eToro is the biggest and best social trading platform out there, currently serving more than 4.5 million users in 170 countries worldwide. It is also one of the best known exponents of the Forex trading industry, introducing scores of new traders to the scene all the time. eToro’s business model is about entertaining clients, while educating them on the ins and outs of the Forex markets. Trading Forex can indeed be intimidating for beginners, but it doesn’t have to be. Since 2010, when eToro introduced their OpenBook social investment platform, it has become a lot easier to be a successful trader. Copying the moves and possibly the entire portfolios of other traders may not seem like a legitimate path to success, but thanks to eToro, it is indeed just that.
Unlike some of the other brokers we’ve reviewed, eToro has indeed had its fair share of press. It was featured in various CNBC news and articles. The Times, Financial Times, The Telegraph and Bloomberg have also discussed this broker, quite often no less.
eToro Ltd. is a registered CIF (Cypriot Investment Firm) and it possesses a CySEC license. The authority allowing and regulating its activities in the UK is the FCA (Financial Conduct Authority), and it is in fact registered in the US as well and regulated by the NFA (National Futures Association). The company maintains offices in Limassol, Cyprus, as well as in London and Tel Aviv. The US branch of the brand is operated by Tradonomi LLC, but no US clients are currently accepted, as the platform is not active there.
According to its regulatory status, eToro complies with all the MiFID directives, including those referring to the categorization of clients. Individual clients of the operation are all classified as retail clients and are therefore entitled to the highest degree of protection in regards to possible compensation schemes, execution and asset-safeguarding.
Although one will find all sorts of feedback out there, coming from the broker’s happy or disgruntled customers, it’s safe to say that there can be no questions regarding the legitimacy of the operation.
The operator adheres to a strict anti money-laundering policy and it achieves the proper safeguarding of its clients’ assets by working only with reputable financial institutions such as Barclays Bank.
eToro has been the official partner of the West Ham United Football Club for some time now.
Why should YOU trade with eToro though?
The broker offers a number of easy-to-use trading platforms, access to some of the most successful trading portfolios, to personal customer service as well as to special promotions. All that is but the tip of the eToro iceberg though. The site/platform is available in several languages, it allows one-click trades, it delivers price alerts, it supports automated trading, and it comes with guaranteed stop-losses and limit orders. The operator charges no commissions on trades, and some of its spreads are tight and fixed.
As far as cons go, eToro charges deposit and withdrawal fees, it does not allow scalping and it charges a fee following a period of 12 months of inactivity on the part of its traders. There aren’t any VPS or DMA (Direct Market Access) services either.
To try eToro’s FREE demo today, click here.
Instead of providing just one universal platform for their clients, eToro have three trading software solutions, to suit every need that may possibly arise.
OpenBook Social Trading
The first one is their OpenBook social trading platform, launched way back in 2010. OpenBook comes with a wealth of social trading features, but the gist of it all remains the fact that it allows traders to copy the positions of the Popular Investors, who are indeed real people, doing real trading. With this platform, one trades as part of a network, and not as an isolated retail client. The power of the setup is quite obvious. To gain access to the social trading features of OpenBook, all one has to do is to create an eToro account, to find some of the top traders and to copy their moves. Following the popular investors is also possible, and sharing information in regards to their trades is always at one’s fingertips too. There are a number of special features meant to make it easier for traders to copy their peers. There’s a top 100 and there’s a personal watch list as well.
It is possible for the rank-and-file traders to become Popular Investors as well. Such a status comes with a number of attractive rewards and privileges.
eToro Web Trader
The eToro Web Trader is an all-in-one sort of solution. It combines traditional position management with social trading features on a central platform. The Web Trader automatically synchronizes traders’ accounts, whenever they use OpenBook. Web Trader also delivers a handy selection of professional charts, which are equipped with some of the best technical analysis indicators. Trend lines can be traced as well as support and resistance levels. The indicators can be added from the Studies tab, through the System Manager option.
eToro’s Mobile platform is designed to deliver the power of social trading to the fingertips of those on the move. It comes in the shape of mobile apps designed for Android and iOS devices. Through the mobile app, traders can access more than 1,000 investment opportunities in any given moment.
CopyFunds is the newest financial product added to the eToro portfolio. CopyFunds is a trading system comprised of two components: Top Trader CopyFunds and Market CopyFunds. The former is focused on the cream of the crop of the eToro traders, offering a selection of trading opportunities based on the most successful portfolios.
Market CopyFunds is essentially a market strategy, which carries a selection of ETFs, CFDs and commodities, in the same fold.
eToro Account Types
eToro only feature two account types: the basic one, which is where everyone falls upon joining the fold. The Premium account on the other hand is reserved to those who choose to upgrade either via deposit or via equity. To upgrade through a deposit, one needs to have deposited at least $20,000 over the last 11 months.
The equity path requires traders to have at least $20,000 in equity at the end of the day. Equity is comprised of balance+investments+profit/loss. Traders are welcome to invite their friends into the eToro Premium fold, in which case they will be duly rewarded.
The Premium account offers special privileges, such as personal account managers, a special Payoneer card, special deposit deals, unique promotions and various payment-provider VIP programs. The operator has teamed up with a number of payment solution providers like Neteller and Payoneer, so in this respect, they can indeed accomplish quite a bit.
eToro’s education center is called the Trading Academy. The Trading Academy offers access to live webinars, an exclusive trading eCourse and a superb selection of educational videos. These videos cover everything from the above detailed platforms to the trading of stocks, and to various investment strategies.
The eCourses page presents itself in a video-based format as well, detailing basic technical analysis concepts as well as capital management and even trading psychology.
Webinars take place according to a schedule, but they can be had on demand as well.
eToro feature an impressive number of promotions, none of which seem based on the time-honored and oft-derided strategy of encouraging traders to trade more through bonuses with abusive terms. They mostly focus on getting their traders to join the Premium club and to encourage them to bring their friends into the fold. Those who invite 10 of their friends, receive a $1,000 reward. The invited friends need to make $500 minimum deposits of their own to qualify for the promotional deal, but once they do, they will find another $200 in their accounts. Those who refer people to eToro get $100 for every one of their referrals, and there is no limit to how any people one can bring in this way.
Traders are also encouraged to become Popular Investors. Such investors are prime targets for people to follow, and thus they’re the drivers of eToro’s social trading model. In return for their status and the passive services they deliver, they are rewarded through a number of privileges.
From time to time, there are bonus deals offered too, mostly for those looking to join the Premium Club through their deposits. The match percentages on such deposits seldom exceed the 15% mark though.
eToro Popular Investor Program
The privileges offered to those who become Popular Investors are quite attractive. As a matter of fact, they make it possible for such traders to build up a financial business of their own, by managing the assets of other traders, and earning a 2% revenue cut in management fees. Those who make it this high in the eToro system will have their spreads waived too. The management fees are picked up when people copy the Popular Investor. All monies resulting from such fees are immediately withdrawable. Through this setup, it is possible for Popular Investors to earn thousands of dollars in extra revenue per month, in addition to the revenues from their own trades, of course.
The Popular Investor program is a 4-tier one, starting at the Cadet level and wrapping up at the Elite one. It is theoretically possible to join the program with a single follower, but to reach the top level, one will need more than 300k followers.
For visitors, eToro support can be reached through an email form only. For registered account holders, other options are provided too, like live chat, email and telephone.
eToro Review Conclusion
eToro is a massive and massively reputable operation, serving millions of clients all over the world. Their regulatory status is impeccable and the financial products they offer are free of any and all conflicts of interest. The community feedback regarding the operation is a mixed bag, but that is to be expected when the said community is this large.
Copy trading is a great way for beginners to jump into Forex and CFD trading, and eToro are essentially the inventors of this genre.
|Regulated||Yes, CySEC, FCA, NFA|
|Launched in||2006 (2010 in its current form)|
|Contact||pr@eToro.com, email form|
|Trader Demographics||Everyone, everywhere, except for the US|
|App compatibility||Android, iOS, Windows, Mac, Linux|
|Customer service||Eager to assist, available 24/5|
|Business Model||Social Trading|
|Offices||London, Limassol, Tel Aviv|
In sum, eToro is an excellent platform and we would definitely recommend giving a try to their FREE demo. And if you’e an experienced trader, you can take advantage of the eToro platform to create your own highly profitable online investment fund, which will allow you to lead thousands of traders.
Or you can read about our Recommended Brokers.
Or about our Recommend Signal Services.