tabs and Navigation

You can see plenty of other tabs on the eToro menu. It includes Trade Markets, Copy People, CopyPortfolios, etc. Trade markets show the detailed lists of commodities, indices, currencies, ETFs, stocks, and more. Here you can easily look for the instrument that you want to trade. Furthermore, you can check its feed, stats, chart, and research.

Here’s an image of Amazon, which is one of the leading stocks in the market. You can study its current, past, as well as expected growth rates. It helps you to decide whether you should invest in this particular stock or not.

Copy People and Copy Portfolios options offer you the choice of copying others’ trading practices. You may choose famous investors or opt for a portfolio such as top Trader Portfolios, Market Portfolios, and Partner Portfolios.

These are grouped by the eToro Investment Teams, for you to make long term investments. You can go through multiple portfolios and choose accordingly after analyzing their stats.

Charts

As you have noticed in the above pictures, each instrument, portfolio, as well as the profile has its own chart. With the help of this tool, you can track the performance of that specific security or person. You can select the asset or security that you want to analyze and go on its page. Further, click on the ‘chart’ button to view its performance chart.

Let us take the example of TSLA. Its chart displays its current performance. If you scroll it sideward, you can track its previous performance too.

The toolbar displays its current buying and selling rate, along with multiple other options. You can click on the arrow to have a full-screen view. Let us explore the settings option. You must note that the chart type is set to the candle by default.

You can change the Timezone, choose the theme and scale of the charts, etc. Another important tool is the Periodicity. It helps you change the time frame of the candles. By default, it is set to 1 day. You may change it to 1 min, 5 mins, hours, or a week.

Chart Types

Candle: The default chart, candle charts are useful for traders as they present four statistics at once. These include—open, close, low, and high prices. The body or rectangle may be red or green. The green candle represents that the value of that specific asset rose over time. Whereas, the Red rectangle shows that the asset price reduced over the selected period.

The top and bottom lines represent the highest and lowest asset values, respectively. Further, in a green candle, the bottom represents the opening value, and the top represents the closing value. It is the opposite situation for a red candle, as shown in the image.

Hollow Candle: Similar to the previous charts, hollow candle charts also represent four price points. The vertical line above the rectangle shows the highest price, while the one below the candle represents the lowest.

In a hollow rectangle, the bottom of the candle body signifies the opening price whereas its top shows the closing price. It is the opposite in case the candle is filled. You must note that the body is not blank if the opening price is higher than the close.

Bar: In this type of chart, each bar displays movement in price over a given time period. The top-most and bottom-most points of the chart represent the highest and lowest prices, respectively. Whereas, the horizontal lines show the opening and closing prices.

You must note that the right-facing horizontal lines always represent close points. Whereas, the left-facing horizontal lines always signify the open price in a bar chart.

Line: These are the most common types of charts. Line charts only represent the closing prices.

Mountain: Similar to the line charts, mountain charts only display the closing prices of stocks. The only difference between the two charts is that the area under the line is shaded in mountain charts.

Charting Tools

eToro provides multiple tools to make your analysis easy. You can access these tools from the ‘pencil’ icon next to the settings wheel.

The Horizontal tool lets you divide the stock chart with a straight horizontal line while the vertical tool does it vertically. These help you to view the exact price and time period, respectively.

As you can see in the image, the exact price rate is 337.69, while the date is 26/06/2020. Other tools like line, segment, pitchfork, etc. let you analyze the specific parts of a graph. Here is an example showing some more tools.

This image represents the ellipse, rectangle, and pitchfork tools, respectively.

Charting Studies

You can further study the chart in detail with the help of several technical indicators. The list includes the most popular trading indicators used for studying financial instruments. For example, Bollinger Bands represents the oversold and overbought areas. Once you select this option, you will be prompted to set the parameters. You may choose to leave the default ones.

This is how the Bollinger Bands indicator looks like. You can delete it by right-clicking, similar to other tools.

Stats & Reports

eToro offers several Earnings Reports to keep traders updated about the financial markets. These reports are released by various publicly-traded companies. They are highly useful to traders as they give an overview of the company’s quarterly earnings. These statements can strongly affect stock prices. Analysts and traders can use these reports to predict future prices.

Here’s a look at eToro’s earnings reports calendar.

eToro Review – News Feeds

Just like any other social platform, eToro has a news feed for traders to update useful posts. The feeds are usually set to ‘public.’ That is, anyone who opens your profile can see your feed. It is an extremely informative platform to learn about new techniques and upgrades in the financial market.

Many experienced traders often upload the latest news and insider techniques for successful trading. To access the news feed of famous investors, you can follow them and regularly check their content in your feed.

You can start discussions on any topic and tag people or markets on your profile in the ‘feed’ section. You must note that you can start or participate in discussions only once your account is verified.

eToro Review – Trading Resources

eToro offers multiple resources such as articles, guides, and much more to inform its users about trading. These helpful tools are for both—beginners as well as professionals. The newbies can enhance their financial knowledge while the experienced can expand their trades.

One such example is The Complete Guide to Fintech. The book offers multiple alternatives to your current investment practices. Further, it has a glossary to clear your confusion about all finance-related terms. Thus, proving to be useful for seasonal investors as well as novice traders.

Apart from this, the eToro Learning Lab, earnings report calendar are some of the most effective trading resources.

Is eToro a Good Broker?

Long answer short, yes, eToro is a good broker. It offers a multitude of trading-instrument options to choose from and several supportive tools. Moreover, the website facilitates social trading by allowing you to copy reputed traders.

CopyTrader is one of the most unique and helpful trading tools by eToro. It helps the existing traders to diversify their investments and new investors to learn. Moreover, the broker offers commission-free stock and ETF trading.

eToro serves millions of clients in more than 140 countries. It has an active customer service 5 days a week and follows all the measures of safety. However, the website also has some limitations. It only offers one base currency (USD). Further, the withdrawal process at this site may be slower than others.

eToro Review – Risk Disclaimer

Financial markets are highly volatile and involve huge risks. Instruments such as cryptocurrencies are greatly affected by external factors such as economic and political events. The prices of cryptos can drastically change, leading to huge profit or loss situations. Furthermore, CFDs are highly sensitive.

Before making your mind about trading, you need to have complete knowledge regarding these factors. Investors must have the appetite to bear losses and know that eToro is not held responsible for such matters. Furthermore, the broker will not take any guarantee of profits on leveraged trades, CopyTrading, portfolios, or any other investments.

You must read the Terms & Conditions provided by eToro before deciding to make a trade!

eToro Review – Frequently Asked Questions

Do you have any persisting questions about eToro? Read on to find the answers people most commonly seek.

Can I try eToro before I buy?

Yes, you can most certainly try eToro before you buy it. eToro offers demo accounts for the convenience of new traders. You can use this feature to build your faith in the system and yourself.

If you sign up for a demo account on eToro, you will set out with $100,000 in virtual money. It is to establish a sense of security and confidence in you before you choose to invest your own money.

With this virtual account, you can experiment in any way, to whatever length you wish. You can also open positions, test different trading strategies, and more.

eToro specifies on its official website that you can trade anReal Time stocks in Demo.

What funding methods does eToro accept?

There are multiple ways to find your account on eToro. The process is effortless and quick, with various payment methods at your fingertips.

You can use credit or debit cards ranging from Visa, Diners, and Maestro to MasterCard and Visa Electron.

PayPal is also at your disposal for depositing funds. You must bear in mind that PayPal is not available in all countries. The currencies eToro accepts are USD, AUD, EUR and GBP.

Other methods you can adopt are Neteller, Skrill, Rapid Transfer, and iDeal. Besides online banking, wire transfer is a possibility as well, though it takes about 4-7 days.

Is eToro safe?

You can drop all your worries because eToro is perfectly safe to use. It is in compliance with the rules of the European Securities and Markets Authority (ESMA). If you are in the UK, you should know that eToro serves UK clients through a Financial Conduct Authority (FCA) regulated entity. It serves Australian customers through the Australian Securities and Investment Commission (ASIC). Everyone else can rely upon the safety standards of the Cyprus Securities and Exchange Commission (CySEC).

Even so, eToro does not provide assured stop-loss protection. The broker does not give access to additional coverage via private insurers, either. Stops and trailing stops are the only risk management features in place with regard to the order entry interface.

Is eToro trading good?

Yes, trading through eToro is a pleasant and good experience indeed. It is an excellent intuitive platform with helpful features for your ease. Moreover, you can also gain access to a vast collection of educational resources and assistive material to kickstart your trading experience.

If you are still skeptical, you can employ the demo account and assess the credibility of the platform for yourself.

Is eToro trading legit?

eToro is a legit company- they hold a license for brokerage, registered by the Cypriot Investment Firm (CIF). The broker is an acclaimed fintech company, which operates with transparency. You will not have to bear any hidden costs or be a victim to any scams.

Is eToro a good broker?

eToro is an excellent broker, and its users can vouch for this. The highlight of the platform is social copy trading and cryptocurrency trading. The social copy trading facility allows you to copy and mimic top traders.

You will be pleased further with the clean design of the platform and the admirable features.

Is eToro a trustworthy broker?

Yes, eToro is a trustworthy broker. Top-tier financial authorities regulate all operations. Over 13 million users registered with the industry leader can reaffirm its trustable nature.

What is the minimum deposit for eToro?

If you are a US trader using online banking, the minimum deposit for you is $50. For wire transfer, the minimum amount is $500.

How long do eToro withdrawals take?

You need to hold for about 7 days from the depositing date before being able to withdraw all funds deposited through online banking. There is an additional waiting of 2 days post this hold period for withdrawal requests. eToro must have access to all the requisite information for a smooth and timely transaction.

Is eToro regulated?

Yes, eToro is regulated by the Cyprus Securities and Exchange Commission (CySEC) worldwide. There are certain exceptions to this as well. These include the UK, where it is regulated by the Financial Conduct Authority (FCA). In Australia, an Australian Securities and Investment Commission (ASIC) entity regulates it.

Is eToro a market leader?

eToro is indisputably an industry leader. It has over 13 million registered users and years of experience on its record. The broker is the world’s leading social trading platform and a prominent figure in the Fintech revolution.

It majorly owes this status to its incredible platform and wide range of tools plus resources so you can invest in capital markets.

How can I start trading with eToro?

The process to start trading with eToro is perhaps simple enough to be a cakewalk. You need to begin by signing up on eToro.com. It will require you to fill in details pertaining to the credibility and security of your account.

Once you are done setting up your profile, you must deposit a minimum amount to get started. It can be $200, which is quite fitting for a beginning. You must have a good hold over the nuances of trading and cryptocurrency before you set out.

If you are confident of your knowledge and understanding, you can start copying the best traders.

The best way to kickstart your trading career with eToro is to adopt the demo account facility. eToro generously provides this feature for your welfare, so make the most of it!

Is my money safe with eToro?

Yes, your money is safe and secure with eToro. As you already know, eToro operates with proper conformation to FCA, CySEC, and ASIC guidelines. It has established plenty of measures to protect all its investors.

eToro safeguards its clients’ personal and sensitive information under SSL encryption. Your funds will be kept highly secure in top-tier banks.

If you want to further armor your account, you can enable Two-Step Verification as well. It requires an SMS confirmation for you to access your account.

Is eToro a scam?

Of course not! It is a licensed broker. Many people tend to assume that eToro may be playing the role of a scammer. It is owed to the platform’s unique and utterly simplistic, as well as user-friendly design. However, this is to ensure that all traders can access each feature available with maximum ease.

eToro is not a scam or a con, and you do not have to worry about its legibility. You can have faith in the platform to the 100. Over 13 million users trust eToro!

Can I make money with eToro?

Yes, you can make money with eToro, just like any other Forex or CFD trading platform. You must be cautious of your actions and investments.

Using leverage for trading is a little risky. Therefore, if you start with a good enough yet safe amount, you will have a chance at recovery should things go out of your favor.

Does eToro have fees?

When it comes to any management fees, eToro is entirely free. There are no costs associated with opening an account. You will not be charged with any management or ticketing fees. Beyond this, you will also be free from stock investment commissions.

The only fee you may have to pay is a rather modest amount if you want to withdraw. You will not have to pay any clearance fees or additional broker fees, either.

When was eToro founded?

eToro was founded in 2007 based out of Tel Aviv-Yafo in Israel. It had a humble beginning with the original name of RetailFX, established by Yoni Assia and Ronen Assia in association with David Ring.

The most notable feature of eToro, CopyTrading, was released in 2010.

How many people use eToro?

eToro has more than 13 million active registered users from all over the world. In early 2020, the platform witnessed a whopping increase of 427% with regard to new users as compared to 2019.

eToro has grown to be present in over 100 countries. It has more than 850 employees across 10 offices.

Where is the headquarters of eToro?

eToro is a global company. It has registered offices in London, United Kingdom, and Limassol, Cyprus. In addition to these offices, eToro also has bases in Tel Aviv, Shanghai, Sydney, and New Jersey.

Does eToro offer negative balance protection?

Yes, eToro offers negative balance protection. It is a rather rare occasion for market conditions to dictate your equity into negativity. If such a circumstance does occur, eToro will reset your equity and make it zero after absorbing the losses.

The two types of clients, Retail and Professional ones, can benefit from this security.

Does eToro offer a guaranteed stop?

If the market conditions are normal and typical, eToro does not guarantee Stop Loss. In opposition, if the nature of the market is volatile, your requested Stop Loss rate will not be up for trading in the market. It will, however, trigger the subsequent available rate.

You must conduct thorough market research and read the markets via technical analysis. It will allow you to exercise greater control.

Does eToro allow scalping?

No, the terms and conditions of eToro do not condone scalping. It is a trading technique that is not allowed on the broker’s platform. You must refer to eToro’s terms and conditions to read more about its policies.

Does eToro allow hedging?

Yes, eToro allows hedging. The most basic way to practice hedging with eToro is to use the CopyTrader feature. Between the traders with top performance, you can diversify your portfolio.

Does eToro offer CFD trading?

Yes, eToro most certainly does offer CFD trading. You can have access to various options as a trader that would otherwise be unavailable through traditional investing.

CFD, or Contract for Difference, is an extensive and popular path for online investors to walk. CFD trading over eToro allows you to trade stocks, commodities, indices, and currencies. If you engage in CFD trading through eToro, you will gain increased flexibility in your operations too.

Does eToro offer STP?

Yes, eToro offers STP. STP is an abbreviation for Straight-Through-Processing. It is a technology that facilitates real-time execution of all trade with zero interference.

eToro allows you to gain direct access to the markets through STP since it already holds the license and power to do so. You can gain access to the inter-bank market minus the administration of a dealing desk first.

Is eToro an ECN broker?

Yes, eToro is an ECN broker. In essence, it means that it directly processes your trade- there are no dealing desks. As an ECN broker, eToro can assure you of reliable services and quick speeds of execution. eToro is one of the world’s leading ECN Forex brokers.

Does eToro offer demo accounts?

Yes, eToro offers a demo account feature. Upon registering as a new trader, you will be credited with $100,000 in virtual money to experiment as you wish. You can test out strategies, check out all the features and tools, and explore the world of trading as you know it.

CFDs are complicated, so you must be confident about dabbling in them. Using eToro’s demo account to sharpen your skills and knowledge is the best way to go.

Does eToro offer Islamic accounts?

Yes, eToro can offer Islamic accounts that conform to Sharia law. As an Islamic account holder, you will face no interest in settlement for a time exceeding 24 hours.

There will be a zero-rollover interest consistently as well. You will not have to take up charges for any supplemental commission on rollover past 24 hours. The only revenue generated will come rigidly from the spreads.

If you want to open an Islamic account, you will have to register on eToro and make an investment of a minimum of $1000. You will need to follow this up by providing eToro with all the relevant documents for verification of account and identity.