eToro is a versatile broker based in Tel Aviv, Israel and they were one of the first services to offer a marketplace for several different financial instruments. Today, they are proud to offer currencies, commodities, indices, ETFs, and CFDs on a single platform.
Additionally, eToro has made a name for themselves as the world’s leading social trading network. Their network works as a social media platform where traders can discuss trading and copy strategies.
Their motto is “Globalized Reach. Personalized Experience.” We think it sums up their product perfectly.Create an account at eToro
Is eToro a scam?
No, eToro is not a scam in any way, shape or form. Instead, they are one of the most serious businesses in the industry. We have searched high and low looking for negative reviews about them but it has proven difficult to find. Most of their complaints are from customers who lost money and are trying to blame their lack of knowledge and skills on eToro. It’s also important to note that everyone gets complaints at some point.
We did find a few people who had been forced to wait longer than normal to get paid. However, all of these individuals were eventually paid and it seems to have been caused by eToro’s strict payment terms. It is not unusual that payments get delayed and eToro is definitely not the only broker this happens with.
Ultimately, we decided to listen to the millions of customers that eToro has served over the years, instead of focusing on the handful of individuals that had a bad experience. We are certain that eToro is one of the best brokers in the industry and we would not hesitate to recommend them to traders looking for a stable selection of assets and a great social investment network.
eToro also has a trading license from the Cyprus trading authority (CySEC) which means that they are regulated and follow very strict guidelines.
eToro’s Finacial Instruments
eToro has chosen to focus on five different markets: the forex market, commodities, stocks as CFDs, ETFs, and indices. During the last year or so they have also started introducing cryptocurrencies, but right now that selection is limited to just six different currencies.
This is what their selection of assets looks like:
- Currencies: 47 of the world’s leading currencies and some smaller ones are offered on eToro’s trading platform.
- Stocks/CFDs: eToro offers several hundred of the most influential stocks in the world from some of the biggest stock exchanges such as NYSE and the London Stock Exchange.
- Commodities: Copper, gold, natural gas, crude oil, platinum, and silver are the six commodities currently offered by eToro.
- Indices: eToro has a selection of 12 different indices, among them you’ll find NASDAQ (NSDQ 100), EUSTX50, and AUS200.
- ETFs: An eToro trading account gives you access to 59 different Exchange Traded-funds.
- Cryptocurrencies: Bitcoin (BTC), Dash (XCO), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), and Ripple (XRP), are the cryptocurrencies that you can trade with on eToro right now. However, we are expecting to see more currencies added in the near future.
eToro’s New Trading Platform
eToro used to offer a web-based trading platform called eToro WebTrader. The platform was combined with a trading network called eToro Openbook. They also had a mobile version of the WebTrader but with very limited features.
A few months ago eToro went through a complete update and they decided to combine all their tools under one roof. The new platform is called New eToro, and it includes all the prior tools and services with several new and interesting add-ons. It is a one-stop solution for all your trading needs.
eToro describes the new platform as a “one-size-fits-all,” and we agree that the new product is better looking and easier to use than their earlier version.
The World’s Leading Social Trading Network
What makes eToro unique compared to all other leading online brokers is that they offer a social investment network where their customers and traders can discuss techniques and copy each other’s strategies. As you might understand, a social network like this opens up the doors to unique trading opportunities which means that eToro can offer possibilities that no other broker can. Below you can read more about the network, how it works, and the advantages it offers you as a trader.
When you find traders that you think are performing well with styles that seem to fit your own, you can copy them. Afterwards, you can just lean back and watch the CopyTrader do all the hard work for you. If the person you’re copying starts losing money or if you don’t like how the situation unfolds, you can decide to stop the copy function and start over with someone new.
Our tip to everyone who wants to use this functions is to study many traders before you start copying them. You should also try to follow traders for an extended period of time since some traders might only perform well for a short while. Remember to look for the traders that perform better than average.
We truly enjoy eToror’s CopyTrader because it makes the trading process so much easier. It is especially useful for beginners and individuals who don’t have enough time to spend analyzing the markets and developing strategies.
According to eToro’s own statistics, 80% of all copied trades are successful.
On their website, eToro says that they created CopyFunds to take copy trading to the next level. It also helps to minimize long-term risk for individuals using the tool. Just like CopyTrader, CopyFinds is a practical tool for most individuals, but especially for those who don’t have enough time to analyze the market and different assets.
With access to several million users portfolios, it is easy to learn from others mistakes while shortening your own road to success. And who wouldn’t want to do that?
We believe that social trading is the future of day trading. In the future, we are expecting to see the concept grow further, maybe even spreading outside of eToro’s own tools.
eToro On Your Smartphone
We have some good news. The New eToro platform is available for mobile devices. The platform comes in two dedicated applications, one app for Android and one app for iOS. Simiarly to the desktop software, the new apps are updated and their features are no longer as limited.
With eToro’s new trading app you can buy and sell assets on the go. You can also use the app to analyze the market and keep track of on-going trades. We have tested the app and think it’s really good. In fact, we would almost be willing to call it the best in the industry.
You’ve got two options when you open an account with eToro. The first option is to open a regular trading account and start trading for real money right away. The second option is to open a demo account that you can use to evaluate the copy functions and practice trading in a risk-free environment. We always recommend that you start with a demo account, but the decision is yours.
eToro License and Regulation
A broker needs to attain licenses from recognized authorities in order to offer financial services legally in Europe and the rest of the world. eToro has managed to get several licenses. eToro (Europe) Ltd. has a license from and is regulated by Cyprus Securities and Exchange Commission with the license number 109/10. This license covers most of Europe. In the UK, eToro (UK) Ltd. is regulated by the Financial Conduct Authority (FCA) with reference number 583263. Both eToro (Europe) and eToro (UK) also operate in accordance with the Markets in Financial Instruments Directive (MiFID).
All these licenses confirm that eToro is a trustworthy broker that you can use without having to worry about your money or personal information.
Additionally, eToro has registered a company under the name eToroUSA with the Commodity Futures Trading Commission (CFTC), and they are a member of the National Future Association. This means that we can expect to see eToro launch a broker service in the United States soon.
Deposits and Withdrawls with eToro
The company behind eToro has made it clear that they want their broker service to be as easy to use as possible which means that they try to offer payment methods that suit everyone. This also means that new methods might be added and that the following list may be updated.
Today the following payment methods are available to most customers:
- Credit and debit cards (Visa, Mastercard, AMEX, etc.)
- Skrill (according to some this option is only available for British customers)
- Wire Transfer
- Bank Transfer
The minimum deposit is $50 and the maximum is $20,000, but that number might be affected by the payment method you use. All deposits are processed within 1 day, except for bank transfers which can take between 3 and 5 business days.
eToro Customer Service
If you run into any problems or have questions, you have a few ways of contacting eToro. The first and most useful solution for minor issues is their FAQ where you’ll find answers to the most common questions related to accounts, payments, platforms, etc.
If you don’t find the answer in the FAQ section, you need to contact the eToro customer service. Existing customers have access to a live chat and support via phone 24/7. The staff working at the customer service is knowledgeable and very quick to assist. If you don’t have an account you can contact the customer service through email or the contact form on their website.
Last time we visited the website we found a warning which stated that due to an increasing number of customers eToro isn’t able to answer questions from non-customers. They also state that they promise to handle your case as soon as they can and if your question has been asked before they will send you a pre-written answer.
Since we hadn’t seen the warning before we decided to send them an email as a “non-existing customer,” and we received a professional and very detailed answer within 24 hours, which is not bad at all. If you’re a paying customer you can expect to get help a lot quicker than that.