eToro is the largest social trading network with over 5 million users from 150+ countries worldwide. Traders have access to trading in currencies, CFDs, commodities and stock indices.
eToro was originally founded in 2006 by two Israeli brothers whose vision was to create a financial trading platform with a major social component built in. And as of today, that vision has become a reality, as eToro has grown into the most popular social trading platform in the industry.
eToro is especially suitable for two types of traders. The first is the beginning trader who is interested in trading, but wants to learn from and follow more experienced traders during their early learning stage.
The second type of trader that can benefit is the investor who either doesn’t have the time or the desire to follow the markets on a regular basis. But they still want to take advantage of potential opportunities in the markets, and prefer to copy signals directly from more experienced traders within their own account.
Regulation
eToro is a regulated broker and their oversight comes from two major agencies, FCA and CySEC . The UK based FCA (Financial Conduct Authority) has granted eToro the authority to operate under license 583263, and CySEC (Cyprus Securities Exchange Commission) has been granted eToro the authority to operate under license 109/10. As such, eToro is a fully compliant broker and is authorized to operate within the Eurozone.
Safety
eToro is regulated by the FCA, and CySEC, and as such all client funds must be segregated from company operating accounts. eToro holds all client funds at top Tier 1 banks. In addition, account holders are further protected as follows:
FCA protects citizens of UK under FSCS (Financial Services Compensation Scheme). Under this law, UK citizens that have opened an account thru eToro(UK) Limited can be compensated up to the maximum of £50,000 in the unlikely event that eToro becomes insolvent.
Those that have their accounts with eToro (Europe)Limited, which is regulated by CySEC are protected by the Cyprus Investors Compensation Fund, which covers investors up €20,000 in the unlikely event that eToro is unable to meet its obligations.
Trading Platforms
eToro’s suite of trading solutions gives traders the flexibility to invest and trade according to their personal preferences. The trading platform is simple and easy to use, but is extremely powerful and rich in social trading features. eToro’s new platform has been combined into a single platform that merges both the old Webtrader and OpenBook technologies into a single HTML5 design format.
One of the main features within the platform is CopyTrader. With Copytrader, you can view the trading activities of other traders and copy trades directly into your own account. This is a great feature for new traders looking to take signals from other more experienced traders within the eToro community.
In addition, there is also a monetary benefit for traders who participate in the Popular Investor program, which compensates eToro traders that have a certain number of followers that are copying trades from them. To quality for this program, you must deposit a minimum of $ 1000 in the trading account and have at least one copier for a 60-day period, and maintain a minimum average equity balance of $ 500.
Trading Instruments
eToro offers may different trading instruments to their clients. Among them are currency pairs, individual stocks, stock indices, commodities, precious metals, ETFs, and as of recently Bitcoin and other crypto currencies as well. eToro offers leverage upto 400:1 for Forex and CFDs and 50:1 for Stock Indices and Commodities.
Account Types
There are four main account types available at eToro. They include the Bronze Basic Level Account, the Silver Intermediate Level Account, the Gold Advanced Level account, and the VIP Professional Level Account. As the level of your account increases, so do the various benefits available to you.
Bronze Account – Basic Level Account
Minimum Deposit – $ 200
Min Trade Size – 0.1 lot
Spread Type – Fixed
Typical EURUSD spread – 3 pips
Currency Pairs – 16
**Cryptocurrencies are not available in the Bronze Account.
Silver Account – Intermediate Level Account
Minimum Deposit – $ 1,000
Min Trade Size – 0.1 lot
Spread Type – Fixed
Typical EURUSD spread – 3 pips
Currency Pairs – 16
** To maintain the Silver Account, you must trade a minimum of 150 lots per quarter.
Gold Account – Advanced Level Account
Minimum Deposit – $5,000
Min Trade Size – 0.1 lot
Spread Type – Fixed
Typical EURUSD spread – 1.3 pips
Currency Pairs – 16
** With a Gold Account, you are eligible for a 10% bonus on your first deposit each month unto $ 2,000. You will also be able to make withdrawals faster, and get direct access to the trading room. To maintain the Gold Account, you must trade a minimum of 600 lots per quarter.
VIP Account – Professional Level Account
Minimum Deposit – $20,000
Min Trade Size – 0.1 lot
Spread Type – Fixed
Typical EURUSD spread – 1.3 pips
Currency Pairs – 16
**With a VIP Account, you are eligible for a 15% bonus on your initial deposit. In addition, you will get faster withdrawals, and get access to the trader chat room and personalized training sessions. Also, you will receive a daily market report via email and get some additional perks. VIP Accounts must maintain 10,000 traded lots or reach $ 20,000 in total deposits.
Learn more about opening and account with eToro – Go Here
Commissions and Spreads
eToro does not charge any commissions on trades. Instead their fees are built into the dealing spread. The spreads at eToro tend to be higher than most other brokers, starting at 2 pips for USDJPY and 3 pips for EURUSD and other majors.
But the major advantage that traders have at eToro vs other competitors is the advanced social trading capabilities which allows traders to follow and copy other more experienced traders within the community. Though there are other platforms that offer some similar social trading features, eToro is by far the best in its class when it comes to this type of technology.
Customer Support
Customer Support at eToro is available 24 hours a day, 5 days a week via phone, email and live chat. For non-English speaking clients, eToro provides support in various languages including German, Spanish, Italian and French.
eToro’s website is also translated in many different languages, so users can go to the website’s knowledge base section to find answers to their questions. eToro also offers a feature called “Customer Service Wall” where clients can reach someone from the support team in a forum type format.
Bonus and Promotions
eToro offers various incentive and bonuses for traders that signup with them. For a limited time, traders can get upto $ 1000 when they make a first-time deposit. eToro also has a program called the “Popular Investor” program, which compensates traders who have followers that are copying their trading signals. Participants in this program can enjoy spread rebates and a 2% management fee on the assets that are under their portfolio.
Click Here for more details on eToro’s Bonus and Promotions.
Mobile Trading
Mobile trading is available at eToro via their proprietary mobile app which can be easily downloaded from iTunes or Google Play. Using the mobile app, traders can view real time data, access trader feeds, initiate trades, and manage their account. It is important to notice that eToro’s mobile app seems to be much more graphically rich and has more features than most trading apps available in the market today.
Automated Trading
Traders at eToro can take advantage of the “Copy Trading” feature that is built into the platform. This allows newer traders to copy trades from more established traders directly into their own account.
In addition to “Copy Trading” technology offered by eToro, traders can also access “CopyFunds”. Copy Funds lets you invest into a portfolio of eToro traders or an asset theme. Asset themes, for example, could mean investing in the “Big Banks Copy Fund” which is a CFD comprised of some of the largest banks including Bank of America, HSBC, Citi and others.
Deposits and Withdrawals
Deposits can be made to your trading account in several ways. The following is a list of funding options that are available at eToro:
- Credit Card/Debit Card
- Bank Wire Transfer
- PayPal
- Giropay
- Skrill
- WebMoney
- Wirecard
- Yandex
- China Union Pay
When funds are deposited using credit card or 3rd party processors such as PayPal or Skrill, the funds are available immediate in the trader’s account.
Withdrawal request can be made by filling out a simple from on the website. The typical time to process withdrawal requests is 1 day, but it could take several days to post to your account. The funds will be provided to you in the same manner that the funds were deposited. For example, if the account holder deposited funds via bank wire, then the withdrawal funds will also be provided via bank wire.
Unique Features
Social trading and networking has grown tremendously over the last ten years, and one of the major engines of this growth has been the eToro platform. eToro has evolved into one of the most innovate trading firms in the industry. Their platform allows traders to connect with one another, share knowledge and learn from other traders.
In addition, their proprietary CopyTrades and Copyfunds programs is hugely popular among the trading community, as it enables and empowers newer traders to follow and copy trades from more experienced traders in the community. And this also helps more experienced traders monetize their skills via the platform. So essentially it is a Win-Win for all parties that participate in the eToro community.
Pros and Cons
Pros – Reasons to trade with eToro
- Copy and Follow Other Traders
- Wide Choice of Financial Instruments
- User Friendly Trading Platform
- Extensive Free Education
- Active User Community
- Low Minimum Deposit Requirement
- Minimal Slippage
- Unlimited Demo Account
- Signal Replication
Cons – Some downsides with eToro
- Customer Support Not Available on Weekends
- No Choice of Trading Platforms
FAQs
What trading platforms does eToro offer?
eToro has a single platform that merges all their technologies into a HTML5 design format.
What Trading Instruments are available at eToro?
You can trade currency pairs, precious metals, major commodities, CFDs, Bitcoin, ETFs, and Stock Indices.
What is the Commission / Spread structure at eToro?
eToro doesn’t charge a commission on trades. Instead their fees are built into the dealing spread.
How many account types does eToro have?
There are four main account types at eToro – Bronze, Silver, Gold, and VIP.
How is customer support at eToro ?
Customer support is available 24/5 via phone, live chat and email. eToro offers multi lingual support.
What bonus does eToro offer?
For a limited time, traders can get unto $ 1000 when they make a first-time deposit.
Does eToro offer Mobile trading?
Yes, Mobile trading is available via the eToro mobile app.
What options are there for Automated trading at eToro?
Automated trading is made available via the Copy Trading and Copy Funds technology.
What are some unique features at eToro?
eToro offers Copy Trading and Copy Funds with enables newer traders to follow and copy trades from more experienced traders in the community.
What’s the minimum deposit to open a Live account at eToro?
The minimum deposit to open a Live account is $ 200.
What is eToro’s max leverage?
Max leverage at eToro is 400:1