eToro Review

Author By Jeffrey Cammack
Updated: April 29, 2021
Overall Rating
3.69 3.69 / 5
Rated #44 of 57 Recommended Brokers
Min. Deposit
AUD 50
Regulators
Trading Desk
Trading Cost
USD 10
Website Language
English, Chinese, Arabic, Polish, Swedish, Malay, Vietnamese, Finnish
Support Language
English, Chinese, Arabic, Polish, Swedish, Malay, Vietnamese, Finnish
AlertAccepts Australian Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC.

Forex Australia follows a strict editorial standard in our review process. We may receive compensation when you click on links to products we review. Please read our advertising disclosure.

Summary

eToro is an ASIC, FCA and CySEC-regulated CFD broker offering multi-instrument trading on Forex, stocks, commodities, cryptocurrencies, ETFs, and indices. eToro’s main attraction is its famous crowd trading platform which encourages clients to follow expert traders or select market strategies, but its trader community is continually let down by inadequate and disinterested customer support and torturously long response times.

eToro offers a single commission-free live account with a minimum deposit requirement of 50 USD and spreads starting at 1.0 pips on the EUR/USD, which is wider than other well-regulated market makers. 

Lastly, eToro provides a relatively limited selection of educational and market analysis for beginner traders and charges high deposit and withdrawal fees. 

Reviews

Regulation
11110.54.5/ 5
Trading Conditions
111104/ 5
Trading Platforms
111104/ 5
Deposit & Withdrawal
110002/ 5
Education & Research
10.50001.5/ 5
Assets Available
11110.54.5/ 5
Customer Service
111104/ 5
Beginner Friendly
Standard
Bonuses

Account Information

Base Currencies
USD
Number of FX Pairs
52
Copy Trading
Hedging Allowed
Scalping Allowed
Islamic Account

Trading Conditions

Min. Spread
1 pips
Commission
Fees Included in Spread
EUR/USD
1.0 pips
GBP/USD
2.0 pips
USD/JPY
1.0 pips
Max. Leverage
30:1

Company Details

Company Name
eToro AUS Capital Pty Ltd
Founded
2006
Office Locations
Cyprus, United Kingdom, Israel

Pros

  • Well regulated
  • Good for beginners
  • Innovative trading tools

Cons

  • Limited education
  • Wide spreads

Is eToro Safe?

Founded in 2006 and headquartered in Israel, eToro is an international CFD broker with over 13 million clients worldwide.  It is regulated by many top-tier authorities, including the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) UK, and the Financial Services Authority (FSA) Seychelles.  See below for details:

  • eToro (Europe) Ltd., a Financial Services Company authorised and regulated by the Cyprus Securities Exchange Commission (CySEC) under the licence number: 109/10.
  • eToro (UK) Ltd, a Financial Services Company authorised and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263.
  • eToro AUS Capital Pty Ltd. is authorised by the Australian Securities and Investments Commission (ASIC) to provide financial services under AFSL 491139.
  • eToro (Seychelles) Ltd. is licenced by the Financial Services Authority Seychelles (“FSAS”) to offer broker-dealer services under the Securities Act 2007 License #SD076.
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Group Regulators
Trading Desk
Website
Year Founded
Office Locations
Inactivity Fee
CySEC
FCA
ASIC
Market Maker
2006
Cyprus, United Kingdom, Israel
5 USD Withdrawal Fee

eToro has collected multiple awards for its innovative platform and has received worldwide recognition as a financial technology industry leader.

Australians will be trading under the subsidiary, eToro AUS Capital Pty Ltd, which is authorised by ASIC.  As such, all client funds are held in separate, segregated accounts. This means that even in the highly unlikely event of eToro’s bankruptcy, your funds will be safe.  Under ASIC regulation, Australians are also offered automatic negative balance protection.  Furthermore, eToro has purchased an insurance policy from Lloyd’s of London, which covers up to 1 million EUR, GBP, or AUD.

While eToro is a well-regulated broker, clients should treat trading advice from the eToro community and the copy trading functionality with caution.

eToro ASIC regulation

Trading Instruments

eToro offers trading on multiple assets, including over 52 Forex pairs.  See below for more details:

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Fx Pairs
CFD Investments
52
Commodities
Cryptocurrencies
Forex
Indicies
Equities

Trading Conditions

Fundamentally, eToro’s trading conditions are broadly similar to other traditional market makers, with a single account type, no commission, and relatively wide spreads. eToro allows hedging and copy trading, but not scalping.  eToro offers a maximum leverage of up to 30:1, but USD is the only accepted base currency.

Account Types

eToro offers a demo account and a single live account – though there are reward tiers available at higher levels of equity via the eToro Club.

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Display Name
Min. Deposit
Max. Leverage
Min. Spread
Commission
Professional
EUR 200
30:1
1
None
Account Details
Standard
USD 200
30:1
1
None
Account Details

Live Account – On opening a live account, traders can access a free demo account, plus eToro’s exclusive promotions – generally deals and savings sent to users via email. The minimum deposit is 50 USD for Australian clients, and spreads start at 1.0 pips on the EUR/USD, wider than other market makers.  Professional retail accounts are available for those who pass a knowledge test and waive certain risk protections.

eToro Club and Tiers – Though there is only a single account type, with higher levels of equity, traders gain access to the eToro Club – which operates a tier system: The higher your level of equity, the more rewards and advantages you receive. Though some of the advantages gained at higher tiers are gift items (such as sports tickets, an eToro debit card, or a Financial Times subscription), other benefits will enhance your trading experience.  These include free market analysis, access to the Trading Signals platform, free withdrawals, and analyst consultations.

The minimum equity needed for access to each tier is as follows:

  • Silver: 5,000 USD
  • Gold: 10,000 USD
  • Platinum: 25,000 USD
  • Platinum+: 50,000 USD
  • Diamond: 250,000 USD

Demo Account – After opening an account with eToro, you will automatically receive the unlimited demo account loaded with 100,000 USD – it is highly recommended that you use this extensively until you are comfortable with the platform.

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Broker
Trading Conditions
Base Currencies
EURUSD (Standard)
Trading Cost (Standard)
EURUSD (Best)
GBPUSD (Best)
USDJPY (Best)
Commission
111104/ 5
USD
1 pips
USD 10
1.0 pips
2.0 pips
1.0 pips
0.0
111003/ 5
AUD, EUR, USD
0.80 pips
USD 8
0 pips
0 pips
0 pips
0.0
111115/ 5
AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, HKD
0.09 pips
USD 7.90
0.1 pips
0.6 pips
0.3 pips
7

 

Spreads and Commissions

eToro spreads on the EUR/USD start at 1.0 pips, which is wider than other market makers, but spreads on most of the other major pairs are extremely wide – sometimes at 3.0 pips. eToro does not charge any commissions on trades.

Cryptocurrencies

One of the largest attractions of a broker like eToro is the extensive cryptocurrency CFD offering, and with 17 options available for traders, eToro leads the industry.  

eToro cryptocurrency offering

Deposits and Withdrawals

In line with Anti-Money Laundering policies, eToro operates a “return to source policy,” meaning that withdrawals can only be returned to the original funding source. eToro accepts the majority of payment options for deposits and withdrawals:

  • Bank transfer
  • Credit/Debit card
  • Paypal
  • Skrill
  • Neteller
  • Webmoney

Be aware that eToro only supports USD accounts and will charge a small conversion fee of 0.025% of the total amount for non-USD deposits and withdrawals.

eToro charges a 5 USD withdrawal fee regardless of the size of the withdrawal. Withdrawals generally take 1-2 business days but can take up to 7 business days for credit and debit cards.

Inactivity Fee

After 12 months with no login activity, a 10 USD monthly inactivity fee will be charged on any remaining available balance. No open positions will be closed to cover the fee.

eToro deposit screen

eToro for Beginners

Although eToro offers a unique social trading platform to help beginner traders get started, its educational and market analysis materials are limited compared to other similar-sized market makers.  Customer support operates 24/5, but chat and phone support are unavailable in lieu of a ticket system that serves their global audience.  

Educational Material

eToro hosts a short course title The Complete Guide to FinTech that teaches traders the basics of trading – especially trading on the eToro platform. It is more of an overview than an in-depth course, and much of the content covers asset classes other than Forex.

eToro complete guide to fintech

eToro also hosts a blog that is updated daily with various trading tips, though these mainly focus on eToro’s platform. Webinars are held infrequently and tend to be more focused on market conditions than the rest of the educational material.

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Broker
Beginner Course
Advanced Course
Well Structured Education
Education Quality
Webinars
Low
Low
Medium

Analysis Material

Most analytical content comes from the members of the eToro community. The news feed is a central component of eToro’s trading platform – it is an unfiltered list of trading ideas and accompanying graphs. Be aware that this analysis is community-created content and should be viewed with deep scepticism.

eToro News Feed

eToro also publishes a daily market update that briefly highlights the main fundamental factors likely to affect the coming trading day.

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Broker
Economic Calendar
Autochartist
Trading Central
Trading View
Free VPS

Customer Support

Since 2017, eToro’s customer service has used a ticketing system for all client support requests. Be aware that there is no phone or chat support available, and the response times are known to be painfully long, often exceeding 48 hours and even up to 14 days.  Customers who deposit more than 5,000 USD will receive the services of a dedicated Customer Success Agent.

open etoro ticket

eToro hosts a great help section with answers to a large number of frequently asked questions. eToro also operates a Customer Service Wall where you can post questions or help requests while waiting for your ticket to be opened.

Trading Platform

Trading at eToro is based on social trading; traders can see the most profitable trades and follow successful traders online.  The eToro platform is browser-based, though a mobile app is available, and is available in Arabic, English, Chinese, French, German, Greek, Italian, Polish, Russian and Spanish.

.

eToro AUDUSD Pair

Trading the AUDUSD pair on the eToro platform

To aid traders who commonly trade the same pairs, eToro’s platform gives traders a customisable dashboard overview of different currency pairs.  This customised layout offers traders a simple dashboard to see where opportunities lie.

eToro Watchlist FX

My FX watchlist on eToro

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the eToro offering. Central to that process is the evaluation of the reliability of the CFD provider, the platform offering of the CFD provider, and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the CFD provider.

Risk Statement

Trading Forex is risky, and each CFD provider is required to detail how risky the trading of Forex CFDs is to clients. eToro would like you to know that: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Conclusion

eToro has been widely recognised for its innovative approach to trading – especially for its pioneering work in the social trading sphere.  However, it falls short when it comes to educational and market analysis materials; spreads are not competitive, and fees are much higher than other market makers, but many traders are willing to overlook these flaws for the unique trading experience offered at eToro.

AlertAccepts Australian Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC.

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Overall Rating
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Account
Trading Platforms
Funding Methods
Trading Commission
1110.503.69/ 5
AUD 50
Market Maker
Commodities
Cryptocurrencies
Forex
Indicies
Equities
52
16
  • Well regulated
  • Good for beginners
  • Innovative trading tools
  • Limited education
  • Wide spreads
11110.54.5/ 5
111104/ 5
111104/ 5
110002/ 5
10.50001.5/ 5
11110.54.5/ 5
111104/ 5
67% of retail investor accounts lose money when trading CFDs with this provider
30:1
1 pips
Professional
Standard
etoro
Bank Transfer
Skrill
Paypal
Fees Included in Spread
11110.54.09/ 5
AUD 200
Market Maker
Commodities
Cryptocurrencies
Forex
Indicies
Equities
Vanilla Options
ETFs
70+
9
  • Well regulated
  • Wide range of assets
  • Limited education
  • Limited account options
111115/ 5
111003/ 5
111104/ 5
11110.54.5/ 5
1110.503.5/ 5
11110.54.5/ 5
11110.54.5/ 5
76.4% of retail investor accounts lose money when trading CFDs with this provider
30:1
0 pips
Standard
Plus500
Bank Transfer
Visa
Mastercard
Skrill
Paypal
Fees Included in Spread
11110.54.61/ 5
AUD 100
ECN/DMA
Commodities
Cryptocurrencies
Forex
Indicies
Metals
Energies
80+
5
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
    11110.54.5/ 5
    111115/ 5
    111115/ 5
    111104/ 5
    11110.54.5/ 5
    11110.54.5/ 5
    11110.54.5/ 5
    79.3% of retail investor accounts lose money when trading CFDs with this provider
    30:1
    0 pips
    Razor
    Standard
    Swap-free
    Bank Transfer
    Visa
    Mastercard
    Skrill
    Paypal
    Unionpay
    POLi
    BPay
    From 7 USD / lot - Razor Account

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    AlertMost retail CFD accounts lose money. Your capital is at risk.

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