eToro Review 2024: Perfect for Beginners?

Authored by:
Adam Woodhead
Adam Woodhead

Adam Woodhead

Co-Founder

Adam is a Co-Founder and content creator for The Investors Centre. His key areas of interest and expertise are cryptocurrency and blockchain technology.

Twitter Profile
Author Bio
Reviewed by:
Dom Farnell
Dom Farnell

Dom Farnell

Co-Founder

Dom is a Co-Founder of TIC, a passionate investor and seasoned blog writer with a keen interest in financial markets and wealth management. "My goal is to empower individuals to make informed investment decisions through informative and engaging content."

Twitter Profile
Author Bio
Last Updated 29/08/2024
Fact Checked

How We Test

At The Investors Centre, we pride ourselves on our rigorous fact-checking process. To delve deeper into our meticulous testing procedures and discover how we ensure accuracy and reliability, visit our dedicated page on how we test.

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. {etoroCFDrisk}% of retail CFD accounts lose money when trading CFD’s with this provider. 

Quick Answer: How do we rate eToro?

eToro is a great choice for beginners and less experienced traders. It offers a user-friendly, feature rich platform to invest in popular stocks, crypto (and other assets) and leverage its innovative copy trading feature. We rate it 4.6 out of 5.

4.6/5
A stylized image of a muscular bull sitting in front of a computer desk with two monitors displaying the eToro logo, symbolizing bullish market trading.

Choosing the right broker is crucial for any trader, whether beginner or experienced. This review will provide an in-depth analysis of eToro, focusing on its advantages and disadvantages. eToro, known for its social trading features and user-friendly platforms, has become a popular choice among UK traders. This review aims to help you understand why eToro might be the right choice for you and how it compares with other leading brokers in the UK market.

Etoro logo green
4.6/5

{etoroCFDrisk} % of retail CFD accounts lose money when trading CFD’s with this provider. 

eToro Summary Table

Broker
Spreadex white Image
Range of Markets
Stocks, ETFs, Cryptocurrencies, CFDs (Forex, Commodities, Indices)
Interest on Uninvested Cash
Add New
FCA Regulated
Add New
Founded
2007
Trust Pilot
4.2/5
ISA Account
Add New
Mobile App
Add New
Inactivity Fee
12 Months
Monthly Fee
Add New
Leverage
Add New
Demo Account
Add New
Active Users
20 Million
Investor Protection
FSCS (up to £85,000)
Available in UK
Add New

Why Choose eToro?

eToro is a standout broker for several reasons, making it a preferred option for many UK traders. One of the main attractions is its social trading platform, which allows users to follow and copy the trades of successful traders. This feature is especially beneficial for beginners who can learn from experienced investors. Additionally, eToro offers a wide range of assets, including stocks, forex, commodities, and cryptocurrencies, providing traders with ample opportunities to diversify their portfolios.

eToro’s user-friendly interface is another significant advantage. The platform is designed to be intuitive, making it easy for traders of all experience levels to navigate and execute trades. Moreover, eToro is regulated by reputable financial authorities, including the Financial Conduct Authority (FCA) in the UK, ensuring that it adheres to strict standards of security and transparency. This regulatory oversight provides an added layer of trust and safety for users.

eToro also offers competitive fee structures, including commission-free trading on stocks and ETFs. This can result in significant cost savings for traders, particularly those who trade frequently. The combination of these features makes eToro an attractive option for both new and seasoned traders in the UK. As such we award eToro 4.6 out of 5 in our review scoring.

eToro Rating BreakdownRatingExplanation
Fees4.2Competitive spreads, but recent commission introduction and FX fees lower the score.
Safety4.8Strong regulatory oversight and insurance coverage.
Deposits and Withdrawals4.3Easy deposits but withdrawal fees hold it back.
Account Opening4.9Simple and user-friendly account opening process.
Mobile App4.7Well-designed app with most features from the web platform.
Web Trading Platform4.5User-friendly interface, but may lack advanced features for some users.
Product Selection4.4Good range of assets, but might not be as extensive as some competitors.
Overall Average4.6

What are the Pros and Cons of eToro

Key Features

  • Multiple Asset Classes: Trade thousands of stocks, ETFs, cryptocurrencies, commodities, and forex.
  • Social Trading (CopyTrader): Automatically replicate the trades of successful investors.
  • Smart Portfolios: Curated investment portfolios managed by eToro, focusing on themes or strategies.
  • User-friendly Interface: Easy to navigate for both beginners and experienced traders.
  • Mobile Trading: Comprehensive mobile app with advanced charting tools and real-time market data.
  • Educational Resources: Access to eToro Academy for lessons on investment terms and market interpretation.

Fees

Overview of Fees:

eToro’s fee structure has become more complex recently with the introduction of commissions on stock and ETF trades (starting August 11th, 2024). However, they still offer some zero-commission options and competitive spreads. This table provides a detailed breakdown of their fees, with approximate conversions to British Pounds (£) based on current exchange rates (conversion rates may vary).

  • Commission-free Trading: No commissions on buying and selling stocks and ETFs.
  • Withdrawal Fee: Flat $5 fee per withdrawal.
  • Inactivity Fee: $10 per month after 12 months of inactivity.
  • Currency Conversion Fee: Applicable when depositing or withdrawing funds in a non-USD currency.
  • Overnight Fees: Applicable for CFD positions held overnight.

 

In-Depth Fee Table:

Fee TypeDescriptionCostApproximate Cost in £
Stock/ETF Commission (Starting Aug 11, 2024)Fee for opening or closing stock/ETF positionsUS$1 or US$2 (varies by country and exchange)£0.77 - £1.54
Spread Fee (variable)Markup on the market spread for certain assetsVaries depending on the assetVaries
Overnight Fee (CFDs only)Interest charged for holding a CFD position overnightVaries depending on the asset and interest ratesVaries
Withdrawal FeeFlat fee for withdrawing fundsUS$5£3.87
Inactivity FeeCharged monthly after 12 months of inactivityUS$10£7.74
Crypto Buy/Sell Fee1% fee on buying or selling cryptocurrency1%1%
Crypto Transfer FeeFee for transferring crypto to the eToro Money wallet2% (minimum/maximum cap applies)2% (minimum/maximum cap applies)
Conversion FeeFee for deposits and withdrawals in non-USD currenciesVariableVariable (likely around 0.4%)

Note: Conversion rates are estimates and can fluctuate.

What Are the Benefits of Commission-Free Real Stocks and ETFs?

Prior to the August 2024 update, eToro offered commission-free trading on stocks and ETFs. This attracted investors, particularly beginners, as it allowed them to participate in the market without upfront costs eating into potential returns. Commission-free trades can also make it easier to implement investment strategies that involve frequent buying and selling.

Are FX Fees Low with eToro?

FX fees are often hidden within the spread charged by a platform. Analyzing eToro’s spreads requires comparing them to competitors for specific currency pairs. Generally, eToro strives to be competitive, but some forex brokers may offer tighter spreads on certain currencies.

How Competitive Are eToro’s Index CFD Fees?

Similar to FX fees, the competitiveness of eToro’s index CFD fees depends on the specific index and a comparison with other brokers offering CFDs. While eToro offers CFDs with variable spreads, some competitors may have fixed fees or lower average spreads on certain indices.

What About eToro’s Inactivity and Withdrawal Fees?

eToro charges a $10 monthly inactivity fee after one year of no login activity. This fee can be easily avoided by simply logging in to your account periodically. The $5 withdrawal fee is a flat charge regardless of the amount withdrawn. While not ideal, it’s important to factor this fee into your planning when considering how often you may need to withdraw funds.

What Other Fees Does eToro Charge? 

There are a few other fees to be aware of with eToro. A conversion fee applies to deposits and withdrawals made in currencies other than USD, likely around 0.4% of the amount. Additionally, a 2% fee (with a minimum and maximum cap) is charged for transferring crypto out of the eToro platform to an external crypto wallet. It’s important to be mindful of these fees when planning your investment strategy.

More on the eToro Fees here.

Safety

Ensuring the safety of your investments is paramount when choosing a broker. This section explores eToro’s safety measures, regulatory status, and investor protection schemes.

How Do We Assess eToro’s Safety?

Assessing eToro’s safety involves examining its regulatory status, the security measures it employs, and the investor protection schemes it offers. We consider the broker’s adherence to financial regulations, the robustness of its cybersecurity protocols, and the insurance coverage or compensation funds available to protect investors’ funds.

Is eToro Regulated by Reputable Authorities?

eToro is regulated by several reputable financial authorities. In the UK, it is overseen by the Financial Conduct Authority (FCA). Additionally, it holds licenses from the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC). These regulatory bodies ensure that eToro adheres to strict financial standards, enhancing its credibility and trustworthiness.

Are Investments Protected with eToro?

Investments with eToro are protected through various schemes. In the UK, client funds are safeguarded by the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 per person if eToro were to become insolvent. eToro also employs advanced security measures, including encryption and two-factor authentication, to protect user accounts from unauthorized access.

What Is the Background of eToro?

Founded in 2007, eToro has grown to become a leading social trading platform with millions of users worldwide. Initially established as a fintech company, it has expanded its offerings to include a wide range of financial instruments and innovative trading features. eToro’s commitment to providing a user-friendly and secure trading environment has contributed to its global reputation.

Deposits and Withdrawals

Deposits and withdrawals on eToro are designed to be straightforward and convenient. This section details the available account base currencies, deposit methods, and withdrawal options.

What Are the Account Base Currencies?

eToro supports multiple base currencies, including GBP, USD, EUR, and AUD. This flexibility allows traders to avoid conversion fees by selecting the currency that matches their bank account.

What Are the Deposit Fees and Options?

eToro offers several deposit methods, including bank transfers, credit/debit cards, and e-wallets like PayPal and Skrill. Deposits are generally free, but currency conversion fees may apply if the deposit currency differs from the account’s base currency. Minimum deposit amounts vary by region, typically starting at $100.

What Are the Withdrawal Fees and Options?

Withdrawals can be made via the same methods used for deposits. eToro charges a flat fee of £5 per withdrawal. Processing times vary, with e-wallet withdrawals being the fastest (usually within 1-2 business days), while bank transfers may take up to 7 business days. Currency conversion fees also apply if the withdrawal currency differs from the base currency.

Account Opening

Opening an account with eToro is a straightforward process designed to be quick and accessible. Here’s a detailed look at the eligibility criteria, minimum deposits, account types, and the step-by-step process.

Who Can Open an Account with eToro?

eToro is available to residents of numerous countries, including the UK. Applicants must be at least 18 years old and provide valid identification documents to verify their identity. Certain jurisdictions may have additional restrictions, so it’s advisable to check eToro’s terms and conditions for specific eligibility requirements.

What Is the Minimum Deposit Required at eToro?

The minimum deposit required to open an account with eToro varies depending on the region. For UK residents, the minimum deposit is typically around $100. This initial deposit grants access to eToro’s full range of trading and investment services.

Minimum Deposit Details

The initial deposit for UK users is $100. For subsequent deposits, the minimum amount may vary based on the payment method. For example, bank transfers often have a higher minimum compared to credit/debit card deposits. It’s important to note that while the initial deposit unlocks the platform, additional funds may be needed to take full advantage of trading opportunities.

What Account Types Are Available?

eToro offers several account types to cater to different trading needs. The standard retail account is suitable for most individual traders and includes access to all trading features, social trading, and investment opportunities. Additionally, eToro provides professional accounts for eligible traders who meet certain criteria, such as trading volume and experience. Professional accounts offer higher leverage and additional tools but come with different regulatory protections.

How Do You Open an eToro Account?

Opening an account with eToro involves a simple, step-by-step process:

  1. Visit the eToro website and click on the “Join Now” button.
  2. Fill out the registration form with personal details, including name, email, and phone number.
  3. Create a username and password.
  4. Verify your identity by uploading a government-issued ID and proof of address.
  5. Complete a questionnaire about your trading experience and financial situation.
  6. Make your initial deposit using one of the available payment methods.

Mobile App

eToro’s mobile app offers a seamless trading experience on the go, with features designed for both beginners and experienced traders.

  • Ease of Use: User-friendly interface with intuitive navigation.
  • Advanced Charting Tools: Over 100 chart indicators and drawing tools, including candlestick view and Bollinger Bands.
  • Watch List: Track preferred stocks, crypto, indices, and commodities.
  • Social Feed: View and interact with updates from other traders about their portfolios.
  • Alerts and Notifications: Receive real-time alerts for market movements and news.

How Does the Mobile App Look and Feel?

The eToro mobile app features a clean, intuitive design that mirrors the web platform’s user-friendly interface. Navigation is straightforward, with clearly labeled sections for trading, monitoring portfolios, and accessing social trading features. The app’s responsive design ensures a smooth experience across different devices.

What Are the Login and Security Features?

The mobile app incorporates robust security features, including two-factor authentication (2FA) for enhanced account protection. Users can also enable biometric login options, such as fingerprint or facial recognition, providing additional layers of security and convenience.

How Efficient Are the Search Functions?

The search functions within the eToro app are efficient, allowing users to quickly find specific assets, traders, or investment options. The search bar is prominently displayed, and the app provides predictive search results to streamline the process.

How to Place Orders on the Mobile App?

Placing orders on the eToro mobile app is straightforward. Users can select an asset, click the “Trade” button, enter the trade details (such as amount and type of order), and confirm the trade. The app supports various order types, including market, limit, and stop orders.

How Are Alerts and Notifications Managed?

The eToro app allows users to set custom alerts and notifications for price movements, trade executions, and market news. These alerts help traders stay informed and make timely decisions. Notifications can be tailored to individual preferences, ensuring relevant updates are delivered in real-time.

Web Trading Platform

eToro’s web trading platform offers a comprehensive trading experience, combining ease of use with advanced features suitable for both novice and experienced traders.

  • Comprehensive Platform: Manage investments with ease, access detailed market data and educational resources.
  • Investment Options: Explore global markets, create and manage watch lists, and access Smart Portfolios.
  • ESG Scores: View environmental, social, and governance scores for stocks and funds.
  • Social Features: Participate in the social trading community, follow and copy successful traders.

How Does the Web Platform Look and Feel?

The eToro web platform features a sleek, modern design with a user-friendly interface. The layout is intuitive, allowing users to navigate easily between different sections such as watchlists, portfolios, and trading markets. The platform’s design focuses on accessibility, making it simple to execute trades, monitor investments, and engage in social trading activities.

What Are the Login and Security Features?

The platform employs robust security measures, including two-factor authentication (2FA) to protect user accounts. Login credentials are encrypted, and the platform regularly updates its security protocols to safeguard user data against potential threats.

How Efficient Are the Search Functions?

The search bar on eToro’s web platform is highly efficient, allowing users to quickly find assets, traders, and markets. The predictive search feature helps streamline the process by suggesting relevant results as users type, making it easier to locate specific trading opportunities.

How to Place Orders on the Web Platform?

Placing orders on eToro’s web platform is straightforward. Users can select an asset, click on the “Trade” button, enter the trade details such as amount and type of order (market, limit, or stop), and then confirm the trade. This process is designed to be quick and user-friendly.

How Are Alerts and Notifications Managed?

eToro allows users to set custom alerts and notifications for price movements, trade executions, and market news. These alerts can be customized based on individual preferences and are delivered in real-time to ensure traders stay informed and can react promptly to market changes.

How to Access Portfolio and Fee Reports?

Accessing portfolio and fee reports on eToro is simple. Users can navigate to the portfolio section to view detailed performance reports, including profit/loss statements and transaction history. Fee reports are also available, providing transparency on costs associated with trading activities.

Product Selection

eToro offers a diverse range of financial products, including real assets and contracts for difference (CFDs), catering to various trading strategies and preferences.

here’s a breakdown of the main tradable asset classes offered on eToro:

  • Stocks: Thousands of stocks from various global exchanges.
  • ETFs: A wide range of Exchange-Traded Funds tracking various indices, sectors, and investment strategies.
  • Cryptocurrencies: A growing selection of popular cryptocurrencies like Bitcoin, Ethereum, Litecoin, and more.
  • Commodities: Trade contracts for physical commodities like gold, silver, oil, and natural gas.
  • Forex: Trade currency pairs on the foreign exchange market.

What’s the Difference Between Real Assets and CFDs?

Real assets, such as stocks and ETFs, represent actual ownership of the underlying security. In contrast, CFDs are derivative products that allow traders to speculate on price movements without owning the asset. Real assets involve direct investment, while CFDs offer leverage and short-selling opportunities, often with higher risk and costs.

What Are CFDs and How Do They Work?

Contracts for Difference (CFDs) are financial derivatives that enable traders to speculate on asset price movements without owning the underlying asset. Traders can profit from both rising and falling markets, and CFDs often involve leverage, amplifying potential gains and losses.

How Does Leverage Work with eToro?

Leverage allows traders to control a larger position with a smaller amount of capital. On eToro, leverage ratios vary depending on the asset class, with higher leverage available for forex and lower for stocks and ETFs. While leverage can magnify profits, it also increases the risk of significant losses.

What Are the Benefits of Real Stocks and ETFs?

Investing in real stocks and ETFs offers several benefits, including dividend payments, potential long-term growth, and ownership of the underlying asset. Unlike CFDs, real assets do not incur overnight fees and are generally considered lower risk. eToro’s commission-free trading further enhances the appeal of these investments.

Does eToro Offer Interest on Uninvested Cash?

eToro does not typically offer interest on uninvested cash balances. However, funds held in the account can be easily transferred to investments, allowing users to maximize their potential returns through trading rather than earning minimal interest on idle cash.

What Is CopyTrader?

CopyTrader is eToro’s flagship social trading feature that allows users to replicate the trades of successful investors automatically. Users can choose from a wide range of traders based on performance metrics and risk profiles. This feature democratizes access to expert trading strategies, making it easier for beginners to potentially achieve similar results.

What Are Smart Portfolios?

Smart Portfolios (formerly known as CopyPortfolios) are curated investment portfolios managed by eToro. These portfolios group together various assets or top traders into a single diversified investment strategy. They are designed to minimize risk through diversification and provide a convenient way for users to invest in themed portfolios, such as technology or cryptocurrency.

Can You Trade Cryptocurrency on eToro?

eToro offers a comprehensive cryptocurrency trading platform, allowing users to buy, sell, and hold various cryptocurrencies such as Bitcoin, Ethereum, and Ripple. The platform provides real-time market data, social trading features, and a secure wallet for storing digital assets. eToro’s user-friendly interface makes it accessible for both novice and experienced crypto traders, enhancing its appeal in the growing digital asset market.

How Does eToro Compare with Its Competitors?

When comparing eToro to other leading UK brokers, some key differences and advantages emerge.

eToro vs Competitors Table

FeatureeToroTrading 212XTBSpreadexIGPlus500
Currency Pairs (#)5218070709050
Stock Index CFDs (#)203533196826
Stock CFDs (#)2,0001,5302,0221,00012,0001,800
ETF CFDs (#)26428167502,00095
Commodity CFDs (#)322827124722
Crypto (#)74-4010814
Commission-free TradingYesYesNoNoNoNo
Minimum Deposit$50$1$250£1£250$100
Withdrawal Fee$5NoneVaries£1£0$0
Inactivity Fee$10/month after 12 months inactivityNone$10/month after 12 months£1 per month after 3 months$18/month after 24 months$10/month after 3 months

What is our Verdict on eToro

eToro shines for beginner and casual investors seeking a user-friendly platform with a unique social trading feature. You can follow and copy experienced investors, making it easier to learn the ropes. Plus, eToro boasts a wide range of assets including stocks, ETFs, cryptocurrencies, commodities, and forex.

However, recent changes introduced commissions on stock and ETF trades, so be mindful of fees. The platform may also lack some advanced features for seasoned traders. Overall, with a 4.6 out of 5 star rating, eToro is a solid choice for those starting out or seeking a social investing experience, but consider your investment style and needs before diving in.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Seeking a platform with social features and competitive fees? Explore eToro’s unique offering.

{etoroCFDrisk}% of retail CFD accounts lose money.

2024 Review Methodology

This review is based on a comprehensive analysis of eToro’s platform features, regulatory compliance, fee structure, user experience, and customer feedback. Data was gathered from multiple sources, including official regulatory filings, user reviews, and industry reports. The evaluation criteria focused on safety, usability, market access, and cost-effectiveness. By applying a balanced and data-driven approach, this review aims to provide an accurate and unbiased assessment of eToro offerings.

FAQs

eToro operates as a social trading platform, allowing users to trade a variety of financial instruments, including stocks, ETFs, forex, commodities, and cryptocurrencies. It offers tools like CopyTrader to replicate the trades of successful investors automatically.

eToro is regulated by several reputable authorities, including the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC).

eToro generates revenue through spreads on trades, overnight fees for leveraged positions, and withdrawal fees. It does not charge commissions on stock and ETF trades, attracting a broad user base.

The CopyTrader feature allows users to automatically copy the trades of selected successful traders on the platform. Users can choose traders based on their performance, risk level, and trading history.

Yes, trading profits on eToro are taxable. In the UK, profits from trading are subject to capital gains tax. It’s important to consult with a tax professional for specific advice.

eToro offers commission-free trading on stocks and ETFs. However, other fees apply, such as spreads, overnight fees, and withdrawal fees, meaning it’s not entirely free.

Withdrawal processing times vary by method. E-wallets typically take 1-2 business days, while bank transfers can take up to 7 business days.

eToro is good for beginners due to its user-friendly interface, educational resources, and social trading features, which allow novices to learn from experienced traders.

Yes, trading profits on eToro are taxable. In the UK, profits from trading are subject to capital gains tax. It’s important to consult with a tax professional for specific advice.

References

At The Investors Centre, our writers/contributors are required to underpin their work with primary sources. These sources range from government records and white papers to direct reporting and expert interviews in the field. Where suitable, we also integrate research from other distinguished publishing sources. This approach ensures our content remains both accurate and unbiased, as detailed in how we test.

  1. eToro Official Website: Primary information on features, fees, and supported assets is sourced directly fromhttps://www.etoro.com/ 
  2. Financial Conduct Authority (FCA) Regulatory Filings: FCA Register
  3. User Reviews and Feedback: Collected from various financial forums and review sites like Trustpilot
  4. Industry Reports: Data and insights from industry publications such as Finance Magnates and Investopedia
  5. Market Analysis: Detailed market analysis from leading financial news sources like Reuters and Bloomberg

Related Articles

Gain Access to Our #1 Recommended Investment Platform in the UK

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Translate »