eToro Review 2018 – Reviews, Tutorial, Pros and Cons, Comments

by | May 30, 2018 | Brokers Reviews | 3 comments

Did you search eToro review to figure out eToro’s real value?

Would you like to fully understand if eToro is reliable or if it’s a scam?

Do you want to find out everything you can do with eToro (we have a guide for that, here it is: eToro), expert opinions, and user reviews?

Great.

In this eToro review, you’ll find everything you need to dispel any doubt, including our feedback on eToro, both practical and technical, after years of experience on the platform.

(US resident? Check out our post and tutorial for the brand new eToro USA)

The best thing you could is to open a free demo account to try out first-hand the eToro platform, to be able to fully follow this review.

OPEN AN ETORO DEMO ACCOUNT

65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Don’t have the time to read all of it? Here’s a quick menu to quickly jump to the review section you wish to check out.

Quick Topics Menu

Is eToro a scam? Is eToro reliable? eToro review and legal opinions

Let’s start from the top. To anyone looking for “eToro reliable” or “eToro scam”, to understand if eToro is indeed a real company, and not just one of the many scams we hear about today, we can say: eToro is not a scam.

There are many scams in the forex field, carried out by phony investment broker agencies. eToro is not one of those companies.

eToro is a regulated firm with several licenses, founded in 2007, therefore it’s been on the market for many years, with hundreds of employs in their offices all over the world, and with many partnerships with other important players of the financial markets.

Furthermore, over the years eToro has received financings for millions of dollars, from many important investment funds. You can find several news about this on Tech magazines, or simply see the list of received investments.

When I make a deposit to eToro, where does my money go?

When you make a deposit to eToro, your money doesn’t end up in eToro’s personal accounts, they are deposited in separate accounts in first order banks such as Barclays and Goldman Sachs.

Depositing the client’s funds in separate accounts is a fundamental requirement regulated brokers need to fulfil. This is to ensure that the client’s funds won’t be used by the broker for any other end, and that in case the broker goes bankrupt, the funds won’t be lost or used for credits due.

Do you still want to find out if there are other brokers similar to eToro to be evaluated? Discover here the best alternatives to eToro.

Is eToro regulated? eToro Regulations – eToro license opinions

Yes, eToro is regulated, and has more than one license. eToro is made up of three main companies:

  • eToro (Europe) Ltd, a Cyprus based investment company, with registration number HE20058. eToro Europe is regulated by the Cyprus Securities & Exchange Commission (CySEC), license number 109/10.
  • eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA), company reference number 583263.
  • eToro AUS Capital Pty Ltd., authorised by the Australian Securities and Investments Commission (ASIC) to provide financial services under Australian Financial Services License 491139.

As regards Italy, since Cyprus is a member of the EU, eToro has all the rights to operate in Italy, as certified by Consob. Both companies operate under the Markets in Financial Instruments Directive (MiFID).

Basically, following all the inspections on security and reliability (which are extremely strict in Europe), eToro has been declared fit to operate.

Would you like to know if a client will be registered under eToro Europe or UK? Here’s eToro’s answer:

“Note that all clients, depositing their funds on their account, will become clients of eToro (Europe) Ltd. Which is authorized and regulated by Cyprus Securities and Exchange Commission (CYSEC). Premium clients from the United Kingdom can ask to become clients of eToro (UK) Ltd, which is authorized by the Financial Conduct Authority (FCA).”

How to check the eToro licenses

We have prepared direct links to the sites of these supervisory authorities, and have also added the PDF of Corncob with the list of the companies authorized to operate their services in Italy:

CySEC etoro license

What type of broker is eToro? eToro technical opinions

eToro is an STP (Straight Through Processing) and NDD (Non-Dealing Desk) broker, which in certain conditions can also act as Market Maker. eToro uses the STP technology to forward its customers’ orders directly to the large liquidity providers of the market.

In some cases, to manage the huge offer of securities on their platform, eToro operates as Market Maker, acting as counterpart to the operation. However, thanks to the NDD methodology, eToro does not interfere in any way on the orders’ prices. For further information read here.

How does eToro profit?

Like most brokers, eToro earns adding a slight charge on the spread. For more information, read our post “How eToro Makes Its Profits“.

Where is the legal office of eToro?

eToro has several offices all over the world:

  • eToro (Europe) Ltd is headquartered in: KIBC, Kanika International Business Centre, 7th Floor, 4 Profiti Ilia Street, Germasogeia, Limassol, Cipro 4046
  • eToro (UK) Ltd is headquartered in: 24th floor, One Canada Square, Canary Wharf E14 5AB, London, United Kingdom
  • The main legal office is at: 32B Habarzel St. (Ramat Hachayal), Tel Aviv, Israel
  •  eToro also has other offices in: Australia, Russia, and China

 

Social trading and Copy Trading: how does eToro work?

Without a doubt, eToro is the most advanced Social Trading platform around.

Registering on eToro doesn’t simply mean opening a trading account at a brokerage firm, it means entering one of the largest communities of aspiring and expert traders, a true and proper Social Network of the investments world, having all the right tools to trade in a traditional or evolved sense of the term.

With eToro you can:

  • Autonomously operate on the markets (Retail Trading) on crypto currencies, currencies, stocks, indices, ETF, commodities;
  • Follow other traders, as you would on Facebook or Twitter, observing their trades and manually copying them with just one click;
  • Let eToro automatically and proportionally replicate on your account the trades of traders you choose (Copy Trading);
  • Do all of these things, participating and sharing information on trades and investments with the whole community, to make the best choices (Social Trading);
  • Investing in CopyPortfolios, is a sort of common investment fund based on the copy trading technology.
  • Earn share dividends even with CFD operations.

OPEN AN ETORO DEMO ACCOUNT and try out all these features

how etoro works

eToro is a platform which shares the trading activity and information of every user, making it accessible to anyone, and organizing it as a sort of Social Network.

Users can interact as they would on Facebook or Twitter, liking, commenting, and sharing the feeds generated by other users. Let’s start by pointing out that eToro considers all users as traders, as it actually is, i.e. Everyone has a trader account on eToro, be it a private investor, copy trader, or traders who want to be copied. eToro considers all of us traders, or as they say now, “people”.

All traders have a public profile, which can be freely viewed, where several data of past performances can be found. Everyone can follow everyone else, just like all trades can be replicated. Even who has never manually opened a trade, simply replicating other’s trades, can be copied (maybe even you, one day).

eToro Reviews – Everything you need to know on eToro

In this eToro Review section, we gathered all the functions of eToro and their features, to find out everything you can do with it. Keep reading our eToro review.

etoro platform review

– What can you do with eToro? eToro features opinions

As mentioned earlier, with eToro you can:

  • Autonomously operate on the markets (Retail Trading) on crypto currencies, currencies, stocks, indices, ETF, commodities;
  • Follow other traders, as you would on Facebook or Twitter, observing their trades and manually copying them with just one click;
  • Let eToro automatically and proportionally replicate on your account the trades of traders you choose (Copy Trading);
  • Do all these things, participating and sharing information on trades and investments with the whole community, to make the best choices (Social Trading);
  • Investing in CopyPortfolios is a sort of common investment fund based on the copy trading technology.
  • Earn share dividends even with CFD operations.

– eToro demo: how to open a free virtual account

Opening a demo account with eToro is extremely simple, and most importantly, free. All you need to do is:

  1. Click here to access the registration page (your capital is at risk)
  2. Fill in the registration form with all the requested information
  3. Confirm your account

The demo account assigns you 100,000 virtual USD to try out any of the services they offer. Read our post on eToro’s Demo Account for more information on what you can do with it.

eToro’s Social Trading Feature

eToro’s Social Trading features are by large the most evolved in the field.

All traders have a public profile, which can be freely viewed, where several data of past performances can be found. Everyone can follow everyone else, just like all trades can be replicated. Even who has never manually opened a trade, simply replicating other’s trades, can be copied (maybe even you, one day).

However, even though it has been improved since, the users performance view, is still not at the same level of other companies in the field, such as ZuluTrade or Darwinex.

With eToro having a clear idea of how a trader operates, and with what risks, is not that easy. Despite this, on this page you’ll find everything the user has done and written over time, the comments, votes he has received, and the replies he wrote. If then, on one side the provided data could be more precise and deepened, on the other side, under the Social Trading point of view, we can gather important information checking the “social” history of the trader.

Even though these Social features are extremely useful, and it is possible to learn and improve through them, we believe that nothing can substitute the availability of deep, precise data, and the possibility of interpreting them. In our opinion, eToro should still improve this point of view. Whereas, regarding the sharing of information, eToro has no matches.

Investors can follow the traders they prefer, without automatically having to replicate his trades, just like you would on Facebook. After clicking on “Follow”, all the trader’s activities, and the ones revolving around him/her, such as comments and likes from other users, will be displayed in the investor’s personal News Feed.

In the eToro Markets section, it is also possible to view all products (currency exchange, commodities, securities, indices, ETF) you can trade on with CFD. The interesting thing is that every product is managed as Hashtags on Twitter. Clicking on one, will open a feed showing all the thoughts, comments, links, and resources pertaining to that product, coming from all traders on eToro, particularly from those considered Top Investors (we’ll get to them shortly).

This is what is normally called “Wisdom of the Crowd”, and eToro’s is one of the best in the field.

eToro’s Copy Trading Feature

Before moving forward, it might be useful to find out precisely what Copy Trading Is and how it works.

With eToro you can share, comment, and follow, just like you would on any other Social Network. Then, when you think its best, you can choose to automatically replicate on your account all trades performed by other traders. To choose which trader to follow, it’s first necessary to evaluate them, but even before that, it’s necessary to find them.

eToro provides a search tool that spans all traders in the platform, but it must be pointed out that this too, isn’t as good as those of other platforms, such as, for instance, the ZuluTrade advanced research system. eToro’s search tool has definitely improved over the last few years, when it didn’t offer any customizable parameter, showing first traders solely based on the percentage of winning trades. This benefited traders with 100% wins (the most dangerous ones, as they never close losing trades), to the detriment of more worthy traders.

Today, filters for the research have been increased and diversified. We should point out thought, that the filters aren’t explained too well, we had to spend hours to have the eToro’s customer service explain what they mean and how they’re calculated.

The signal’s replication is extremely fluid, and since eToro is a broker that encompasses both the signal sender and the signal receiver, it works great. The slippage values are practically non-existent. Investing in Copy Trading with eToro means creating a People-Based Portfolio where you’ll add the traders you want to automatically replicate on your account.

One of eToro’s benefits, is being able to replicate the signals of traders according to a proportional system, using simple percentages, so as to increase or decrease the trades’ amounts, based on the capacity of one’s own account or on the risk level we want to maintain.

You can invest up to 40% of your capital on a single trader, with a minimum of $100, which means that eToro automatically prevents you from risking everything on a single trader (rightly so).

Furthermore, it is possible (and necessary, given the amendments to the European MiFID regulation for Copy Trading) to set a stop loss for traders, i.e. a level of loss at which eToro will stop replicating the operations on your account.

Therefore, managing copy trading on eToro is quite simple, especially given the lack of customization possibilities regarding money management or the management and modification of the trader’s operations, points on which ZuluTrade has invested much more.

– Best eToro traders to copy – eToro popular investor opinions

eToro has long strived to provide a selection of the best traders, in our opinion with not optimal results.

Too often the traders indicated as Top or Promising have proved to be too risky. It is much better to reason with professional methodologies, using the eToro search engine, and all the filters at our disposal, to really find the best eToro traders.

This is precisely the purpose we had in mind when we wrote one of our best tutorials: how to find the best eToro traders.

– The eToro Trading Platform – eToro Platform for Trading

The eToro Trading platform is greatly differs from those modern traders are accustomed to (such as MetaTrader). The eToro trading platform is fully integrated within the Social Trading platform. In fact, using this trading platform is highly reminiscent of using a social network like Facebook or Twitter.

The trading platform is accessed through the Markets menu section. There are many products to trade on, divided in currencies, cryptocurrencies, stocks, indices, commodities, and even ETFs.

Using the platform is quite intuitive, although the management of volumes, for instance of lots in forex, is proposed and managed in an alternative way.

A trader accustomed to a common MT4 or MT5 platform will need to take some time to get used to this different management system. For beginners though, it will simply be a different way to learn how to manage the amounts of investments.

We have created several in-depth guides on this subject:

etoro trading platform review

– eToro CFD – eToro CFD opinions

In the CFD for beginners post we have explained, in simple terms what CFDs are and how they work. In the eToro CFD post instead, we focused on the specific characteristics of eToro CFDs.

The main factor about eToro’s CFDs is its absolute vastness. Few other brokers can boast a quantity of available CFDs similar to that of eToro. Moreover, with the eToro’s CFDs it is possible to earn even from dividends on shares, even if the trades have been made via CFD.

You can find out more about how it works in our eToro dividends post.

– eToro Markets and Trading Instruments

With eToro’s CFDs you can trade, copy trade and build your investment portfolio on the following markets:

  • forex, with 47 available currency pairs
  • 10 among the main cryptocurrencies
  • Hundreds of stocks from stock exchanges in New York, Frankfurt, London, Paris, Milan, Madrid and Zurich
  • 13 of the world’s main equity indices
  • The 6 main commodities
  • 58 ETF funds

There are many tools you can use to trade with eToro. You can use:

  • Social Trading related tools
  • Copy Trading related tools, to create automatic replication strategies
  • innovative funds, called CopyPortfolios, to diversify risk by investing on different securities in a few clicks
  • with the Top Trader CopyPortfolios you can benefit from the same concept, diversifying traders from which to copy operations instead of products. The Traders will become the assets of your portfolio
  • in case of normal retail trading, eToro supports all the main Stop and Limit orders

– eToro real equity securities

In case a purchase is made with a leveraged security of X1, i.e. without the use of a financial leverage, the purchase will be made on the real market, not through CFD.

Basically, a Buy with leverage X1 will buy an actual asset.

The main benefit of this is the lack of roll-over commissions, which are otherwise applied to CFD operations, an element that can impact the profitability of an operation if it is kept open for several days or weeks.

– eToro CopyPortfolios

eToro CopyPortfolios, a new investment product that gives the user the chance to:

  • Invest professionally
  • Simplify the diversification process
  • Without additional costs
  • With an innovative strategic allocation process

There are two categories of CopyPortfolios:

  • Market CopyPortfolios: which include stocks, commodities, indices, and any other asset excluding individuals.
  • TopTrader CopyPortfolios: which includes exclusively individual traders.

Find out more about how these funds work and how to use them for the best in our in-depth analysis.

– eToro Cryptocurrencies

eToro has believed  cryptocurrencies and in the Fintech revolution that is taking place in these years, since the very beginning. With eToro you can trade, social trade and copy trade on:

  • Bitcoin
  • Bitcoin Cash
  • Ethereum
  • Ethereum Classic
  • Ripple
  • Dash
  • Litecoin
  • Stellar
  • EOS
  • NEO

Furthermore, eToro has created a special CopyPortfolios, specifically dedicated to cryptocurrencies, to invest in them, at the same time diversifying in a few clicks, the eToro CryptoPortfolio.

eToro’s activities in the world of cryptocurrencies extend beyond that. In fact, in the coming months eToro will present its Crypto Exchange and its Mobile Wallet.

– eToro mobile platforms for iOS and Android

eToro offers the possibility to use all their services on Android and iOS mobile devices. The eToro App is very convenient both for the Social aspect and for everything related to trading and copy trading.

It’s worth mentioning that there is a slight preference of users for the Android app.

– Can I use Metatrader with eToro?

No, MetaTrader cannot be used with eToro. eToro can be used exclusively with the Webtrader integrated in its own platform.

etoro mobile ios android

eToro Features Review – eToro Features Feedback

In this section we have collected our eToro reviews to describe this broker’s features, to fully understand how it works and if it satisfies your requirements.

– eToro Withdrawals and Deposits – Security and Options

All transactions are carried out through the Secure Socket Layer (SSL) technology, which ensures the protection of your personal data. There are several options for the deposits and withdrawals, each one with its own times:

  • China Union Pay – Immediately
  • Credit/Debit Card (Visa, Mastercard, Diner’s Club) – Immediately
  • Giropay – Up to 1 business day
  • Neteller – Immediately
  • PayPal – Immediately
  • Skrill Limited UK – Immediately
  • WebMoney – Immediately
  • Bank Wire – 3-5 business days
  • Wirecard – 2-3 business days
  • Yandex – Immediately

Click here for further information on deposits.

As regards withdrawals, the minimum amount if of 50$, and there is a 25$ commission fee.

PLEASE NOTE: Due to anti-laundering regulations, the withdrawals must be made out to the same deposit method. For instance, you cannot make a deposit with a bank wire and withdraw money to a PayPal account.

Click here for further information on withdrawals.

– eToro minimum deposit

The minimum deposit account changes based on the country of origin, ranging from 200$ to 10,000$. Most countries have a minimum deposit account of 200$.

Find out more about eToro’s minimum deposit.

– eToro Bonus and Offers

Following the new Trading and Investment regulations, eToro, like all other brokers, cannot offer any Bonus or Offer for the first deposit.

– eToro Leverage – What it the highest leverage eToro offers?

The financial leverage (or multiplier) allowed by eToro ranges from x2 to x400, and depends on the product or market types.

Furthermore, depending on the instability of the markets, eToro can choose to decrease the maximum leverage to increase investment security.

Here is a list of the maximum leverage per market:

  • Forex values: x400
  • Cryptocurrencies: x1 (the market is too unstable to allow leverages)
  • ETF: x5
  • Stocks: x10
  • Indices: x100
  • Commodities: x100

– Commissions, Spread and Market Trading Hours on eToro

eToro applies Spread and Overnight (roll-over) commission fees.

Moreover, since eToro is an STP broker, spreads are not fixed, they depend on different market factors in every single moment. It should be pointed out that the minimum spreads eToro applies are slightly higher than the average.

An example: Spread EUR/USD = 3 pip

The reason is simple: the spread remunerates the whole Social Trading and Copy Trading (Guru, Popular Investor, Affiliates, etc.) system, therefore it has to be higher to remunerate everyone.

For more information and details on eToro market hours, commissions and spreads of each product or class of products, click here.

– eToro Account Types

In addition to the Demo Account and the Islamic Account, eToro offers 4 types of Live accounts, which depend on the amount of funds deposited. The greater the deposits, the more and better additional services will be offered by eToro:

  • Bronze: Capital within $5,000 – Basic access to platform functionality
  • Silver: Capital beyond $ 5,000 – Basic access to platform functionality
  • Gold: Capital over $10,000 – personal Account Manager, access to three premium webinars per quarter and a daily professional analysis of Trading Central for three months
  • Platinum: Capital* of over $25,000 – personal Senior Account Manager, full access to premium webinars, Trading Central professional daily analysis for a year, consultations with a senior eToro analyst and a credit line

Click here for further information.

– eToro Islamic Account

Yes, eToro allows users to open an Islamic trading account, which respects the principles of the Islamic jurisprudence (Faqih).

To get one, users need to open a Live Account, deposit at least $1,000, and then contact the customer service, communicating the intention of turning the account into an eToro Islamic Account eToro.

Click here for further information.

– eToro Customer Support

eToro offers a good customer service department, ready to listen to all of the users’ requests. Timescales for the evasion of requests have sometimes been rather long, but they have always coincided with periods when eToro had been literally flooded with inscriptions and requests.

For instance? The cryptocurrency boom of 2017, which brought in several thousands new users in a very short time, with a consequent dizzying increase in support requests, due to the lack of experience in the field.

Normally, the eToro customer service department is prepared and responds in good time. There are several ways to contact it.

Users can:

– eToro Trading Academy

An area where eToro certainly excels is assistance and basic training. All the material can be accessed, even through a simple free demo account, which is therefore highly recommended. eToro dedicates a notable section to the training of new investors.

The eToro Trading Academy consists of 3 subsections:

  • Live webinars
  • eCourse
  • Trading Videos

All this material is a good starting point for those who are new to the field. The best thing for a novice, is to consult eToro’s educational materials together with the free InvestinGoal educational material, to build even stronger bases.

However, eToro’s educational material is really well done, and it is good to consult it to have a general knowledge of the field and to understand how to use the available tools, but it is certainly not enough for an in-depth knowledge.

– eToro Privacy Policy

Following the GDPR (since earlier too), eToro makes a precise use of users’ personal data, protecting it with all due precautions. For more info, you can read here the complete privacy policy of eToro right.

– eToro tutorial: Where to find the best eToro Guides

eToro provides a lot of educational material in the Trading Academy, and Social Trading can certainly help beginners. However, using eToro still means investing in financial markets, a very risky business which must therefore be treated with due care, after having studied and practised.

We have written several guides, not just for eToro, but also to explain how to invest, how the financial markets work (Forex, for instance) and the principles of social trading.

It’s worth reading all of them. Then you can go to our eToro Guides.

etoro reviews tutorials

Does Copy Trading Work? Do Copy Traders Work? Is Copy Trading a Scam?

Many people look for “Copy trading scam” to understand whether this type of activity is legal or not. Let’s clear this up immediately.

Copy Trading, as proposed by top brokers (such as eToro) is not a scam, and it is strictly regulated. We wrote a post a long time ago describing the regulatory change and how brokers had to adjust to increase security for investors.

eToro Copy Trading reviews – eToro Copy Trader reviews

Is eToro Social Trading a rip off?

Here is the second point we need to clarify. eToro’s Copy Trading is not a rip off, it works, but eToro’s Copy Trading is not the solution to all problems.

A Copy Trading system, advanced though it may be, is not infallible, merely for the fact that it is based on the choices of other traders, who in turn are not infallible. So, our opinion of eToro’s Copy Trading is: it can work, as long as you really know how to use it.

To do this, you can start here.

etoro review comments opinions

eToro review, eToro opinions and final comments

Here are our final opinions, and our summary on eToro.

– eToro 2018 Reviews – eToro Experiences – Our comments and feedback on eToro (including eToro negative opinions)

Our final opinion is that eToro is an excellent product for those more interested in the social aspect of trading, while it is slightly less suitable for those who are more interested in the technical aspects of trading or copy trading.

Are you more interested in the in-depth analysis of data and a very customizable management tool, and in less social interaction? The right choice for you could be ZuluTrade.

You don’t care about Social interaction at all, and you are just looking for traders who care more about stability? Then you might be interested in Darwinex or Ayondo.

On the other hand, eToro offers very advanced investment features, which are not offered by many other social trading brokers, such as the ability to earn from stock dividends, and the eToro CopyPortfolios.

eToro’s main strength is the vast supply of products and markets, even if this could prove to be an obstacle for many users rather than a benefit, since especially beginners might be better off focusing on a few elements at a time.

On the other hand, for those who want to create a truly diversified portfolio and know their way around, eToro is a formidable, cost-effective platform. To summarize, thanks to all eToro’s Social Trading features, the sharing and accelerated learning point of view is definitely advantaged, and the Retail Trading and Copy Trading experience can be more than just an investment, it can lead to a path of growth and study.

You can rest assured, with eToro you will never feel abandoned, as it can happen in other situations, where the gap between trader and investor is wider.

OPEN AN ETORO DEMO ACCOUNT

 

eToro Reviews – eToro Pros and Cons

– eToro Reviews – PRO

  • Unlimited demo account
  • Fully integrated broker
  • Very active community, very easy interactions
  • Wide range of underlying assets thanks to CFDs
  • Payment of share dividends
  • Easy to manage platform and portfolio
  • Proportional replication of signals
  • Traders are encouraged to share their real data
  • All traders use real accounts
  • Almost non-existent slippage
  • Rich educational section
  • Innovative products (see CopyPortfolios)

– eToro Reviews – CONS

  • Performance data of traders could be improved
  • Difficult advanced money and portfolio management
  • Wide presence of non-professional traders
  • Spread and roll-over fees higher than average

3 Comments

  1. Emmanuel

    please i’d like to verify about the withdrawal status of etoro and if i start trading with etoro today, how much can i make in 1 or 2 months

    Reply
    • Filippo

      Hi Emmanuel. I don’t understand your first question about the “withdrawal status”. Anyway, click here to find all the info about withdrawing your money from eToro. About your second question, I always like to answer the same way: when trading/investing (so with eToro too), in two months you can even make the 100% if you risk more, but if you risk that much you should also be ready for the fact that, instead of gaining, you can also lose that same amount. Do not expect too much at the beginning, take your time to learn the craft, especially to manage risk.

      Reply
  2. افضل شركات الفوركس

    WOW just what I was looking for. Came here by searching for forex

    Reply

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