eToro Review Summary
eToro Review Highlights
Pros & Cons
- Great social trading platform that works like a social network.
- Large range of cryptocurrencies available for trading.
- User-friendly proprietary platform with a clean, modern design.
- Regulated and licensed by CySEC, FCA, and AISC.
- Little to none trader’s education.
- Customer support is hard to reach and response time is long.
- High withdrawal fees.
eToro offers its clients a variety of investment products which includes 47 currency pairs, stocks, commodities and most importantly a profound number of cryptocurrencies, 98, such as Bitcoin, Litecoin, Ripple, Dash, Ethereum and many others.
We found account opening at eToro to be quite fast and straightforward. eToro only offers one trading account type to its clients which simplifies the process even more. To open an account, the broker’s compliance department requires proof of identity document (passport, ID card or driver’s license), proof of address (utility bill, bank statement, etc.) and a selfie which is quite typical.
The minimum deposit at eToro varies depending on what country you live in. For clients from the U.S and Australia, the opening account requires a minimum deposit of only $50 while for other countries it’s $200. eToro just recently began serving U.S clients however currently that’s only for cryptocurrency trading. eToro does not offer services to Canada, Japan, Brazil, Syria, Sudan, Cuba, North-Korea, Turkey, Brazil, and Iran.
When it comes to trading fees, eToro does not charge commission on trading for the EEA clients. Instead, the broker integrates its fees into the spread which does mean the spreads are higher – the spread cost is from 3 pips. eToro does charge its non-European clients commission but the charge is quite low.
We found e-Toro to be quite transparent about their fees. The broker charges $25 when withdrawing funds (in addition to possible bank charges) as well as a $10 monthly inactivity fee.
Perhaps one of eToro’s most unique features is that the broker has created its own, custom-built platform for its users called eToro WebTrader. eToro does not offer the MT4 or MT5 platforms which may disappoint some traders. The broker has put immense effort into creating a unique social trading platform that offers a special trading experience to its users. We found the platform to be quite functional and easy to use despite it being unfamiliar. It has a fresh, appealing design and is very user-friendly. In addition to this, the platform is available in multiple languages such as English, French, Italian, Greek, Chinese, Polish, Russian and Arabic. eToro’s platform does have some faults that we stumbled upon – for example, it froze a few times and needed to be restarted. In addition to this, the platform cannot be customized and does not offer third party software additions such as EAs (Expert Advisors) which is something many professional traders may find frustrating.
eToro has developed a mobile app for iOS and Android devices which allows clients to trade remotely. The app is simple and functional. eToro does not provide a downloadable desktop trading platform for its users but instead only a browser platform.
As we mentioned previously, eToro stands out among its competitors for the mirror trading tools it offers. The broker acts as a somewhat social media network for traders. It allows traders to browse through portfolios of other users and copy their trades. In addition to this, eToro allows users to communicate on the platform through social news feed, post updates, comments and participate in discussions. eToro does allow hedging but it does not allow scalping which is the process of holding a position for a very short time when buying/selling currencies.
Another unique tool on eToro’s platform is CopyPortfolios – this feature allows users to invest in whole portfolios of other traders. There are two types available: Top Trader Portfolios, which includes the most profitable trader portfolios and Market Portfolios, which combines a group of assets to invest in under one select market strategy.
While eToro offers exceptional copy trading skills, the broker’s market research tools are basic at best. Through eToro’s platform, traders can post updates and comments on their profiles. In addition to this, the broker has a blog that is updated on a daily basis as well as some analyst recommendations and a newsfeed that includes market updates and insights. We thought that the blog posts lacked the necessary detail that educational tools of other brokers of eToro’s level have. Traders would need to check other sources to find more detailed information.
Trader’s education at eToro does not have the same value that its peers offer. The broker provides some trading courses that cover the basics of forex trading, but they do not contain adequate depth for more advanced traders. We did find a platform guide that helps navigate through it.
Customer support at eToro could do with some improvement. While the team was multilingual (over 15 languages offered) and available on a 24-hour basis, six days a week, we found that the response time took a while. The customer support team can be reached by telephone, fax, support ticket or live chat. The waiting period was quite long, and we were not given relevant or detailed enough answers. All in all, customer support at eToro was certainly disappointing.
As a conclusion, we must say that eToro is a broker that offers a unique platform to its clients and the social trading tools of the platform certainly stand out. At the same time, there are areas that need a lot of improvement, for example, education, customer service, and research.
Furthermore, eToro is a good option for a broker interested in trading cryptocurrencies as it offers over ninety different digital currencies to trade with. Overall, eToro is a broker worth considering.
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