eToro is a veteran Forex broker that was founded in 2007 under the name RetailFX in Israel. This brokerage is one of the pioneers of social trading, and in 2017 the company announced that over 9,000,000 accounts had been opened at eToro. It has attracted over $170 million in funding and has thrived by offering cryptocurrency trading options that most other Forex brokers don’t offer. eToro released its cryptocurrency wallet in 2018 and followed through with the acquisitions of Dutch blockchain company Firmo and Belgian crypto portfolio tracker app developer Delta in 2019. It claims to operate in 150 countries and has over 12,000,000 active users to date, which makes it the largest social trading platform and Forex brokerage in the market.
Platforms & Tools
eToro’s main innovation is merging self-directed trading and copy trading under a unified trading experience.
Ease of use: At the heart of the eToro platform experience is the ease of carrying out basic operations and completing tasks quickly, such as creating watchlists and adding instruments by searching available markets, as well as placing a trade from each watchlist directly. These design qualities helped eToro rank Best in Class in the Ease of Use category, as well as for Beginners,
CopyPortfolios: One innovative tool is CopyPortfolios, where eToro groups traders into a single fund you can copy trade. CopyPortfolios help bridge the gap for investors who want to use eToro on a passive basis, as they can create a portfolio based entirely on one or more CopyPortfolios. On the other hand, self-directed traders can also use CopyPortfolios to diversify their trading, making it potentially useful for all eToro clients.
Cryptocurrency tools: eToro users can find crypto trading ideas and copy other individual crypto traders, as well as copy groups of traders, across 94 supported cryptocurrency pairs. For investors looking to hold the underlying crypto assets, eToroX offers the eToro Mobile wallet app. This app acts as a custodian using a multi-signature scheme and nearly matches the brand’s forex mobile app.
Copy trading structure: All traders on eToro trade manually. Fully automated trading systems, such as those supported on MetaTrader, are not permitted at eToro. Therefore, when you copy another trader on eToro, you can be sure they are placing each trade manually. This quality is useful to know as many other social trading platforms that aggregate the performance of traders usually permit both discretionary (manual) trading as well as automated strategies, while eToro’s network consists solely of manual trading.
Offers weekly webinars and a respectable range of educational content on its blog, which includes materials from other categories such as research and company announcements. The one critical downside is navigation; filtering and browsing to find what you want is difficult because education is not centralized in one spot.
eToro’s main headquarters is located in Tel Aviv, Israel. This brokerage operates from regulated entities out of Cyprus, the UK, Australia, and the US. eToro Europe operates under the Cyprus Securities and Exchange Commission (CySEC) jurisdiction under license number 109/10. As a result, it is exposed to the Financial Instruments Directive 2014/65/EU or MiFID II and the EU’s 4th Anti-Money Laundering Directive. Per EU Directive 2014/49/EU, traders are protected by the Investor Compensation Fund (CIF) with maximum coverage of €20,000.
eToro UK is authorized and regulated by the Financial Conduct Authority (FCA) under license 583263. Traders enjoy the protective scheme of the Financial Services Compensation Scheme (FSCS), up to £85,000. eToro AUS Capital is authorized by the Australian Securities and Investments Commission (ASIC) under Australian Financial Services License 491139. eToro USA is registered with FinCEN.
Client accounts are segregated from company funds, as stipulated by regulatory requirements. While eToro remains fully compliant with all its regulators, it was fined €50,000 by CySEC due to structural operational weaknesses in 2013. Quebec blacklisted this broker in 2015 as an unauthorized foreign company because eToro marketed binary options trading through its platform to Canadian citizens. Despite a few regulatory missteps, traders may trust this brokerage. All required documents are published on its website, and transparency is taken seriously.
CySEC is the primary regulator for eToro, covering the majority of its traders.
eToro remains regulated by CySEC, the FCA, and ASIC
Deposits and Withdrawals
eToro traders have a broad range of deposit and withdrawal methods. They include wire transfers, credit/debit cards, PayPal, Neteller, Skrill, Webmoney, Yandex, Rapid Transfer, Klarna/Sofort Banking, and China UnionPay. Not all methods are available to all traders (options seem to vary depending where the trader lives) processing times range from instant to seven business days, and fees vary. Available currencies, as well as maximum deposits, are dependent on the payment processor. Unverified accounts may deposit up to $2,250.
Withdrawals are charged at $25 each. Per regulatory requirements, the name of the payment processor must match the name of the eToro account holder. Overall, the payment options at eToro are great, as expected from an established Forex broker.
Opening an Account
Per the standard operating procedure across the brokerage industry, new applications are processed through an online form. At eToro, this process should take less than one minute to complete. The first step will take new clients to the back-office where accounts need to be verified, per regulatory requirements. A copy of the trader’s ID and one proof of residency document will satisfy KYC and AML requirements. Due to the sound regulatory environment, traders may fully trust this broker with their personal information as well as deposits.
What Can I Trade
eToro over 2,000 assets, a very impressive range that is not found at most other Forex brokers. eToro covers the Forex market, ventured into the cryptocurrency markets, and allows diversification through commodities. It additionally provides traders a broad choice of equity CFDs, enhanced by index CFDs, and completed by ETF CFDs. The overall asset selection is comprehensive, allowing traders to diversify portfolios properly. Spreads on currency pairs remain on the high side but not overly unreasonable compared to the value of the social offering. Commodities and cryptocurrencies offer more competitive advantages in terms of fees.