eToro Review 2021

The full eToro review 2021 contains all the necessary information about the broker to start trading in the forex market, stocks, ETF and cryptocurrencies (Bitcoin, Ethereum, Litecoin, Ripple, etc.). Here you will find everything about the trading platform, commissions/fees, deposit and withdrawal, social copy trading and much more.

eToro is one of the leading investment and trading brokers in the world, it offers a reliable and intuitive copy trading platform where traders can copy trades of investors on over 2300 instruments. It works in most countries of the world and is regulated by top tier-1 regulators.

So, is it worth your attention, or is it an advertised brand with bad terms and fees?

Trading conditions on eToro

Is eToro a safe, legit and regulated broker?

eToro has been providing brokerage services since 2006 and is regulated by 3 tier-1 regulators. The company has now over 3 million customer accounts.

The broker has not received any serious complaints or reviews about scam in the entire time of its work. Most likely, this is due to its legit and transparent work, which is supported by the licenses of top regulators.

Therefore, the broker has a high level of trust among traders and in financial reviews. It can often be found in the ratings of the best Forex and CFD brokers.

It is safe to trade with eToro, but there is always a risk of losing funds in case of an unsuccessful investment. 71% of retail investor accounts lose money when trading CFDs with this provider.

Company regulation

eToro is a group of companies created to work with traders from different countries. You can come under one of the following jurisdictions depending on your location.

Broker eToro (Europe) Ltd. provides services for traders from Europe and most other countries, the company is authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC). CySEC is a highly credible tier-1 regulator that closely monitors the implementation of the regulations by all controlled entities.

In the UK, eToro (UK) Ltd. is an authorized and regulated company by the Financial Conduct Authority (FCA). The FCA ensures that the financial markets in the UK operate honesty and fairly. It protects the interests of consumers and is responsible for the integrity of the UK financial system. Long-term work under the supervision of the FCA speaks of the company’s reliability.

Both of these companies operate under and comply with the Markets in Financial Instruments Directive (MiFID). One of the main objectives of MiFID is to protect clients in the investment services industry.

eToro AUS Capital Pty Ltd. is the holder of the Australian Financial Services License (AFSL) 491139 issued by the Australian Securities and Investments Commission (ASIC). This license and regulation allows eToro AUS Capital Pty Ltd. to provide legit brokerage services in Australia.

EToro USA LLC operates in the US and is registered with FinCEN as a financial services company.

In which countries the broker is legal?

The broker eToro is legal and accepts traders from Argentina, Australia, Austria, Bahrain, Bulgaria, Chile, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Estonia, Finland, France, Germany, Greece, Hungary, India, Indonesia, Ireland, Israel, Italy, Kenya, Kuwait, Latvia, Lithuania, Luxemburg, Malaysia, Malta, Mexico, Morocco, Netherlands, New Zeland, Norway, Oman, Peru, Philippines, Portugal, Qatar, Romania, Saudi Arabia, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Thailand, United Arab Emirates, UK, Uruguay, US, Vietnam, Zambia and most other countries.

In total, the broker operates in more than 100 countries around the world.

Is broker safe for long-term investment and cryptocurrency?

Many traders are looking for an opportunity to make money with eToro on safe long-term investment and cryptocurrency trading.

For its part, the broker provides everything you need to use the platform safely and to trade. The broker eToro is reliable and has acceptable fees and spreads (discussed below) for scalping, intraday and long term trading or investment. The rest depends on traders only .

But there is an important point to consider.

The purchase of real/cryptoassets is an unregulated service and is not covered by any specific European or UK regulatory framework (including MiFID). In case when cryptocurrency are purchased on a real/physical basis and not traded in the form of a CFD you will not benefit from the protections available to clients receiving MiFID regulated investment services, such as access to the Cyprus Investor Compensation Fund (ICF)/the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service for dispute resolution.

This means that buying real cryptocurrency can never be completely safe for clients of any broker, not just eToro.

Investing in CFDs come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. From this point of view, the safety of your funds depends only on your experience and correct trading.

Trading reviews on eToro

Customer reviews about eToro are of particular interest. They had a fairly high rating among customers (for example, on the trustpilot website). But within a few weeks, a huge amount of negative reviews about eToro appeared. And many clients do not give reasons. They just give the broker a 1 out of 5 rating. This is suspicious. Perhaps other brokers are trying to remove a strong competitor in this way.

Or maybe the broker is not doing as well as it might seem. Many clients complain about the platform’s performance (lags, delays) and hidden fees.

In fact, recently the company has become highly demanded and a huge number of clients could create problems on the server of the trading platform. Therefore, the broker temporarily increased the minimum deposit for new clients to $ 500. And so there were so many negative comments in a short time.

Now eToro’s support is trying to answer all traders who have problems.

eToro trading platform & offers

eToro has its own platform for trading CFDs and stocks. It is noteworthy that you can trade with a broker only on it. There are no standard MT4, MT5 or cTrader terminals. But you don’t need them.

The fact is that eToro’s own platform is intuitively simple and user-friendly. Beginners are advised to learn the platform’s three-minute guide and practice on a demo account. Switching between demo and real account is possible at any time.

eToro provides over 2,300 assets for trading, including CFDs on forex, stocks, indices, commodities, cryptocurrency (Bitcoin, Ethereum, Litecoin, Ripple, etc.), as well as real stocks and cryptocurrencies. Each trader can create his own watchlist with the selected assets and track their changes.

The main trading and opening of deals takes place in the “Trade Markets” tab. You can buy / sell an asset at the current price or place a pending order. The maximum leverage is only 1:50. Thus, the broker reduces the maximum risks when trading CFDs.

CFD or real stocks

Trading on eToro it is important to understand the difference between CFD and real stocks and make the right choice.

There are several reasons for investing in shares of real companies:

• Most importantly, zero commission is applied when investing in non-leveraged, a BUY stock positions. This rule also applies to the purchase of cryptoassets. Therefore, eToro is ideal for medium to long term investing in shares and crypto (Bitcoin, Ethereum, Litecoin). But to get big profits, you need a lot of funds.
  
• If you invest in real company stock on eToro, you will pay dividends.

Now let’s review CFD trading on eToro.

• Purchasing CFDs allows leverage up to 1:50. Even with small deposits, you multiply your trading volume. This leads to an increase in the possible profit, but also the risk of a quick loss of funds. Therefore, it would be better to set stop loss and take profit.
  
  
  71% of retail investor accounts lose money when trading CFDs with this provider.
• All sell positions (even with x1 leverage) are Contract For Differences.
• The broker takes commissions for trading CFDs. This will be discussed below.

So, these are the main differences that will help you choose between CFD or real stocks (crypto).

Fees for CFD on stock, ETF and crypto

eToro charges a commission of 0.09% when opening a position for trading CFDs on stocks and ETFs. This is a definitely low level for the industry. There are also swaps that are charged when a position is rolled over.

Cryptocurrency short and margin (leveraged) orders are executed as CFDs and therefore incur an overnight fees. eToro charges a spread of 0.75% or more for opening a transaction with cryptocurrencies. The spread is quite low for Bitcoin, but for other cryptoassets it reaches medium and high values. EToro’s crypto spreads are noticeably higher than, for example, the Plus500 broker.

Fees for real cryptocurrencies and stocks

The broker eToro does not charge any fees for buying real stocks or ETFs. You gain ownership, and the underlying asset is held in your name. As mentioned, you will receive dividends in proportion to the number of shares in the company.

And when buying real cryptocurrencies, the only trading fees charged by eToro are the spreads from 0.75%, as indicated in the table above.

Forex spreads

eToro’s forex spreads are about the average for the industry. It is approximately 1-3 pips for the major currency pairs. They practically do not change during the day. Spreads widen only at night and during periods of high liquidity. Some of them are detailed in the table.

Commissions are also roughly the industry average for commodities and indices.

eToro copy trading review

So what if you can’t trade? There are 2 options: learn quickly or invest in experienced traders using a eToro copy trading service.

This investment platform review will help you make the right choice.

Let’s start with the main and obvious. Many low trust brokers can create fake traders and statistics. Therefore, investing in PAMM and RAMM accounts is possible only with reliable and safe brokers. Broker eToro has been operating for over 15 years, has about 17 million clients and 3 tier-1 regulators. That’s enough to try their copy trading service. Now more about this.

Copy trader and portfolio

The broker eToro has created a transparent and fair service for copy traders and investment portfolios.

Take your time to invest in the people who make the most profit. They may have a high drawdown. First of all, you can view detailed statistics for each trader. All information on the trading activity of people on the eToro platform is available: monthly profitability, average risk level, number of copies, the full investment portfolio at the moment and much more. It is better to choose a long-term trader with a relatively low level of drawdown and risk.

After choosing a trader to copy and the size of the investment, you will have the same trades. In general, nothing else is required from you.

If you think you can become a Popular Investor, join the broker program and get paid when people copy your trades. The broker offers good payouts for popular investors.

Another feature of the eToro broker is the ability to invest in ready-made CopyPortfolios.

They can be composed of different assets or traders. You can also find out detailed information about each portfolio. For example, copy a portfolio of cryptoassets can be the most profitable, but also very risky.

After a detailed review, it becomes clear that eToro offers the best social platform for copying trader and portfolio.

Mobile app

eToro has a mobile app that people can download for free. It provides access to trading 24/7 from anywhere. The apps are available for Android and iOS phones.

The specialists tried to keep all the functions of the trading platform on the mobile device. And they succeeded. You will be able to trade in real time, use CopyTrader and CopyPortfolio and communicate with other people. Watchlist and all other features are also available.

eToro constantly maintains the stability and security of iOS and Android apps. The broker often releases updates to increase their speed and power. Therefore, it is necessary to download new versions.

As a result of the review, the eToro app has a flaw. Recently, due to the huge demand for broker services, delays and lags are possible. This was also noted by traders.

Deposit and withdrawal

Presently, the minimum deposit for trading on Binomo has been increased from $ 200 to $ 500 for new clients. Then the top-up amount must be at least $ 50. There are about 10 ways to deposit and withdraw funds, depending on the jurisdiction.

The main payment methods are:

• Credit / debit card (Visa, Mastercard)
• Paypal
• Skrill
• Neteller
• Bank Transfer

Payment methods China UnionPay, WebMoney and Yandex.Money are available in some countries. Depositing with Sofort (Klarna) is available to clients in Germany, Austria, the Netherlands, Switzerland, Italy, Spain, Belgium, and Poland.

Unverified accounts are capped at a total deposit of $ 2,250. This limit is not valid after verification.

Processing requests for withdrawal to a card, e-wallet or bank transfer takes up to 3 business days.

eToro charges a $ 5 withdrawal fee. After 12 months with no login activity, a $10 monthly inactivity fee will be charged on any remaining available balance.

Features, advantages & disadvantages

As you can see in the review, eToro has many features. Let’s summarize.

Conclusion

In conclusion, it remains only to say that eToro is a good broker for investing and trading. The broker is safe, reliable and also legal in most countries. Zero and relatively low fees are good for scalping, intraday and long term trading. Each trader has a wide selection of 2300+ assets. So, is it time to invest in Tesla and Bitcoin?

If you don’t know how to trade, eToro offers you the CopyTrader and CopyPortfolio services. It is the best copying platform in the world.

The broker also has several disadvantages. They appeared mainly due to the huge demand for services. So, the platform and the application sometimes began to lag and slow down. Therefore, a large number of negative reviews from traders appeared. Moreover, the minimum deposit is now $ 500 for some countries.

Overall, eToro is an excellent choice for CFD trading on stocks.

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