Founded in 2006, but only released the following year, the popular eToro is considered one of the most important online brokers in the investment and social trading landscape. There are thousands of users all over the world who recommend its use, but someone is still skeptical and wonders: is eToro a broker you can trust?
In this article we will analyze eToro from every point of view, for a complete 360 ° review. To do this, we will find out in detail how to use the eToro platform, the pros and cons, make a small comparison with another equally popular broker and we will also analyze other fundamental aspects.
Simple 5 steps to get started in the trading world
What is eToro
Before delving into this topic, let's see who eToro is and what it is. In a nutshell, it is a financial brokerage broker, which now boasts more than ten years of experience. There are three engineers who more than ten years ago embarked on this project by building its platform in Tel Aviv and they are Yoni Assia, David Ring and Ronen.
To date, this social trading pioneer boasts over 11 million customers worldwide. When this brokerage firm started its operations, it aimed to spread online trading through a modern and innovative approach to financial markets.
The platform's huge popularity came in 2010, when the world's first social investment tool was launched. This is how the eToro copy trading function was born, which allowed and still allows newbies to draw inspiration from the investment strategies of the most experienced traders.
The features of eToro Italia
eToro has been available for some time also in our country, with a completely localized site and with functionality equal to other regions. What features are we talking about? First of all, the one that allows its users to achieve their financial ambitions. In addition to the social trading function, in fact, users will also be able to benefit from crypto wallets, OpenBook, intuitive platform, news feed and much more.
Additionally, the online broker offers more than 800 financial products to trade. In our opinion, eToro offers an excellent environment to build a well diversified investment portfolio, meeting everyone's needs, with two very distinct and separate platforms, the Mobile Trader for mobile devices and the Web Trader for fixed and portable PCs.
Make a deposit on eToro
To make a deposit in your account on eToro, all you have to do is click on the appropriate section "Deposit funds". During the tests we carried out on this social trading platform, we realized that the minimum deposit is € 200 or equivalent currency. For beginners, we recommend investing only a minimal amount, as trading always involves some risk.
Payment methods available on eToro
There is a wide range of options for depositing funds on the eToro broker. The two most popular deposit methods are credit card and PayPal. And alongside these main methods, there are other alternative payment methods such as: China UnionPay, Sofort Banking, Klama Banking, Skrill, Neteller, Webmoney, GiroPay, Yandex, Western and eToro wallet.
As for the withdrawals of the eToro earnings, we find more or less the same options present for the deposit. You can withdraw your profits in less than 2 or 2 business days by credit card or bank transfer.
Conversion fees for eToro withdrawals
The fees for converting withdrawals vary not only based on the currency of the account, but also the payment method. These are measured in pips and can be found on the broker's website.
How to use eToro for deposits and withdrawals
If you have signed up and are already a member of the eToro broker, you can start your adventure in the world of financial trading by depositing the capital to be traded in your account and withdrawing any profits.
eToro views on its regulation
As mentioned above, this platform has been around for over 10 years and boasts millions of subscribers. This is because it is safe and regulated in the three financial markets of the world through FCA, ASIC and CySEC. In addition, it also offers a risk management feature, which allows all traders to invest with greater confidence.
We all know how important the security of your information online is, especially nowadays, and it is for this reason that all customer data is encrypted by eToro's security protocols. If you would like to find out more about trading with eToro, read on to learn more about this brokerage firm.
Who is eToro for?
Before choosing an online broker, you need to check that it fits your investor profile. eToro is first of all a broker that allows you to learn how to trade and for this reason it is highly appreciated by beginners.
We have carefully analyzed the broker, how eToro works and much more, and it seems to be suitable for any type of trader. It does not matter if it is the first time you enter the world of online trading or you are a seasoned trader, the reviews of eToro all agree on a full-blown fact: this site supports you all along the way, from registration to trading, offering a wide range of range of currencies and cryptocurrencies (BTC, ETH, XRP, etc.), markets, commodities, stocks and more.
However, we can say that eToro is a platform more suitable for a beginner, because it also offers a lot of training in the financial field. On the other hand, the importance of the eToro Academy is recognized all over the world. With it you can learn how to trade through several training features:
- Live webinar
- PowerPoint and PDF presentations
Any type of trader will be able to understand the basics of online trading through the interactive modules offered by this online broker. For example, starting from registering on eToro, your trading skills will be tested on the exchange platform. And the eToro blog / forum? It allows you to follow the financial news on financial trading, even in real time!
eToro demo: practice account to learn how to trade
Among the latest, but no less important, features offered by this broker, we just have to mention the free demo mode, which immerses the user in the real operation (albeit with virtual money) of the trading platform. It is important to practice before investing real money, especially if you are a beginner. This trading simulator has the merit of allowing you to absorb the features of this broker, without risking a single penny of your capital.
After spending a short period of apprenticeship with the demo account, you will have at your disposal all the necessary conditions for your investment to be profitable on this platform. In our opinion, the eToro demo will allow you to improve your trading experience, day after day.
eToro vs Plus500: Pros and Cons
eToro is a great online broker, but that doesn't mean it's the only one that's trustworthy. That's why we want to make a brief comparison with another regulated and very popular broker in Italy, namely Plus500. And for clarity, we decided to compare them in an easy-to-read Pros and Cons table.
× Not listed on the stock exchange
× Financial information is not publicly available
× Does not have a banking license
Traders interested in social trading and zero commission stock trading
Experienced traders looking for an easy to use platform
As usual, even eToro like any other respectable broker, charges commissions to users for the use of the services offered (they will have to earn something!). The service costs provided by this broker allow you to develop interesting trading strategies. Here is a short list of all the commissions offered by eToro.
You do not need to pay any fees to trade shares in the Long position without leverage. Regardless of whether it is the opening or closing of an order, no brokerage fees are charged on the dividend.
However, fees are applied on all types of equity CDFs and ETFs, depending on trading times and spreads. These vary between 0,014 and 0,024% per day.
Fees on indices vary by continent. Generally speaking, we believe the spread starts from 100 pips per trading day.
As for the currency trading costs, these are around € 0,000005 per day and per unit of exchange. The spread is between 1 and 50 pips depending on the currency pairs you wish to trade.
In this case, the spread is measured as a percentage when trading commodities. It can vary between 2 and 35 pips per day depending on the financial product.
As for cryptocurrency trading on eToro, it is clear that the spread varies depending on the digital currency chosen, and is between 0,75 and 3%.
When making a minimum deposit on eToro, no commission is required. However, a fee will be automatically charged for the currency conversion, if it is different from the base of the account.
The withdrawal fees on eToro are applied according to the payment method chosen and are around € 5. For this reason, it is recommended that you only withdraw large enough amounts.
These custody fees are applied when the trader uses leverage, which is 2,9% for sales and 6,4% for purchases. In addition to custody fees, there are also LIBOR fees which represent an interest rate.
If you do not log into your account for 12 consecutive months, you will have to pay a fee as a “monthly inactivity fee”.
How to open an account to make money with eToro?
Before proceeding with the free registration on the eToro online site, it is necessary to dwell on the types of accounts offered by this platform. Here are the available accounts.
The types of accounts offered by eToro
During our analysis, we found that the eToro broker offers two different types of accounts: a demo account and a standard account.
The demo account offered by the eToro broker (virtual account) is the only account available to get to know the eToro webtrader, without risking your own capital and thus accumulating valuable experience. The demo account is available immediately after registration. It offers the possibility to test your favorite trading strategy, before investing real money.
In this way, everyone can start gaining experience in the world of online trading, without losing money (but obviously without even the possibility of earning it). Financial training materials designed primarily for beginners are also offered with the demo account.
The eToro platform also offers a standard trading account for all those who wish to trade through its platform on the Italian and foreign stock exchanges.
To trade live, investors must deposit funds of a minimum amount of € 200. However, those wishing to join the Popular Investors program require a minimum deposit of € 1000.
Financial products available on eToro
eToro offers a wide range of financial products, including: CopyTrader, CopyPortfolio, stocks, ETFs, cryptocurrencies, commodities, indices… These financial instruments are very volatile, but they guarantee the best short-term investment opportunities.
If there is one feature that catches the attention of traders on eToro, it is the CopyTrader. What is it and who to copy on eToro? The copytrading feature allows investors to view and copy the trading activities of the best traders on the platform.
This feature is very useful for beginners who have not yet mastered trading strategies. By taking advantage of the experience of the most successful traders to increase their trading portfolio, it is possible to make gains without lifting a finger.
CopyPortfolios are financial instruments for long-term investments. They contain financial assets, increase profits and reduce risk. We remind you that these investment vehicles do not guarantee quick returns on investments.
This is a program created by eToro to bring together the most experienced traders. Popular investors regularly receive exclusive privileges such as coupons and returns services on the social trading platform. However, to be eligible for this rewarding program that rewards so-called Popular Investors, it is enough to show great returns with low risk.
The shares available on eToro
Traders can trade between over 2000 stocks on eToro's platform. These shares are listed on the largest financial markets in the world such as Zurich, Madrid, Paris, London, Hong Kong, Frankfurt. In this regard, it is important to remember that the stock market is very volatile and the price can be affected by changes in stock prices, new product launches and performance reports.
Here are some actions available:
- BNP Paribas
- The Amazon
The currencies available on eToro
Although dynamic and volatile, the Forex market remains the largest financial market in the world, with a daily trading volume of $ 5 trillion.
The eToro broker offers nearly 50 currency pairs for this purpose, the most popular of which are EUR / USD and EUR / GBP. It is therefore understandable why there are so many active traders on this trading platform. You can trade with different currencies then, such as: USD, EURO, GBP, NZD, CAD, AUD, CHF and more.
The commodities available on eToro
Commodities trading is highly recommended on eToro, as it helps diversify your portfolio. The platform offers 6 commodities namely:
Which Indices can be traded on eToro
eToro offers 13 stock indices to trade for its users. These actions reflect the state of a specific sector of the stock market. The most popular indices are: CAC 40, AUS200, DAX, Eurostock, SP500 and more.
ETFs tradable on the eToro broker
An Exchange Traded Fund (ETF) is a financial product put into circulation by a specific financial institution in order to generate stable returns for investors. eToro provides you with just over 150 ETF trackers. Here are the most popular: iShares MSCI United Kingdom ETF, iShares Core US Aggregate Bond, Vanguard FTSE Erope ETF, iShares MSCI Germany ETF.
What cryptocurrencies are available on eToro?
As time goes by, cryptocurrencies are becoming increasingly promising investment options. eToro has selected the most popular cryptocurrencies to invest in the cryptocurrency market. Here are a few: Bitcoin, Ethereum, Ripple, Litecoin, Iota and Tron. Also, it is possible to trade crypto currency pairs in the form of CFDs.
On eToro you will find some bonds to trade on. Buying a bond means acquiring a debt issued by a state or a company. The bonds that can be traded on this platform are: Japanese treasury bills and Eurobunds.
Social trading on eToro
eToro was the first exchange platform to adopt social trading and this is not the only innovative feature introduced by the broker. As of 2010, there is a social trading network on this platform. Simply put, members of this community have access to the trading activities of other investors. Additionally, they can copy themselves, although eToro reviews dispute the usefulness of this feature.
The social trading system works in the simplest way possible. The online broker selects the best performing traders based on their skills and shows their trading techniques. Therefore, any trader could follow their own trading process by determining their preferred financial instruments, success rate, portfolio change, etc.
Copytrading on eToro
The principle of Copytrading is very beneficial for beginners, because they aspire to make profits on the financial market, although they do not have the same experience as advanced traders. Each Popular Investor copied is therefore rewarded and can represent 2% of the assets under management. EToro's social trading is beneficial, as it allows you to learn about the inner workings of the online stock market.
eToro wallet app
eToro no longer needs to receive our recommendations, because it is the safest and most reliable trading platform that can exist on the financial market. Plus, he has created a portfolio that is doing very well indeed. It is a mobile wallet that allows you to trade and store cryptocurrencies securely.
While waiting for its offer to increase in the coming months, eToro accepts the following currencies: BTC, BCH, LTC, ETH, XLM, XRP. Compared to other crypto wallets, the eToro app wallet remains an ideal choice.
eToro puts the safety of its users first. And this is what characterizes the eToro portfolio. There you will find a two-factor identification system. In addition, there is a multi-signature system that allows you to keep your keys safe.
eToro not working? Here's what to do!
If you have any questions about how the eToro broker works or for some reason the platform doesn't work, it's best to take a look at the FAQ section first. There you will surely find many answers to your questions. The detailed FAQ section is organized by topic and is full of useful information.
And if you want to contact eToro's customer service, you need to open a ticket. An agent will then contact you to help you find a solution to your problem. Your request will be processed within 48 hours at the latest. We are only sorry that there is currently no eToro phone number or live chat to contact support. Hopefully, the platform solves this problem in the coming months, as that would only improve our opinion of eToro.
The security of the eToro platform
eToro stole the show from its competitors not only thanks to its innovative features, but above all for its security of the financial market.
Is eToro regulated?
Without beating around the bush, we can safely say that eToro is a regulated broker. Its reliability is given the various licenses issued by the financial market regulators around the world.
- Since its launch, the broker has joined the Investor Compensation Fund (ICF) established by CySEC of Cyprus.
- eToro is also regulated by the FCA (Financial Conduct Authority) for UK traders. The exchange platform uses the Financial Services Compensation Scheme (FSCS) for this purpose.
- As for the Australian branch of eToro, it is controlled by the ASIC (Australian Securities and Investments Commission).
- In France, it is the AMF (Autorité des Marchés Financiers) that oversees the services of the online broker.
Is eToro safe?
eToro has adopted first-rate security standards to protect its users' trading accounts. This online broker is best suited to protect your data, investments and assets.
Among the security measures adopted by the broker there is first of all the two-factor authentication that occurs when the account is opened and is required every time you log in to eToro. It also uses the 256-bit SSL protocol to encrypt your data and bypass cyber criminals.
In our opinion eToro is a platform suitable for both novice traders and more experienced investors. To be sure, this online broker has democratized the financial market and there is nothing to be said about its weaknesses. It has been offering comprehensive web trading services since its launch.
The social trading platform provides its clients with a range of high-tech financial tools. Its copy trading functionality, more unique than rare, is enough to make the fortune of all those who choose this platform. In addition, there is a varied offer of financial assets that solidify your hopes of making a fortune.
During our detailed analysis of the online broker, we have established some preferences for its financial instruments such as:
- Copy trading
- Copy portfolio
- Popular Investors
- Mobile Trader
- EToro Academy guide
Furthermore, we recognize that the eToro broker has all the safety guarantees for flawless trading. It works with financial organizations and offers a wide range of payment methods, including PayPal. To be fair, in our opinion, eToro is and remains undoubtedly the world leader in social trading platforms.
Is eToro reliable?
When asked if eToro is a reliable broker or not, we answer with a 100% yes! We also take this opportunity to remind you that this broker is controlled by renowned financial institutions from around the world. Among others we can mention: FCA, ASIC and CySEC. In short, the thesis of the eToro scam is false.
Is eToro available in Italy?
eToro is available in Italy as in many other countries around the world. Italian traders also use it to trade in complete safety. And it is regulated by CONSOB in Italy.
If I open an eToro account, do I have to pay tax on profits?
There are no fees to pay when trading on the eToro platform. Furthermore, opening an account is completely free. Likewise, you won't have to pay commissions on your trades, as the online site charges the spreads to pay itself.
What are the risks of trading with eToro?
We will never stop remembering that trading is a financial investment that presents very high risks. By trading with the help of leverage, you can gain or lose faster.
On which devices is eToro available?
You can trade with eToro on any device. If you don't connect to the site from your computer, you can do it on your smartphone, iPhone, tablet, Android device, etc.
Does eToro offer a trading app?
eToro has risen above the competition for a long time. The social trading platform offers a mobile app that allows you to trade wherever you are, anywhere in the world.
How to trade on eToro?
Trading on eToro is not complicated and does not require great skills. The only thing to do is to open a free trading account and use the financial tools available on this platform.
How much money can i earn with eToro?
Earnings are not known in advance on eToro's online trading platform. Your investment strategies play an important role when trading online. However, we recognize that the financial products offered by this broker can make you a lot of money.