Best Trading broker UK
Best Trading broker EU

What is eToro?

 

Founded in 2007, eToro is a social trading and multi-asset brokerage company that provides a range of financial and copy trading services. The company began its journey in Israel, but it eventually branched out and opened registered offices in the UK, Cyprus, Australia, and the US. eToro founders are Ronen Assia, Yoni Assia, and David Rind, and the company has headquarters in Tel Aviv, London, and Limassol. 

eToro’s mission is opening the global markets and making them available to anyone to invest and trade effortlessly. Moreover, the company’s founders aim towards building a community that empowers its members to expand their trading knowledge and build fortune along the way. With that in mind, those who join the eToro community will always have someone to rely on when making a winning trading plan or dealing on the platform.

Who is eToro Best for?

 

If you’re 18 or older and reside in one of the countries where eToro is available, you’re eligible to participate in eToro trade, both on its platform and the app. eToro is available in the UK, allowing Britons to use all accessible services and features. However, eToro is blocked in around 130 countries, including Japan, China, Canada, New Zealand, and Russia. Additionally, US citizens who live outside the US can’t use eToro for trading or investing.

 

Still, those who can access the eToro platform will enjoy attractive perks if they decide to join. This platform is a good choice for developing a beginner investing strategy and learning from some of the most successful traders in the industry. Moreover, eToro is an app for:

who is etoro best for when it comes to trading

How Does it Work?

 

As stated earlier, this company offers versatile services. So, in this section of my eToro review, I’ll show you how investing at eToro works. First, before you start using eToro services, you will have to create and verify your account. Then, find which dealing opportunity suits you most and familiarise yourself with the platform before placing your first trade.

Additionally, it’s noteworthy that eToro allows its first-time users to access demo accounts that can help them gain experience in trading without putting their capital at risk. So, if you want to practice or elevate your trading skills, eToro will provide a beginner-friendly virtual environment that stimulates your growth.

Investing

 

You can open a free stock investing eToro account that will set you free of commissions. This offer allows investors to keep all their profits regardless of how much money they make on eToro. Moreover, this company doesn’t impose any limitations on how many orders you want to place, and it also allows its users to buy fractional shares. 

Those who invest at eToro can purchase individual eToro stocks and other attractive trading opportunities at the world’s top exchanges. So, if you’re interested in this offer, all you have to do is create and fund your eToro account, choose your favourite stock, and wait for the other party to close the deal. 

Although eToro is primarily an all-in-one shop for stock trading, online investing, and crypto trading, this broker offers many social trading services and features. In other words, eToro allows its users to search among traders who want to share their performance with others. 

Then, users can replicate others’ trading activities and use their strategy for personal gain. 

Social trading might be an ideal way for new users to dive into the world of investing and learn the basics from some of the best traders on the app. But, if you want to be an independent trader, other platforms will offer more opportunities for growth.

signing up to etoro

Accounts and Services

 

eToro accounts and services differ from services offered by brokers in the UK. Namely, this company doesn’t allow investing in ISAs, SIPPS, Lifetime ISAs, or other types of brokerage accounts you’d expect to find at UK-based investing platforms. 

Of course, that is because eToro operates in dozens of countries, making it impossible to cater to everyone’s needs. That is one of the possible drawbacks of trading at eToro, as British clients usually prefer to invest in accounts that offer attractive tax benefits. 

As eToro provides standard investing accounts, you will have to choose between two options if you decide to join. Those options include accounts for Retail Clients and advanced trading arrangements for Professional Clients.

Retail Clients

 

All clients who open an account at eToro will fall under the Retail Client category until they meet specific criteria for an account upgrade. Retail Clients can open a standard eToro investment account and receive access to all eToro trading assets. Moreover, they can choose between trading manually or via eToro Copy Trader. 

But, the major disadvantage of Retail Clients is that leverage on these clients’ accounts is restricted. eToro compensates for this lack of opportunities by offering partial Investor Compensation Fund coverage. 

Professional Clients

 

Elective Professionals are eToro clients who have successfully passed the test that determines their eligibility for an account upgrade. All eToro Professional Clients waive certain ESMA protections, including the Investor Compensation Fund. Indeed, only clients from the UK or EU who meet specific criteria can change their status and become Professional Clients.

Demo Trading Account

 

Is the fear of losing all your money stopping you from placing your first trade? If so, you can access a Demo Trading Account on eToro and try investing risk-free! This trading account includes all features you’d find on your main eToro profile, allowing you to enjoy the trading experience fully. 

Namely, you will get access to eToro advanced analysis tools and the opportunity to connect with top traders and copy their portfolios. But, the best part is that those with a Demo Trading Account can experiment with various levels of risk and learn the fundamentals of trading in a safe and managed environment. eToro will fund each demo account with $100,000 worth of virtual funds, and you will be able to practice until you feel confident to switch to actual eToro trading.

eToro Charges

 

Opening an account on this trading platform is free. When a company offers you a free account, it will usually calculate your fees based on your trading volume or the type of digital asset you want to purchase. That is the case at eToro, although the company has fixed charges for withdrawals and other services.  

As the eToro fees are based on spreads that rise and fall as markets fluctuate, it can be challenging to predict how much you’d have to pay for dealing on this platform. A spread is a fee based on the difference between the offer and the bid price, and it changes along with the asset value.

But, what makes trading on eToro a good choice is that this company charges one spread for both buying and selling assets. The good news is that eToro won’t take more than 5% of the asset value from your account, allowing you to accumulate more profits over time. 

Here are some current eToro charges for trading crypto on this platform:

etoro trading platform fees comparison

You can find other eToro fees in the table below:

eToro trading platform fees comparison

Important note: To get a better understanding of eToro charges, it would be best to contact its customer support or calculate each fee based on the asset you want to sell or purchase.

Withdrawals

 

You must have a verified eToro account to transfer available funds to your bank account. The minimum amount you can withdraw is $30 (roughly £22). Similarly, the eToro minimum deposit for UK customers is £10. But, after you’ve paid in your first eToro deposit, you will need at least $50 (around £36) to fund your account, or $500 (roughly £365) for deposits via Bank Transfer. 

In some cases, eToro will charge you a conversion fee, which is why it’s advisable to convert money somewhere else before adding to your available balance. Similarly, when withdrawing money from your account, keep in mind that you have to use the same method you’ve used to deposit money in the first place. So, if you choose to withdraw money via Bank Transfer, this will be the only viable method for withdrawals in the future. 

The eToro withdrawal charges are $5 per transaction. Moreover, eToro needs to process your withdrawal request before sending the desired amount of money your way. 

Conclusion

 

eToro is a decent app for social trading, and it offers numerous perks for clients who decide to join. Moreover, this company cares about your satisfaction with the app, which is why eToro often releases new updates to elevate the user experience. Those who join eToro can be confident that the company will try to cater to their needs, and as eToro offers copy trading, they’ll learn many new things along the way!

This eToro review includes the pros and cons of dealing on this platform. Although the app might not be the best choice for crypto trading, eToro services should be satisfactory for beginners. So, if you’re looking for a new platform to place your first trade, it’s advisable to visit the eToro website and try the app before scouting for other options. 

eToro sign up offer

I hope you enjoyed our trading platform comparison. We hope we've selected relevant trading platform for beginners with some of our trading platform fee comparison on show.

Our eToro Summary

eToro appeared on the trading scene because three ambitious investors decided to revolutionise the entire financial services industry. Of course, back in 2007, eToro was a trading platform only. Since then, the company introduced a few iterations and eventually made the eToro platform suitable for investing and social and crypto trading. 

pros and cons with trading on etoro
eToro sign up offer

Via eToro's website

Trust Score

95 / 100

Minimum Deposit

$10-$200