eToro Review

Want to start trading but not sure which platform to use? eToro is an excellent base, especially if you’re new to trading or keen to learn from others. But what are the fees? What’s it really like to use? Is there anything you must know before you join? All the answers are in this handy eToro review.

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Michael Barton

Michael has almost quarter of a century’s experience in the financial world. This includes trading and institutional sales trading, and in senior positions to VP of Global Equities, as well as Head of Trader Training, at companies including Merrill Lynch (SNC), Cargill Investor Services, and Goldman Sachs. Michael’s experience also extends to providing financial advice as a personal financial advisor in the UK.
This article has been fact checked by a member of the Wallet Savvy editorial team and complies with our editorial standards.

eToro is a titan among trading platforms. It boasts more than 30 million customers around the world. Its incredible popularity stems from a unique combination of low costs, ease of use, a vast array of investment options, and how it has turned trading into a social experience.

It is used by beginners and advanced investors alike. But is it the right platform to help you achieve your financial goals?

Quick Verdict: What Do We Think Of eToro?

When you open an eToro account, you’ll join a community where trading meets innovation on a trading platform that delivers colossal features and trading tools.

From low trading fees (0% on shares and ETFs) to a virtual account that helps you hone your trading skills and fine-tune trading strategies, to its unique CopyTrader and social features, eToro’s user-friendly interface is a tremendous trading gateway to the world’s investment markets.

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

The Pros & Cons

The Pros

eToro investor screen on app

eToro is an incredibly user-friendly trading platform. Whether you’re a beginner or seasoned investor, you’ll find it easy to navigate. With a fantastic mobile app too, you can trade from anywhere at any time.

It made its name for its low costs. There are no deposit fees, low trading fees, and commission-free trading on stocks and exchange-traded funds (ETFs). Plus, it doesn’t cost a penny to open an account.

eToro also offers a vast range of assets for investment. From stocks and ETFs through to cryptocurrencies, there isn’t a lot you can’t trade through eToro, including contracts for differences (CFDs). If you’re reticent about diving straight in, you’ll love the virtual (demo) account that allows you to practise your trading and get used to the platform’s features.

Another fantastic feature is its social trading. Forget about your peers holding all their trading cards close to their chest. eToro lets people share their trading results, and you can copy trade, mimicking the trades of more experienced traders. It’s like having a mentor sitting with you.

Finally, when you’re confident with what you’re doing, you can take advantage of eToro’s leveraging facility to amplify your potential profits. Oh, and you can also trade in both directions, meaning you can make money when markets are falling as well as rising.

The Cons

On the flip side, a major drawback is that trading is done in US dollars, which means you may incur some currency conversion fees. It’s not a deal breaker for everyone, but it’s certainly something to consider.

Now, while eToro prides itself on low fees, there are a few you need to watch for. Inactivity will cost you and there is also a withdrawal fee, in addition to conversion charges.

While eToro offers one of the broadest ranges of assets for trading, there are some notable gaps. This includes bonds, mutual funds, and investment trusts. It doesn’t offer ISA or SIPP accounts, though these are available indirectly through Moneyfarm.

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

What Accounts Does eToro Offer?

eToro offers four different types of account:

  • Personal (Retail): This is the default account, offering all the features of other accounts but with a lower level of leverage than a professional account and the highest level of consumer protection.
  • Professional: To open a professional account, you’ll need to meet certain criteria (such as trading experience and disposable funds). You’ll have the option to use higher levels of leverage when trading.
  • Corporate: This account is designed for companies to trade with business capital.
  • Islamic: Specifically for Muslim customers, you won’t be charged credit or overnight fees to comply with Sharia law.

Range of Assets Available

One of the most appealing aspects of eToro is the diverse range of investment opportunities available. Whether you’re a seasoned investor or trading for the first time, eToro has a smorgasbord of assets to sink your teeth into – though bonds, mutual funds, and investment trusts aren’t on the menu.

Stocks & Shares

The eToro platform gives you access to more than 3,000 stocks from the world’s stock markets, and covering major industries like finance, tech, and healthcare. All available to trade at zero commission – that’s music to my ears!

eToro apps on mobile

Indices

If you want to create a diversified investment portfolio rather than trade dozens or hundreds of individual stocks, why not buy and sell whole economies? You can trade indices like the FTSE 100 and S&P 500 just as you can shares, allowing you to take a view on the performance-specific markets.

Access to this type of asset allows you to take a contrary view on markets and sectors. One of my most profitable personal trades was when I took a bearish view of the FTSE 100 (sold it), and against this I bought into oil stocks. The FTSE 100 fell, while my oil stocks rose. Sweet!

ETFs

ETFs let you diversify your portfolio in a single trade, without the hassle of trading in individual assets. They are like trading in indices, and can be bought and sold like shares – with the advantage that they allow you to take a position in individual sectors. You can buy (or sell) the tech sector, energy stocks, healthcare sector, industrials, mining… the options are endless.

Commodities

Gold, silver, oil, gas, and more. Why not trade in the upstream commodities that keep the world (and its industries) revolving? You’ll be tapping into the pipeline of the global economy with a click of your mouse or swipe of your finger.

Currencies (Forex)

Forex is the biggest market in the world, dwarfing equities. eToro is a big player, letting you trade in all the majors and pretty much any currency pair you can imagine. It’s a fast-moving market that is often overlooked by private investors.

Cryptocurrencies

With a lineup of 50+ cryptocurrencies, eToro is home for even the most speculative of investors. They also offer a crypto wallet to help keep your digital investments secure.

CFDs

I’ve mentioned being able to trade in both directions. If you think the market is rising, buy (called ‘going long’) to sell at a higher price later for profit. If you think the market is falling, sell to buy back later at a lower price. When you sell shares that you don’t own, this is called ‘going short’.

CFDs allow you to take a position in falling markets as well as rising markets. In plain language, when you trade a CFD on eToro, you are entering into an agreement on the future price of an asset without owning it. This enables you to speculate on both rising and falling prices, even leveraging to ramp up potential profits.

(A word of warning here: while CFDs are great trading instruments, their prices can move quickly, and if you are using leverage, losses can mount up just as fast as profits.)

Smart Portfolios

If you don’t want the hassle of selecting your own investment opportunities, you could take advantage of eToro’s Smart Portfolios. These are diversified portfolios, based on specific investment themes or assets, risk scores, and more, and managed by experts. There are no management fees, but you will need to invest a minimum of $500.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% 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.

The Trading Platform

If I were marking eToro on the strength of its platform alone, it would get almost full marks. It’s smart yet simple, easy to use, and includes innovative features like CopyTrader. It’s a great user experience on both desktop and app. You’ll find that it’s flexible and dynamic, making it easy to explore all your trading options.

Here are my thoughts on the eToro user experience:

Platform Accessibility

You can use eToro through its website on your desktop or by downloading the eToro trading app to your smartphone (iOS or Android). While the most advanced traders might prefer a desktop platform, this doesn’t overly concern me – I’m more interested in an intuitive, user-friendly experience, and eToro won’t disappoint you on this score.

etoro app on mobile

Web Experience

When I’m investing or trading, I want information at my fingertips. eToro’s website provides this – from links to today’s market movers to upcoming earnings announcements, a social newsfeed, and more, there is plenty to help you make more informed trading decisions. If you want to focus on environmentally friendly stocks, eToro also publishes ESG scores.

The Mobile App

The mobile app is easy to navigate. Whether you are keeping an eye on your watchlist, getting a handle on market trends, or following investment legends, you’ll find all the tools you need are included.

If you’re a chartist, dive into more than 100 indicators and tools. If you trade on fundamentals, search out the latest company data. With features that cater for both novices and experienced traders, you’ll find the eToro app hard to beat.

Unique Features

The markets never sleep, and neither does eToro. It is continually innovating its offering, listening to its community, and delivering to investors’ needs. Its CopyTrader feature lets you mirror trades and successful trading strategies – it’s like learning from seasoned investors without paying a coaching fee!

On the downside, if you use CopyTrader, you’ll need to trade a minimum of $200.

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

Unique Tools for Investors & Traders

There are several tools that are either unique to eToro, or that you might expect to find on more expensive trading platforms. These help to create a level of engagement that most other platforms fail to achieve.

From its social trading features to research tools, these features help to set eToro apart from its peers.

The Social News Feed

There’s nothing quite like the buzz of a trading room. When you walk in, you can immediately feel the market – the tension when the screens are red, and the euphoria when they are blue.

You hear little snippets of information all day, and these all add up to a wealth of data that informs the best trading decisions. (Can you tell I sometimes miss being in the trading environment?)

eToro’s social newsfeed is as close to the real thing that it gets. Switch it on and ‘listen’ to the latest news, insights, and discussions within the eToro community. You’ll be a better trader for it, and may even get inspired to make your next deal.

CopyTrading

This is a handy feature for all traders. You can mirror the trades of more experienced and successful investors.

What’s in it for the investor sharing their successful trades? They get a fee from eToro. It’s a simple idea, and takes me back to the days when successful traders would give their juniors expert advice or a tip on what to buy and when to sell. Those were the days! (Sorry for the nostalgia overload!)

Leverage Trading

There’s a saying in the property world – use other people’s money. This is what leveraging is.

You put a pound down (or a dollar) and trade with £20. If the trade goes right for you – let’s say the share price doubles – instead of turning £1 into £2, you will come out with a profit of £40.

Too good to be true? No, but there is a kicker – if the trade goes wrong, your losses can be colossal. It’s a great trading tool, but I would advise extreme caution because of the huge increase to your risk.

Research Tools

Economic calendars, personalised news feeds, markets trends, charting tools… it’s all here on the eToro app. You’ll never be short of information about upcoming events – and information is power, the fuel that energises trading performance.

If you are interested in a specific asset, you can get insights with a single click, and charts that display the price over your chosen time period (daily, weekly, monthly, and yearly), as well as other information like market cap, trading volumes, and PE ratios.

Screenshot of eToro Earnings Calendar

Educational Resources

As well as the plethora of trading and investment tools on the platform, make sure you dive into its educational resources, too. Learn by interacting with articles, videos, or tutorials to update and improve your trading skills.

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

Costs

eToro is undoubtedly one of the lowest-cost trading platforms in the UK. However, this doesn’t mean it is free, and you’ll want to avoid unwelcome surprises when it comes to charges and fees when you are investing.

No deposit fees, low trading fees, and free stock and ETF trading are all massive positives. On the other side of the coin, you’ll need to be prepared for high spread fees and specific charges for activities like crypto trading, leveraging, and holding CFD positions overnight.

Commission-Free Trades & Holding Costs

Here’s the headline grabber: 0% commission on stocks and ETFs. For investors who focus on these assets (like I do), this is a standout feature.

You could pay upwards of £10 per trade with a traditional broker account. You also won’t be charged for holding assets in your account – though there are exceptions.

Spread Fees

This is how eToro makes most of its money – the difference between buying and selling prices.

You’ll buy at a higher price than you can sell at when you place your order. This gap is called ‘the spread’, and to move into profit you’ll need the bid price (the price at which you can sell) to move above the offer price (your buying price) at the time you bought the asset.

Don’t be put off by this. It’s widespread practice. Look at it this way…

If you buy a share when it is priced at $5.00 (bid) to $5.10, you’ll need it to rise by 10 cents to break even. If you had bought this share at $5.05, and pay a commission of just 0.5%, you’d need the share price to increase to rise to around $5.11 to make a profit (because you pay commission on both the buy and sell trades).

CFDs & Leverage: Double-Edged Swords

As you saw earlier in this article, using leverage when trading with CFDs can boost your potential profits. However, you’ll also face a unique set of charges, too.

There will be spread fees, of course, but there will also be overnight fees if you maintain an open leveraged position overnight.

Crypto Trading Fees

If you wish to trade in cryptos, you’ll be charged a fixed 1% transaction fee (on both the buy and the sell) on top of the spread. You’ll see this on your account balance, so your position will show a loss when you first open it.

Other Fees

While there is no cost to open an account with eToro, on top of any applicable trading fees and charges, the other fees you will be required to pay include:

  • Withdrawal Fees: $5 withdrawal charge.
  • Conversion Fees: No conversion cost when depositing Sterling, but 1.5% when converting back from US dollars.
  • Inactivity Fees: If you don’t trade for 12 months, it will cost you $10 per month if there is cash in your account.
  • Leverage Fees: Charges are levied for leverage.

A Word About Stamp Duty

When you invest in UK shares, you are liable to pay Stamp Duty Reserve Tax (SDRT) of 0.5% on the value of your purchase.

There are several eToro reviews that say you avoid this by trading through an eToro account. You used to, but this has not been the case since November 2023, when eToro announced it would no longer absorb this cost.

You will be charged the SDRT, and eToro passes this on to the HMRC in the UK.

Customer Support

Committed to customer service, but with room for improvement – that is how I would describe eToro’s approach.

There is an extensive help centre that is enormously useful and should be your first port of call. Over this, it operates a ticket system – you’ll need to raise your issue by requesting personalised assistance. Tickets are answered as soon as possible, which, to be fair, is generally quick.

If you have more than $5,000 in your account, you’ll have access to support via live chat and a dedicated account manager based in the UK.

Some form of help is available 24/7 during the week, but not at weekends when help desk staff have a break (how very dare they!).

Is eToro Safe To Use?

eToro has put a realm of safety and security measures in place. While these cannot guarantee protection from all external risks, they are as good as any security policies and procedures at other brokers and trading platforms.

It holds various worldwide authorisations. Here in the UK, it is regulated by the Financial Conduct Authority (FCA), though the Financial Services Compensation Scheme (FSCS) will not cover your money.

Instead, it is safeguarded by being held in segregated accounts. This ensures that, should eToro go bankrupt, your money will not be used to satisfy company debts.

In terms of data protection, security measures include two-factor authentication to log into your account, and all data is encrypted.

How to Open an Account

It’s easy to open an eToro account. You could be trading on the platform in just a few minutes. After following the usual requirements of creating login credentials and checking T&Cs, etc., you’ll need to complete your profile.

For this, you’ll be required to verify your identity, proof of address, and phone number. Then all that’s left to do is fund your account, and get trading!

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

eToro Tips

Investment success does not depend only on the trading platform you use. It’s also about how you use it.

Here are my top tips to give yourself the greatest chance of maximising profits when trading in an eToro account:

Use the demo account to familiarise yourself with the platform and assess trading strategies before committing real money.

Connect with other traders and learn from their experiences – and share your own. This will make you a more informed investor, and you’ll make better trading decisions because of this.

There is always something to learn, and eToro delivers a great resource to help you improve your investment and trading. It’s all free – make use of it!

eToro may be known for low trading costs, but you must not ignore the costs that are levied. Spread fees and conversion and withdrawal charges all add up, and there may be cheaper options depending upon your investment approach and style of trading.

You’ve got access to a wide range of assets when you trade in your eToro account – use this to diversify your portfolio and take advantage of more investment opportunities.

Alternatives To eToro

While it’s a great trading platform (without a doubt, one that is hard to beat), opening an account at eToro will not appeal to everyone. There are other players in the game that you might consider, including:

Moneyfarm app portfolio screenshots

Moneyfarm

More of a robo-advisor, Moneyfarm’s team of experts create tailored investment strategies to help you meet your financial objectives. It is known for its low-cost structure and impressive track record, and it doesn’t skimp on customer service.

If you want direct access to ISA and SIPP accounts, Moneyfarm could be a good option.

AJ Bell

AJ Bell stands out as one of the more affordable among traditional brokers. It boasts a long history and delivers excellent customer service.

You’ll have an impressive range of investment options available, with some excellent tools that help you manage your portfolio. It also has a strong SIPP offering if you are seeking to invest toward retirement.

Interactive Investor

An easy-to-use trading platform with transparent pricing, and a range of funds that are highly suited to beginner investors especially, there are three investment plans at your disposal (General Investment Account, ISA, or a Self-Invested Personal Pension/SIPP).

Interactive Investor is a reliable and comprehensive platform on which to build a diverse investment portfolio.

Hargreaves Lansdown

The UK’s largest investment platform, Hargreaves Lansdown delivers immense research capability to your desktop or mobile device, as well as access to a range of assets and funds. It offers ISAs and SIPPs, as well as a General Investment Account.

Its more advanced trading tools will appeal to more experienced investors, though you’ll need to consider the higher trading costs associated with such an offering.

The Bottom Line

With low costs, a user-friendly interface, and interactive social trading functions, as well as comprehensive research tools and educational resources, I consider eToro to be one of the best trading platforms in the market.

However, eToro is more than a trading platform. It’s a community in which both beginners and seasoned investors can thrive.

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

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