eToro Review 2022: Fees, Trading, How to Buy and Sell (UK, US)
eToro Review Summary
With more than a decade of experience in the finance industry, eToro has positioned itself as one of the leading and most popular trading platforms and social investment networks. The regulated service offers a diverse range of assets, including forex, stocks, cryptocurrencies, commodities, and exchange-traded funds (ETFs).
eToro was formed in January 2007 when a couple of entrepreneurs set out to make the world of trading accessible to anyone, anywhere, without depending on global financial institutions. Founded by Yoni and Ronen Assia, the core team of eToro is comprised of seasoned experts from the world of Finance and Technology.
In this eToro review, we will cover all the important aspects that you need to know about this broker before opening an account. Read it through before making a decision.
eToro Pros and Cons
eToro is a stock broker that offers commission-free trading and has revolutionary features like social trading – where you can easily copy the investments of other traders on the platform, or CopyPortfolio – where you invest in already existing portfolios.
On the downside, eToro has some higher-than-average withdrawal fees and also charges an inactivity fee. You can only buy and sell assets during regular trading hours, and you can only make withdrawals in USD.
eToro at a Glance
|💰 Trading Fees||low|
|📈 Tradable symbols||5000+|
|💵 Minimum deposit||$50|
|🧾 Withdrawal fees||$5|
|📱 Mobile app||iOS + Android|
|🚀 MetaTrader 4||No|
|🚀 MetaTrader 5||No|
|📗 Demo account||Yes|
|🏫 Educational section||Yes|
|🗞️ News & analysis||Yes|
eToro Security - Is eToro Safe?
As a leading trading platform, eToro has successfully ensured compliance with top regulatory authorities, including CYSEC, FCA, CIF, MiFID, and AFSL. The service's meticulous adherence to the safety and security of its clients' funds has positioned the platform as one of the leading brokers for crypto trading.
As one of the regulated trading platforms, eToro users are required to verify their identities by submitting authentic government-issued documents. These steps are taken to protect traders from fraudulent and criminal activities. It also helps the trading platform to create a secure environment for traders. By making sure that their users go through this process, eToro adheres to Know Your Customer (KYC) and Anti Money Laundering (AML) regulations.
eToro Trading Platform
You can access your eToro account and all the available trading tools either via a mobile application or the WebTrader - the desktop application. Let's take a look at both of them
The WebTrader, or eToro’s Desktop Trading Platform, is a powerful, secure, and user-friendly way to manage all your trading and investing activities. eToro's platform gives you access to the full range of eToro’s features and services in real-time.
The platform’s intuitive interface makes it easy to navigate, allowing you to quickly access all the information needed to execute trades quickly and efficiently. Moreover, eToro's platform also provides a variety of customization options so that you can tailor it to your needs.
Lastly, it includes various analytical tools to help you make informed decisions. These tools include charting tools, portfolio management tools, risk management tools, and market research tools.
eToro provides a user-friendly mobile trading app for both Android and iOS devices. The eToro mobile apps let you monitor your portfolio, check prices, and place trades. It also places at your fingertips a wide range of features, such as watch lists of individual stocks, charting tools for tracking markets in real-time, push notifications for important events, and news updates.
For more information on the mobile platform, check out our eToro app review.
One final thing to mention is that you can and should activate two-factor authentication for both.
See if eToro Is a Good Fit for You
The leading platform offers a wide range of features for both amateur and professional traders, including the following.
eToro Club members have access to a wide range of services and tools that are designed to improve their experience and understanding of the capital markets. These include investment opportunities in stocks, crypto, and Smart Portfolios. The club also offers a variety of educational resources to help members make informed investment decisions. Overall, eToro Club provides a wealth of resources and opportunities to help members grow their portfolios.
When joining the eToro Trading platform, each new user gets access to the eToro Club. The level depends on the assets that you have on the trading platform. The Bronze level is the starting one for all eToro users. To get to the other levels, you will need to have the following equity:
- Silver: $5,000
- Gold: $10,000
- Platinum: $25,000
- Platinum+: $50,000
- Diamond: $250,000
eToro Wallet is a crypto wallet that offers users a range of features and benefits. eToro Wallet supports multiple cryptocurrencies, making it easy to manage all of your digital investments in one place. The wallet also provides users with highly secure storage for their digital assets, while also enabling them to transfer digital funds easily and quickly between eToro accounts, as well as other wallets.
eToro Money is a tool that allows eToro customers to manage their finances more easily. It provides an e-money account that can be managed with an easy-to-use app, as well as offering a Visa debit card in certain regions, giving complete convenience and control.
eToro Money also allows users to make fee-free, instant deposits and withdrawals to and from their eToro investment account - ideal for investors who need quick and easy access or who want to quickly take advantage of opportunities in the market. Plus, clients can easily send and receive money with a personal sort code and account number (UK to UK) or IBAN (EU – SEPA).
eToro offers an array of assets for those looking to get started in the world of online investing.
With over 6,000 different companies from 16 major stock exchanges worldwide, eToro has something for every trader.
eToro’s stock and market offerings provide you with opportunities to invest in companies from all sectors – from technology, finance, healthcare, and retail to travel, banking, and telecommunications.
On eToro you can also trade stock CFDs.
eToro provides investors with a wide range of Exchange Traded Funds (ETFs) to trade. Many people resort to ETF trading because it allows them to gain exposure to different markets and asset classes, providing increased diversification compared to picking individual stocks or investing in mutual funds.
eToro's selection includes some of the world's most popular ETFs, such as the SPDR S&P 500 ETF (SPY) and Vanguard Total Stock Market ETF (VTI). As of December 2022, eToro offers access to 265 ETFs.
On eToro, you can trade over 25 commodities, including the most popular ones: Gold, Silver, Platinum, Palladium, Oil & Gas, Natural Gas, and Wheat.
eToro offers its users a variety of cryptocurrencies to trade with. With over 75 available coins, traders have a wide selection of digital assets to choose from. The list includes some of the most popular tokens, such as Bitcoin, Ethereum, and Litecoin. In addition to these major cryptos, eToro also provides access to lesser-known coins like IOTA, NEO, and Stellar Lumens.
Crypto Staking on eToro
Besides trading cryptocurrencies, you can also state them. For those who don't know yet, crypto staking is an easy and secure way to earn extra income with cryptocurrencies. Staking is the process of holding tokens in a wallet as a proof-of-stake, which rewards the holder with additional tokens for every node they hold. On eToro, you can stake Cardano (ADA), Tron (TRX), and Ethereum (ETH).
For those interested in Forex, eToro offers access to 49 pairs that you can trade for 5 days a week.
On eToro, you can also invest in the portfolios of others instead of doing just regular stock trading. Copy trading is an innovative feature that allows users to replicate the successful trading strategies of experienced investors. With CopyTrader, users can choose from a pool of professional traders and automatically copy their trades. Just remember to check the risk score of a certain trader before you copy trades from people in the popular investors program. The minimum investment is $200.
eToro's Smart Portfolios, formerly known as CopyPortfolio, are curated collections of assets that you can invest in. These allow you to diversify your investments easily and offer an automatic way of investing for those who don't have the time or knowledge to due their own research.
eToro Fees & Commissions
- For US Traders - Depending on the cryptocurrency you are trading, the fees could be anywhere between 0.75% and 5%.
- For Non-US Traders - No commission on opening or closing long positions on stocks, while short positions result in a commission of 0.18%.
- For Non-US Traders - If you are not using the local currency, you will need to pay the exchange fee.
- Inactivity Fee - For accounts that have been idle for 12 months, there's a $10 annual fee.
- Withdrawal Fees - For US traders, there are no withdrawal changes, but for non-US residents, the withdrawal fee is $5.
How to Open an Account with eToro
The account opening procedure is quick and straightforward.
- Step 1 - You will need to register your account using your email or social media accounts such as Google or Facebook.
- Step 2 - If you want to add funds for trading, the next step will be to go through identity verification. For that, you will have to upload government-issued documents for proof of identity and proof of residence.
- Step 3 - Since eToro only facilitates USD accounts, your funds will be converted into USD. You can use multiple options for depositing your funds, including credit/debit card, bank transfer, PayPal, Skrill, Neteller, and more.
If you are a non-US resident, you will have to pay $5 per withdrawal. You can use the same deposit methods for withdrawal too.
eToro Money Account vs Demo Account
One of the great things about eToro is that it offers two different types of accounts - a money account and a demo account. So, which one should you choose?
The main difference between the eToro money account and a demo one is that a money account allows you to trade with real money, while an eToro demo account lets you practice trading. This means that there is a risk of losing money when trading with a money account, but it also means that there is the potential to make profits. With a demo one, on the other hand, there is no risk of losing any money on the eToro platform, as all trades are made with virtual funds. However, virtual trading means that any profits made on eToro are also virtual.
So, which type of eToro account is right for you? If you're new to online trading, then a demo one might be a good option, as it will allow you to get used to the platform and do virtual trading without risking any real money. Once you're more confident, you can switch to a money account on eToro. Alternatively, if you're already an experienced trader, then a money account might be the better option as it offers the opportunity to make real profits.
Verifying Your eToro Account Tutorial
Once you have created your eToro account, it's time to verify it. This video will show you exactly how to do it.
How to Deposit on eToro
The next step is to make your first deposit. This video will explain how to quickly fund your eToro account.
eToro Minimum Deposit
One of the key features of eToro is its low minimum deposit requirement. Thus, you can start off with a small initial investment. The eToro minimum deposit is just $50. This makes it an ideal platform for those who are new to trading or who have limited capital to invest. In addition, eToro offers a demo account that can be used to test out the platform before committing any real money.
How to Trade Crypto on eToro
Once you have opened your eToro account and verified your identity, you can start trading. Search for the cryptocurrency you would like to invest in and click on "Trade". Then you will need to enter the desired investment amount and define any parameters to manage your trade. Next, click on "Open Trade".
It is recommended that before you invest your real money, you should use the $100,000 in your eToro demo account to familiarize yourself with the platform and assess different trading strategies.
eToro CFD Trading
eToro is a leading online broker for CFD trading. CFDs are a type of financial instrument that allows traders to speculate on the price movements of underlying assets. eToro offers a wide range of CFDs, including forex, indices, commodities, and cryptocurrencies. The company's innovative platform provides traders with access to the latest market news and analysis, as well as powerful tools and resources. With e Toro, you can trade CFDs on your own or follow other successful traders and copy their trades.
eToro Review: Education
The education section available to all retail investor accounts includes several sections. Let's take a look at each of them.
The Academy is an online learning platform that teaches eToro users how to navigate the trading platform. It also provides comprehensive tutorials on topics such as trading strategies and fundamentals, technical analysis, market psychology, and more.
Moreover, the eToro Academy features live webinars from eToro professionals, as well as on-demand video courses and written guides. Basically, it offers educational resources for all levels of investors, including beginners and experienced traders alike.
With eToro Plus, you have access to daily, weekly, and monthly analysis articles written by eToro experts.
The Bull Club
Etoro offers users a chance to talk to experts through the Bull Club. The section also has a library of old webinars, just in case you've missed any.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
67% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Unsure if this broker is for you?
eToro Customer Support
eToro has a Help Center page where you can find the answers to the most frequently asked questions. If you submit a ticket, the response time is seven days. Moreover, if your issue requires immediate attention, they have a Live Chat page where you can initiate a chat session once you're logged into your eToro account.
Our Experience with eToro
Written by Alex Manea - Head of Content ar Sortter.com
About My Experience with eToro
I’ve been using eToro for about 3 years now, ever since I started investing, and it is my go-to broker for passive investing.
When I started using eToro, I had no idea what a broker is or how you should invest using one. Still, the app platform’s interface is so intuitive I was able to purchase my first shares in minutes.
All-in-all, the platform is simple enough that even a complete beginner can start investing right away. The deposit process is fast, and the search menu is so intuitive that you will find the assets you want to invest in straight away.
Once you identify the company that you want to invest in, you also have access to some tools that can help you decide if you should invest. First of all, you have the “Analysis” tab where you can check out what professional Wall Street analysts think of this company and how the share prices will perform in the next 12 months. You can also find additional information on the “Overview” tab to help you identify good entry and exit points.
Social & Copy Trading
One place I would recommend that you avoid is the social side of eToro. Most posts are from people trading meme stocks, and the rest are from users in the Popular Invest Program who are trying to promote themselves.
If you do decide to copy someone, here are a few tips, so you don’t lose money:
- Check out their entire trading history - some traders have had a lot success in the most recent months, and they get a lot of copiers, but if you look back at their entire eToro history, they don’t have a single year they ended in profit - Stay away from them!
- Decide on the type of results you want - some Popular Traders have a riskers approach, and some are more conservative. Choose which ones you want to copy depending on your appetite for risk and desired results.
- Be careful what trades you copy - When first copying a Popular Investor, you will be asked which trades you want to copy: existing ones or future trades. If you copy existing ones, you might end up with some losing traders (let’s say that the Popular Trader Purchased some Apple shares a while back, the price went up, but now it hit a resistance level, and it’s going down, so he decides to close the trade shortly after you’ve copied him. You could end up, for example, buying into a trade of Apple shares at $100 per share and selling them for a loss at $98 per share.)
If you’re only interested in passive investments, eToro really is, in my opinion, the best platform that you can use as a complete beginner. It’s easy to use, and it gives you access to all the tools you need right on your mobile phone. If you’re just getting started, you won’t find a better broker!
Personally, as of early 2022, I’m using eToro only for ETFs and dividend stocks to build a strong portfolio for my retirement.
What I like:
- Easy to use
- Earning dividends
What I don’t like:
- Social side - feels like it’s full of spammers and meme traders
What I use it for:
- Passive Investments
- Investing in ETFs and dividend stocks
eToro Review Conclusion
eToro is probably one of the best brokers for real stocks and CFD that you can use. With eToro, you can trade or invest in assets from the US stock exchange and many more markets (UK, Europe, Asia, etc.). You can also use the Copy Trading eToro feature to copy successful eToro traders. Just remember to review their success rate before investing.
The eToro trading platform allows users to access for free a wide variety of tools and indicators someone might need to analyze assets before entering a trade. Plus, you also get access to a free account to test out strategies for eToro CFD trading before using real money. This way, you can see which are the best strategies to apply without losing money.
We hope that this review eToro has been helpful and answered all your questions. If so, don't hesitate to open an eToro trading account today!
Just remember that accounts lose money when trading CFDs.
eToro is an online investment and broken platform with over 6 million users. eToro allows you to get involved in real-time in EFTs, Commodities, Indices, Stocks, Cryptocurrencies, and Forex.
To sell on eToro, you need to open trade and switch the toggle from BUY to SELL. When you open a SELL trade, it opens at the SELL price. The position decreases in value as the price of the asset goes up and increases as the price of the asset goes down.
eToro exists to make a profit from providing a service, just like any other company. They make a profit by charging users a small spread fee on position; however, there is a 0% trading commission. The trading costs here are far less than those charged by fund managers and traditional stockbrokers.
To use eToro, all you need to do is sign up, which will only take a few minutes. After you’ve signed up, make sure that you verify your identity. Then, you can make your first deposit and start investing!
To open a trade on eToro, you need to select the type of investment you want to trade through the Search bar or the Trade Markets page, click Buy to enter the amount you want to invest, and then just click on Open Trade.
To make money on eToro, you need to be up-to-day with upcoming financial events and recent news, familiarize yourself with each asset before you start trading, and spread your funds across various asset classes and various assets. Another way is to find the most successful traders on the platform and copy them.
The length of time it takes to process a withdrawal from eToro varies depending on the method of withdrawal you choose. If you choose to withdraw your funds through a bank transfer, it can take up to five business days for the money to be transferred. If you choose to withdraw your funds through a credit or debit card, it can take up to two business days. And if you choose to withdraw your funds through an e-wallet, it can take up to one business day.
With eToro Copy Trader, you can automatically copy the trades of other traders. When you find a trader that you like and whose performance meets your expectations, you can simply click on the "Copy" button to automatically mirror all of their trades. You can even set up risk management controls to specify how much of your account you want to allocate to each trader that you copy.
Yes, eToro is available in both USA and Canada.
When you buy stocks on eToro, you are buying a share in the company. This means that you become a part owner of the company, and you will receive dividends if and when the company pays them.