eToro is a well-known and respected broker, with tons of experience that matured like a fine wine over the years. Launched initially in 2006 under the name RetailFX, it later took the now popular name eToro and launched CFD trading in 2013. The brokerage is regulated by the British FCA (as eToro UK Ltd) under FCA reference number 583263 and by the CySEC (as Etoro Europe Limited) under CySEC licence number 109/10, and by ASIC (as ETORO AUS CAPITAL PTY LTD), ABN 66 612 791 803.
Editor’s Note: Why Does eToro Suck In 50 Words
They offer a ton of features, hundreds of assets, and extensive statistics regarding the performance of the traders that you can follow. All this can be a bit overwhelming for a newbie, so it will take a while to get used to all of it. Now, it depends on how you’re seeing it: do you want something very simple but shallow or are you willing to use something more complex that takes a bit more effort?
Why Doesn’t eToro Suck In 50 Words
They are known to be one of the first and biggest social trading platforms. In that regard, they are true innovators and innovation doesn’t suck, especially if it catches on. People love to copy the trades of others (if they’re successful of course) and offer the possibility to be copied by others, so in my mind, the social aspect of the platform is the main reason why they don’t suck. However, keep in mind that all trading is risky, whether you do it yourself or copy others.
Is eToro A Scam?
I’m going to keep this simple: No! eToro is one of the oldest FX and CFD brokers around and there’s no scam warning here. There are complaints about them, but then again, there’s absolutely no brokerage without complaints, especially one that’s been around for more than 10 years.
They are fully regulated by the British Financial Conduct Authority, by the Cyprus Securities and Exchange Commission and by the Australian Securities and Investment Commission (ASIC). These are three of the most prolific regulatory watchdogs so the probability of eToro being a scam is extremely low to non-existent.
Should I Open An Account With eToro?
The brokerage offers Forex (FX), Contracts For Difference (CFD) and CryptoCurrency trading. The main thing that sets them apart from other brokers is the social and copy trading aspect. Traders around the globe are coming together to follow others or to be followed (and I literally mean around the globe because their client base is over 7 million). This concept was first introduced by eToro in 2010 when they were the first to do it, so we can safely say they are a true pioneer in the online trading industry.
The account structure is very simple, with just 2 account types (Real and Demo). The minimum deposit requirement is relatively low, at just $200 for most regions, but with some interesting limitations depending on your location. Residents of Israel will have to deposit a minimum of 10,000 USD (!!!), residents of Algeria, Lebanon, the Maldives, and Venezuela, have to deposit at least 5,000 USD and residents of Australia and the USA can open an account with only 50 USD.
Education is also a big part of eToro’s arsenal as they offer a Trading Academy composed of webinars, online courses, and training videos but also Daily Market Analysis and a Daily Cryptocurrency Tracker. This Tracker is actually a daily review of the movement of the main cryptocurrencies and let me tell you, if you are a Bitcoin (or altcoins) trader, you will find it very useful because keeping up with the crypto market can be a daunting task.
Always remember that Cryptocurrencies can fluctuate widely in prices and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.
To sum it all up, eToro is one of the oldest and most respected brokerages in the industry, with bulletproof regulation and is always keeping up with the new trends and demands of the users. They were the first to introduce social trading and among the early adopters of Bitcoin trading. It’s also important to note that since August 2020, eToro accepts clients from most US states.
eToro UK is located on the 42nd floor, One Canada Square, Canary Wharf E14 5AB, London, United Kingdom. eToro Europe is located at KIBC Kanika International Business Center, 7th Floor 4 Profiti Ilia Street, Germasogeia, Limassol, Cyprus 4046. eToro USA LLC. Is located at 221 River St., 9th Floor, Hoboken, NJ 07030, USA.
Over the course of its long history, this broker has its share of complaints but that’s happened to all brokers and even more to those with 7 million clients. Some of the times, people complain when actually they are the ones who made a mistake like forgetting to set a Stop Loss order, not paying attention to spreads in volatile times, or simply making bad trading decisions altogether.
I am not saying that clients should be blamed for losing money or that all complaints are “Fake News” but everything should be taken with a pinch of salt.
eToro Regulatory Warnings And Announcements
12.02.2013: The Cyprus Securities And Exchange Commission announced they’ve reached a settlement for the sum of 50,000 EUR with Etoro (Europe) Limited. According to CySEC, eToro had weaknesses in their application of the Investment Services and Activities and Regulated Markets Law of 2007 (the “Law”), but most of these concerns were about the early days of eToro’s activity. According to CySEC, the company has since rectified the weaknesses. Source: CySEC Announcement.
The processing time on eToro’s side is 1 business day and a few more days will have to pass until the payment actually reaches your account. Wire transfers and Credit Card payments may take up to 8 business days, while e-wallets (Neteller, Skrill, Paypal, WebMoney) take up to 2 days. The minimum withdrawal amount is 30 USD. eToro charges a fixed fee of 5 USD for withdrawals.
eToro’s social platform is the main thing that stands out about them. They’ve been the first to do it and still the best at it. Apart from that, I can mention their Daily Cryptocurrency Tracker and of course, the possibility to trade CFD on Bitcoin, Ethereum, Bitcoin Cash, Dash, Litecoin, Ripple, and others (Highly volatile investment product. Your capital is at risk)
Trading Bitcoin With eToro
Bitcoin in special and cryptocurrencies in general, have seen massive gains throughout 2017 and eToro was one of the early adopters, one of the first brokers to allow Bitcoin trading and altcoins trading. Now they offer CFDs on 10 cryptocurrencies (Bitcoin, Bitcoin Cash, Dash, Ethereum Classic, Ethereum, Litecoin, Ripple, EOS, Neo, and Stellar) but for the time being, they only allow x2 leverage for cryptocurrencies.
Being a brokerage focused on copy trading, it is only normal that eToro offers the possibility to copy other Bitcoin traders but they also offer a CryptoFund. This is a portfolio product managed directly eToro, meaning that clients invest in the CryptoFund and eToro Portfolio Managers do all the trading. All 10 cryptocurrencies mentioned above are included in the CopyFund but the weight of each one will be decided by eToro’s Portfolio Managers. Overall it’s a great way of investing in Bitcoin even with limited experience but you must always keep in mind that Cryptocurrencies can fluctuate widely in prices and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.
User Friendliness 19/20
As I mentioned before, eToro can be a bit hard to use at first for a newbie. However, all the information you need can be found easily, and more importantly, you won’t find contradicting information on different parts of the website. Demo accounts are available for free, mobile apps as well and the website is translated into 21 languages. Most importantly, clients from most US states are accepted (since August 2020).
Range Of Markets, Spreads And Leverage 18/20
They offer literally hundreds of assets to trade FX and CFD on. It’s one of the largest basket of assets around, which includes stocks, indices, ETFs, currencies, commodities, and cryptocurrencies (Bitcoin and others).
The spreads are floating and a bit high but not a deal-breaker: around 3 pips for EUR/USD and 2 pips for USD/JPY at the time of writing. The leverage goes up to 400:1 for currencies (depending on your region), 10:1 for stocks, 100:1 for commodities and indices, and 5:1 for ETFs. Crypto comes with 2x leverage.
Fees And Support 18/20
Withdrawal requests are subject to fees, which will be visible in the Cashier section of the client’s account. The fee is 5 USD, which is not a lot, but still, most brokers don’t charge for withdrawals; maybe eToro should scrap this fee as well. They also charge a monthly inactivity fee of 10 USD after 12 months of inactivity. Support was quick to answer, polite and helpful, so nothing to complain about here.
Deposits And Withdrawals 18/20
The available deposit methods are credit cards, wire transfer, and e-wallets (Paypal, Skrill, WebMoney, and others). The minimums depend on the region (see the main section above). Credit/debit card withdrawals may take up to 8 business days, which is quite a long time because usually, credit card transactions are instant. Also, e-wallet transactions take 1-2 working days. Deposits using these methods are instant, so why not withdrawals?
Bitcoin trading, social (copy) trading, and a nice Daily review of the cryptocurrency market. They do a good job combining the “old” trend of copy trading with the new Bitcoin wave.
eToro Overall Ratings (92) + Regulated FCA + CySEC (+3) = 95/100
**Cryptocurrencies can fluctuate widely in prices and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.
All trading involves risk. Only risk capital you’re prepared to lose. Past performance is not an indication of future results. This content is for educational purposes only and is not investment advice.