eToro Review and Analysis
Overview
Since its foundation in Israel in 2007, eToro has quickly climbed the ladder of the social trading revolution and proudly occupies the leading position as the world’s biggest social trading and investment platform, which is initially introduced in 2010. eToro has always been at the forefront of fintech and continues to make groundbreaking moves, such as its recently launched CopyPortfolios, a machine-learning driven and AI-powered product.
eToro is extremely popular and boasts over 12 million registered users, who flock to use its services for many reasons, including the fact that it is considered a trusted and safe broker, due to its multi-regulations in several jurisdictions, including in the UK by the Financial Conduct Authority (FCA).
To find out more about the exact offering of eToro and help you decide and discern if this is the right broker for you, read our eToro review below, which has been meticulously crafted to offer you valuable insights and ease your broker selection and comparison process.
Investor Protection & Regulations
eToro is regulated in various jurisdictions by the respective financial authority in each jurisdiction. Thus, its UK entity is authorized by the FCA, its European subsidiary is licensed by the Cyprus Securities and Exchange Commission (CySEC), while the Australian Securities and Investments Commission (ASIC) licenses eToro’s Australian division. Due to the strict rules and regulations imposed by watchdogs, eToro’s clients can trade in a secure environment and feel confident since they are entitled to a compensation scheme.
Fees and Commissions
Complete fee transparency is a major plus when assessing the offering of eToro as a broker. It is however important to highlight that besides the trading fees, other types of fees also apply, such as for example a flat fee of $5 per withdrawal.
In a move that puts them ahead of the competition, eToro charges no fees for long (buy) positions and stock, however it should be noted that fees are charged on short (sell) orders, while there are also overnight and weekend fees on CFDs. To get a full and clear picture of the fees applied by eToro it is best to consult the dedicated market hours and fees page on the broker’s website, which clearly displays updated prices and daily spread breaks, as well as the market hours for each tradeable asset according to its class.
Trading Platform
Since eToros most distinguishing initial feature was to be a venue for social trading, its trading platform has been designed and develop to seamlessly serve this purpose. Therefore, it is a proprietary platform that incorporates all the necessary features and tools that would facilitate a successful social trading endeavor. Clearly then, this is an environment that differs from other popular platforms, whose main function was forex trading.
Though trading is done through the proprietary platform, this is widely accessible by all devices since there is a WebTrader available as well as a mobile application for trading on the go. All platforms ensure access to the entire spectrum of tradable assets, which exceed 2.000 different ones, offering the same fee setup, and additional features and tools, such as charts and graphs, useful to traders of all skill levels and experience.
The overall assessment of the eToro trading platform is that it is both intuitive and easy enough for beginners, while at the same time offering advanced features which more seasoned traders will find useful and necessary. The only downside is that traders who wish to have access to extensive analytics tools may need to seek alternative, additional sources to cover that need.
Account Types
Besides the demo account, which is readily available for training purposes, the real trading account types offered by eToro are broadly divided into two categories, those geared towards retail clients and those geared towards professional clients. Retail clients can choose to either trade manually or use the Copy Trading mode. Due to regulatory requirements, normal retail trader accounts are subject to certain restrictions and limitations pertaining mostly to the maximum leverage allowed per asset class.
Through the account types geared towards professional traders, it is possible to obtain access to high leverage levels for certain trading instruments, provided the professional clients agree to waive some protections, such as negative balance protection and access to the investor compensation fund. It should be noted that only those who qualify as professional clients can get this treatment after they complete a special application process and provided they meet the strict criteria set.
Moreover, the eToro Club is available for clients seeking to obtain additional services and perks. Divided into silver, gold, platinum, platinum plus, and diamond tiers, eToro Club membership grants a dedicated account manager to those in the silver tier, additional market analysis, credit lines and live seminars to those in the gold tier and private trading signals, a debit card, and no withdrawal fees for those in the platinum tiers. Additionally, Platinum+ members get exclusive access and personal analysts, while finally, Diamond members are exempted from all exchange fees and also receive invitations to exclusive events.
Usability
The user experience when trading on eToro’s website is exceptional and the clear and professional layout and structure of the site, as well as its intuitive and responsive navigation greatly enhance the user experience. Users are helped by the useful search bar and can easily be navigated through either the main navigation bar or via drop-down menus that can be found both at the top and at the bottom navigation bars.
Another advantage of eToro, especially in the eyes of aspiring, prospective users, is that it allows access to its Webtrader version before signing up, even prior to opting for a demo account, thus allowing potential customers to make a knowing and informed decision before committing in any way.
Customer Support
The customer support, guidance, and assistance offered by eToro to its client traders is of a very high standard and it is primarily offered via its online detailed Help Centre, as well as through its Customer Service page. The Help Centre serves as a detailed FAQ section and it is neatly divided into 10 different topic categories, which makes navigation easier, while also offering a very convenient and functional search option.
The eToro team may be contacted via the Customer Service page, where you can open a new ticket and post your query, question, problem or complaint. Moreover, eToro may be contacted via social media, where it is omnipresent, including through LinkedIn, Facebook, Twitter, Instagram, and YouTube. Finally, UK-based customers may also get support via a local UK phone number.
Education and Research
Beginners trading on eToro may well start learning by visiting the FAQ section of the broker’s website since the contents are highly informative. Moreover, eToro offers an introduction to social trading, as well as detailed and comprehensive guides on fintech and investments in general, while also publishing daily market updates which its users can consult to help them reach better and more informed trading decisions.
Though eToro has compiled and offers a quite extensive library of relevant educational materials, which its users can study and use, there is a general sense that in terms of content this tends to cover only the basics or a bare minimum of scope and thus eToro users may well need to resort to other sources as well in order to obtain further knowledge and enhance their insights.
Frequently Asked Questions (FAQs):
How trusted is EToro?
The trusted source of information on fintech matters SBO, gave EToro a 3.75/ 5.00 rating based on analysing 20+ criteria and testing. EToro is currently in 7th place in this ranking. OspreyFX is currently rank as the number one.
Is eToro safe?
eToro is comfortably the global leader when it comes to social trading and as a network, it has enabled millions of client traders to trade currencies, stocks, cryptocurrencies, as well as CFDs in commodities, indices, and ETFs. eToro is multi-regulated as a broker and thus must adhere to strict rules and regulations which render it a very safe broker for traders. eToro keeps all client deposits segregated and also offers a compensation protection scheme for its customers.
Is eToro a regulated broker?
Yes, eToro is an established broker enjoying a good reputation and regulated by financial watchdogs in different jurisdictions, such as the FCA, the ASIC, and CySEC.
Is eToro a suitable forex trading broker for experts and beginner traders?
eToro boasts a diverse trading offering meaning that it is a suitable, fair, and viable environment and venue for the trading endeavors of all types and levels of traders, from complete beginners to seasoned pros.
