eToro At Glance

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 eToro is the social investment application both for experienced and beginner brokers. For experienced brokers, it provides the opportunity to win by their trading but also by the number of people who “copy” their “trading tactics”. For beginners who do not know how to trade, choose stock etc it provides the unique feature of “copying” the trading tactics of experienced brokers and benefit from their expertise! It is like a trading Instagram with “influencers” and “followers” only in eToro both parties involved benefit from the unique “win-win” model of the application.

eToro Review 

eToro is an online broker in Fintech industry. Founded in 2007, eToro now has offices in four different countries, Cyprus, UK, Australia and USA.  It is regulated in multiple jurisdictions (FCA, CySEC, and ASIC) making it a safe broker, with a user-friendly web platform and mobile app.

eToro offers a variety of choices to invest in, such as cryptocurrencies, stocks, commodities, ETFs, forex and other trading products.

eToro is the ideal medium for social and copy trading. Social trading is a form of investing that allows investors to observe the trading behavior of their peers and expert traders and to follow their investment strategies using copy trading or mirror trading. Social trading requires little or no knowledge about financial markets and has been described as a low-cost, sophisticated alternative to traditional wealth managers by the World Economic Forum. This is what makes eToro unique but also ideal for less experienced investors. And the situation becomes “win win” since the investors being followed can make a profit out ot of the investors “following” their trading. 

Payment methods include Credit/Debit Cards, Paypal, NETELLER, Skrill, Webmoney, Yandex and wire transfer.

History

eToro was launched in 2007, originally named as RetailFX, and now has millions of users from 140 countries worldwide. In 2010, the eToro OpenBook was released. The social investment platform, along with its "CopyTrading" feature. In 2015, the WebTrader and OpenBook trading platforms merged to create the new eToro. The platform offers cutting-edge financial technology, such as the CopyTrader system, Popular Investor Program and CopyPortfolios.
At first, each of eToro’s trading platforms (WebTrader and OpenBook) had a separate app. However, with the new eToro, a single trading app was made available both for  Android and iOS devices.
In 2013, eToro introduced the capability to invest in stocks and CFDs. In January 2014, eToro added cryptocurrencies to its investment instruments. In May 2018, eToro entered the US Market by offering 10 cryptocurrencies: Bitcoin, Ethereum, Litecoin, XRP, Dash, Bitcoin Cash, Stellar, Ethereum Classic, NEO, and EOS.

Overall, more than $162 million were invested in eToro by investment firms, such as Spark Capital, SBI Holdings, CommerzVentures, Korea Investment Partners, and China Minsheng Financial Holdings, as the company reported. Only in 2018, eToro raised a further $100 million in a private funding round.

Asset Coverage

The broker's asset catalog offers 47 currency pairs and 12 commodities. It also covers 2,500+ shares, 145 ETFs (Exchange-Traded Fund), as well as 17 cryptocurrencies. CopyPortfolio extends the product catalog because the algorithms can access markets not directly available as CFDs (Contract For Difference). All non-leveraged buy positions for equities, ETFs and cryptocurrencies are traded as real assets. This means when you buy stocks, ETFs or cryptos without leverage (one leverage), you will buy real stocks, ETFs and cryptos, not CFDs. All the other positions are CFDs. The important thing to note about CFD trading is that you will not be buying or selling the asset underlying it. Instead, you sell or buy a certain number of units for that instrument based on your prediction of if the price will rise or fall. Note: Trading in the actual (non-CFD) underlying cryptocurrencies is available through the firm's eToroX offering, regulated by the Gibraltar FSC, and registered in the US with FinCEN as a Money Service Business (MSB).

Regulation

The eToro brand is managed by different companies in the eToro group of companies and serves each customer depending on their residency. This is an important factor as the residency you provide defines the amount of protection you get.
Citizens of the United Kingdom can open an account at eToro (UK) Limited and thus be protected by the FCA. Australian clients are served by eToro Australia which is regulated by ASIC, the Australian regulator. Other investors can have their live trading accounts with eToro (Europe) Limited, regulated by the Cypriot watchdog, CySEC. eToro USA is registered with FinCEN as a Money Services Business.

Although for cryptos there is no investor protection, eToro is not listed on any exchange, does not disclose financial information and does not have a bank parent, eToro provides negative balance protection. The bottom line is that eToro is regulated, licensed, and is a safe broker to trade forex and CFDs with.
Security features include phone-based two-tier authentication and standard SSL encryption, limits login attempts and uses whitelisting attribution models to prevent automation attacks

Payment Methods

There are multiple deposit methods for eToro, such as bank transfers, Credit/Debit Cards, NETELLER, Skrill, PayPal, Yandex, Webmoney, Klarna / Sofort Banking. eToro deposit fees are zero. Bank transfer takes 3-5 business days, and there is no maximum deposit. Credit/debit cards and electronic wallet deposits are instant, but there is a $40,000 and $10,000 maximum on the funding respectively.
eToro only allows USD accounts. This means your funding will be converted by eToro to USD.
Withdrawal options are the same as the funding options. Funds are withdrawn using the same method, and sent to the same account, as previously used for your deposit. There is a minimum withdrawal amount of $50. eToro withdrawal fee is $5 per withdrawal.
It is important to note that you have to verify your account before you will be permitted to make any withdrawals.

Web & Desktop Trading Platforms

eToro offers a user-friendly and well-designed web trading platform. eToro's platform looks like a modern platform should in this day and age. eToro has done well merging self-directed trading and copy trading under a unified trading experience. It is easy to carry out basic operations and do things quickly, such as creating several watchlists and adding instruments by searching available markets, as well as placing a trade from each watchlist directly. The web trading platform is available in many languages: Arabic, Chinese (simplified), Chinese (traditional), Czech, Danish, Dutch, English, Finnish, French, German, Italian, Malaysian, Norwegian, Polish, Portuguese, Romanian, Russian, Spanish, Swedish, Vietnamese, Thai. eToro has an optional, safer, two-step login system. This provides you with added security. The built-in search is predictive and easy to use. You can set price alerts and notifications easily. eToro's alert function lets you know when an asset reaches a price target, and you also get a notification when your order is fulfilled.

Mobile Trading Platforms

The eToro mobile trading platform is available for iOS and Android. The app is downloadable for free at Google Play Store and Apple App Store. Anything outside of these two operating systems will require you to use the standard mobile web browser version of the platform. The app is available in the same 21 languages as the web trading platform. 

Fees

There are three main fee categories: the Trading fees, the Financing rates and the Non-trading fees. Trading fees occur when you trade. This can be commissions and spreads. Financing rates are charged when you hold your leveraged positions for more than a day. Non-trading fees are like withdrawal fees or inactivity fees.
eToro charges zero commission for stock and ETF trading in Europe. For non-EU clients, it charges fees based on the spread (the difference between the ask and the bid prices). It has a list of minimum spreads for each cryptocurrency, and those rates are not guaranteed. Note that spreads can widen significantly as market conditions change. The broker charges a $5 fee in addition to possible bank or credit card charges for withdrawals. No withdrawals smaller than $50 are permitted. Inactivity fees charge $10 per month after 12 months of no trading activity. It’s worth noting that additional fees may also be accrued as a result of charges applied by your bank or credit card issuer.
eToro offers a VIP club membership with five tiers ranging from gold to diamond. Depending on the level, benefits vary from a dedicated account manager to discounted withdrawal and deposit fees, access to private signals, and exclusive assets, among other VIP-style account benefits.

"62% of retail investor accounts lose money when trading CFDs with this provider"

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