eToro

eToro	Basic Information
Founded in	2007
Headquarters	United Kingdom
Regulations	CySEC, FCA, ASIC
Tradable Assets	Stocks, Cryptocurrencies, Currencies, Commodities, ETFs
Minimum Deposit	$10
Trading Fees	Commission-free trading, Spreads from 0.75 pips on EUR/USD
Non-Trading Fees	Withdrawal fee of $5, Inactivity fee of $10/month after 12 months of inactivity
Leverage	Up to 1:30 for retail clients, up to 1:400 for professional clients
Trading Platforms	eToro proprietary platform, MetaTrader 4
Mobile Trading	Yes, available on iOS and Android
Customer Support	24/5 live chat, email support
Educational Resources	Social trading, educational videos, blog articles, eToro Academy
Demo Account	Yes, unlimited time
Other Features	CopyTrader, Popular Investor Program, eToro Wallet

Overview of eToro

eToro is a multi-asset social trading platform that has gained widespread popularity among investors, traders, and social media enthusiasts since its inception in 2007. It offers users access to a wide range of financial instruments, including stocks, cryptocurrencies, forex, indices, and commodities, among others. The platform provides a user-friendly interface that caters to both novice and experienced traders alike, making it one of the most popular trading platforms on the market.

One of eToro's standout features is its social trading capabilities, which allow users to copy the trades of successful traders and build their investment portfolios. The platform has a large community of traders who share insights, strategies, and knowledge, making it an excellent learning resource for traders looking to improve their skills.

Is eToro legit or a scam？

eToro is a legitimate and regulated online brokerage firm that has been operating since 2007. It is licensed and regulated by several reputable financial authorities, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC). The company is also a member of the Investor Compensation Fund, which provides additional protection for traders' funds. However, as with any investment platform, there are risks involved in trading, and traders should always be aware of the potential risks and take steps to protect their investments.

Pros & Cons

eToro's user-friendly interface, range of trading assets, and social trading features have made it popular among both beginner and experienced traders. However, as with any trading platform, eToro has its pros and cons, which potential users should consider before signing up. In this section, we will discuss the advantages and disadvantages of using eToro as a trading platform.

Pros	Cons
User-friendly and easy-to-use platform	Higher spreads compared to some other brokers
Regulated by reputable financial authorities	Limited range of tradable assets
Copy trading and social trading features	Limited research and analysis tools
Wide range of payment methods	Inactivity fee charged after 12 months of inactivity
Commission-free trading on stocks and ETFs	Withdrawal fee of $5
Demo account available for practice	Limited customer support options

Market Instruments

eToro offers a wide range of financial instruments for traders to choose from, covering various markets globally. Traders can access more than 2,400 assets, including popular currencies, commodities, indices, and stocks from exchanges around the world. Furthermore, eToro enables traders to trade cryptocurrency, such as Bitcoin and Ethereum, which has become a popular asset class in recent years due to its high volatility and potential for substantial profits. With this wide range of instruments available, traders can diversify their portfolios and explore various markets to find the best investment opportunities.

Pros	Cons
Wide variety of assets including stocks, cryptocurrencies, commodities, forex, and more	Limited selection of options and futures contracts
Commission-free trading on most instruments	Limited research tools for fundamental analysis
Availability of social trading, allowing for copy trading and following other traders' strategies	Limited access to less popular or niche assets
Option to trade fractional shares for stocks, making it accessible to investors with small capital	Limited trading hours on certain assets, such as cryptocurrencies
	Lack of transparency in pricing structure for some assets

Account Types

eToro provides traders with two primary types of accounts to choose from, namely the Retail and Professional accounts. These account types differ in various aspects, such as trading features, account requirements, leverage limits, and the level of regulatory protection they offer.

eToro's Retail account is suitable for most traders and investors. This account type requires a minimum deposit of $500 and provides access to all eToro's trading instruments, including cryptocurrencies, stocks, ETFs, commodities, and more. Retail account holders can also benefit from eToro's social trading features, which allow users to follow and copy other successful traders on the platform. However, retail account holders are limited to a maximum leverage of 1:30, as per regulatory requirements.

eToro's Professional account is designed for experienced traders who meet certain criteria, such as having a minimum of two years of trading experience and meeting certain financial thresholds. This account type provides access to higher leverage of up to 1:400, and allows users to benefit from reduced margin requirements and negative balance protection. However, professional account holders are not eligible for certain investor protection rights, such as compensation schemes, as they are deemed to have a higher level of trading knowledge and experience.

Aspects	Pros	Cons
Account Types	Offers both retail and professional accounts	Professional accounts require certain qualifications
Minimum Deposit	Low minimum deposit requirement for retail account	High minimum deposit requirement for professional account
Commission	No commission on trades for most assets	Higher spreads compared to other brokers
Leverage	Up to 1:30 for major currency pairs	Limited leverage options for professional accounts
Platform	User-friendly platform with social trading features	Limited customization options
Customer Support	24/7 customer support in multiple languages	Phone support only available during market hours

How to open an account with eToro？

To open an account with eToro, you need to follow these steps:

• Go to the eToro website and click on the “Join Now” button.

• Enter your personal information, including your name, email address, and phone number.

• Verify your email address by clicking on the verification link sent to your email. Provide additional information, including your date of birth, address, and tax ID number. Agree to the terms and conditions and submit your application.

• Wait for eToro to review and approve your account, which usually takes a few minutes to a few business days.

• After approval, you can fund your account with preferable payment methods and then start your real trading with this broker.

Demo Account

eToro offers a demo account for traders who want to practice trading strategies without risking real money. The eToro demo account provides $100,000 in virtual money and is valid for an unlimited amount of time, allowing traders to familiarize themselves with the platform and practice their trading skills.

To open a demo account, traders can simply sign up for an eToro account and select the option to use the demo account. It's important to note that the eToro demo account does not require any deposit or funding, making it a risk-free way to test out the platform.

When using the demo account, traders should keep in mind that the virtual money provided is not real, and any profits or losses made are also not real. It's also important to note that while the demo account provides a good introduction to the platform, it may not accurately reflect the actual market conditions and trading experience.

Leverage

eToro offers leverage for trading various financial instruments. The maximum leverage provided by eToro varies depending on the instrument and the jurisdiction of the client. For example, for major forex pairs, eToro offers leverage up to 1:30 for retail clients and up to 1:400 for professional clients. For commodities such as gold and silver, leverage can be up to 1:20 for retail clients and up to 1:100 for professional clients. For stocks, eToro offers leverage up to 1:5 for both retail and professional clients. It is noted that high leverage can amplify your potential returns, but more importantly, it can increase your risks.

Spreads & Commissions (Trading Fees)

eToro's spreads vary depending on the asset being traded. The platform charges variable spreads, which means that the spread can widen or narrow depending on market conditions. The typical spread for major currency pairs such as EUR/USD and GBP/USD is around 3 pips during normal market conditions. However, this can vary depending on market volatility and liquidity.

For other assets, such as cryptocurrencies and commodities, eToro's spreads are generally higher. For example, the spread for Bitcoin can range from 0.75% to 5% depending on market conditions.

Pros	Cons
Zero commission on stock and ETF trading	Wider spreads compared to other brokers
Competitive spreads on major forex pairs	Overnight fees charged on leveraged positions
No hidden fees or surprises	Limited selection of exotic currency pairs
Transparent pricing	Higher spreads on cryptocurrencies
Tight spreads on commodities and indices	Spreads can widen during volatile market conditions

Non Trading Fees

In addition to spreads and commissions, eToro also imposes a few non-trading fees that traders should take into consideration before trading on this platform. These fees include:

• Withdrawal fee: eToro charges a withdrawal fee of $5 per withdrawal. This fee is relatively low compared to other brokers.

• Inactivity fee: If you don't log in to your eToro account for 12 months, an inactivity fee of $10 per month will be charged to your account. This fee is charged until you log in again or until your account balance reaches zero.

• Overnight fees: eToro charges overnight fees or rollover fees for positions held open overnight. The amount of the fee depends on the instrument traded, the direction of the position, and the size of the position.

• Currency conversion fee: If you deposit funds in a currency different from the base currency of your account, eToro charges a currency conversion fee. The fee is 0.5% of the deposited amount, and it's calculated based on the exchange rate at the time of the conversion.

Pros	Cons
No commissions on stock and ETF trading	Higher spreads compared to other brokers
No deposit fees	High withdrawal fees
No account maintenance fees	Inactivity fee after 12 months of inactivity
No fees for using the CopyTrader feature	Limited payment methods
No fees for currency conversion	Overnight fees for positions held overnight
	High fees for using PayPal as a payment method

Trading Platform

eToro offers its proprietary trading platform, which is designed to be user-friendly and intuitive, particularly for novice traders. The platform provides a variety of tools and features, including real-time market data, advanced charting tools, and an easy-to-use order entry system.

One of the most notable features of the eToro platform is its social trading functionality, which allows users to follow and copy the trades of successful traders. This feature is particularly appealing to new traders who may lack the knowledge or experience to make their own trades.

In addition to its proprietary platform, eToro also supports the popular MetaTrader 4 (MT4) platform, which is widely used by traders around the world. MT4 is known for its advanced charting capabilities, extensive library of technical indicators, and the ability to automate trading strategies through the use of Expert Advisors (EAs).

Here is a comparison table of the trading platform offered by eToro, FP Markets and Exness:

Broker	Trading Platform	Desktop	Web-based	Mobile
eToro	eToro Platform	✔️	✔️	✔️
FP Markets	MetaTrader 4 (MT4)	✔️	✔️	✔️
Exness	MetaTrader 4 (MT4)	✔️	✔️	✔️

Deposits & Withdrawals

eToro accepts multiple payment methods, including credit/debit cards, bank transfers, and e-wallets such as PayPal, Neteller, and Skrill. The minimum deposit amount is $10, which is relatively low compared to other brokers in the industry. Deposits are usually processed instantly or within one business day, depending on the payment method. eToro does not charge any deposit fees, but some payment providers may have their own fees.

eToro allows you to withdraw funds using the same payment methods as deposits.The minimum withdrawal amount is $30, and there is a withdrawal fee of $5.Withdrawals are usually processed within one business day, but it may take longer for bank transfers.Before making a withdrawal, you need to verify your identity and complete the necessary KYC (Know Your Customer) procedures. eToro also has a policy of returning funds to the original payment method used for deposits, whenever possible.

Pros	Cons
Wide range of payment methods available including credit/debit cards, PayPal, and bank transfer	Withdrawal fee of $5 per transaction
Quick and easy deposit process with most methods being processed instantly	Minimum withdrawal amount of $30
No deposit fees charged by eToro	Limited number of currencies available for deposits and withdrawals
Supports deposits and withdrawals in multiple currencies	Withdrawal processing time can take up to 7 business days
Allows users to set up multiple payment methods for convenience	Third-party fees may be charged by payment processors
Negative balance protection ensures that users cannot lose more than they have deposited	Users may need to provide additional verification documents for withdrawals

Customer Support

Customer support is an important aspect of any online brokerage firm, and eToro is no exception. eToro offers various channels for customers to get in touch with its support team. These channels include:

• Live chat: This is available 24/5, Monday to Friday. It is the fastest and most efficient way to get support.

• Email: Customers can send an email to the eToro support team. The response time is usually within 24 hours.

• Phone: Customers can also call the support team during office hours. eToro provides local phone numbers for various countries.

• Social media: eToro has a presence on various social media platforms, including Twitter and Facebook. Customers can use these platforms to get in touch with the support team.

• FAQ section: eToro offers a comprehensive FAQ section on their website that covers a wide range of topics related to their services, trading, account management, and more. The FAQ section is organized into categories, making it easy for users to find answers to their questions quickly.

Educational Resources

When it comes to educational resources, Toro offers a variety of educational content to help traders improve their skills and knowledge of the financial markets.

These resources include:

• eToro Academy: This is an online education portal that provides traders with a wide range of educational materials, including articles, videos, webinars, and courses on various topics such as trading strategies, market analysis, risk management, and more.

• Trading Guides: eToro also offers a series of trading guides that provide in-depth information on various trading topics, including stocks, commodities, currencies, and indices.

• Market News and Analysis: eToro provides traders with up-to-date news and analysis on the financial markets. This includes daily market updates, weekly market analysis, and other educational content.

• Blog: eToro has a blog that provides traders with the latest news, market analysis, and trading tips.

• Virtual Portfolio: eToro offers a virtual portfolio feature that allows traders to practice trading without risking real money. This is a great way for beginners to gain experience and test out their trading strategies before trading with real money. Here is an instructional video for users to know clearly what Virtual Portfolio is:https://www.youtube.com/watch？v=GWK7uQ98KpM.

Conclusion

Overall, eToro is a reputable and user-friendly online trading platform that offers a wide range of financial instruments and trading options to its clients. Its innovative social trading features, intuitive platform, and excellent customer service make it an attractive choice for both beginner and experienced traders. However, it does have some drawbacks, such as relatively high fees, limited research tools, and a lack of advanced charting capabilities.

FAQs

• Q: Is eToro a regulated broker？

• A: Yes, eToro is a regulated broker. It is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) in Europe, the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC) in Australia.

• Q: What trading instruments are available on eToro？

• A: eToro offers a wide range of trading instruments, including stocks, ETFs, cryptocurrencies, forex, commodities, and indices.

• Q: What is the minimum deposit required to open an account on eToro？

• A: The minimum deposit required to open an account on eToro varies depending on your location and the type of account you choose. For most countries, the minimum deposit is $500.

• Q: Does eToro offer a demo account？

• A: Yes, eToro offers a demo account that allows you to practice trading with virtual funds. The demo account is free and can be used for an unlimited period of time.

• Q: What is eToro's customer support like？

• A: eToro's customer support is available 24/5 and can be reached through email, live chat, and phone. They also have a comprehensive help center and a community forum where you can get answers to common questions and connect with other traders.