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eToro Review 2018


eToro has been a household name in the global fintech revolution for more than a decade. Since the company is always evolving and rising to new challenges, they regularly release updates and implement new technologies, which is why eToro review cannot be avoided on a website like this.

Founded in 2006, eToro has for a long time been one of the best forex brokers in the world, with offices in Cyprus, London and Israel and more than 6 million registered users worldwide.

Now eToro is looking to reinvent and revolutionize forex trading. It is currently being marketed as a social trading network, with a number of advanced features which allow users to copy others, to learn from successful traders and to make a profit if other users copy them. These new features allow users to alleviate risk and trade with confidence.

In this article, we will show you all of eToro’s main features, explain how they function and show you how the best forex brokers operate. We’ll do our best to answer some of the more burning questions, such as those concerning eToro Bitcoin trading, eToro withdrawal fees, eToro support, is eToro safe, plus questions about eToro USA, eToro customer support, and eToro trading fees.

For all of that and more, stay with us and learn something from our eToro Review!

Introduction

Right now, eToro is focused first and foremost on social trading, although, as a brokerage company, it attracts the majority of its users by offering multiple attractive assets.

The company was founded in Tel Aviv by two brothers, Yoni and Ronen Assia, together with their associate David Ring. In 2006, when the company was founded, it was branded as RetailFX.

Major changes were introduced in 2010, when eToro released its Copy-Trading feature for the first time. Also in 2010, the first eToro Android app was launched for buying and selling stocks.

Investors recognized eToro’s potential early on, which allowed the company to raise $31.5 million between 2007 and 2013. An additional $27 million came in in 2014, mainly from China and Russia. The biggest investment to-date, however, came earlier this year, when eToro raised $100 million in a private funding round. The investment allowed eToro to modernize its platform to tackle future challenges and stay ahead of the curve in every aspect.

With the World Cup right around the corner, football (soccer) fans will be thrilled to learn that eToro is an official sponsor of West Ham United, a club that has been shaking things up in the English Premier League.

But let us leave trivia behind and focus on those aspects of eToro that really matter. We will start by reviewing the products and services offered by the company. If you want to see if eToro has something to offer that might be of interest to you personally, don’t miss the next section of our eToro Review!

eToro Home Page

Product portfolio

As you might have guessed, eToro offers a wide array of financial services, all of them focused on investing online (to bring investment opportunities to everyone), with a great deal of emphasis on social investment. As you’ll see in the rest of this eToro Review, online Forex trading is just one aspect of the offer here, supplemented by copy trading, CFDs and financial spread betting.

CFDs were first introduced in 2013. CFD or a contract for difference is a term used for derivative trading. In layman’s terms, what CFD does is it allows you to speculate on the prices (rising or falling) of fast-moving financial markets worldwide. These markets or instruments can include commodities, treasuries, currencies, indices, and shares.

eToro first introduced stock CFDs, with 110 stock products available in the first batch. The eToro Bitcoin CFD was introduced in January 2014, which shows that eToro was interested in the crypto market long before the 2017 craze. Also in 2014, eToro added 130 German and British stocks to its stock selection.

Since then, eToro has added thousands of stocks, ETFs, currency pairs, indices and commodities. When it comes to cryptocurrencies, Bitcoin was soon followed by a number of other top cryptocurrencies in 2017. At the moment, eToro allows its users to choose between Bitcoin, Bitcoin Cash, Dash, Ethereum, Ethereum Classic, Litecoin, NEO, Stellar, and Ripple.

The main selling point of eToro, however, is what the developers refer to as the “Social Trading revolution”, which allows traders to connect, discuss strategies, and take advantage of the CopyTrader™ technology, patented by eToro, which allows traders to automatically copy their trading portfolio performance.

Now that you know what you can do on eToro, the only question that remains is: how do you do it? For a detailed explanation, read the upcoming sections of our eToro Review!

START TRADING WITH ETORO NOW!

Funding and withdrawal

Now, this is a very important part, which is why we decided to put it near the top of our eToro Review. If you want to trade, you have to have some money in your account, right? That’s why it’s crucial for every broker to have several safe and secure ways for traders to transfer money. eToro passed this test with flying colors, as they accept numerous methods of payment which are all very safe. First of all, you can use your credit cards like Visa, MasterCard and Diners, and this is the most convenient way to transfer funds. Other options include wire transfer and online money transfer systems: PayPal, Skrill, Neteller, UnionPay, Webmoney, Yandex… If you commonly use any of the latter options, then you are in the right place because not a lot of brokers have so many online money-transfer options. The minimum deposit requirement is between $200 and $500, depending on your user profile. There is also a maximum deposit amount, but this varies a lot, depending on the method you choose. For example, it is set to $5000 for credit cards.

eToro Deposit Page

It will cost you $5 to make a withdrawal under $200. The price goes up to $10 for withdrawals between $200 and $500. Above $500, the eToro withdrawal fee is capped at $25. This means that waiting for a more substantial amount of money to accumulate before you make a withdrawal is probably the best strategy. The eToro withdrawal fee structure also obviously benefits traders who trade a lot and who profit off the exchange.

Next in our eToro Review is the company’s bonus policy, so stay with us and learn how to get that extra trading chance!

Bonus and Promotions

Imagine this, you go into a bank and deposit your money, and the bank decides to give you extra $200. Wouldn’t that be great?! Well, that is exactly what happens when you trade with eToro. You have several ways to get really good bonuses, so let’s go through all of them. First of all, they have a great offer where you can get up to $200. All you have to do is invite 10 friends to eToro, and for each friend you invite who deposits a minimum of $200 into their eToro account, your account is funded with $20. Don’t worry; your friends will not be jealous because eToro also has a $20 deposit bonus for them! Once your friend deposits his/her first $200 or more, you will both receive $20. This is eToro’s ‘Refer a Friend’ promotion. There are a couple of simple rules, though. The most important rule is that your friends need to sign up using your link. Also, the friends need to be new users who have never had an eToro account. Both of your accounts need to be verified. After that, you both need to make a deposit and open and close at least one trade. All in all, it’s pretty straightforward, and the reward is nothing to scoff at.

eToro Promotions

If you would also like to know what options there are at eToro when it comes to account types, make sure to read the upcoming section of our eToro Review.

Account types

Since you will be opening an account with eToro, we also have to show you the account types they offer, so that you can choose the one that is best for you. Besides the regular account, eToro used to offer a Premium account with several privileges and advantages. However, eToro is now more focused on its social trading and investing tools (e.g. CopyTrader and Popular Investor), something we will discuss in more detail a bit further down. This doesn’t mean that eToro no longer offers special perks to its traders. Quite the contrary. This only means that everyone will now be able to access specific advantages, but they will be based on the trader’s performance and involvement, rather than account type.

The only exception are eToro’s Islamic accounts – specifically for users who want to trade in accordance with the Sharia law. To be eligible, users have to verify their identity by providing relevant identification documents, and they also have to invest at least $1,000. The specific benefits of this account include zero interest on settlement for more than 24h, and no commissions, fees or charges on account management. The revenues are earned exclusively through the spreads, i.e. the difference between the BUY & SELL prices.

If that sounds tempting, you’re probably wondering how you can open an account of your own. We’ll be covering that in the upcoming section of our eToro Review, so don’t go anywhere!

How to open an account with eToro?

Once you click on the ‘Sign Up’ button, you are given two options. You can either sign up with your Facebook/Google account or you can create an account on eToro from scratch. If you chose the latter option, you will need to provide your first and last name, email address, phone number, username, and password.

Miraculously, it is possible to have multiple accounts, just make sure to register with the same name and the same documents. You will have to use a different email address and a different username, though.

However, to use eToro, simply creating an account will not be enough. To gain access to all of eToro’s services, users need to verify their accounts. eToro needs the information provided by users to comply with a number of regulations for providers of financial services. The information provided by users is kept confidential at all times.

For verification, eToro needs your proof of address, phone number confirmation, and a copy of your government-issued ID.

Now that you’ve got everything set up, it’s time to head to the trading platform. Here’s what you can expect there.

Trading Platform

Before the overhaul, all the trading on eToro was done through their own trading platform called WebTrader. Now, users can choose to use the new platform or revert to using WebTrader instead. This new product is a platform that combines great trading features with excellent trading visualizations. It also has great options like One click trading or Stop Loss and allows you to configure your Alerts. To login, you only have to go to eToro’s website and enter your username and password, it’s that easy! Please remember, you can always switch between Real and Practice account, with the latter allowing you to practice trading without the risk of losing your real money. But there’s more! You can also download eToro’s app to your smartphone and trade on the go! It has the same features as the computer platform, but with the app you will never miss an investment opportunity. We’ll cover that in a separate section. Before we get to that, we’ll analyse the differences between the new platform and WebTrader, so make sure to stay with our eToro Review a bit more!

eToro Trading Platform

eToro WebTrader

When using their computers to trade, users are given two equally attractive options. They can either use the new trading window or WebTrader, the tried and tested old platform.

The new window is very streamlined, simple, and easy to use. As soon as you access the trading window, eToro automatically opens the demo account, which is great for practicing.

On the left hand side, you can access the main menu, which lets you see your account details and your virtual (demo) and real portfolios. To open a trade, select an asset inside one of the portfolios.

The menu also has a ‘Markets’ option, which leads to all assets available for trading at eToro. There is a range of filter options, allowing you to easily find exactly what you’re looking for. The ‘Markets’ option also has price charts available and leads to the trading window once you press ‘Trade’.

As for the WebTrader, when we talked about this platform, we said nothing about the layout. It is very straightforward and obviously designed for clarity. When you’re trading on WebTrader, you will see the Sell/Buy button at the top. Next to the button, the asset and its current value are specified. You can monitor the price movement for that day, as well. You can enter the amount you wish to trade in the trade amount box, right underneath the asset info.

The default setting is ‘trade’, sometimes also called ‘instant trading’, which means that you sell or buy immediately at the market price. However, you can also place an order from a drop-down list to the right, which allows you to specify a price at which you are willing to buy or sell.

The eToro mobile trading platform offers pretty much the same functionality. However, if you use your smartphone exclusively and you want to hear all the specifics, make sure to read the next section of our eToro Review!

eToro App

eToro app is available both on Google Play and Apple’s App Store. It is very popular and well received both on Android and iOS, with a 4.0 rating on Google Play and 4.1 on the App Store. The average rating seems to be weighed down somewhat by 1-star ratings from disappointed traders who incurred losses after not trading wisely.

Still, the comments left by users are mostly civil and paint a clear picture of eToro and its functionality. Even more importantly, the eToro customer support responds to each comment individually, either to solve the issues or to express gratitude when the comments are positive.

eToro App

Here are some of the things you can do with eToro’s mobile trading platform:

  • Invest in any of the available assets on eToro.
  • The minimum investment is as low as $50.
  • You can browse other investors and see their statistics and performance charts.
  • You can follow these investors and copy their moves.
  • You can contribute to discussions on the platform.
  • You can become a Popular Investor and earn extra income from your followers.

With its functionality, the eToro app is making forex trading available to an even greater number of people, making eToro’s social platform even more powerful and connected and offering everyone an equal footing when they first encounter the previously inaccessible financial markets.

We’ve been talking a lot about social trading and eToro being a social trading network. If you want to know exactly what that entails and why it’s important, read the upcoming section of our eToro review!

eToro social trading

What does it mean when we say that eToro is a social trading network or, as some call it, a social investment broker?

It means, among other things, that eToro was the first to introduce ‘social trading’, which means that trading on the platform doesn’t have to be “each man for himself”. Instead, traders are encouraged to share their knowledge, and those who are less experienced can follow what other traders do. In this scenario, both parties benefit, since less experienced traders can do everything that successful traders do and profit from it, without investing as much time or effort – which makes it great for beginners, learners, and casual traders with too much on their plate. On the other hand, the most popular traders who get copied a lot are rewarded directly for contributing to the social network and the platform’s growth and success.

eToro Social Trading Tools

eToro can do all this due to its large number of traders (6 million, as mentioned previously) from more than 140 countries, which means that the platform has a lot of depth when it comes to varying degrees of trading knowledge and propensity for social interaction.

In this ecosystem, users are not forced to choose account types upfront. Instead, anyone can be either a leader or a follower. Users can also trade 100% solo, shunning social interaction, which is fine, as well. There’s no rule against users following someone’s lead, and once they learn the ropes, becoming leaders themselves.

The system is simple and intuitive, equally accessible both to new and experienced traders. There is also a great deal of diversity, facilitated by the option of copying different traders across multiple markets. As all experienced traders know, diversity greatly reduces risk.

The biggest thing, however, is that the system allows everyone to profit. Ever since copy trading was first introduced in 2010, approximately 78% of all copied trades were closed in profit. For someone who is new to this, eToro’s tools offer an unprecedented level of profitability.

If you would like to know how this is accomplished, read the following section of our eToro review and learn all there is to know the various tools available to facilitate social trading.

eToro Copy Trader

eToro’s Copy Trader is definitely on top of the list when it comes to social trading tools on the platform. With Copy Trader, users can set aside a portion of their funds and literally copy everything another trader does – in real time! So, let’s say you have no idea how to trade, but you’re looking for an investment opportunity. Or perhaps you are not completely oblivious, but you simply don’t have the time. In those cases, this is an amazing tool to have, don’t you think? But how do you know who to follow? You wouldn’t want to follow someone who is inexperienced or irresponsible.

eToro OpenBook

Thankfully, eToro Copy Trader solved that problem with their passionate dedication to full transparency. This means that every trader’s success/fail ratio, risk score, track record, and portfolio are publicly available and visible to all other users. The information is easily accessible, streamlined, and easy to understand, which means that choosing the right trader to follow should be a breeze.

So, with that in mind, how do you do it? How do you copy other traders?

First, you will need to navigate to the ‘People’ menu, where you can find every single trader on eToro. Using the menu options, you can filter the traders by their location, performance, recent activity, the assets they invest in, risk, and trading size. The system is very fast and easy to use: it takes just a couple of seconds to find traders once you put in the parameters.

When you find a trader that fits the bill, simple press the ‘copy’ button. This will take you to the copy screen, where you have to specify the amount for investment, as well as a stop loss figure. You can choose to follow new trades, or you can open all the trades that the other trader already has open. Once you are happy with your selection, simple confirm everything by pressing ‘Copy’.

That’s all fine and dandy, but if you are the trader being copied, what’s in it for you? If you want to know more, including how to make extra profit on eToro, don’t miss the following section of our eToro review!

eToro Popular Investor Program

The great mystery that some readers may struggle with is why somebody would choose to disclose their trading secrets so that someone else could profit. Even more importantly, why does eToro care if we make a profit or not? The platform earns its revenue either way, does it not? Is this just a fancy feature to attract gullible traders?

Not at all. eToro wants its traders to do well. When traders win and earn money, they trade more often, which means more income for eToro. Social trading is one of the main reasons why eToro has so many users and why these users are so active.

The users who are copied are rewarded with an additional commission. The more traders follow a user, the bigger the commission.

Through eToro’s Popular Investor Program, the best traders can earn a number of great rewards and additional perks. In addition to monthly payments, their spread can be rebated by up to 100%. Although they are helping others in a sense, Popular Investors are not merely asked to be altruistic – they receive actual financial incentives – which makes eToro perhaps the most attractive platform for successful veteran traders out there.

For even more advanced options available to eToro users, read the following section of our eToro review!

eToro CopyFunds

When it comes to eToro’s investment products, CopyFunds is at the very top of the pyramid. Why follow just one trader when you can benefit from the wisdom of all the successful traders on the platform?

CopyFunds lets you do just that: You take a portion of your money and you put it in a PAMM account. PAMM is the acronym for percentage allocation management module or percentage allocation money management, basically a type of forex trading where multiple users pool their funds together. The portfolio is then managed by a top trader who makes all the decisions. There are other types of CopyFund, as well, and it’s up to the user to decide which one he/she wants to fund.

Apart from the aforementioned Top Trader CopyFunds, there are also Market CopyFunds, where assets are assembled and managed under a specific trading strategy. These kinds of CopyFunds are also sometimes called thematic investments.

The more elements there are in a CopyFund, the lower the risk, which makes them an excellent financial instrument when chosen and managed properly.

In the upcoming section of our eToro Review, we’ll take a close look at the eToro fee structure, which is one of the crucial details of trading here. Read on and learn all about it.

eToro Fees

As you might have expected, eToro does not have a unified fee structure. Both spread and overnight fees depend on whether you are trading commodities, cryptocurrencies, ETFs, indices, stocks, or currencies. For example, when you are trading cryptocurrencies, the spread will be 1.5% on Bitcoin, and 5% on Ethereum Classic, NEO, Stellar, and Bitcoin Cash. Just as a reminder, the overnight fees are charged only when leverage has been used.

This makes calculating eToro fees somewhat challenging, although, in most cases, the spread and costs should be somewhere between 0.5 and 1%, depending on leverage.

Other fees include the eToro withdrawal fee, which is calculated based on the amount of money withdrawn. As we have already mentioned, the lowest fee is 5$ for withdrawals under $200, while the highest fee is $25 for all withdrawals above $500. The minimum withdrawal amount is $50.

The eToro fee for inactivity is the last fee. After a 12-month hiatus, an account will be dormant, meaning that it is subject to a fee of $5 per month. This sum is withdrawn directly from the user’s account. In case there are no funds available, the fee is not charged. As soon as the owner logs in, the fee is discontinued.

We can see how some users may have a problem with the inactivity fee. Even so, compared to many other companies which keep their fees and practices hidden, the fact eToro is so transparent comes as a breath of fresh air. But how do you know if eToro is playing by the rules? Is eToro safe? Find out in the following section of our eToro Review!

Security

Is eToro safe? Can you trust this company? These are all valid questions, and they deserve to be answered. We already did that in our article called “eToro Scam Test“, but this eToro Review would not be complete if we failed to mention this topic. If you visit the broker’s official website, you will notice how much they talk about responsibility and transparency. eToro is focused on making sure its clients make smart investment choices. Also, the company spends a lot of resources on cyber security to make sure that both the customer’s private information and their assets stay safe at all times.

The one thing that users care about the most, however, is regulation – including the specific licenses that eToro may or may not have. On that front, traders can rest assured knowing that eToro is fully regulated. The company is communicating with and adhering to strict guidelines outlined by UK’s Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC). Both the UK and Cyprus branch of eToro are regulated by the Markets in Financial Instruments Directive (MiFID), which increases the transparency of financial markets in the European Union. Unfortunately, due to the nature of regulation in that country, there are no eToro USA traders, and the company has no plans for now to start accepting them at the moment.

eToro Regulation

In case you have any additional questions concerning regulation, you can always try to contact the eToro Customer Support. To help you learn more about the quality of the service they provide, this eToro Review has a special part for that, too!

Customer Support

As far as we can tell, the eToro customer service is top-notch. eToro’s representatives respond to every single comment on Google Play and the App Store. You can also contact them directly 24 hours a day during weekdays, either by phone or email.

If you are faced with an issue, your other options include:

  • Visiting eToro’s ‘Customer Service Wall’, which is almost like a forum, where customer service agents help customers navigate eToro’s online guide and Help Center.
  • You can also open a ticket and have an agent contact you as soon as one is available.

The eToro customer service is available in multiple languages, including English, Spanish, Italian, German, and French.

However, in case you don’t feel like dealing with customer service agents at all, you’re in luck! We have found that eToro’s page offers a lot of detailed, easy-to-follow information, including guides, infographics, and video material.

For all of you who have been waiting for our concluding remarks in this eToro Review: Congratulations, you’ve made it!

Conclusion

Yes, this brings us to the end of this eToro Review. After all this, the only major complaint we have is that they don’t accept traders from USA. We went through all the main features of this broker to show you that this is a truly reliable and respectable company. They have a safe and secure transfer policy, plus you have several convenient options at your disposal to deposit and withdraw money. You can get up to $200 with their great bonus system, and their social trading options are great for all big traders on the forex market, as well as for beginners. Last but not least, they have a very good and stable trading platform, and you can even trade on the go with their mobile app. That’s it for our eToro Review; we hope you now see why this broker is considered to be one of the best. Don’t waste any more time, open an account with eToro and enjoy a great trading experience!

In case we left some questions unanswered, please refer to our eToro FAQ at the bottom of the page.

OPEN FREE TRADING ACCOUNT NOW!

eToro FAQ

Q: Can I use eToro in USA / Canada?

A: Unfortunately, eToro USA/eToro Canada is not a thing. The U.S. has changed several trading laws, which means that eToro cannot offer its services to U.S. citizens, no matter where they may be. Canada has also enforced several laws that make it impossible for Canadian citizens to trade on eToro and similar platforms.

Q: Can eToro be trusted?

A: Yes, eToro is one of the most trusted and reliable forex brokers out there. The company has been around since 2006, with no legal issues, lawsuits, or hiccups of any kind.

Q: Will eToro add more cryptocurrencies?

A: Yes, since it is a part of eToro’s policy to always expand its portfolio of financial instruments.

Q: What is eToro CopyTrader?

A: CopyTrader is eToro’s patented feature which allows traders to invest some of their funds and automatically copy everything another trader does.

Q: Is eToro regulated?

A: Yes, eToro is regulated in Cyprus, the UK, and the European Union in general (MiFID).


PROS

  • While it is true that spreads on cryptocurrencies can be wide, there are no holding fees, which is perfect for long term holds.
  • The social features (CopyTrader and CopyFunds) are unique and feel amazing to use.
  • 78% – insane profitability, copied trades mostly close in profit.
  • The social trading network is beneficial in curbing traders’ “risk appetite” – making them more likely to choose low/medium risk strategies, leading to increased profits.
  • The network grows fast & the team is always delivering new tools.
  • Simple and practical way of designing trading activity.
  • Always adding new financial investment instruments (e.g. 100 blue-chip stocks were added last year alo

CONS

  • No eToro USA/eToro Canada. Sorry, North Americans, you are left out.
  • In some cases, the stocks are not available immediately after the IPO.

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Details

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  • Website: www.etoro.com
  • Regulation: CySEC, FCA
  • Assets offered: CFD, CRYPTO
  • Min. deposit: $200
  • Max Leverage: 1:400
  • Spread:

    Bitcoin

  • Deposit options:

    wire transfers

    credit cards (Visa, MasterCard and Diners)

    online payment systems (PayPal, Skrill, Neteller, UnionPay, Webmoney, Yandex)

     

Broker Pros & Cons

PROS
  • While it is true that spreads on cryptocurrencies can be wide, there are no holding fees, which is perfect for long term holds.
  • The social features (CopyTrader and CopyFunds) are unique and feel amazing to use.
  • 78% – insane profitability, copied trades mostly close in profit.
  • The social trading network is beneficial in curbing traders’ “risk appetite” – making them more likely to choose low/medium risk strategies, leading to increased profits.
  • The network grows fast & the team is always delivering new tools.
  • Simple and practical way of designing trading activity.
  • Always adding new financial investment instruments (e.g. 100 blue-chip stocks were added last year alo
CONS
  • No eToro USA/eToro Canada. Sorry, North Americans, you are left out.
  • In some cases, the stocks are not available immediately after the IPO.

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