In this new review we’ll show you:
- How to ensure your trading funds are safe
- Fees and Features compared with other brokers
- Leverage and regulation offered
- Customer reviews from trusted sources such as Trustpilot, Google Play and Apple Store
Plus lots more
In this article
Let’s get started with the eToro Review 2023
Before starting the review we would just like to let you know that all brokers signed up to via our Safe Broker Search are eligible for our free insurance that will help protect your deposit in case of broker failure.
Additionally, all brokers signed up to via the search are eligible for £85,000 deposit protection provided by FSCS. You simply need to select FCA regulation upon broker signup.
eToro is a London based social trading broker established in 2007. They currently have over 18 million clients in over 140 countries. This makes it the largest social trading platform and Forex brokerage in the market. You can trade everything from stocks, to CFDs and also cryptocurrency CFDs.
eToro is the only platform where investors can hold traditional assets such as stocks and shares alongside cryptoassets such as Bitcoin.
eToro is regulated by the Financial Conduct Authority (FCA), an Australian Securities and Investment Commission (ASIC) and Cyprus Securities and Exchange Commission (CySEC). They have offices in the UK, Israel and Cyprus.
As of 2018, US based customers in certain states can access the cryptocurrencies offering. However as of January 2021 UK regulated customers cannot trade Bitcoin CFDs.
Non-U.S. customers can trade additional asset classes such as Stocks, Commodities, Forex, CFDs, Social trading, Indices, Cryptocurrency and Exchange Traded Funds (ETFs).
User reviews
Before depositing your hard-earned cash, it’s always a good idea to have a look around and see user reviews from other traders. We always suggest that you don’t just rely on a single rating on any review site as they don’t give a proper representation of the company on the whole.
Here is a sample of Etoro user reviews which will give you a better indication of how your broker is viewed by its customers.
To summarise:
eToro averages 2.2/5 with over 4,000 eToro Trustpilot reviews
eToro also averages 2.6/5 from over 140 eToro Google reviews
The FPA scores eToro as 1.7/5 from over 220 eToro FPA reviews
The eToro Play Store reviews are 2.8/5 from over 71,000 reviews
The eToro App Store reviews average 3.2/5 from over 3,700 customer reviews.
They are also over 2,100,000 eToro Facebook Likes
On the whole, eToro appears to be reasonably well respected by the eToro community with enough Trustpilot and eToro app reviews to be statistically relevant. Overall eToro scores 56% based on 79,376 Customer Reviews.
The eToro trading app reviews are above average with The Apple Store Apps scoring reasonably well compared to other brokers. The Android eToro app score shows that it is slightly more well received by traders.
eToro does however have a bustling Facebook community with plenty of followers which also usually suggests happy customers.
Funds Safety & Regulation
Funds safety is critical in your trading and it can make or break your financial future. Your level of funds protection will depend on where your regulation is from. Your country of residence does not necessarily define who your regulator will be.
There are many factors that go into determining your regulation. So check with your account manager after you have signed up and before you deposit to determine which body you are regulated with.
You can usually switch regulation on signup [depending on your country of origin] which can be a good idea if you want to ensure that you get the best regulator that offers the most consumer protection and funds safety.
eToro are regulated in various jurisdictions. They are regulated in Cyprus as eToro (Europe) Ltd with licence number 109/10. They are also regulated in the UK, as eToro (UK) Ltd under FCA firm reference number 583263.
eToro are also regulated in Australia as eToro AUS Capital Pty Ltd with Australian Financial Services Licence (AFSL) number 491139.
In the USA eToro is run as eToro USA LLC which is registered with FinCEN as a Money Services Business. If you are a US resident, your cash holdings are FDIC insured for up to $250,000. Your USD funds are held in an FDIC-insured custodial account. Even if eToro were to fail, your money would be protected and returnable to you (up to $250k).
If you are regulated in Australia there is no funds compensation scheme. Also, the Australian Securities and Investments Commission will not extend investor protections to clients receiving financial services outside of Australia. However, you would be eligible for eToro’s private insurance [see below].
If you are regulated by CySec you possibly have access to funds protection (as long as you are not trading cryptocurrencies). All CySec regulated brokers must join ‘The Investor Compensation Fund’ which offers a guarantee of funds of 90% of remaining deposit up to €20,000 in case of firm liquidation. However, according to CySec this amount can be just €3,417 depending on how your broker is structured. You will need to check with your account manager which is applicable to you as it varies by your country and regulation.
Also, bear in mind that if you are owning the underlying cryptocurrency asset you are not covered by The Cyprus Investor Compensation Fund. This is because the MIFID II regulation does not recognise cryptocurrencies as a ‘financial instrument‘.
If you are regulated by The FCA then you are relatively safe. You will need to check with your account manager where your regulation is.
Luckily for clients, eToro provides free insurance from Lloyd’s of London, one of the world’s leading providers of specialist insurance. This gives deposit guarantee coverage of up to 1 million Euro, GBP, or AUD. This insurance is for eligible clients regulated by CySec, FCA and ASIC. However, this can be rescinded by eToro at any point if they choose. Also, this insurance does not cover cryptos regardless of your regulation.
eToro also provides negative balance protection but only for retail clients from the European Union and UK. Professional and non-EU clients are not covered with any negative balance protection.
It is always recommended that if you have a choice you should ensure you are regulated by the FCA [UK]. The FCA offers Government backed client funds protection [100% of remaining deposit] up to GBP £85,000 through the [FSCS].
FCA regulations are more strict, the regulations more transparent and they are more focused towards customers in the event of disputes. Brokers regulated by The FCA for example need to process withdrawals within one business day as per Section 7.13.13 (2)(b) of the FCA handbook
Fees
With regards to spread fees, this will depend on a variety of factors. This will include your account type, the asset that is being traded as well as the times that they are traded as they fluctuate depending on if trading is taking place within or outside standard trading hours. Once again, these trading hours will depend on the asset being traded.
Professional clients are afforded lower spreads than retail clients. But few clients will have the requisite deposit to meet that designation. Also, professional clients will waive their right to any funds protection that will be given to retail clients [regulation dependant].
There is a page with all the spreads of all the tradable instruments and they also have the overnight calculations, inactivity fees and maturity rollover fees.
It’s impossible to give a definitive answer as to spreads due to the many permutations involved in calculating the spreads so it’s better to get the actual spreads from the website itself.
eToro commission free stock trading.
eToro heavily markets itself as a commission-free trading. Whilst this is true and they do in fact offer commission free trading, it’s also true that they use it to entice customers who are then likely to switch to other more lucrative products such as CFDs. eToro CFD revenue(spread and the interest swap) are then used to subsidise the commission-free trading. This is essentially how etoro makes money
Note that clients falling under ASIC regulation can only trade US stocks commission-free. You will also benefit from:
Crypto fees
Some of eToro’s spreads are fairly wide. The tightest is Bitcoin at 0.75%, while the widest is Tezos at 5%. The minimum purchase for any crypto is $25.
CFD fees
eToro has generally low CFD trading fees which are similar to those charged by its competitors. eToro does not charge commission on CFD instruments, rather, as per the industry standard the commission is built into the spread.
Copytrader fees
When using CopyTrader, there are no extra fees or hidden costs.
However, spreads and overnight fees may be applied according to each opened copied position. These will depend on the asset class being traded.
Non-trading fees
eToro charges $10 per month after one year of inactivity. They also charge a withdrawal fee of $5.
eToro Deposit Fees
eToro does not charge deposit fees.
Crypto fees
Because of the nature of cryptocurrency trading, in that there is no centralised manned exchange, it is available 24/7. There are no fees associated for overnight or weekend trades. Instead, eToro only charges fees for users who hold leveraged Ethereum or BTC positions or for shorting cryptocurrencies.
If you’re a trader based in the U.S., you’ll be limited to buying and selling cryptocurrencies through eToro’s platform. Like many cryptocurrency trading platforms, eToro charges users a spread between the bid price and the ask price of a currency.
Leverage
The amount of leverage you are offered will depend on the regulation where your account is held. You can usually switch regulations on signup if you require more leverage.
If you are registered in the USA by FINCEN you will not be able to trade on leverage.
If you are regulated in Cyprus by The Cyprus Securities and Exchange Commission (CySEC), your maximum leverage will be 1:30.
If you are regulated in Australia by The Australian Securities and Investments Commission (ASIC) your maximum leverage will be 1:30.
If you are regulated in the UK by the Financial Conduct Authority (FCA) your maximum leverage will be 1:30. Note that for professional clients this can be higher but you will forfeit your rights to the funds compensation scheme and other consumer protections offered by The FSCS.
eToro leverage is governed by FCA/ ESMA / ASIC rules. UK and EU regulators generally have lower leverage than some offshore brokers but you would benefit from much better funds safety levels (€100,000 and €20,000 respectively). If, however, you chose to be regulated in Australia then no funds protection is offered.
One thing to bear in mind is that if you deposit more to get the higher levels of margin then your funds will still be covered by the state-backed compensation schemes up to the requisite maximums. Therefore, trading with an unregulated broker at an offshore jurisdiction to get more leverage would give you no financial benefit but would carry the risks associated with offshore trading such as lack of compensation schemes, lack of arbitration as well as lack of consumer protection.
Trading Products
With Etoro you can trade Stocks, cryptoassets, commodities, ETF, investment, fintech, trading, and social trading
Broker Comparison
Before you decide on a broker it’s always a good idea to compare with other similiar brokers to ensure that your broker will deliver what you are looking for.
You can select the brokers below and compare fees and features with other brokers. You can also compare funds safety levels as well as customer reviews from a variety of trusted sources.
By comparing, you have a better idea if this broker is right for you or if another one would be more suited to your requirements.
FAQs
Is eToro trustworthy?
With regulations in the UK by the FCA you can be sure of eToro’s trustworthiness.
Is eToro really free? How does eToro make money?
eToro heavily markets itself as a commission-free trading. Whilst this is true and they do in fact offer commission free trading, it’s also true that they use it to entice customers who are then likely to switch to other more lucrative products such as CFDs. The revenues from the CFDs (spread and the interest swap) are then used to subsidise the commission-free trading.
Is eToro legal in Australia?
Yes, eToro Accepts Australian Traders. Furthermore they also have an ASIC license which means that they are fully regulated there.
Is eToro a pyramid scheme?
No, eToro is not a pyramid scheme. They have to adhere to incredibly strict regulations imposed by the FCA who take a very dim view of pyramid schemes.
What happens if eToro goes bust?
This will depend on where you are regulated. FCA regulated clients will be covered 100% up to £85,000 via FSCS. CySec clients would get 90% up to €20,000 via the ICF. USA based clients could claim up to $250,000 through FDIC. If you are regulated in Australia there is no funds compensation scheme.
Does eToro have fees?
eToro charges $10 per month after one year of inactivity. They also charge a withdrawal fee of $5. eToro has no commissions for stocks. They have no commissions for CFDs. However, fees are built into the CFD spreads.
Is eToro safe?
eToro is safe if you select UK regulation upon signup as you have access to 100% funds safety up to £85,000.
How long does it take to get money from eToro?
Brokers regulated by The FCA including eToro need to process withdrawals within one business day as per Section 7.13.13 (2)(b) of the FCA handbook.}
How do I avoid eToro conversion fees?
Simply deposit with the currency that you wish to trade in. You can use online banks such as Revolut or Wise to avoid such charges.
Can I withdraw Bitcoin from eToro?
Yes, you can withdraw Bitcoin from the eToro trading platform to an external wallet through the eToro Wallet.
Do you have to pay tax on eToro?
eToro UK clients will only pay tax on gains of £12,000 per tax year. This is known as Capital Gains Tax. eToro tax is therefore governed by your country of residence.
Can you buy crypto on eToro?
Yes you can buy a variety of cryptos on eToro.
Can I short sell on eToro?
Yes you can short sell on eToro but only on CFDs.. There is no option to short sell stocks.
Can I day trade on eToro?
Yes you can day trade on eToro.
What can I trade on eToro?
You can trade Currencies, Commodities, Stocks, ETFs, Cryptocurrencies and Indices on eToro.
Is scalping allowed in eToro?
No, scalping is a trading technique that is not allowed as it contravenes eToro’s Terms and Conditions.
Is eToro good for beginners?
eToro is an excellent choice for beginners due to its simple and user-friendly interface. You can check the educational resources for information on trading. Beginner traders will also benefit from funds protection offered by The FSCS adding an extra layer of comfort for beginners.
Does eToro have negative balance protection?
Non-US clients regulated at ASIC, FCA and CySec will have Negative balance protection as it is compulsory under each regulator’s rules.
Is eToro expensive?
This depends on what you are trading. If you have stocks then they are commission free. However, some CFD and currency spreads can be quite wide.
Does eToro pay out?
Brokers regulated by The FCA including eToro need to process withdrawals within one business day as per Section 7.13.13 (2)(b) of the FCA handbook. If you are regulated elsewhere the time can vary.
Can I buy Bitcoin through eToro?
Non-FCA regulated customers can purchase Bitcoin On eToro.
Is eToro a good broker?
eToro is a highly regulated broker. They are also regulated in The UK by The FCA which are incredibly strict in their vetting processes. Customer reviews from Trustpilot and Apple App Store are low to average suggesting mediocre customer satisfaction.
Can eToro be trusted?
eToro can be trusted, especially if you are regulated by The FCA which constantly monitors brokers such as eToro to ensure they are complying with regulations. The FCA are also on hand to address any complaints made by eToro customers.
Is scalping allowed on eToro?
Under eToro’s Terms and Conditions, scalping is a trading technique that is not allowed.
Where is eToro based?
eToro is an international company with registered offices in Limassol (Cyprus) and London (UK). The eToro Group also has offices in Tel Aviv, New Jersey, Sydney and Shanghai.
Can I have 2 eToro accounts?
Yes, it is possible to have more than one account under the same name with eToro.
Where are the best traders on eToro?
If you are considering copying traders you need to ensure that they have a good track record, preferably over a number of years. Don’t just look at recent gains for inspiration. A trader’s longevity in the market is a better indication.
Are eToro fees high?
Some Forex and CFD fees can be quite high. They also have withdrawal and inactivity fees. However, they do offer fee-free stock purchase which is great for traders.
What are rollover fees eToro?
eToro overnight fees (rollover fees) happen on CFD positions whereby a fee, relative to the value of your position is applied to your account. This is calculated as an interest payment on the leverage cost of holding the position overnight.
How does eToro copying work?
You choose traders you want to copy, decide on the amount you wish to invest, and emulate them automatically.
How do you get silver on eToro?
To become silver, you will need to at least to invest or own $5,000.
What is set order in eToro?
There are two types of set orders you can make at eToro: stop-gain and stop-limit orders. Stop-loss orders protect short positions whilst stop-limit orders protect long positions.
How does leverage work on eToro?
Leverage at eToro refers to the use of borrowed funds used to amplify returns from an investment. Investors can use leverage at eToro to multiply their buying power in the market.
Do you own the crypto on eToro?
If you own crypto on eToro will depend on your regulation. eToro CySec clients can buy real crypto. However, they will not be covered by any compensation scheme. eToro FCA clients cannot own crypto or CFDs. eToro ASIC clients will not own the crypto and will need to trade as CFD.
Is eToro legal in Malaysia?
eToro isn’t allowed to offer trading to Malaysian citizens. The Securities Commission Malaysia has eToro on its Investor Alert List as it continues to offer Malaysian Citizens access to the platform via ASIC regulation.
Does eToro require KYC?
Yes, as with all licensed brokers, eToro needs to adhere to strict KYC protocols.
Is eToro reliable?
From looking through the customer reviews it appears that eToro is a reliable broker. With regulations in the UK by the FCA you can be sure of eToro’s safety and legitimacy.
Conclusion
eToro offers newcomers an attractive platform that is remarkably easy to use. It is ideal for beginner as well as more advanced traders. Their customer reviews are above average but they don’t stand out from the crowd.
Also, FCA regulation ensures that your deposit is safe here.
eToro also only allows USD accounts, which means that there are conversion costs on deposits and withdrawals.
The spread fees at eToro are not the lowest in the industry, however if you are trading stocks, then the commission-free option is a great choice for investors.
Additional information
| Company size | 500 |
|---|---|
| Company Type | Privately Held |
| Google review | 4.6 |
| Trustpilot review | 2.6 |
| 24H support | 24/5 |
| Islamic account | Yes |
| Metatrader [PC] | Own |
| Mobile app | Own |
| Max leverage – Retail 1: | 30 |
| Inactivity fee | 10 |
| Available countries | Albania, Algeria, Andorra, Angola, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belgium, Benin, Bhutan, Bolivia, Botswana, Brazil, Brunei, Bulgaria, Burkina Faso, Cabo Verde, Cameroon, Chad, Colombia, Comoros, Congo, Cote d’Ivoire, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Djibouti, Dominican Republic, DR Congo, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea, Estonia, Eswatini, Ethiopia, Fiji, Finland, France, Gabon, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Guinea-Bissau, Guyana, Honduras, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kiribati, Kuwait, Kyrgyzstan, Laos, Latvia, Lesotho, Liberia, Liechtenstein, Lithuania, Luxembourg, Madagascar, Malawi, Malaysia, Maldives, Malta, Marshall Islands, Mauritania, Mauritius, Mexico, Micronesia, Moldova, Monaco, Mongolia, Morocco, Mozambique, Namibia, Nauru, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, North Macedonia, Norway, Oman, Palau, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Romania, Rwanda, Saint Lucia, Saint Vincent and the Grenadines, Samoa, San Marino, Sao Tome and Principe, Saudi Arabia, Senegal, Serbia, Seychelles, Sierra Leone, Singapore, Slovakia, Slovenia, Solomon Islands, South Africa, South Korea, Spain, Sri Lanka, Suriname, Sweden, Switzerland, Tajikistan, Tanzania, Thailand, Timor-Leste, Togo, Tonga, Trinidad and Tobago, Turkmenistan, Tuvalu, Uganda, United Arab Emirates, United Kingdom, Uruguay, Uzbekistan, Vanuatu, Vietnam, Zambia |
| Skill Level | Beginner, Intermediate |
| Mobile Application | No, Yes |
| Funds Protection | €100,000 (FSCS)*, €20,000 (ICF) |
| Commission Free | Yes |
James is an ex-Barclays Bank financial services professional who wants to create a safer investing space for newcomers. James provides facts, not opinions on all brokers reviewed.
Review Last Updated July 2023
