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eToro Review 2024 – Is This Broker TrustWorthy?

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4.88

TABLE OF CONTENTS

General Information

Broker name

eToro

Broker type

Forex and CFD’s

Country

Central Israel

Operating since year

2007

Regulation

CySEC , FCA , FSRA

Broker status

Active

Customer Service

Phone

1-888-271-8365

Email

support@etoro.com

Languages

English

Availability

24/5

Trading

The trading platforms

Proprietary trader

Demo account

No

Mobile trading

Yes

The trading platforms

Proprietary trader

Bonuses

Yes

Other trading instruments

Yes

Account

Minimum deposit (€)

Between 10$ and 10.000$ ( Depends on location)

Spread

Spreads are variable

Scalping allowed:

Yes

Maximal leverage

x400 for major currency pairs (such as EUR/USD). x100 for Gold and other commodities, and major indices. x50 for non-major currency pairs. x10 for non-major indices, CFD stocks and ETFs.

TABLE OF CONTENTS

Introduction

Founded in 2007 in Tel Aviv by brothers Ronen Assia and Yoni Assia, along with co-founder David Ring, eToro initially emerged as a forex trading platform. In 2010, it introduced its signature social trading feature, allowing users to replicate the trades of successful traders on the platform. Three years later, in 2013, eToro expanded its offering to include stock trading alongside forex and commodity trading. Notably, it was among the first brokers to support Bitcoin (BTC) at that time. The company further bolstered its crypto trading business in 2017 by adding more assets and ventured into the U.S. market with its crypto trading services the following year.

Today, eToro boasts a customer base of over 25 million users spanning 140 countries. It offers a diverse range of tradable assets, including cryptocurrencies, stocks, ETFs, and more, establishing itself as one of the premier online trading platforms globally.

eToro Home Page

Access advanced trading tools effortlessly. Join a trusted broker with over 30 million users worldwide and trade more than 5,000 instruments.

eToro offers four types of accounts:

  1. Personal (Retail) Account: This is the default account type, allowing trading across all offered assets, copying other traders, and investing in Smart Portfolios. While leverage is limited, this account offers the highest level of consumer protection.
  2. Professional Account: Reserved for clients who meet specific criteria, professional accounts permit the use of higher leverage when opening trades.
  3. Corporate Account: Intended for business purposes, corporate accounts are utilized by legal entities. Ideal for trading with business capital.
  4. Islamic Account: Designed for Muslim clients, Islamic accounts adhere to Sharia law by not charging interest-based fees.

All accounts include access to eToro’s virtual portfolio (demo account), allowing for risk-free investment practice.

Register for Account

Simply sign up online for a eToro account.

Verify Your Account

Upload the required documents to verify your identity.

Make a Secure Deposit

Fund your account using eToro's flexible payment options.

You’re Ready to Trade

Connect to your trading account and start investing in global markets.

Customer Service

This broker offers excellent customer service, available anytime, anywhere. Besides live chat, you can also reach them via:

eToro Help Center

Our Take

eToro is a market-leading online brokerage and social trading network, offering a seamless platform for buying and selling leading cryptocurrencies and copying trades from experienced crypto traders. Known for its intuitive user interface, eToro provides a beginner-friendly trading experience.

Beyond cryptocurrency trading, eToro also offers opportunities to invest in stocks, ETFs, and other securities, with the availability of assets varying depending on your location. For U.S. citizens, the platform provides access to trade 21 digital currencies and tokens, over 3,000 stocks, more than 270 ETFs, and options contracts across a range of assets.

Pros & Cons

Pros
  • Established, global platform

  • Broad range of tradable crypto assets

  • Innovative and easy-to-use social trading experience

Cons
  • Only available in 47 U.S. states

  • Margin trading not available in the U.S.

  • Lacks advanced trading tools and features

 

Pros Explained 

eToro’s well-established global platform attracts millions of users worldwide. While the U.S. platform may have some limitations compared to international versions, eToro offers a diverse product range that caters to users from diverse backgrounds.

One of eToro’s key strengths is its broad selection of tradable crypto assets. U.S. citizens have access to over 20 leading cryptocurrencies, including popular options such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).

eToro also stands out for its innovative and user-friendly social trading experience. With features like CopyTrader, users can effortlessly replicate the trades of successful crypto traders on the platform. By evaluating traders based on user ratings and performance metrics, users can choose a trading strategy that aligns with their investment goals.

Cons Explained 

eToro’s availability in the United States is limited to 47 states, excluding residents of American Samoa, Guam, Hawaii, Nevada, New York, Puerto Rico, and the U.S. Virgin Islands.

Moreover, margin trading is not an option for U.S. users, restricting more experienced traders who seek to engage in margin trading of crypto or other assets.

Additionally, eToro’s emphasis on simplicity and user experience means it lacks advanced trading tools and features that professional traders typically rely on. The platform’s focus is on catering to a broad investor base, which may not fully satisfy the needs of professional traders seeking more complex trading capabilities.

Usability

eToro offers a user-friendly interface, both on its mobile app and web platform, ensuring a seamless trading experience across devices. With a straightforward design, traders can easily navigate the platform and access desired features.

The flagship CopyTrader tool simplifies the process of replicating the trades of popular crypto traders. Users can effortlessly search for and follow the strategies of successful traders, making it convenient to start trading.

The platform’s News Feed enhances the social trading aspect, resembling a social media platform where users share market insights. This feature provides valuable insights into the strategies of successful traders, aiding users in making informed decisions about whom to copy.

Trade Experience

eToro offers a streamlined onboarding process, utilizing a self-guided questionnaire to collect necessary personal information for account setup. The platform supports integration with various financial institutions, facilitating easy deposits into users’ accounts. With a quick setup, users can promptly start trading. Additionally, setting up an eToro Options account for options trading is straightforward through the eToro Options app.

On the eToro platform, the “Trading” tab provides real-time prices and enables users to buy, sell, or convert cryptocurrencies, ETFs, and stocks. While eToro offers a selection of 21 cryptocurrencies, over 3,250 stocks, and more than 270 ETFs, some users may find its list of tradable assets less extensive compared to competitors. Moreover, the platform primarily offers basic order types such as market and limit orders, limiting options for advanced traders.

The flagship features of CopyTrader and the Popular Investor Program stand out on the platform. These features allow users to replicate the trades of successful traders, while successful traders earn rewards when their trades are copied. The interactive nature of these offerings, coupled with the platform’s social media-like experience, enhances the user experience.

eToro enables custom watchlists that sync seamlessly between the mobile and web platforms, allowing users to monitor their interests effortlessly. Users can customize watchlists with volatility alerts, receiving notifications directly to their phones.

eToro photo show

Mobile Trade Experience

eToro’s mobile app boasts a user-friendly design, characterized by its simplicity and lack of clutter. The interface is intuitive, making it particularly appealing to beginner investors. Its resemblance to a social media app adds an innovative touch to the user experience, encouraging engagement with other traders and popular investor profiles.

The app’s familiarity may provide a sense of comfort for novice investors, as it diverges from the typical layout of traditional brokerage offerings. While experienced traders accustomed to a more straightforward approach may need some adjustment, the app remains highly intuitive overall.

Range of Offerings

On eToro’s U.S. platform, users have access to a limited selection of offerings compared to international versions. Here’s what’s available:

  • 24 cryptocurrencies
  • 3,250+ stocks
  • 270+ ETFs
  • Crypto copy trading through CopyTrader
  • Options trading
  • Cash management through eToro Money
  • Portfolio automation through Smart Portfolios
  • Fractional share investing

Order Types

eToro’s platform provides a limited selection of order types, which include market orders, limit orders, stop-loss orders, and take-profit orders.

Trading Technology

eToro does not publicly disclose order execution quality statistics. However, the platform adheres to a best execution policy and maintains a minimal level of payment for order flow, indicating its commitment to this policy.

eToro’s Smart Portfolios feature allows users to choose from a variety of diversified automated portfolios, eliminating the need for manual allocation of funds. These portfolios cover a wide range of sectors such as private equity, infrastructure, technology, and healthcare, blending ETFs, stocks, and cryptocurrencies in their allocation. An investment team continuously monitors these portfolios to ensure they align with thematic elements and risk parameters, making them particularly attractive to novice investors.

The trading technology associated with ETFs, stocks, and cryptocurrencies on eToro is relatively straightforward. While charting capabilities are available for all asset types, the platform lacks backtesting functionalities. Additionally, screening tools and other advanced trading features are notably absent. Instead, eToro prioritizes its CopyTrader product and social trading aspect as the core components of its trading experience.

Costs 

eToro’s fee structure aligns with that of many other online brokerages and cryptocurrency trading platforms. Here’s an overview of eToro’s fees:

  • Crypto trading incurs a 1% fee based on the amount of cryptocurrency bought or sold. This fee is included in the bid-ask spread.
  • A fee is charged when transferring crypto assets from your eToro trading account to your eToro Money crypto wallet.
  • There are no fees or commissions for ETFs and stocks, although ETFs may have internal costs.
  • A withdrawal fee of $5 applies, with a minimum withdrawal amount of $30. However, this fee is waived for Platinum, Platinum+, and Diamond Club members.
  • Withdrawals and deposits are conducted in USD, and non-USD transactions may incur conversion fees ranging from 1.5% to 3.0% per transaction, depending on the currency and payment method.
  • An inactivity fee of $10 per month is charged for users who have been inactive for more than a year.

Is eToro Safe?

eToro is a licensed online brokerage firm known for its strong commitment to security. Its U.S.-based securities business, eToro USA Securities Inc., is registered with the SEC and FINRA as a broker-dealer. Additionally, eToro’s U.S.-based cryptocurrency operations, operated through eToro USA LLC, are registered as a Money Services Business (MSB) with FinCEN. The company has maintained a clean record with no major security breaches reported on its platform.

The Bottom Line

eToro stands out as a well-established online brokerage offering crypto trading services in the United States. Its user-friendly interface, accessible on both web and mobile platforms, grants easy entry to a variety of crypto assets. With features like CopyTrader and SmartPortfolios, eToro enhances its beginner-friendly appeal, simplifying the crypto asset market for newcomers.

Beyond crypto trading, eToro users can diversify their investments by accessing stocks, ETFs, and options. While the platform provides a range of products to choose from, its list of tradable assets across all supported classes may not be as extensive as some competitors. Additionally, the absence of advanced trading tools, comprehensive research, and margin trading may deter experienced traders seeking advanced strategies.

eToro caters primarily to beginners and less experienced traders interested in trading popular cryptocurrencies and other assets, along with leveraging the platform’s copy trading feature. However, advanced traders focused on cryptocurrency trading may find more suitable options on popular crypto exchanges to fulfill their trading needs.

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