Today we take a closer look at eToro, one of the best-known online brokers! eToro is a broker specialising in social trading. Its platform gives novice traders access to a wide range of educational tools, and allows them to follow and communicate with more experienced traders. It's the perfect way to make rapid progress in trading and make profits as quickly as possible!
eToro is also appealing because of the multitude of financial assets offered on its platform: equities, Forex assets, commodities… and several cryptocurrencies! Whichever type of product you choose, you'll have access to the most popular assets of the moment, as well as lesser-known ones. So you can easily diversify your portfolio to invest as prudently as possible. Last month, the platform proudly announced that it currently has 20 million users worldwide!
So eToro is an essential broker that every trader and crypto fan should know about!
Introducing the eToro platform: the leader in online trading
The eToro platform made its debut in 2007, making it one of the pioneers of online trading! Originally from Israel, eToro has chosen to base its headquarters in Cyprus. This broker first appeared under the name RetailFX. It was co-founded by Yoni and Ronen Assia, two brothers, and David Ring. Today, Yoni Assia is at the head of the company. The broker also has offices in the United Kingdom, the United States and Australia.
The eToro spirit: social trading for everyone
What sets eToro apart from its competitors is its original approach to social trading. From the outset, the platform's aim was to make trading accessible to everyone. To achieve this, eToro allows all its members to view and follow other traders' trades and to communicate easily with them. In this way, eToro is just as suitable for professional traders as it is for beginners, who can learn and practise by copying the trades of more successful traders. eToro is therefore a united community.
This broker also offers educational content for beginners through its eToro's trading Academy, as well as a demo account for practising before taking the plunge into trading. eToro also offers various copy-trading tools for new traders.
Financial assets offered by eToro
eToro is very popular with traders, not least because of the diversity of financial products it offers! This broker allows you to invest in :
More than 2,000 different stocks on 17 financial markets (Amsterdam, Saudi Arabia, Brussels, Copenhagen, Frankfurt, Helsinki, Hong Kong, Lisbon, London, Madrid, Milan, NASDAQ, NYSE, Oslo, Paris, Stockholm and Zurich)
Forex assets (eToro currently offers trading in 49 different currency pairs)
Commodities (31 in all, including gold, oil and silver)
13 stock market indices
Nearly 250 ETF trackers
And 16 cryptocurrencies, including the most popular on the market!
eToro makes it very easy to trade all kinds of products! Instead of limiting yourself to a single type of asset or multiplying your trading platforms, here you can diversify your investments with ease!
The eToro broker: a regulated and secure platform
eToro is also an extremely reliable broker. Available in over 150 countries, it is regulated by several official stock exchange bodies. This broker only operates in countries where it is legal. It is therefore a reliable broker that also applies a very strict security policy.
The regulations imposed on eToro
This broker is directly regulated by CySEC, the FCA and ASIC:
eToro has been regulated by CySEC since its creation, for European traders. CySEC or the Cyprus Securities and Exchange Commission is the financial regulatory agency of Cyprus. As a commission of a European Union Member State, CySEC is subject to MiFID, the Markets in Financial Instruments Directive, which regulates financial instrument markets in Europe.
In the UK, the broker is regulated by the Financial Conduct Authority (FCA), through which it is subject to the Financial Services Compensation Scheme (FSCS), which is responsible for compensating investors.
In Australia, eToro's activities are regulated by the Australian Securities and Investments Commission (ASIC). This body protects Australian investors, consumers and creditors.
In France, eToro is also monitored by the AMF (Autorité des Marchés Financiers), which supervises the financial markets, informs investors and ensures that savings invested in France are protected.
eToro is therefore closely monitored and subject to the regulations in force. This enables it to carry out its activities in complete legality and to provide a degree of security for its users.
A platform that puts security at the heart of its concerns
The platform entrusts your funds to recognised banking institutions. All your data and account information is encrypted using SSL or Secure Sockets Layer.
eToro also advises its users to follow several security guidelines to best protect their accounts:
Activate two-factor authentication: enter the password on the platform, then send a secret code to the user's mobile phone.
Have a password dedicated solely to their eToro account. Choose a strong password, change it regularly and do not save it on the platform. Never send it to anyone, under any circumstances.
Always connect directly to the address https://www.etoro.com/login and not by following an external link.
Regularly scan your computer and remove any viruses or malicious software.
Update your computer regularly.
Finally, eToro applies an information and prevention policy regarding the risks associated with financial investments. The broker reminds its users of the precautions they should take to protect themselves from excessive financial losses and encourages them to trade responsibly.
Opening an account on the eToro platform
The eToro platform sets itself apart from its competitors by offering three different types of account depending on the user's profile: novice, ordinary investor or experienced trader. Depending on the account you are offered, you will not have access to the same leverage.
To open your account and determine your investor profile, you first need to register with eToro. Registration is quick, easy and free.
Your three-step registration with eToro
Signing up with eToro is extremely quick and easy! You can sign up here. All you need to do is follow these three simple steps.
Step 1: Register
This step is extremely simple. eToro will ask you for the usual information: surname, first name, username, email address, telephone number and password. You can then proceed to the second step!
Step 2: Complete your profile
eToro will ask you a series of questions as part of a legal process imposed by the official stock market organisations that regulate it. Based on your answers, eToro will be able to establish your trading profile by assessing your financial capabilities and motivations. It will also assess your maximum deposit limit, for your financial security.
It is at this stage that you will be directed towards the type of account that best corresponds to your profile for your financial security.
Step 3 (optional): Confirm your identity
eToro will ask you to verify your identity. Although this step is not compulsory, it will be necessary in order to lift your payment limit later on. We therefore advise you to do this straight away, so that you can move around the platform with peace of mind.
Your telephone number will be verified using a code received by text message (this will enable you to activate two-factor identification later on). Next, eToro will ask for your ID and proof of address.
The three types of account offered by eToro
The eToro virtual account: for a free demo
The virtual account, or demo account, offered by eToro is ideal for beginner traders. The platform will ask you to make a minimum deposit of $200, just like when you open a traditional account. However, you will then benefit from a free service and a virtual fund of $100,000 so that you can practise trading in complete safety. You can simulate trading operations and gain experience before you start trading with your real funds. That way, you can be sure you won't lose a penny!
Once you feel ready, switch to a real account!
The eToro real trading account
Once you've got the hang of the demo version, or right away if you're already comfortable with trading platforms, you can open a real account with eToro. You'll then start trading with your real funds. You'll be able to make profits, but also losses of course, so be careful.
This trading account allows you to benefit from a leverage effect of up to 1X30. In other words, eToro will allow you to invest up to 30 times your capital. This means you'll be able to make much more profit, but you'll also be exposing yourself to a bigger loss. The loan granted by eToro as part of the leverage effect will be returned to it at the end of your trade. This practice should therefore be used with full knowledge of the facts. Leverage amounts differ depending on the financial product you choose. Here are the current maximum amounts:
x30 for major currency pairs (such as the Euro or US Dollar)
x20 for secondary currency pairs, gold and major stock indices
x10 for commodities other than gold and secondary stock indices
x5 for CFD shares and ETFs
x2 for cryptos
These maximum amounts are defined by the European Securities and Markets Authority (ESMA). They may therefore change in the future.
The eToro pro account: for experienced traders
This account is intended for trading professionals, or at least for members with significant experience in the world of finance and trading over the past year. The pro account gives you leverage of up to 1×400. However, professional clients do not benefit from all the protections and safeguards established by the official stock exchange authorities.
You can apply to become a professional client if you meet the eligibility criteria. This will enable you to make much greater profits. But bear in mind that this alternative is also much riskier.
Whichever account you choose or which eToro directs you to, you should be aware that you will need to make a minimum deposit of €200 when you open it. Certain features of your account, such as its maximum deposit limit, may change over time.
All the accounts offered by this broker are available on its online platform and on its mobile application. This means you can log in to your account very easily, wherever you are.
Trading with eToro
eToro has the advantage of offering several trading packages and several ways of accessing your accounts. The fees charged by the platform differ depending on the type of assets you choose.
The two forms of trading: real buying/selling and CFDs
Real buying and selling of financial assets
This is the most common form of trading. You buy the asset you are interested in and then sell it, hoping to make a capital gain.
CFD trading
eToro also offers CFD trading, which stands for 'Contract for Difference'. These contracts are offered by brokers who try to copy the financial markets as closely as possible. You don't actually own the asset, you simply bet on whether its price will rise or fall. The contract has a fixed term. When it closes, you exchange the difference between the entry price and the exit price with your broker. If your prediction about the direction of your asset's price was correct, you earn the difference. If your prediction is wrong, you lose the difference to the broker.
CFD trading is available on all the products offered by eToro.
The leverage mentioned above applies to CFD trading.
eToro's commission charges
This platform does not apply any deposit fees. Withdrawal fees are set at $5 and the minimum withdrawal amount is $30.
Conversion fees are a minimum of 50 pips ("Percentage in point").
Inactivity fees of $10 per month also apply after 12 months of inactivity.
For shares and ETFs, the eToro broker does not apply any commission, whether on management, ticket or rollover. You can trade with complete peace of mind.
Products traded in CFDs are subject to a spread, i.e. the difference between their buying and selling price. For currencies, commodities and indices, they are counted in pips. For shares and cryptos traded in CFDs, a simple percentage is charged. The amounts vary depending on the product. Visit the eToro website for details of CFD spreads.
The eToro platforms
eToro offers two trading interfaces: its website and its mobile application. This means you can easily access your account wherever you are. All eToro services are available in 20 languages, including French.
The web platform
This platform is very intuitive, simple but complete. The design is pleasant. The menus are very well organised. The platform is divided into three sections: "Invest", "Search" and "More".
In the "Invest" section, you can access your portfolio, your news feed and your favourites. This makes it easy to keep track of your favourite assets.
Under 'Search', you will first find the 'Markets' tab, which is the home page of the trading platform. Here you'll see the status of the featured markets, as well as the most popular assets broken down by category. There is a menu at the top with the different categories mentioned above (Equities, ETFs, Crypto, Indices, Commodities and Currencies). A search bar is also available, so you can search directly for the asset or company that interests you. This search bar is predictive. Finally, you can add filters to your search.
Below 'Markets', you'll find the 'People' tab. This is where you can find out about other traders on the platform. The site highlights the 'Editors' Choice', and then traders are divided into categories such as 'Most Copied', 'Long-Term Equity Investors', 'Multi-Strategy Investors' and so on. You can search for traders by country of origin, type of investment and percentage gain over a given period. You can also apply additional filters to your search.
In this section you will also find the CopyPortfolios service, also sorted by category.
Finally, the 'More' section allows you to join the eToro club or invite friends. This is also where you'll find the Help Centre, which is perfectly organised.
It's extremely easy to find your way around eToro's online trading platform. Everything is perfectly in place, and it's easy for users to find what they're looking for as quickly as possible.
The mobile application
eToro has also launched its mobile application, available free of charge on Android and iOS. This application has exactly the same features as the web platform, but adapted to a mobile version. This means you can access your eToro account easily, wherever you are.
This app has been voted "best beginner trading app" and "best social trading app" in 2021 by other media specialising in analysis of the crypto world.
The website
In addition to these two platforms, we should also mention the eToro website. This site is extremely well designed and comprehensive. Visitors will find absolutely everything they need to know about eToro, from the products it offers (financial markets and account types) to its services (copy-trading, eToro's trading Academy, etc.), its commission fees, the team behind the broker, etc. eToro is completely transparent with its visitors.
You'll also find a host of articles about trading, the assets available on the platform and financial news. So the website is extremely comprehensive! As with its trading platforms, eToro has arranged the information perfectly in its various menus and tabs. There's also a search bar. We invite you to take a look there if you have the slightest question. You're bound to find the answer!
The tools offered by eToro, for social and educational trading!
eToro is the undisputed master of social and educational trading. This platform presents itself as a real social network focused on trading, where each user has his or her own profile and can post information relating to different financial assets or comment on other users' posts. The broker also offers a host of tools and functions designed to help and train novice traders. Remember that you can have a demo account to take your first steps in trading with eToro. But that's not all! You can copy the best traders on the platform at no extra cost! The platform has a whole host of surprises in store for its users, as listed below.
eToro's trading Academy
eToro offers its novice traders training through its eToro's trading Academy! Several tools are available.
Firstly, eToro organises numerous online seminars or "webinars" which are broadcast live. Beginners and experienced traders alike can sign up to receive training on how to use the platform and relevant trading tips!
The platform also offers eCourses (online courses) on financial trading, enabling beginners to understand its mechanisms and subtleties.
Finally, eToro provides its student users with e-books, explanatory videos, PowerPoint and PDF files on trading, so that they can learn at their own pace.
CopyTrader
CopyTrader is eToro's most popular feature. It's a Copy Trading tool that simply allows you to copy the best traders on the platform by replicating their investment choices in your portfolio. This feature is particularly popular with novice eToro users. All traders have to do is find a more experienced trader with a similar or interesting investment strategy and follow their trades. When they make a new trade, click on "Copy" and your portfolio will replicate their trade. It couldn't be simpler!
The service is completely free, and traders selected as role models are paid by eToro through its Popular Investor programme.
CopyPortfolios
eToro's CopyPortfolios service will offer you several portfolios to copy according to your investment strategy. You can select the one that interests you most and indicate the amount you wish to trade.
eToro offers three distinct types of CopyPortfolios:
Top Trader CopyPortfolios: You can choose from the portfolios of the best traders in the eToro community.
Market CopyPortfolios: These portfolios contain stocks, commodities and EFTs according to an established trading strategy.
Partner CopyPortfolios: The platform also offers portfolios from its leading financial analyst partners. At the moment, eToro offers to copy portfolios from Wequant, TipRanks and Meitav Dash.
If you choose this option, your capital will be managed by eToro's investment committee and rebalanced if necessary.
This type of CopyPortfolio can be very interesting for your crypto investments. In fact, eToro offers a CopyPortfolio dedicated to strategic cryptocurrency investments!
eToro Popular Investor
This programme is designed for experienced traders who want to share their portfolios, tips, strategies and forecasts with other members of the eToro community, via CopyTrader or CopyPortfolios. In exchange, these traders receive benefits, exclusive privileges and are compensated by the platform.
To be eligible for the Popular Investor programme, eToro traders simply need to post very good returns with low risk, that's all! If you're talented and your trades quickly meet these two criteria, you too can join the Popular Investor programme to share your trades and get paid in return!
The eToro community
The eToro platform also enables its traders to communicate with each other via a collaborative space. Each trader, whatever their level, has a public profile. Other traders therefore have access to their strategy and investments. In this way, traders can discuss their strategies, their best investments and learn from other traders. Naturally, experienced traders will serve as an example to novice traders.
They can also post information relating to one of their assets and like, comment on or share other members' posts, just like on any other social network. This feature stems from the social trading policy at the heart of eToro's ethos.
Articles available on the website
Finally, eToro shares numerous articles in the style of a blog. These articles are available on the website, not on the trading platform, so they are accessible to everyone. You'll find them in the 'Education' section of the main menu, under the 'News & Analysis' tab.
Readers will find a wide variety of articles on the various financial markets, as well as on world news and its impact on the economy. eToro also offers articles on the outlook for the financial markets. We recommend the "Local Market Outlook" section, where you'll find a weekly analysis of the various markets in France!
With all these tools, eToro is truly revolutionising trading. Originally invested in by a financial elite and educated in economic matters, eToro has taken up the challenge of making trading an activity accessible to everyone from now on. Its members can trade at their own pace and according to their own knowledge, whatever their level, since the most novice traders can call on the most experienced ones at any time!
Buying cryptocurrencies on eToro
Among the many financial products available for trading on eToro, you will of course find several cryptocurrencies! In fact, this platform currently offers you 16 different cryptos to buy or sell, including the market leaders. Its range is growing all the time. The eToro team is convinced that all financial assets will be tokenised in the future, and that cryptocurrencies are just the first step in this big change. The broker is therefore constantly working to enhance its offering.
We would also remind you that eToro offers a CopyPortfolio specially dedicated to crypto assets! It is therefore an extremely interesting platform for crypto fans, and novice investors will be able to benefit from eToro's CopyTrading tools just as they would for any other asset.
The crypto market at eToro
Here's the list of cryptos currently available on eToro:
BTC (Bitcoin)
Ethereum
BCH (Bitcoin Cash)
XRP (Ripple)
DASH
LTC (Litecoin)
ETC (Ethereum Classic)
ARDA (Cardano)
MIOTA (Iota)
XLM (Stellar)
EOS
NEO
TRX (Tron)
ZEC (ZCASH)
BNB (Binance Coin)
XTZ (Tezos)
In Europe, eToro only applies trade in the form of buy/sell for cryptocurrencies. Its users therefore acquire ownership of the cryptos they trade! Users subject to the Australian Securities and Investments Commission (ASIC) are limited to CFD trades.
You can trade simple cryptos, but you can also trade currency pairs in the same way as Forex assets. These currency pairs can combine a crypto and a fiat currency, or two cryptos with each other!
When you click on the crypto, or currency pair, that interests you, you can access the latest information on that asset. You'll not only get a graph showing the price of that currency over the last few months, but also eToro users' public discussions on the subject, just like on a social network like Facebook or Twitter! You'll see their posts on the subject and other users' comments. You will then find a 'Statistics' tab with an interactive chart of the price of this crypto or the selected currency pair and a detailed explanation of the asset. Finally, the 'Chart' section gives you access to a giant interactive chart. If you're interested, you can click on 'Invest' in the top left-hand corner to start trading this crypto! (This configuration is shared by all the assets offered by eToro).
Once you've bought your cryptos, you can send them directly to your crypto wallet and that's it!
Spreads applied to cryptos
eToro charges spreads on cryptocurrencies, i.e. the difference between the buying and selling price of an asset. These spreads take the form of percentages as crypto is an asset with an extremely volatile price. These fees depend on the crypto currency chosen.
Here is the list of spreads applied by eToro depending on the crypto:
eToro crypto spread
Source: eToro.com
The eToro X wallet
eToro offers its own wallet service for some of its users.
The eToro wallet is one of the only regulated crypto wallets. You'll be able to transfer your crypto capital from your eToro account to your wallet. It is a hot wallet, i.e. an online wallet. eToro X is available free as an Android or iOS application.
This wallet is secure and seems to be much appreciated by its users. eToro X has a two-factor authentication system. It also offers a multi-signature system for storing your private keys.
eToro classifies its users by category: bronze, silver, gold, etc. Not all users have access to the system. Not everyone has access to the same features on the broker's wallet.
Our opinion of eToro
So, should you use eToro as your online trading solution? Judging by the platform's features, we'd have to say yes straight away. Nevertheless, let's take a look at the pros and cons of this platform so that you can make an informed choice about your online broker.
The benefits of eToro
The first and by no means least advantage of eToro is its level of security. This broker is regulated by the official stock exchange bodies, so you're not entrusting your precious capital to a broker who appears out of nowhere. Its platform also guarantees a high level of security for your data and transactions. Your funds will not be at risk.
Its second advantage is its open policy. eToro is a platform that is accessible to everyone, enabling novice traders to take their first steps with confidence and to get up to speed quickly thanks to its many teaching tools, offered by eToro's Trading Academy or its demo account, and its copy-trading features. CopyTraders and CopyPortolios are among the best copy-trading tools on the market. eToro's community dimension, which aims to facilitate contact between novice and experienced traders, is also very much appreciated. eToro has fully succeeded in its commitment to social trading!
Another extremely important aspect for traders is that eToro offers a wide variety of financial assets on its platform! You'll find a wide range of financial products: equities, Forex assets, cryptocurrencies, commodities, stock market indices and ETF crackers. Each of its categories offers a host of different assets, including the most popular on the market, so eToro makes it easy to diversify your investments!
The platform also offers quick and easy transfers. It accepts many different types of payment, including credit cards and PayPal. Transfers are fast, instant and secure.
Finally, eToro is an easy-to-use platform. It is available in 21 languages, so users from all over the world will be delighted. It has a simple design and an intuitive website. This broker also offers a mobile application that includes all the features of the website. This application is available free of charge on Android and iOS.
eToro's drawbacks
Like any product, eToro has its drawbacks, but they have the advantage of being minimal and fairly common.
eToro's biggest pet peeve seems to be, in the eyes of users, its customer service. The platform doesn't have an online chat service, nor a telephone help centre, which comes as a surprise to its members given the scale of this broker. Instead, you'll find a FAQ which, it has to be said, shines through for its density and ease of use. If you run into a problem, you'll be on your own, but you should still find the answers to your questions easily. If you really can't find the solution to your problem, don't panic! You can ask to be contacted by customer service. eToro undertakes to deal with your request within 48 hours. However, requests are dealt with on a first-come, first-served basis, so you may have to wait a while if customer service is busy.
The other disadvantages of eToro are much more common. It doesn't allow you to change or cancel your trades, as most other platforms do. eToro also applies fairly high spreads. But these are the only fees the platform will charge you for trading your cryptos. Finally, as is the case everywhere else, if you lose access to one of your cryptocurrencies, it will be absolutely impossible for you to get it back. eToro won't be able to do anything for you.
Verdict: is eToro a reliable broker?
eToro is undeniably a reliable online broker that will meet the expectations of its investors, whatever their level. The social aspect that eToro has managed to give to trading is very much appreciated and this broker brilliantly succeeds in its challenge of offering retail investors the chance to trade like the pros!
When it comes to cryptocurrencies, eToro's choice is far from exhaustive. But the platform does offer the most popular cryptos. The special crypto CopyPortfolio is a great feature for cryptocurrency beginners. Offering your own crypto-wallet is another of the platform's attractions.
As for its drawbacks, most are common to many trading platforms. On the other hand, there is room for improvement in terms of customer service. Nevertheless, compared with the many advantages offered by the platform, these drawbacks seem minimal to us. We therefore recommend that you create an eToro account to start trading cryptos.
