eToro Review 2022

*This content does not apply to US customers.

eToro is a fintech company that has its HQ in London and a well-established reputation in Europe and many other parts of the world.

Their main product is a renowned online brokerage with the same name – eToro – but, lately, the company has started adding new brands and services to their arsenal.

Our team has spent countless hours trading with eToro, both professionally and on a retail level.

In the following eToro review, we’ve collected all the information you need to know about this broker.

Find the best trading platform. You capital is at risk when trading. Be careful.

eToro – Background and the Concept of Copy Trading

eToro is one of the top online brokers for forex, stocks, ETFs, CFDs, and cryptocurrencies in the world. The service was first launched in Israel in the year 2007 under the name RetailFX.

In 2010, the broker’s platform went through a major update, and eToro’s now world-famous copy trading platform was launched.

Today the company is based in Europe, but they have headquarters all around the world, for example in Cyprus, the UK, Australia and recently also in the United States.

Originally, eToro was intended to be a forex broker, but it didn’t take long before CFDs were added to their selection. Today, eToro is known for forex trading but also stocks and commodities.

In recent years, eToro has also focused a lot on developing innovative cryptocurrency trading and investment platforms.

However, eToro might be most known for their commitment to copy and social trading where users have the opportunity to interact with each other and copy the highest performing traders.

All of this and much more is extensively covered in the following eToro broker review.

Is eToro a Legitimate Service?

There is no doubt that eToro is a legitimate broker that you can trust with your personal information and funds.

In order to operate legally, an online broker needs licenses and permissions for each jurisdiction where they are available.

In eToro’s case, that means licenses from the CySEC and the FCA in Europe, the ASIC in Australia, and more recently from several America states (as well as FinCEN).

In other words, eToro has gone through not one but several license applications and has managed to be approved by the toughest in the industry. And that is how we know that eToro is a trustworthy broker.

That being said, trading CFDs, forex, and cryptocurrencies are associated with high-risk, and you need to take the necessary precautions to protect yourself and your funds while using this broker.

Find the best trading platform. You capital is at risk when trading. Be careful.

Pros and Cons with eToro

As with all things in life, there are pros and cons to using eToro.

The following aspects are based on our opinion as well as other current and previous eToro clients.

eToro Pros:

•   Copy Trading is a unique and exciting way to trade
•   Cryptocurrencies are the hottest assets on the market right now
•   The eToro platform is easy to use yet very comprehensive

eToro Cons:

•   The minimum deposit is higher than many competitors ($200)
•   The new platform needs some tweaking to stop it from freezing
•   eToro’s educational material leaves a lot to be desired

Assets & Markets on eToro

So, what can you actually trade after opening an account with eToro? Let us take a look.

Forex

As mentioned, eToro was originally launched as a forex broker, and currency pairs still make up a decent part of eToro’s selection of assets. You can trade everything from all the top major pairs to minors and several exotic currencies.

Similar to all forex brokers, eToro provides leverage on their currency pairs to help their traders maximize their potential profits.

Stocks and ETFs

Already at an early stage in eToro’s development, company stocks were added to the selection, and today you can use eToro to trade stocks from several leading stock exchanges around the world including from Europe and the US.

In addition to stocks, eToro has support for commodities, indices, and a range of different Exchange-Traded Funds (ETFs).

Note that these assets are traded as CFDs and that you only speculate on the underlying asset without purchasing it.

CFDs are also available with leverage and margin which help increase your exposure and potential profit as well as the risk.

Cryptocurrencies

Cryptocurrencies have become one of eToro’s main markets over the past couple of years, and today they have one of the most extensive selections available. For example, you can trade most of the leading cryptos as CFDs using the regular platform.

You can also combine different cryptocurrencies in pairs called “Crypto Crosses,” or you can trade them as currency pairs with fiat currencies.

Nowadays, you can also use eToro to trade cryptocurrencies as securities, and you have the opportunity to invest and store them in eToro’s cryptocurrency wallet.

Recently, the broker revealed a new asset class called CryptoPortfolios which are portfolios made up of different cryptocurrencies and cryptocurrency-related securities. These portfolios are available in all of Europe, Asia, Australia, and the United States.

Moreover, eToro recently launched a complete cryptocurrency exchange called eToroX, which you can read more about further down in this eToro review.

Find the best trading platform. You capital is at risk when trading. Be careful.

eToro Fees 

Believe it or not, but eToro is  – a huge pro compared to regular cryptocurrency exchanges, stockbrokers, and even some forex brokers.

Although, eToro is not completely free to use and you should expect to pay certain fees explained below.

• Trading Fees on eToro

Trading fees are fees charged to open and close positions as well as use the platform. For example, for forex, stocks, and ETFs you are charged a small mark-up also known as a spread (the difference between the opening and closing price).

The eToro spread is fair compared to other brokers, especially for European traders. Note that most assets and markets have a higher spread for non-EU traders.

There are also overnight fees charged for positions that are kept open after trading-hours, such as a stock that’s kept after its exchange has closed for the day.

All things considered, eToro’s trading fees present nothing out of the ordinary, and they are kept at a bare minimum, giving this broker leverage compared to their competitors. 

• Non-Trading Fees

Non-trading fees are fees that a broker charges for features that aren’t directly connected to trading.

As mentioned earlier, eToro does have a rather high first-time deposit limit of a minimum of $200, and even though it’s not a fee per se, it is higher than many other brokers. eToro also charges a $5 withdrawal fee which is something most online brokers don’t.

There is also a $10/month inactive fee charge to traders who aren’t actively trading on the platform.

While eToro’s trading fees are rather competitive, they do charge several non-trading fees that their competitors don’t.

Web, Mobile and Desktop Platforms on eToro

Regardless of which devices you have available or which type of platform you prefer trading on, eToro has something that will suit you.

The main eToro trading platform is a web-based software that was designed in-house by eToro. It’s called a Copy Trading platform since the main features are aimed at copy trading, although you can open and close positions on your own as well.

Copy-trading allows you to study other successful traders and automatically copy all of their moves with the click of a button. This way you don’t have to analyze a market in search of value, and you can also benefit from other traders with many years of experience and that way limit the risk you put yourself in. Copy-trading can also be used on portfolios  made up of several underlying securities called CopyPortfolios.

eToro’s platform is 100% mobile-friendly and can be used with very little limitations on both Android and iOS.

The functionality of the eToro mobile app is incredible, and you can invest in and trade any instrument either on your own or with the copy trading features.

This broker does not have a downloadable desktop platform.

Instead, all trading conducted on PC and Macs are done online using the web platform.

Open an eToro Trading Account

Opening an account with eToro is as easy as it gets. All you need is to provide eToro with all the necessary data they need for your accounts such as name, address, and email. You will then be sent an email with a link to confirm your account and email address.

Once that is done, you can make your first $200 deposit (or equivalent in your local currency).

However, in order to start trading with full capacity as well as being able to withdraw any potential profits, you will have to verify your account.

The verification process involves providing eToro with a copy of your national ID (passport, driver’s license, etc.) as well as proof of your address which can be a recent utility bill or even a bank statement.

After providing all the information, eToro’s support team will evaluate your account and either approve you or ask for even more information.

The account registration process is the same around the world, and as soon as your account is verified, you can start trading as you want to, just be aware that your account will differ slightly depending on where in the world you reside.

• Europe

As an EU or UK trader, you will get access to eToro’s complete product which includes all of the instruments they offer, the lowest fees as well as every tool available on their platform.

• Asia & Australia

As an Asian or Australian trader, you will get access to most of the instruments and assets offered by eToro with the exception of certain stocks and currency pairs. You should also expect to pay higher spreads and trading fees than EU traders.

Note that eToro is not available in Japan.

• North America

For many years, eToro wasn’t available in North America due to strict regulations regarding CFD trading as well as how and where forex brokers could provide their services.

However, thanks to cryptocurrencies increasing in popularity, eToro and other brokers have now gained access to certain parts of North America or rather the United States.

During 2019, eToro worked hard to get their foot in the door on the American market, and in the fall of 2019, their copy trading platform was launched for cryptocurrencies.

At the time of writing, eToro is not yet available in Canada.

• Africa

Similar to many European online brokers, eToro is also available in most of Africa. One of the main markets is the South Africa market where the broker.

Find the best trading platform. You capital is at risk when trading. Be careful.

eToro Demo Account

Besides opening a regular trading account that allows you to trade using real money, eToro also provides a very useful demo account.

The eToro demo account is an exact replica of the regular platform where traders can open and close positions under real market conditions.

The only difference is that virtual currency is used and that you don’t run the risk of losing any money.

A demo account serves two purposes:

• Firstly, it provides a great opportunity for you to test the broker and their platform before signing up.
• Secondly, the demo account can be used for strategy development and practice.

Either way, we highly suggest you open a demo account with eToro because it will give you an advantage over other traders.

Final Words on eToro

eToro is a global trading brand as well as one of the top online brokers in the world. Their unique copy trading platform has made it easier than ever for all types of traders to invest in and trade the assets they prefer.

With an eToro account, you will gain access to all the currency pairs, company stocks, indices, commodities, and cryptocurrencies you could wish for.

Most of these assets can be traded as derivatives while some can be bought as investments, and only your imagination will limit the opportunities that eToro’s amazing platform provides.

Still not sure if this online broker is for you?

Then we suggest you try them out yourself with a demo account, or that you use all of our comprehensive reviews to compare eToro with other similar brokers.

Find the best trading platform. You capital is at risk when trading. Be careful.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading
CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to
leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete
years and may not suffice as basis for investment decision. Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection.
Tax on profits may apply. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.