What is eToro?
eToro is a famous social trading and multi-asset brokerage firm that has significantly reshaped the online trading landscape. Founded in 2007, it provides an innovative platform where users can trade a type of financial instruments such as stocks, cryptocurrencies, forex, commodities, and indices. What sets eToro apart is its social trading features, which permit users to follow and copy the trades of experienced investors, making it especially appealing to beginners who are learning the ropes of investment strategies. Interactive tools like feed updates, user profiles, and various community-driven functionalities enhance this social element.
eToro also places a strong emphasis on accessibility and user education, providing an array of resources such as tutorials, webinars, and articles that help users make informed trading decisions. Its platform is designed with user-friendliness in mind and is suitable for both beginner and experienced traders. Furthermore, eToro operates with transparency and is regulated by several financial authorities, including the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK, and others, ensuring a secure trading environment. Its approach not only democratizes investment opportunities but also encourages a collaborative and educational trading experience.
Pros and Cons of eToro
Pros 👍🏻
- Offers stocks, cryptocurrencies, ETFs, and CFDs.
- Unique copy trading and social network integration.
- Intuitive interface suitable for beginners.
- Licensed by top-tier authorities, enhancing security.
- Provides a risk-free demo for practice.
- Available in many countries with various deposit methods.
- Offers training guides, webinars, and articles.
Cons 👎🏻
- Charges on withdrawals and currency conversion.
- High risk and potential for losses with CFDs.
- Does not offer options or bonds.
- Some reports of slow response times.
- All account balances are maintained in USD, leading to conversion fees.
- Advanced traders may find tools and indicators lacking.
- Spreads can be wide, especially outside major markets.
Trustworthy and Comprehensive eToro Review
You can trust Growithall for an honest and reliable eToro review because of our commitment to providing clear and unbiased information. Our advisor has thoroughly tested the eToro platform, analyzing everything from its user interface to its trading options. We check all aspects, including how easy it is for new traders to get started and the level of support eToro offers to its users.
Moreover, our reviews are always independent. We don’t receive any compensation from eToro for our evaluations, so you can be sure that our insights and recommendations are completely impartial. Our goal is to help you make informed judgments about your investments so you can feel confident and secure when trading on eToro. Trust Growithall to provide you with a review that is both thorough and easy to understand, helping you navigate the world of online trading with greater ease.
Trade Experience
Here’s an in-depth comparison of the eToro platform experience across different devices:
| Device | Experience | Features | Pros | Cons |
|---|---|---|---|---|
| Desktop (Web) | The web platform provides a full-featured trading experience with access to all of eToro’s tools and assets. Navigation is straightforward, and users can easily manage their portfolios, conduct research, and engage with the social trading community. | Still fewer features than desktop, it can be cumbersome to manage on the very go. | Comprehensive tools, large display for detailed analysis, multi-tasking on several windows. | Requires stable internet, less portable than mobile. |
| Mobile App (iOS and Android) | Full range of trading instruments, charting tools, news feed, and social trading features. | Trading, real-time alerts, watchlist, social stream, mobile notifications. | The mobile app offers a condensed version of the desktop experience optimized for on-the-go trading. It maintains core functionalities such as trading, account management, and social features but is designed for smaller screens. | Convenient for trading on the go, intuitive touch interface, and push notifications for market events. |
| Tablet App (iOS and Android) | The tablet app blends the mobility of the mobile experience with some of the enhanced usability features of the desktop version. It’s ideal for traders who prefer a portable device but need more screen real estate than phones provide. | Still fewer features than a desktop, it can be cumbersome to manage on the very go. | Larger display than phones for better viewing, portable, more interactive design elements. | Enhanced charting capabilities, split-screen view, portfolio management, and social features. |
Crypto Available on eToro
eToro currently offers 100 different cryptocurrencies for trading. This extensive list includes popular coins such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), as well as emerging cryptocurrencies like Polkadot (DOT) and Filecoin (FIL). The platform frequently updates its offerings to include new and trending crypto assets, ensuring a broad selection for users.
Due to regulatory considerations, the selection of cryptocurrencies available on eToro in the United States is more limited. Currently, US-based users can trade 21 different cryptocurrencies on the eToro platform.
This table includes famous both globally available and U.S.-available cryptocurrencies based on the latest available data from eToro:
| Crypto Name | Symbol | Available Globally on eToro | Available in the US on eToro |
|---|---|---|---|
| Bitcoin | BTC | Yes | Yes |
| Ethereum | ETH | Yes | Yes |
| Ripple | XRP | Yes | Yes |
| Bitcoin Cash | BCH | Yes | Yes |
| Cardano | ADA | Yes | Yes |
| Dogecoin | DOGE | Yes | Yes |
| Polkadot | DOT | Yes | No |
| Chainlink | LINK | Yes | Yes |
| Litecoin | LTC | Yes | Yes |
| Stellar | XLM | Yes | Yes |
| Filecoin | FIL | Yes | No |
| TRON | TRX | Yes | No |
| EOS | EOS | Yes | No |
| Tezos | XTZ | Yes | Yes |
| Neo | NEO | Yes | No |
| Ethereum Classic | ETC | Yes | Yes |
| Dash | DASH | Yes | No |
| Zcash | ZEC | Yes | No |
| Aave | AAVE | Yes | No |
| Algorand | ALGO | Yes | Yes |
For detailed information about the cryptocurrencies available on eToro, you can visit their official site here.
Account Types
Here’s a table displaying the various account types available on eToro and whether they are supported:
| Account Type | Supported |
|---|---|
| DEMO ACCOUNT | Yes |
| ISLAMIC ACCOUNT | Yes |
| SEGREGATED ACCOUNT | Yes |
| MANAGED ACCOUNT | No |
| SUITABLE FOR BEGINNERS | Yes |
| SUITABLE FOR PROFESSIONALS | Yes |
| US TRADER | Yes |
Commission and Fees on eToro
This table includes common fees such as spreads, withdrawal fees, and inactivity fees, among others:
| Fee Type | Description | Amount/Rate |
|---|---|---|
| Spread | The difference between the buy and sell prices, varies by instrument. | Varies (e.g., 1 pip for EUR/USD) |
| Withdrawal Fee | Fee charged for withdrawing funds from your account. | $5 per withdrawal |
| Inactivity Fee | Charged to accounts that have not been logged into for 12 months. | $10 per month |
| Conversion Fee | Applied to all trades and withdrawals in currencies different from the account’s base currency. | 50 pips |
| Crypto Transfer Fee | Fee for transferring cryptocurrencies out of eToro and into another wallet. | Varies by cryptocurrency |
| Overnight/Weekend Fee | Fee for holding positions overnight or over the weekend (CFDs and forex). | Varies by instrument and leverage |
| Account Opening Fee | Fee for setting up a new account (if applicable). | Free (generally) |
| CopyTrader Fee | Fee to copy the trades of other traders (if any). | Free (general copying, might be fees associated with specific traders) |
| CFD Stock Commission | Commission charged when trading CFDs on stocks. | 0% (no commission on real stocks) |
| ETF Commission | Commission for trading ETFs. | 0% commission |
Note: The rates/fees mentioned here are for illustrative purposes and can vary. Always check the latest fees on eToro’s official website or through their customer service channels before making any transactions.
Offering of investments
eToro is a famous social trading platform that offers a variety of investment options across different asset classes. Here’s a detailed look at the types of investments you can access on eToro:
- Stocks: eToro allows users to trade and invest in stocks from major global markets without paying commission fees. This includes markets in the USA, Europe, and Asia. You can buy whole shares or opt for fractional shares, which implies you can invest in high-value stocks with a smaller amount of money.
- Cryptocurrencies: eToro is well known for its extensive range of cryptocurrencies. Users can purchase, sell, and hold various cryptocurrencies, including Bitcoin, Ethereum, Ripple, and many others. It also offers crypto-to-crypto trading and crypto-staking services for certain coins.
- ETFs (Exchange-Traded Funds): eToro offers a wide range of ETFs, which let you invest in baskets of stocks, bonds, or commodities. This is a good option for those looking to diversify their investments without buying individual assets.
- Indices: You can invest in major global indices like the S&P 500, NASDAQ, Nikkei, and others. This type of investment is typically less volatile than individual stocks and is a popular choice for passive investors.
- Commodities: eToro offers trading in popular commodities such as gold, silver, oil, and natural gas. Commodities can be a useful way to hedge against inflation or market volatility.
- Currencies (Forex): eToro allows traders to trade in the foreign exchange market with a broad selection of currency pairs, including major, minor, and exotic pairs. This market is known for its high liquidity and 24-hour availability.
- CFDs (Contract for Difference): While CFDs offer the opportunity to trade on the price movement of assets without actually owning the asset, they come with higher risk. eToro offers CFDs on stocks, commodities, indices, currencies, and cryptocurrencies.
- CopyTrading: One of eToro’s unique features is its CopyTrading service, where you can automatically copy the trades of other successful traders. This is particularly appealing for beginners or those who desire to leverage the expertise of seasoned traders.
- CopyPortfolios: Another innovative feature is eToro’s CopyPortfolios, which are managed portfolios focusing on a specific market strategy or theme. These are curated by eToro’s investment team and aim to provide capital gain over the long term.
- Social Trading Features: eToro also emphasizes social trading, integrating features where users can follow and interact with other investors, discuss strategies, and share trading insights.
Note: Investing always involves risks, including the loss of principal, and it’s important to do thorough research or confer with a financial advisor before committing to any investment. Additionally, while eToro offers commission-free stock trading, there may be other fees, such as withdrawal or inactivity fees, that you should be aware of.
Customer Support on eToro
eToro offers several ways for customers to contact their support team. Here are the details:
- Chatbot and Live Chat: eToro provides a 24/7 automated chatbot equipped with advanced AI technology to address inquiries efficiently. Additionally, live chat with human agents is available Monday through Friday, around the clock. This allows for real-time interaction with their customer service team.
- Opening a Ticket: For more detailed support issues, customers can open a ticket through the eToro help center. This method is useful for handling specific concerns or problems that may require more attention or follow-up.
- Complaints Procedure: If customers have complaints, eToro has a structured procedure for submitting and handling these issues. This ensures that customer grievances are addressed appropriately and systematically.
For more information, you can visit the eToro Help Center directly here.
Account Opening on eToro
Opening an account on eToro is a fully online process that can be completed from your mobile device or computer. Here are the detailed steps for opening an account:
- Visit eToro’s Website: Start by going to the eToro website & clicking on the “Join Now” or “Trade Now” buttons.
- Fill in the Registration Form: You’ll need to provide personal information such as your name, email address, and phone number. You can also sign up or log in using a Facebook or Google account.
- Agree to Terms and Conditions: Before submitting your information, make sure to read and agree to eToro’s Terms & Conditions and privacy policy.
- Verification Process (KYC):Â To meet regulatory requirements, you must verify your identity and residence. This involves uploading documents such as a valid passport or other photo ID for identity verification and a utility bill, bank information, or statement for proof of residence.
- Answer a Questionnaire:Â This questionnaire assesses your trading experience and investment goals, which helps eToro tailor its services to your needs.
- Fund Your Account: Once the account is ready to be verified, you’ll need to deposit funds or money to start trading. eToro supports various funding methods, including bank transfers and credit cards.
The whole process is designed to be quick, usually taking about one day to complete once all documents are provided. Remember, investing in financial markets involves risks, and it’s important to understand these as well as how trading mechanisms work before you begin​ (eToro)​.
For more detailed information or specific guidance, you can visit eToro’s official help center.
Final Thought
On eToro, achieving financial independence and a comfortable lifestyle is emphasized as requiring more than just a steady income; it involves a disciplined and patient investment strategy. This includes understanding key investment terms and considering various budgeting methods, such as the 70/30 rule or the 50/30/20 budgeting method, which allocates income across needs, wants, and savings/investments. The platform encourages starting investments early to allow time for assets to grow​ (eToro)​.
In terms of risk management, eToro highlights the use of short selling and hedging as strategies to manage and diversify portfolio risks. Short selling is depicted as a way to capitalize on stock price declines and to balance a portfolio, especially using a market-neutral strategy. This involves taking opposing positions on related assets to reduce exposure to market movements​ (eToro)​.
Additionally, eToro discusses hedging as a risk management tool, which can involve using options, ETFs, and futures to protect against price volatility. Hedging is not synonymous with diversification, as it specifically aims to reduce risk in particular investments rather than across a portfolio. The platform encourages the use of hedging derivative products for beginners who want to mitigate risks in trading​ (eToro)​.
For more comprehensive strategies and educational resources, eToro suggests visiting their eToro Academy, a platform for learning about investing and trading methods in a structured manner.
FAQs
Can we trust eToro?
Ans. Yes, eToro is considered trustworthy as it is regulated by several financial authorities, including the Financial Conduct Authority (FCA) in the UK, CySEC in Cyprus, and others. It adheres to strict legal and regulatory standards to provide a secure trading environment.
Is eToro good for beginners?
Ans. eToro is popular among beginners due to its user-friendly interface and social trading features, which allow new traders to observe and copy the trades of more experienced investors.
Can I make money on eToro?
Ans. Yes, it is possible to make money on eToro by trading and investing in various assets like stocks, cryptocurrencies, and more. However, all trading involves risk, and it’s important to understand that not all investments will be profitable.
Is eToro.com real or fake?
Ans. eToro.com is a real and legitimate trading platform. It has been operational since 2007 and has established a significant user base worldwide.
Who owns eToro?
Ans. eToro is owned by its co-founders, employees, and a variety of institutional investors. The company was founded in 2007 by Yoni Assia, Ronen Assia, and David Ring, and Yoni Assia currently serves as the CEO.
