EToro Broker Review

4
Minimum deposit
$200
Year founded
2007

EToro is one of the bigger brokerage providers. They have various assets available, including Forex, stock, commodities, indices, ETFs and crypto. CFDs are amongst their most beloved products, even though they are rather risky and not really suitable for a large audience.

There are 2000+ of assets available here at any moment – foreign currencies most numerous among them.

The broker has been active since 2006, but as for their country of origin – it’s unclear. Israel is the most likely bet, although these people also have branches on Cyprus and in other countries across the world.

Trading conditions

Account plans here are rather simple.

As soon as you register and validate your account, you’ll be given a rank of a Retail Client. It means you’re just a regular trader like any other, as opposed to the Professional Client – the second account type available on this website.

There aren’t too many differences. In practical sense, there’s only one – on Professional type you get higher leverage. That’s about it. All the fees, assets, features and instruments are the same across both plans.

To achieve the rank of a Professional, you’ll have to contact eToro staff directly through an application. It’s sort of a quiz, and if you don’t answer like a seasoned trader, they won’t approve your application. But if you do apply for a Professional account (say you want to trade on margin with more leverage), and they approve you – then you’ll be in their list.

They’ll also likely send you some notifications, offers, and other token bonuses just because you’ve been in touch with them before. Whether it’s worth it or not, it’s your decision entirely.

Commissions

When it comes to fees, they seem to be pretty generous.

There are no commissions on anything, except for rollovers (less than a cent, mostly) and withdrawing fees ($5). The spreads also don’t seem too wide. The spreads on most major assets seem to be rather tight – below 5% (they don’t measure them in pips, for whatever reason) for most cryptocurrencies, for instance.

For Forex, they’ve lowered the spreads to as low as 1.0 pips recently. The commodities and indices (especially them) are more volatile in this sense. For indices, the spreads start at 100.0 pips, which is much higher than usual. In general, spreads aren’t very tight, except for the major currency pairs and crypto.

Membership plans

There are also secondary account types that give you more advantages, and, therefore, are part of the subject.

This system is called eToro Club, and it’s more of a membership program. With that said, it’s very similar to the orthodox account plans seen on other brokerage websites, even if the system is considered by eToro as a series of complimentary solutions.

There are 5 membership levels:

  1. Silver. On this level, you receive the access to broker’s live broadcasts, better market insight, customer support live chat and a collection of valuable portfolios for you to copy. You need to sell $5,000 daily to be automatically admitted here;
  2. Gold. It’s basically the Silver deal but with additional weekly economic overview from a specialist. You need to sell $10,000 daily to be automatically admitted here;
  3. Platinum. That’s where it gets interesting. On Platinum, you receive everything Gold receives, but with your own manager, fewer trading fees, no withdrawing commission, premium trading tools, research and management software, as well as WSJ subscription. If you sell $25,000 daily, you’re in;
  4. Platinum+. The same as before, but you also receive personal Zoom consultations with your manager, exclusive access to even more media, and, oh, you get invited to some events hosted by them. If you sell $50,000 daily, you’re there;
  5. Diamond. That’s the last level. Here, you get everything from previous levels + the best research, absolutely no fees (spreads not included) and invitations to very special events. $250,000 daily is the only requirement.

So, you don’t really have to pay for any of that. If you are simply successful enough, you’ll be admitted here and given special bonuses. Some of them are pretty lucrative, but you shouldn’t sweat to get to them.

Trading platforms

This broker doesn’t support MetaTrader 4 or 5 in any form. The only official trading platform they are supplying is their own eToro trading platform available as a Web application or on mobile.

Even though their trading platforms have a lot of assets to trade, as well as a decent number of tools within a friendly and simple UI, all these factors aren’t their strongest suit. This software is unique for its social trading component which allows you to communicate with other traders, band with them and see what they’re doing.

Social Trading

Social Trading is what most of the capabilities of this trading software are associated with.

It’s a full-fledged social network, really. Each user has their own profile with a lot of associated data, including:

  1. Their portfolios;
  2. Their winnings ratio;
  3. Their recent gains;
  4. Investments history (abridged, naturally);
  5. Posts they published

Yes, bizarrely, this software has a news feed. Most users can publish their conclusions and opinions there, and other traders like themselves will be able to view these posts. It’s most useful with the top investors (you can view the list of them and examine each person in there).

You can subscribe to these people and see what they have to say about anything. If you’ve found someone as interested in, say, crypto as you are, and they are posting a lot about it – you can absolutely subscribe to them and see their publications in your news feed. That’s very handy.

What’s more, there’s a feature called ‘CopyTrader’. Basically, you can automate your trading to do exactly what experienced investors are doing with their portfolio. All you need to do is visit the investor’s profile, tell the algorithm to copy their investments and set the amount of money you wish to spend.

If you want to be more in control of the situation, you could simply view their activities and do this manually instead of delegating it to the algorithm. It’s more personal, lets you learn and see why what they are doing is beneficial (or why it failed, if it did).

It’s an awesome innovation on eToro’s part – a unique addition to the average trading experience. As a cherry on top, you can be a part of a sprawling community bent on making gains, learning about investing and sharing their opinion with others. It sounds like a cliché meant to promote some media product, but you can really feel like a part of a team.

It’s very easy to find the like-minded individuals around here. Based on your and theirs trading sense, you can either win together or lose as a squad. Either way, it’s pretty fun and spices up the usually routine of slogging through numbers, looking at charts and observing news.

Practical side

Trading itself happens all on the singular page.

Here, trading decisions are made through tickets. Each ticket represents an asset and you can view its price and click on it to see detailed charts. It’s pretty simple. It’s especially good for beginners – unless you click further, there’s nothing else besides the basic information.

From the technical point of view, the platform isn’t too inspiring. There aren’t as many indicators and tools to help you along the way as most are used to, and the charts aren’t too versatile. At the very least, it’s intuitive and clear, and you can almost always understand how you got to a certain page.

The same goes to the mobile version.

It’s user-friendly and allows you to manage positions at a blink of an eye. The UI design is actually commendable – it’s not only practical, but also attractive. In terms of practicality, eToro mobile is as efficient. The core of the functionality was kept, although they made the design more compact.

Because there are no complex pages even on the full version, they didn’t omit much. The trading menu is now even more justifiably simple – seeing how users can execute trades simply by whipping their phones out and clicks just one button on the main menu.

The Social features weren’t omitted at all. You can still talk to other traders, see what they have to say, as well as how they trade, and view their portfolios. When done from a device just on a palm of your hand, all of it is even more fitting.

Additional services

This broker has a fairly rich collection of informative materials. What’s more, some of them have assumed rather creative forms.

The usual educative section would simply consist of a few articles, videos, economical calendar and perhaps webinars. While pretty effective at teaching people or keeping them informed, this form of education hasn’t been changed at all in the brokering industry for years upon years.

Likewise, eToro has a few sections dedicated to:

  • Market guides – relevant insights into the popular trading destinations;
  • Video tutorials – a series of videos mainly explaining the work process of eToro;
  • Trading school – educative courses in physical or webinar form;

They are very informative, not dense and, importantly, designed in a very attractive, user-friendly way. Everything in this section is designed so – as a result, you almost don’t feel like reading educational material.

But the most valuable piece of media here is the Podcast. The hosts – knowledgeable investors themselves – invite someone with an interesting insight or simply a reputable person to talk about all sorts of sensations. There have yet been 11 episodes as of now.  They are easy to listen – you can simply boot them at a background while you work.

One of the hosts is actually a CEO of this broker. If you’re interested what the man behind all of this sounds like, you can check ‘Education’ -> ‘Podcast’ on their official website. Alternatively, this podcast is on Spotify, if you don’t feel like working with eToro just yet.

Final words

The broker eToro seems intriguing. Some solutions they employed for their trading experience are unique and well-implemented. The design, the approach to education and the Social Trading aspect are worth praising. Nevertheless, there are some less inspiring moments.

It’s not clear how several important parts work. Pricing is unclear, and there are no precise numbers. There aren’t as many tools or indicators as on other broker websites. They don’t support MT4 or other celebrated platforms. Highest of all, their reputation is not the cleanest.

It’s not to say you shouldn’t trust them at all. However, if there are systematic negative reviews from the users, then you should be careful around the broker, at the very least. Don’t entrust them with too much of your money and read all the requirements and demands.

This broker is a unique experience, their Social Trading innovation is absolutely worth checking out. Fortunately, they don’t demand you make any large initial deposits to be able to trade. So, you can check this part out safely enough.