Reading through this eToro review, you’ll find out they are one of the best brokers for social and copy trading. eToro was established in 2007 and are based in Cyprus with IT in Israel, boasting of 10,000,000 trader from around the world. Etoro offers their services through its platform in the cryptocurrency space with the basis of this platform – and a feature that attracts its clients – is the ease with which you as a client can implement copy trading.
Etoro is serving clients from the UK operating via regulatory body the UK Financial Conduct Authority (FCA) which is serving people from the UK and the Australian Securities and Investment Commission (ASIC) responsible for those clients from Australia. Other areas of the world are not left out, and they go through the eToro Cypriot Entity established and regulated by Cyprus Securities and Exchange Commission (CySEC).
eToro (Europe) Ltd: authorised and regulated by the CySEC, license # 109/10.
eToro (UK) Ltd: authorised and regulated by the FCA, license # FRN 583263.
eToro AUS Capital Pty Ltd: authorised by the ASIC, License # 491139
eToro Fees and Commissions
Etoro are running commission free stocks which allows ETF trading in Europe, while offering relatively lower fees for clients that are not living in the European Union. Alongside the innovative social trading feature that allows you to copy the trading strategies of other clients, it also offers CFD fees that are low. They allow you to trade real stocks and ETFs if you have your leverage set to 1:1 – but if you decide to set your leverage above one, you will be trading with CFDs.
The low CFDs fees is what makes eToro Stand out from other CFD trading brokers but this is not the same case with forex trading. eToro trading fees are higher and also inflexible when it comes to withdrawal. Their withdrawal costs are a bit expensive and a bit slow and they offer only one account base currency.
They charge $25 for both bank and credit card withdrawals. Minimum withdrawal is $50 and any amount lower than this is not permitted with eToro.
eToro Business model
The minimum spreads for eToro are high both for commodity and index trading. For the EUR/USD you can trade at 3.0 pips and 75 pips for S&P 500. For the shares, eToro is offering competitive spreads.
eToro Non-trading fees
Etoro’s non trading fees or inactivity fees starts running monthly at $10 if you have not logged on or traded for over a year. Don’t forget!
Minimum Deposit for eToro
The deposit fees for eToro differs for some regions and countries of the world. Ensure you review eToro fees structure thoroughly. Though having a minimum deposit of $200, clients from Israel are subjected to a deposit fee of $10,000 while those from Australia and the USA can deposit a first time payment of $50. As for China, Russia, Taiwan and Macau the minimum initial deposit is $500. There are also several options that you can deposit from, and they include; Bank transfer, paypal, skrill, Neteller and Webmoney.
The bank transfer takes about 4-7 working days without limit to the amount that you can deposit. But for credit and debit cards, there are limits for a transaction. The limits for credit/debit cards is about $40,000 and $10,000 and $20,00 for electronic wallets.
eToro Account types & Investment Products
Offering a relatively small product line, eToro is providing 77 cryptocurrency CFDs, 47 currency pairs and an index/commodity CFDs of up to 19. They are offering both live accounts and demo (virtual) accounts which enable you to either be a learner and acclimatize with their seamless platform for trading or invest and start real trading.
Other brokers normally have their trading links or bars in the top menu and actively engaging traders in a well designed platform for learning. But it is strange why eToro has its own trading Academy links down there in the footer section of the page. The link leads you to an education portal with just 11 basic programs arranged in the form of powerpoint presentations. So if you are a learner, or a newbie to forex trading, it seems that this platform is not for you, but rather its designed by and for pros, who have gained experience over the years in trading.
eToro Review of Special Features
Early in march 2019, eToro launched a blockchain wallet that is available for all users on Android and iOS and is available in over 31 U.S. States. This opened an avenue for the platform to offer over 15 different cryptocurrencies and as far reaching as 16 different countries with the U.S inclusive. eToro is providing customers access to cyptos – but only those outside the U.S have the ability to trade forex, CFDs, Stock and also Crypto.
The best eToro feature is seen in the social and copy trading feature that allows users to access the portfolio of other clients, copying their trading strategies. The efficient search system allows you to search through the portfolios of traders. Then you can check their monthly and yearly performance, deciding if you want to copy their trades.
eToro also makes provision for negative balance protection which does not allow traders to lose more than they have invested. Discounts and extras benefits is depending on your account size where their club program also provides you with trading discounts. For eToro, forex trading is not their true strength especially when compared to other brokers. However, if you are looking for a social network to copy trade, eToro is clearly the best.
eToro also has special tools that you can use for technical analysis. They are up to standard and interactive for better trading. But there is no fundamental data available but with their charting tools, you will not waste any time in getting your indicators up and running smoothly.
eToro Customer Support
Their customer service is quite up to standard and allows you to reach several channels that can offer relevant answers. But most customers complain of difficulty in accessing the live chat service. This can clearly be seen with the TrustPilot etoro review, where they score 2.3 out of five – mainly down to support based issues – there is no phone support on etoro.