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eToro Review 2021

Written by Arthur

Traders can copy trades made in more than 2300 instruments using eToro’s simple-to-use copy trading platform. This includes CFDs, forex and popular cryptocurrencies.

These are the Top 2021 Takeaways

These are the top eToro results:

  1. eToro was founded in 2007 and is regulated under two tier-1 jurisdictions and one tier-2. This makes it a safe broker with low risk for forex and CFD trading.
  2. eToro excels at social trading and cryptocurrency trade. It’s our top choice in these two categories in 2021.
  3. eToro has a slightly higher price than its competitors, despite introducing zero-dollar commissions to the US and reducing spreads for forex trading. eToro offers a smaller number of traditional research tools than its competitors.

68% of retail CFD accounts lose money.

Is eToro Safe?

eToro’s Trust Score is 92/99. It is considered low-risk. eToro was authorized by two tier-1 regulators. One tier-2 regulator (average trust) and one tier-3 regulator (low confidence). Australian Securities & Exchange Commission, and Financial Conduct Authority authorized eToro. Learn more about Trust Score.

Offering Investments

eToro currently has 2361 tradeable symbols. Below is a table listing the investment products that are available to eToro clients.

Usability eToro, a multi-asset brokerage, makes traders’ lives simpler. Traders can choose between CFDs or trading the underlying asset directly from their trade-ticket window with eToro. Although it’s subtle, it is extremely useful.

Cryptocurrency– Cryptocurrency trading is possible through CFDs, or by trading the asset (e.g. Buy Bitcoin. Some Crypto CFDs may not be accessible to brokers, UK residents or retail traders. Moreover, cryptocurrency trading at eToro is not possible in Russia, France, and the Netherlands (including French Territories).

Commissions and Fees

Market-maker broker eToro lists a typical variable spread of 1 pip EUR/USD. This spread is slightly higher than the industry average. Retail traders prefer eToro for its social copy-trading capabilities, not its spreads. (See below section on Platform and Tools).

VIP accounts: eToro provides a VIP Club membership for traders with balances between $5k-250k. There are five tiers to choose from, ranging in price from silver to diamond. The level of the account will determine which benefits you receive. These benefits include exclusive assets, a dedicated account manager and discounted withdrawal and deposit fees.

Popular Investor Program. EToro’s Popular Investor Program offers four levels from cadet to senior. Each level has a variety benefits. You can enjoy benefits like spread rebates, monthly payments and management fees for elite status. Popular Investor is for traders who allow others to copy their strategies.

Cryptocurrency trading In general, eToro’s prices are close to industry standards for trading physical cryptocurrency. eToro charges 0.75% for buying or selling bitcoin. The 5% fiat-tocrypto conversion fee is however very high. Moreover, converting crypto into crypto at eToro is very affordable at 0.1% plus spreads. eToro offers the most variety of crypto assets. This includes both CFDs and the underlying. We believe that eToro is the best broker for Crypto Trading in 2021.

Exchange-Traded Securities eToro offers zero-dollar commissions on US stock trading (not available to US investors), as well fractional shares. Please see the UK.StockBrokers.com review of eToro.

Platforms and tools

eToro’s most innovative feature, however, is its integration of copy and self-directed trading into a single trading environment. It’s a winning combination. Take a look at our Top FX brokers for copy trading 2021.

Ease of use: At the heart of the eToro platform experience is the ability to quickly create watchlists and add instruments by searching available markets. You can also place trades from any watchlist. These design features helped eToro rank Best in Class in the Ease category as well as for Beginners for 2021.

copyPortfolioscopyPortfolios are a new tool that allows eToro to group traders into a single fund you can copy trade. Passive investors can create portfolios based on CopyPortfolios by using CopyPortfolios. Self-directed traders can use CopyPortfolios to diversify their trading. This could be a benefit to all eToro customers.

Cryptocurrency tools: eToro users can search for trading ideas, copy traders and create groups of traders from 94 supported cryptocurrency pairs. Investors who want to hold crypto assets can use the eToroX mobile wallet app. This app acts as a custodian, and it uses a multisignature system. It’s almost identical to the brand’s forex mobile app.

Copy the trading structure All traders that trade on eToro manual. eToro doesn’t allow fully automated trading systems like the MetaTrader. You can check that trades made by other traders on eToro have been placed manually. This is a valuable quality, since other social trading platforms allow discretionary trading (manual or automated), while eToro only allows manual trading.

Research

Overall, eToro’s searches are competitive but not award-winning.

Research Tools You can access a standard economic calendar, earnings schedule, news headlines, and daily market analysis series. Several of these features are not available directly in the eToro platform.

Fundamental Analysis It is worth noting that eToro does a fantastic job incorporating fundamental analysis into its platform for shares trading. Despite this, eToro still trails Saxo Bank and this category. This is due to the fact that very few articles are provided by eToro’s in-house market analysis team.

Sentiment data: Rather than showing sentiment based on all users, top traders at eToro only use sentiment data (taking it a step further than the usual sentiment tools brokers provide). Similar to CMC Markets displaying sentiment data.

Wall newsfeed eToro uses a Twitter-style wall feed that allows collective commentary on a specific instrument. This public feed provides traders with an overview of trades being discussed in the eToro Community. It is a stream that other eToro users share. These content may differ in quality and are sourced from eToro members. It is unique but I believe that the content created by in-house staff or third-party professionals is more valuable.

Education

eToro offers weekly webinars and a good range of educational content. You can also find materials in other categories, such as research and company announcements. Navigation is the problem. Because education isn’t all in one place, it is difficult to filter and browse. This can be compared with education leaders FXCM or Saxo Bank.

Education articles There are five articles under the “Education” link in the main dropdown menu. Video tutorials are available on the main eToro website. There is also a section called “Trading School”.

Integrated education material: eToro went beyond the simple explanation text next to every symbol on its platform. eToro provides additional information for beginners about symbols such as the EUR/USD.

Trading School There are a few videos under eToro’s “Trading School”, but they are very basic. The broker’s YouTube channel has many videos. These videos include seven webinars archived, content about cryptocurrency and shares, as well as platform tutorials.

YouTube videos It was difficult for me to distinguish between educational and promotional videos because there were sometimes overlaps.

Mobile trading

Overall, eToro’s mobile user experience has been great. The Android app by eToro was tested and maintained the same look and feeling as the website. You can choose from a dark or light theme. Functionalities like sync watchlists or syncing can unify the platform experience across devices.

Charting These charts, just like the rest, were responsive and closely matched the web platform. Only five indicators are available for the web, while 67 can be found on the mobile website. Drawing tools would have been great for the app. Despite not having drawing tools, the charts in the mobile app work well.

Cryptocurrency wallet Users have the option to use eToroX’s separate mobile app for real cryptocurrencies depositing and withdrawing. The eToro Wallet has a similar look to the eToro App, and social trading is available.

Last Thoughts

eToro offers a great platform to retail traders looking for investment ideas via copy trading, or active traders who wish to share their knowledge.

For less experienced traders, the platform’s intuitive interface might be an advantage. Nonetheless, I wouldn’t recommend eToro for high-volume traders and active traders due to the smaller trade sizes and higher spreads.

eToro is the top choice for crypto-trading and social copy trading in 2021. They were also awarded the #1 Trader community award.

FAQs

Is eToro reliable?

More than 5,000,000 traders around the world have trusted eToro. It is licensed in several countries to offer brokerage services and fund management. After a $10.4million merger, eToro will list on the NASDAQ in Q3 2021. Avoid falling for scams by only using reputable brokers. eToro can be trusted as a broker.

Proper licensing, operation history and sufficient financial capital are all important factors in financial services trust. eToro has proven its ability to win clients’ trust in all of these areas.

Is eToro really free?

Spreads include copy-trading fees from eToro. Although eToro is free to use, trading costs like the bid/ask spreads are still payable.

Spreads and commissions can be charged by online brokers. You may also get rebates. Spreads are all that you pay. However, carry costs may be added to your position if it is held overnight.

Is it possible to make a living using eToro?

eToro may help you make more money but it’s not guaranteed. eToro’s social trading capabilities is its unique value proposition. This allows you to select from its vast database of traders and execute copy trading in real-time. Trades in forex, stocks, and CFDs can result in losses.

Making good trading decisions and managing risk are two key factors to making money with eToro. This is true for both manual and copy-trading.

You must do enough analysis to determine which investors to copy and how many to copy when you are copy-trading on eToro. A maximum draw-down limit is also necessary. This limits your ability to copy other investors if you lose more than a set amount.

Are eToro’s beginner-friendly features worth the investment? eToro is a great option for beginners . The trading platform is easy to use and not too complex. eToro combines useful features with features in a web-based platform as well as a mobile trading app that is simple to use. Although eToro can be difficult to use for beginners it is much easier than some other advanced trading platforms. You should consider more than just the absolute returns that a trader earns. Also, you might want to look at the risk score and average trade volume per week of the investor you are interested.

What type of broker is eToro?

Depending on the entity holding your account, eToro could act as either a market-maker or agency broker. Agent brokers will be the counterparty for your trade. In exchange for commissions, profit sharing and rebates, market-maker brokers will forward your order to them.

eToro U.K. and eToro Europe, respectively, can act as market-makers as well as matched-principals (agency broker) if required as part of their internal risk management process. Brokers must adhere to the best execution regulations. eToro is legally required to follow these guidelines.

About eToro

eToro is a pioneer in social trading. It was founded in Israel in 2007 in order to develop financial trading technology. It was the first to launch its product, and it now serves over 15 million customers. Clients can be found in over 170 countries thanks to an innovative platform that is continually evolving to become the most popular social network worldwide.

eToro announced that it had raised $100m in private equity financing. It was led by China Minsheng Financial, and the SBI Group. The company was worth $800 million. The company’s crypto-exchange, eToroX, is regulated and registered in the USA with FinCEN as a Money Service Business. Find out more about eToro at Wikipedia.

Disclosures

eToro is a multi-asset platform which allows stock and cryptoasset investment as well as trading CFDs.

CFDs are complex instruments and can lead to rapid losses of money because of leverage. This provider is responsible to 68% of retail investor accounts losing money trading CFDs. CFDs are complex and you need to be familiar with the basics. Also, assess your financial ability to bear the high-risk of losing your investment.

Past performance is not always indicative of future results.

Cryptoassets are volatile instruments that can fluctuate quickly and may not be suitable for all investors. CFDs are not allowed to trade cryptoassets.

eToro USA LLC does not broker CFDs. This publication is not guaranteed to be accurate or complete. eToro USA LLC does not assume any responsibility for its accuracy. Our partner used publicly available information that was not specific to an entity to create this publication.

About the author

Arthur

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