eToro The Best Social Trading Platform? Our Review 2019

eToro at a Glance
4.4

Review

It is difficult to compare eToro to a traditional broker because its offer is so unique. For example, IG will be more competitive with its low-cost spreads and commissions, but it will focus more on professionals. Beginners will be able to learn more easily and quickly with the many features offered by eToro but also thanks to a community of more than 4.5 million traders. By choosing a beginner or novice, we elected eToro broker as number 1 in our ranking.

see the eToro website

CFDs are complex instruments and are associated with a high risk of losing money due to leverage. 65% of retail investors’ accounts lose money when trading CFDs with these suppliers. You should ask yourself if you understand how CFDs work and if you can afford to take the significant risk of losing your money.

Launched in 2007, eToro is well known in the online trading market. The broker has more than 4.5 million traders in 152 countries around the world. One of the first reasons is that it is a secure broker, certified by all stock exchange regulators.

eToro is an online broker that offers interested traders the opportunity to trade equities, currencies, indices and commodities as CFDs. The broker is also known for its positioning in social trading, where it is the undisputed leader.

An experienced and recognized broker in France

eToro is recognised in Germany by BaFin, in Italy by CONSOB, in Cyprus by CySEC, in the United Kingdom by FSA and in France by the Banque de France (ACPR Banque de France). The broker is well present in Regafi. In the event of a dispute, you can always go through the ACPR Banque de France for mediation.

etoro regafi
eToro is registered under two entities, one European with a broad scope in France and the other under the name of the United Kingdom with a limited scope.

In view of the above points, this Forex and CFD broker is necessarily in compliance with the European MiFID directive and thus offers investors a secure and trusted trading platform, as well as segregated accounts.

The new eToro online trading platform

The new eToro social trading platform is already proving very popular with traders. Instead of offering only currencies, commodities, indices and equities (CFDs), eToro allows investors to connect directly to more than 5 million other traders in more than 170 countries. Traders can set up their account to automatically copy Popular Investors trades and ask questions, initiate discussions and share strategies on online forums. Popular Investors with copiers receive monthly payments in addition to their trading income and can even earn a percentage of assets under management!

Trading Tools and Live Newsfeeds on the new eToro

The new eToro platform offers exceptional features that revolutionize the trading experience. Traders can create customized Watchlists to monitor the performance of the assets they are interested in, manage their personal portfolio and open trades from all screens of the trading platform. It is also possible to switch from technical analysis to fundamental analysis in one click, with live newsfeeds and more. The platform is extremely sophisticated, allowing professional-level trading, while being designed for a truly user-friendly experience and easy navigation.

New eToro Mobile Trading

Rather than trying to adapt existing platforms for mobile trading, eToro started from scratch to create its new platform. They have invested considerable time and resources to create a trading platform that is compatible with all mobile devices and works perfectly on smaller screens. The free application is available on both Android and iOS and can be easily installed on all mobile phones and tablets. Traders enjoy a similar level of security as a bank when making deposits and withdrawals and can trade anywhere in the world (depending on their network coverage).

see the eToro website

Your capital is subject to risk.

Your capital is at risk.

Currencies, commodities, equities and indices

eToro offers its traders a wide range of currencies, commodities, equities and indices (CFDs). eToro has recently updated its stock list and gives traders quick access to all their favorite brands and the most popular products traded on stock markets around the world. Traders can display actions on their screens using either the company name or a symbol. Also, eToro is constantly adding new assets to the trading platform.

Account management and customer service

Opening an account with eToro is quick and easy. Traders can use a free demo account with virtual money or deposit only $200 to start real trading activity. There is also a very attractive program for Premium Investors (do not hesitate to contact us directly for more information). In addition, eToro offers customer service (available in 8 languages including Chinese, Russian and Arabic), with extremely friendly and competent support staff. Unlike some brokers, eToro has well-trained employees who fully understand the trading platform and eToro’s specific systems. Deposits and withdrawals at eToro are fast and efficient and there is a wide range of payment methods available. Traders can make deposits using all major credit cards, Skrill, PayPal, Webmoney, Neteller and others. The account verification process is simple. eToro is also a fully regulated broker (FCA, ASIC and CySEC), which guarantees traders a high level of protection and transparency.

Should I trade at eToro?

The new eToro offers a unique social trading experience, supported by a first-class platform and excellent customer service.

In addition, eToro frequently offers fantastic promotions. Anyone who wants to invest responsibly and who wants to know how the financial markets work can connect with other traders, discuss the financial markets and copy their investments.

CopyPortfolio: Social trading within everyone’s reach

One of eToro’s main assets is to enable everyone to become both a leader and a follower in trading. It is possible to use the platform’s various investment and social trading tools, such as CopyTrader, which allows clients to automate their trading by dedicating part of their funds to reproducing another investor’s activity and copying its movements in real time. However, before you can make the most of all the features of eToro and understand why it is one of the first social trading networks, you should follow a few simple rules to build your own Copy Portfolio.

Copy Trading’s functionality is characterized by its great simplicity and will allow you to achieve your financial objectives more efficiently according to your budget and risk appetite. However, for novice traders, it is not necessarily obvious who to copy and that is why certain principles must be conscientiously followed to build a portfolio that meets their expectations. First of all, it is necessary to study the person copied as any other investment (funds, indices or securities). In other words, it will be wise to turn to a trader applying a similar strategy to his own, analysing in particular his profile and his various comments.

In order to identify the trader with the right profile, eToro has a feature that allows you to find the right person by defining the parameters of your choice. To do this, simply click on the tab concerned and present in the platform’s function bar. For successful research, it is imperative that the client takes the time to define his investment objectives and investor profile.

Another parameter to take into account when building your Copy Portfolio is the assessment and management of the level of risk associated with it. Indeed, when using eToro’s Copy Trading function, the client must be aware that by copying another investor, his portfolio and the level of risk to which he is exposed will inevitably be influenced by that of the copied trader. In other words, copying another trader will have an impact on his portfolio that will have to be taken into account.

One of the other fundamentals for building a Copy Portfolio (in detail) adapted to your investor profile is to diversify your investments by not hesitating to turn to markets that are generally outside your usual trading strategy. For example, for a client who is already copying a trader who is a commodity trader, it may be wise to look for another person to copy who is more oriented towards indices or equities. In any case, you will need to be patient and not hesitate to solicit the copied trader to find out his commercial forecasts on the markets concerned.

Training at eToro

eToro offers detailed training with the basics and steps to a more complex level of analysis and graphing studies. The broker also offers challenges to newcomers to allow them to test their new knowledge and earn bonuses.

etoro trading academy

The eToro Trading Academy offers videos, webinars and eCourses (interactive courses) from beginner to advanced. eToro also offers a blog to keep up with all the latest market news and eToro news. To benefit from eToro’s resources, you will first have to register on the site.

eToro also offers a demo trading platform. This will allow you to familiarize yourself with all the broker’s tools.

See the training

Your capital is subject to risk.

Your capital is at risk.

EToro’s assets

We have more than 100 assets available on eToro including more than 30 Forex pairs, 13 indices, 30 stocks, a majority of which come from digital and technological companies (we find the GAFA players), 7 commodities and metals such as oil or gold and about 30 ETFs. Traders are advised to use the site’s analysis tools.

Looking at the list of assets, eToro is clearly focused on digital technologies and more specifically on listed web companies. He also proposes to trade the BitCoin currency which is not always available at forex brokers.

The broker has average spreads, so the EUR/USD is 3 pips. This score may change depending on market conditions. Selling and purchasing costs are also mentioned on the eToro website. It is up to you to consult and compare these tables with competitors on the assets that interest you.

etoro platform review

It should be noted that the broker also offers a high leverage of x50 to x400. However, if you are a beginner, using a lever involves significant risks because if you can multiply the gains, you can also multiply the losses! Make sure you are well informed and that you can place stop or limit orders when using these levers.

Deposits and withdrawals

For the deposit, eToro only requires a minimum of $200.

eToro requests specific documents for your first withdrawals. Here is what you will need to prepare:

  • copy of an identity document
  • copy of a recent certificate of residence
  • In the case of a credit card withdrawal, the broker requests a copy on both sides of your card. On this point we advise you to contact eToro customer service and specify that you will not provide all the elements of your card (moreover this point is normally prohibited in your CB contract with your bank). We advise you to hide the numbers in the middle of your card and not to let the 3 numbers appear on the back.

Withdrawal requests are processed within 5 business days but the time may be a little longer depending on the method used. In the case of two withdrawals in less than 48 hours, eToro can combine them and reduce your fees!

Withdrawal fees

For each withdrawal, eToro takes a $25 commission regardless of the amount, so it is strongly discouraged to make small withdrawals. Wait until you have accumulated several hundred dollars before withdrawing everything or part of it!

A community that recruits

eToro offers many promotions for its traders. Thus by recruiting for the broker or by being copied, he can benefit from offers in the form of bonuses (be sure to read the conditions carefully).

popular investor

It is in the promotions that you will also find the information you need to become a “Popular Investor” or “Guru” and earn more. Finally, don’t hesitate to take a look at this section, eToro offers several different offers every month.

Our conclusion on online trading with eToro

Ideal for launching into Forex thanks to its platform, eToro has developed its social trading concept and CopyTrader to attract beginner and amateur traders. Concerning the alert points we advise you to pay attention to the use of the levers that remain tools for professionals.

eToro also takes commissions and fees for withdrawals, so don’t be surprised to see a different amount on your account. Finally, social trading is not a source of guaranteed earnings but will allow you to observe the trades of community members and learn more about online Forex trading.

Discover eToro’s offer

Your capital is subject to risk.

Your capital is at risk.

For more information on Forex brokers, discover ETX Capital and its many advantages.

All trading involves risk. Risk only the capital that is likely to be lost. You will never lose more than the amount invested on each position. This is not an investment advice.

Cryptocurrencies are subject to significant price fluctuations and are therefore not suitable for all investors. Cryptocurrency trading is not supervised by any European regulatory framework.

CFDs are complex instruments and are associated with a high risk of losing money due to leverage. 66% of retail investors’ accounts lose money when trading CFDs with these suppliers. You should ask yourself if you understand how CFDs work and if you can afford to take the significant risk of losing your money.