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eToro Broker Review

FX Scouts By Jeffrey Cammack Updated: March 31, 2020
Overall Rating
3.68 / 5
Min. DepositAUD 50
Max. Leverage400:1
Min. Spread1.0 pips
Regulators CySEC,FCA,ASIC
Regulator Origin CySEC FCA ASIC
Broker TypeMarket Maker

Summary

eToro is one of the largest brokers in the world and is well-known as the pioneer, and industry leader, in social trading. Also ASIC-regulated, eToro's spreads are on par with other market maker brokers and the minimum deposit is only 50 USD for Australian traders.

The social trading experience is quite different from traditional Forex trading and eToro offers an unlimited demo account for traders to try the platform and social trading concept; setting up a live account is a simple instant process.

Reviews

Trust Rating
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
Beginner Friendly Standard
Bonuses
Our Review Process

Trading Conditions

Minimum DepositAUD 50
Base currenciesUSD
Number of FX Pairs47
Hedging Allowed Yes
Scalping No
Swap-Free Accounts Yes

Average Spreads

EUR / USD3
GBP / USD4
USD / JPY2

Company Details

Company nameeToro AUS Capital Pty Ltd
Founded2006
Website Visit Website
TypeMarket Maker
RegulatorsCySEC,FCA,ASIC
Office locations Cyprus, UK, Israel

Deposit & Withdrawal Methods

Supported Platforms for eToro

Is eToro Safe?

Founded as RetailFX in 2006 in Tel Aviv, eToro is the largest social trading network in the world. The company has over five million customers and operates globally from offices in Tel Aviv, London and Cyprus, collecting multiple awards for their innovative platform and worldwide recognition as a leader in the financial technology industry.

eToro’s global presence is confirmed by the multiple regulators who oversee the company group.  In Australia, eToro AUS Capital Pty Ltd has been regulated by ASIC (AFSL 491139) since 2017. eToro Australia arranges for its clients to be provided services by eToro Europe and eToro Europe has been regulated by CySec (Licence Number: 109/10) since 2010. Furthermore, eToro UK has been regulated by the FCA (Reference number 583263) since 2013.

eToro ASIC regulation

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

eToro for Beginners

eToro’s platform was designed with beginner traders in mind and it is very easy to use.  It was the pioneer of a platform with an integrated social aspect and advice and potential opportunities from other eToro members is always available. Customer support operates 24/5, but chat and phone support are unavailable in lieu of a ticket system. 

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. This is more of an overview rather 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 which 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.

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

Separately, eToro does publish a daily market update on the blog which briefly highlights the main fundamental factors likely to affect the coming trading day. 

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.

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 you are waiting for your ticket to be opened.

Trading Conditions

Account Types

eToro offers a demo account and a single live account – though there are tiers available at higher levels of equity, which we will discuss below.

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

Live Account – This account gives you access to a free demo account, plus eToro’s exclusive promotions – generally deals and savings sent to users via email. The minimum deposit is 200 USD.  Professional retail accounts are available for those who pass a knowledge test and wave certain ESMA risk protections.

eToro Club and Tiers – Though there is only a single account type, with higher levels of equity you do 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) there are also benefits that will enhance your trading experience, such as 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

Spreads and Leverage

eToro spreads on the AUDUSD are generally 1 pip but the spreads on the majority of the other majors are at 3 pips or wider. This is quite wide when compared to the rest of the industry, but it is almost impossible to compare eToro to other brokers. Leverage at eToro is up to 400:1.

Cryptocurrencies

One of the largest attractions to a broker like eToro is the large cryptocurrency CFD offering.  Cryptocurrency is the newest CFD asset market maker brokers are offering clients, and with 17 options for eToro traders, eToro leads the pack.  

eToro cryptocurrency offering

Trading Platform

Trading at eToro is all based on social trading, traders can see what the most profitable trades are 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 gives traders a simple dashboard to see where opportunities lie.

eToro Watchlist FX

My FX watchlist on eToro

Deposits and Withdrawals

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 for non-USD deposits and withdrawals. For EUR to USD conversion this fee is 0.025% of the amount.

eToro deposit screen

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.

eToro only returns funds the same way they were deposited, so if you deposited from Neteller, you can only receive your withdrawal through Neteller.  This is to prevent money laundering and is standard in the industry.

Conclusion

eToro has been widely recognised for its innovative approach to trading – especially for its pioneering work in the social trading sphere. The eToro platform is completely unique and will take traders of all experience levels some time to get used to.

eToro focuses on creating a simple, fun and collaborative trading experience. It falls short when it comes to educational material and analysis; spreads are not competitive and fees are much higher than is usual, but obviously many traders are willing to overlook these flaws for the unique experience offered at eToro.

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

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Overall Rating 3.68 / 5 3.73 / 5 4.55 / 5
Minimum DepositAUD 50AUD 100AUD 100
Regulation
CySEC CySEC
FCA FCA
ASIC ASIC
CySEC CySEC
ASIC ASIC
FSCA FSCA
MAS MAS
FMA FMA
FCA FCA
ASIC ASIC
Broker TypeMarket MakerMarket MakerECN/STP
Trading InstrumentsCommodities, Cryptocurrencies, Forex, Indicies, EquitiesCommodities, Cryptocurrencies, Forex, Indicies, Equities, Vanilla Options, ETFsCommodities, Cryptocurrencies, Forex, Indicies, Metals, Energies
Forex Pairs4770+80+
Crypto Pairs1695
Read Full Review Read Full Review
Trust Rating 5 / 5 5 / 5 5 / 5
Trading Conditions 3 / 5 3 / 5 4.5 / 5
Trading Platforms 4 / 5 4 / 5 5 / 5
Deposit & Withdrawal 3 / 5 3 / 5 4 / 5
Education & Research 2 / 5 2 / 5 4.5 / 5
Assets Available 4 / 5 4 / 5 4 / 5
Customer Service 4 / 5 4.5 / 5 4.5 / 5
% Lose with this broker 62% of retail investor accounts lose money when trading CFDs with this provider 76.4% of retail investor accounts lose money when trading CFDs with this provider 73.6% of retail investor accounts lose money when trading CFDs with this provider
Leverage400:1300:1500:1
Spread1.0 pipsVariable pips0.0 pips
Hedging Yes No Yes
Scalping No No Yes
Account Types
  • Professional (Standard)
  • Standard (Standard)
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  • Standard (Standard)
  • Swap-free
Swap-Free Accounts Yes Yes Yes
Trading Platforms etoro Plus500 MT4, MT5, cTrader
Funding Methods Bank Transfer, Skrill, Paypal Bank Transfer, Visa, Mastercard, Skrill, Paypal Bank Transfer, Visa, Mastercard, Skrill, Paypal, Unionpay, POLi, BPay
Trading Commission Fees Included in Spread Fees Included in Spread From 7 USD / lot - Razor Account
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Overall Rating 3.68 / 5 3.73 / 5 4.55 / 5
Minimum DepositAUD 50AUD 100AUD 100
Regulation
CySEC CySEC
FCA FCA
ASIC ASIC
CySEC CySEC
ASIC ASIC
FSCA FSCA
MAS MAS
FMA FMA
FCA FCA
ASIC ASIC
Broker TypeMarket MakerMarket MakerECN/STP
Trading InstrumentsCommodities, Cryptocurrencies, Forex, Indicies, EquitiesCommodities, Cryptocurrencies, Forex, Indicies, Equities, Vanilla Options, ETFsCommodities, Cryptocurrencies, Forex, Indicies, Metals, Energies
Forex Pairs4770+80+
Crypto Pairs1695
Read Full Review Read Full Review
Trust Rating 5 / 5 5 / 5 5 / 5
Trading Conditions 3 / 5 3 / 5 4.5 / 5
Trading Platforms 4 / 5 4 / 5 5 / 5
Deposit & Withdrawal 3 / 5 3 / 5 4 / 5
Education & Research 2 / 5 2 / 5 4.5 / 5
Assets Available 4 / 5 4 / 5 4 / 5
Customer Service 4 / 5 4.5 / 5 4.5 / 5
% Lose with this broker 62% of retail investor accounts lose money when trading CFDs with this provider 76.4% of retail investor accounts lose money when trading CFDs with this provider 73.6% of retail investor accounts lose money when trading CFDs with this provider
Leverage400:1300:1500:1
Spread1.0 pipsVariable pips0.0 pips
Hedging Yes No Yes
Scalping No No Yes
Account Types
  • Professional (Standard)
  • Standard (Standard)
  • Standard (Standard)
  • Razor (Standard)
  • Standard (Standard)
  • Swap-free
Swap-Free Accounts Yes Yes Yes
Trading Platforms etoro Plus500 MT4, MT5, cTrader
Funding Methods Bank Transfer, Skrill, Paypal Bank Transfer, Visa, Mastercard, Skrill, Paypal Bank Transfer, Visa, Mastercard, Skrill, Paypal, Unionpay, POLi, BPay
Trading Commission Fees Included in Spread Fees Included in Spread From 7 USD / lot - Razor Account

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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

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