eToro Review | Is the Social Trading Platform Legit? (2024)

As a professional copywriting journalist, I’ve had the opportunity to explore various trading platforms, and one that stands out is eToro. In this eToro review, I’ll examine its features, pros and cons, trustworthiness, and more, to help you determine if it’s the right platform for your trading endeavors.

eToro is a well-established social trading platform that has gained popularity since its founding in 2007. With a high level of trustworthiness and regulation in multiple jurisdictions, eToro offers a user-friendly web platform and mobile app, making it an attractive option for both casual and beginner investors. The platform boasts a wide range of trading symbols, providing ample opportunities for diversification. Additionally, eToro offers indemnity insurance of up to EUR 1 million per client in certain regions, providing an extra layer of protection.

Key Takeaways:

• eToro is a highly trusted social trading platform that offers a user-friendly experience.
• The platform provides a wide range of trading symbols, allowing for diversification.
• eToro offers indemnity insurance in certain regions, ensuring client funds are protected.
• It is regulated in multiple jurisdictions, including three Tier-1 regulators.
• eToro’s mobile app provides a seamless trading experience on the go.

Pros of eToro

When it comes to the advantages of using eToro, there are several key features that make it stand out among other trading platforms.

Regulatory Compliance and Trustworthiness

eToro is regulated by top-tier regulators, including the Australian Securities & Investment Commission (ASIC) and the Financial Conduct Authority (FCA), making it a trustworthy platform for investors. The platform has also earned a highly trusted rating, further solidifying its credibility in the market.

User-Friendly Interface

eToro provides a user-friendly interface that caters to both beginner and experienced traders. With its intuitive design and straightforward navigation, users can easily navigate through the platform and access the features they need.

Wide Range of Markets

With over 3,000 symbols available for trading, eToro offers a diverse range of markets to choose from. Whether you’re interested in stocks, cryptocurrencies, commodities, or forex, eToro has you covered.

Indemnity Insurance

eToro prioritizes the protection of its clients’ funds by providing indemnity insurance. This insurance ensures that clients’ money is safeguarded in case of any unforeseen circumstances.

VIP-Style Perks

eToro offers VIP-style perks for its club members and popular investors who reach higher tier status. These perks can include access to exclusive features, priority customer support, and more.

Expanded Research Content

eToro provides users with an extensive range of research content to help them make informed investment decisions. The platform offers resources such as the Digest & Invest series, Market Bites podcast, and weekly videos and articles, offering valuable insights into the market.

Overall, the pros of eToro make it an attractive choice for traders and investors looking for a reliable, user-friendly platform with a wide range of trading options and valuable research content.

Cons of eToro

While eToro offers many advantages, it’s important to consider some of the cons that come with using the platform. Here are a few drawbacks to keep in mind:

1. Higher trading fees: Compared to its competitors, eToro’s forex and CFD trading fees are slightly higher. However, the platform has recently reduced spreads and introduced zero-dollar commissions for U.S. stock trading to make it more competitive.
2. No support for automated trading: eToro does not support automated (algorithmic) trading strategies. This may be a limitation for traders who prefer using automated trading methods.
3. Mandatory stop-loss and take-profit features: While eToro’s mandatory stop-loss and take-profit features can provide risk management, they may limit certain trading strategies that require more flexibility.
4. Limited access to Trading Central research and tools: The valuable Trading Central research and tools are only available to certain eToro Club members who have reached higher Club tiers.

Despite these drawbacks, eToro remains a popular choice for many traders due to its overall features and functionality.

Trustworthiness of eToro

When it comes to online trading platforms, trustworthiness is a top concern for investors. In the case of eToro, you can rest assured that your funds are in safe hands. With an overall Trust Score of 90 out of 99, eToro has established itself as a reliable and reputable platform in the industry.

Authorized by three Tier-1 regulators, including the Australian Securities & Investment Commission (ASIC) and the Financial Conduct Authority (FCA), eToro adheres to stringent regulatory standards. This means that the platform operates in compliance with the highest level of security and transparency.

It’s important to note that eToro is not publicly traded and doesn’t operate as a bank. Instead, it focuses solely on providing top-notch trading and investing services. This specialization allows eToro to channel its resources and expertise into delivering a seamless and trustworthy platform.

Regulatory Authorizations

eToro’s commitment to regulatory compliance is evident through its authorization by multiple regulatory bodies. Here are the three Tier-1 regulators that oversee eToro:

Regulator	Country
Australian Securities & Investment Commission (ASIC)	Australia
Financial Conduct Authority (FCA)	United Kingdom
Cyprus Securities and Exchange Commission (CySEC)	Cyprus

In addition to these Tier-1 regulators, eToro is authorized in the European Union through the MiFID passporting system. This authorization further strengthens eToro’s position as a reliable and trustworthy platform for traders and investors alike.

By choosing eToro, you are placing your trust in a platform that has undergone rigorous scrutiny and meets the highest standards of regulatory compliance.

As an investor, it’s important to have peace of mind when it comes to the safety and security of your funds. With eToro’s trusted reputation and robust regulatory authorizations, you can trade and invest confidently, knowing that you are in good hands.

Offering of Investments on eToro

eToro provides a diverse range of investment options, offering a total of 3,479 tradable symbols. This includes forex, stocks, cryptocurrencies, and more, giving investors ample opportunities to build a diversified portfolio. As a multi-asset broker, eToro caters to various trading preferences and provides a user-friendly interface that allows traders to switch seamlessly between trading contracts for difference (CFDs) and underlying assets.

One of the standout features of eToro is its cryptocurrency trading offering. Traders can engage in cryptocurrency trading both as CFDs and by trading the actual underlying assets. This flexibility allows users to choose the trading method that aligns with their preferences and risk appetite. However, it’s important to note that crypto CFDs are not available to retail traders from any broker’s U.K. entity or to U.K. residents.

For U.S. users, eToro offers zero-dollar commission for stock trading, making it an attractive platform for those interested in U.S. stocks. This eliminates the need to worry about high trading costs and enables traders to maximize their investment returns.

In addition, eToro supports fractional shares, which enables investors to purchase a fraction of a share, making it accessible for those with a limited budget. This feature opens up opportunities for investors to build a diversified portfolio without the need for substantial capital.

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Asset Class	Number of Tradable Symbols
Forex	824
Stocks	2,046
Cryptocurrencies	127
Commodities	89
Indices	55
ETFs	246
Total	3,387

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Table: Offering of Investments on eToro

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Source: https://www.etoro.com/

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Commissions and Fees on eToro

When it comes to trading fees, eToro stands out as a competitive market-maker broker. Let’s take a closer look at the various commissions and fees associated with trading on the eToro platform.

Cryptocurrency Trading Fee:

When you trade cryptocurrencies on eToro, you will incur a 1% fee. It’s important to note that this fee is applied to the total value of your cryptocurrency trade.

Stock and ETF Commission:

Good news for stock and ETF traders on eToro – there are no commission fees charged for these trades. This means you can trade stocks and ETFs without worrying about additional costs eating into your profits.

VIP Club & Popular Investor Program:

eToro offers a VIP club with different membership tiers, providing exclusive benefits and features. As part of the VIP club, you may gain access to services like Trading Central and enjoy discounted withdrawal and deposit fees.

Additionally, eToro has a Popular Investor program, which rewards traders based on the number of followers they have and the copiers they attract. As a Popular Investor, you can earn various perks and benefits.

VIP Club Benefits	Popular Investor Program
Access to Trading Central	Earn perks based on number of followers and copiers
Discounted withdrawal and deposit fees	Recognition and social status

If you’re looking for a platform with competitive trading fees and opportunities to gain additional benefits, eToro’s commissions and VIP program may be worth considering.

In the next section, we’ll explore the mobile trading experience on eToro, highlighting its features and user-friendly interface.

Mobile Trading on eToro

eToro offers an excellent mobile trading experience with its user-friendly app, available for both iOS and Android devices. The app allows users to trade, monitor their portfolio, and access advanced charting capabilities. It closely matches the functionality of the web platform, including features like dark and light mode themes and synced watchlists. The eToro Money Wallet, a separate mobile app, allows users to deposit and withdraw money and cryptocurrencies, provides a similar user experience, and supports social trading.

Key Features of eToro’s Mobile Trading App:

• Trade on-the-go: With the eToro mobile app, investors can stay connected to the markets and execute trades from anywhere at any time.
• Advanced charting capabilities: The app provides detailed charts with various technical analysis tools and indicators, helping traders make well-informed decisions.
• User-friendly interface: The intuitive and user-friendly interface ensures a seamless trading experience for both beginners and experienced investors.
• Dark and light mode themes: Users can customize the app’s appearance based on their preferences, whether they prefer a dark or light background.
• Synced watchlists: The app syncs with the web platform, allowing users to access their personalized watchlists across devices.

With eToro’s mobile app, users can stay connected to the markets and manage their investments on the go. The app provides a smooth and intuitive user experience, making it easy for traders to navigate the platform and execute trades efficiently. Whether you’re a beginner or an experienced investor, eToro’s mobile trading app offers the tools and features you need to stay ahead in the market.

Pros	Cons
Easy-to-use interface	Higher forex and CFD trading fees compared to competitors
Advanced charting capabilities	No support for automated (algorithmic) trading strategies
Dark and light mode themes	Access to certain research tools limited to higher Club tiers
Synced watchlists

Overall, eToro’s mobile trading app provides a seamless and user-friendly experience for investors looking to trade on the go. With its advanced charting capabilities and synced watchlists, users can stay informed and make informed trading decisions. However, it’s important to consider the higher forex and CFD trading fees and the lack of support for automated trading strategies. Nonetheless, eToro remains a popular choice among traders seeking convenience and simplicity in their trading platform.

Other Trading Platforms on eToro

eToro’s main innovation is its social trading platform, which combines self-directed trading and copy trading. The platform allows users to copy the trades of other investors and create single funds for copy trading through its CopyPortfolios feature. The innovative platform design and ease of use have made eToro a popular choice among traders. However, eToro currently does not support automated (algorithmic) trading strategies.

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Platform	Features
Copy Trading	Users can automatically copy the trades of successful investors they choose to follow.
CopyPortfolios	Users can invest in predefined portfolios of top-performing traders to gain exposure to various markets.
Social Trading Community	Traders can connect, share ideas, and learn from other community members through eToro’s social features.
Innovative Design	eToro’s user-friendly interface and intuitive design make it easy for traders of all experience levels to navigate the platform.

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Where eToro Shines

eToro shines in several areas, making it a standout social trading platform in the industry. Let’s explore some of its key strengths:

Innovative Platform

eToro offers an innovative and intuitive platform that is designed to cater to both beginners and experienced traders. With its user-friendly interface, even novice investors can easily navigate and make trades without feeling overwhelmed. The platform’s clean layout and seamless functionality contribute to a smooth trading experience.

Social Trading Experience

One of eToro’s standout features is its social trading experience. Users have the opportunity to engage and learn from other successful traders on the platform. With eToro’s copy trading feature, users can replicate the trades of top-performing investors, allowing them to benefit from their knowledge and expertise. This social aspect adds a unique dimension to the trading experience on eToro.

Global Presence

eToro has built a strong global presence, boasting over 25 million users across 140 countries. Its expansive reach allows investors from around the world to join and participate in the platform. This global community fosters diverse trading opportunities and provides users with exposure to a wide range of trading strategies and investment ideas.

Virtual Trading Feature

To help users build their confidence and experience, eToro offers a virtual trading feature. This allows individuals to practice trading with virtual funds before risking their real money. The virtual trading feature is especially valuable for beginners who are looking to gain hands-on experience and develop their trading skills without any financial risks.

Expansion into Stock and ETF Trading

eToro has recently expanded its offerings to include stock and ETF trading in the U.S. This expansion opens up new opportunities for users, allowing them to diversify their portfolios and explore different investment avenues. With zero-dollar commission fees for U.S. stock trades, eToro provides a cost-effective solution for those interested in the stock market.

eToro Money and Staking Program

In addition to its core trading services, eToro also offers eToro Money, a cash management service that provides users with convenient and secure money management solutions. Moreover, eToro has introduced a basic staking program for certain cryptocurrencies, allowing users to earn rewards by participating in the cryptocurrency ecosystem.

Through its innovative platform, social trading experience, global presence, virtual trading feature, expansion into stock and ETF trading, and additional services like eToro Money and the staking program, eToro continues to attract a large user base, providing them with valuable and diverse trading opportunities.

Where eToro Falls Short

While eToro offers many advantages, it’s important to acknowledge the platform’s limitations. Here are a few areas where eToro falls short:

Limited Availability

eToro is not available in all U.S. states, which can be frustrating for potential users who reside in these regions. It’s important to check if your state is supported before considering eToro as your trading platform of choice.

Restricted Cryptocurrency Trading Options

Although eToro offers a wide range of trading options, the platform has limited availability when it comes to cryptocurrency trading. Additionally, eToro lacks crypto-to-crypto trading pairs, which may be a drawback for users looking to engage in specific cryptocurrency transactions.

Customer Support

When it comes to customer support, eToro’s options are somewhat limited. While email and ticket support are available as standard options, live chat and phone support are only accessible to eToro Club members. This may be a disadvantage for users who prefer immediate assistance or have urgent inquiries that require immediate attention.

In summary, while eToro has numerous benefits that make it an attractive choice for many traders, it’s essential to consider its limitations. Restricted availability, limited cryptocurrency trading options, and customer support limitations are factors to keep in mind. Assessing these limitations alongside your trading preferences and goals is crucial when deciding if eToro is the right platform for you.

Is eToro Right for You?

Whether eToro is the right platform for you depends on your trading preferences and investment goals. If you are interested in social trading, copying the trades of other investors, and trading a wide range of assets, eToro may be a suitable choice. It is particularly attractive for beginner investors who value user-friendly interfaces and educational resources.

If you have specific trading strategies or require advanced trading tools and features, you may want to consider alternative online brokers that better meet your needs. However, for those who prioritize simplicity, accessibility, and the opportunity to learn from experienced traders, eToro provides a convenient and intuitive platform.

Here are some key aspects to consider when deciding if eToro is right for you:

1. Social Trading Experience

eToro’s unique social trading feature allows users to copy the trades of successful and experienced investors. This can be particularly beneficial for those who are new to trading or want to learn from others’ expertise.

2. Wide Range of Assets

eToro offers a diverse selection of assets to trade, including stocks, ETFs, cryptocurrencies, commodities, and more. If you are interested in exploring different markets and diversifying your portfolio, eToro provides ample opportunities.

3. User-Friendly Interface

eToro’s platform is designed to be user-friendly, making it accessible for beginners and experienced traders alike. The intuitive interface allows for seamless navigation and easy execution of trades.

4. Educational Resources

eToro provides educational resources such as webinars, video tutorials, and market analysis to help users enhance their trading knowledge and skills. This is particularly beneficial for beginner investors who want to learn more about the financial markets.

Ultimately, the decision to use eToro as your trading platform depends on your individual trading preferences and goals. Consider your level of experience, desired assets to trade, and the features that are most important to you. It may also be helpful to try out eToro’s demo account to get a feel for the platform before making a final decision.

eToro Pros and Cons

Pros	Cons
1. Social trading and copy trading options	1. Higher forex and CFD trading fees compared to some competitors
2. Wide range of tradable assets	2. No support for automated trading strategies
3. User-friendly interface	3. Mandatory stop-loss and take-profit features may limit certain trading strategies
4. Educational resources for beginner investors	4. Trading Central research and tools only available to certain eToro Club members
5. Trusted and regulated platform	5. Limited customer support options for non-Club members

Before making a decision, carefully evaluate the pros and cons of eToro to determine if it aligns with your trading goals and risk tolerance. If you prioritize social trading, a wide range of assets, and a user-friendly platform, eToro may be the right choice for you. However, if you require advanced trading tools, low fees, or specific features that eToro does not offer, you may want to consider other online brokers that better suit your needs.

How We Review Cryptocurrency Platforms

When it comes to reviewing cryptocurrency platforms like eToro, my team follows a comprehensive process to provide you with accurate and unbiased information. We believe in transparency and empowering users to make informed decisions when choosing a trading platform.

Our review methodology involves collecting data directly from providers by conducting detailed questionnaires. This allows us to gather essential information about the platform’s features, regulations, and security measures.

Furthermore, we conduct first-hand testing and observation, evaluating more than 10 factors that we consider crucial to provide a comprehensive review. Some of the factors we assess include trustworthiness, offering of investments, commissions and fees, platform usability, mobile trading experience, customer support, and more.

By thoroughly analyzing these aspects, we aim to provide an independent assessment that helps you understand the strengths and weaknesses of eToro and other cryptocurrency platforms.

Our Review Process

1. Trustworthiness: We investigate the platform’s regulatory compliance and security measures to ensure your funds and personal information are protected.

2. Offering of Investments: We assess the range of tradable assets available on eToro, including forex, stocks, cryptocurrencies, and more, to determine the platform’s suitability for different types of investors.

3. Commissions and Fees: We compare the trading fees on eToro to similar platforms to provide you with a clear understanding of the costs involved in trading.

4. Platform Usability: We evaluate the user interface, charting tools, order execution speed, and other features to determine how easy it is to navigate and trade on eToro.

5. Mobile Trading Experience: We review the mobile app’s functionality, including its responsiveness, ease of use, and access to essential trading features, ensuring a seamless trading experience on the go.

6. Customer Support: We assess the quality and responsiveness of eToro’s customer support team, reviewing their available channels, response times, and helpfulness.

Through this thorough review process, we strive to provide you with valuable insights and information that will assist you in making informed investment decisions.

Factors Assessed	Description
Trustworthiness	Investigation of regulatory compliance and security measures
Offering of Investments	Evaluation of the range of tradable assets
Commissions and Fees	Comparison of trading costs to similar platforms
Platform Usability	Review of user interface, charting tools, and order execution speed
Mobile Trading Experience	Assessment of functionality and usability on the mobile app
Customer Support	Evaluation of the quality and responsiveness of support channels

Our aim is to empower you with the knowledge and insights necessary to choose the right cryptocurrency platform for your trading needs. We understand that each individual has unique requirements, and our comprehensive review process aims to address those specific needs.

New and Notable Features of eToro

As eToro continues to evolve, it has introduced some exciting new features that enhance the overall trading experience on the platform. These recent additions provide additional options for traders and investors, making eToro an even more attractive choice for those seeking a versatile and user-friendly platform.

Interest on Cash Program

One of the notable new features is the “Interest on Cash” program, available exclusively for eToro Options account holders. This program offers up to 4.9% APR on cash balances, allowing traders to earn passive income on their idle funds while waiting for opportunities to arise in the market.

Partnership with X

eToro has also partnered with X (formerly Twitter) to create a unique integration that enables users to purchase assets mentioned on X through the eToro platform. This collaboration provides traders and investors with a seamless way to capitalize on investment opportunities highlighted on X, expanding the range of assets available for trading on eToro.

With these new and notable features, eToro continues to demonstrate its commitment to innovation and improving the trading experience for its users. Whether through earning interest on cash balances or exploring investment opportunities from X, eToro provides traders and investors with additional tools and options to enhance their strategies and potential returns.

Conclusion

In conclusion, eToro is a reputable social trading platform that offers a unique trading experience for users. With its innovative features and user-friendly interface, eToro has become a popular choice for beginners and casual investors. The platform’s global presence also adds to its appeal, allowing users from across the globe to participate in social trading.

However, it is important to note that eToro does have its limitations. The platform’s availability is limited in certain regions, which may restrict access for some potential users. Additionally, eToro has a narrower range of available assets compared to more comprehensive brokers, which may not suit the trading needs of all investors.

Before deciding to use eToro, it is essential to consider your trading preferences and investment goals. Evaluate whether the platform’s features align with your needs, and determine if the available assets meet your trading requirements. By carefully assessing these factors, you can make an informed decision and determine if eToro is the right trading platform for you.

FAQ

Is eToro a legit social trading platform?

Yes, eToro is a reputable and trusted social trading platform.

What are the pros of using eToro?

Some of the pros of eToro include its user-friendly interface, regulatory compliance, wide range of tradable assets, indemnity insurance, and expanded research content.

What are the cons of using eToro?

Some of the cons of eToro are its higher forex and CFD trading fees, lack of support for automated trading strategies, and limited availability of certain features to higher-tier club members.

How trustworthy is eToro?

eToro is highly trusted with a Trust Score rating of 90 out of 99. It is regulated by top-tier regulators such as ASIC and FCA.

What types of investments can be traded on eToro?

eToro offers a wide range of tradable symbols, including forex, stocks, cryptocurrencies, and more.

What are the commissions and fees on eToro?

eToro charges competitive trading fees, with 1% fee for cryptocurrency trades and zero commission fees for stock and ETF trades.

How is the mobile trading experience on eToro?

eToro offers an excellent mobile trading experience with its user-friendly app, allowing users to trade, monitor their portfolio, and access advanced charting capabilities.

What other trading platforms are available on eToro?

eToro’s main innovation is its social trading platform, which combines self-directed trading with copy trading.

What are the standout features of eToro?

eToro offers an innovative platform, a social trading experience, a global presence, virtual trading for practice, and additional services like eToro Money and staking programs for cryptocurrencies.

What are the limitations of eToro?

eToro has restricted availability in certain regions, limited service offerings for some cryptocurrencies, and offers limited customer support options.

Is eToro the right platform for me?

Whether eToro is right for you depends on your trading preferences and investment goals. Consider your needs and preferences before deciding to use eToro or explore alternative brokers.

How do you review cryptocurrency platforms like eToro?

We follow a comprehensive process that involves collecting data directly from providers, conducting first-hand testing and observation, and evaluating more than 10 factors such as trustworthiness, offering of investments, commissions and fees, platform usability, mobile trading experience, and customer support.

What are the new features of eToro?

eToro has introduced new features such as an interest on cash program for eToro Options account holders and a partnership with X (formerly Twitter) to enable users to purchase mentioned assets through eToro.

Our Friends

• https://www.forexbrokers.com/reviews/etoro
• https://www.investopedia.com/etoro-review-6741360
• https://www.nerdwallet.com/reviews/investing/brokers/etoro