eToro review – Is it scam or legit?

Anyone who is into online trading of stocks, ETFs, cryptocurrencies and so on has surely already heard of the multi-asset platform eToro or maybe even already gathered their own experience on eToro. The provider is one of the most well-known and widely used companies of its kind worldwide and has been able to hold its own in the market for years.

Especially in the field of cryptocurrencies, the provider offers a user-friendly and reputable alternative to complicated cryptocurrency brokers. What exactly traders, investors and investors appreciate about eToro, what is possible through the broker and how trading at eToro works is summarized in this eToro review in an understandable way.

Bitcoin, Ethereum & other cryptocurrencies – Trade hassle-free on eToro!

Dies ist der Box-Titel
eToro LogoAdvantages:

  • Free cryptocurrency trading
  • Easy account opening
  • 100% secure
  • Regulatory authority: CySEC

eToro >

76% of retail investor accounts lose money

eToro

Cloudzzer Free cryptocurrency trading
Cloudzzer Easy account opening
Cloudzzer 100% sure
Cloudzzer Regulatory Authority: CySEC
eToro > Your capital is at risk
eToro Website

Table of Content

eToro: from forex broker to crypto trading management

Founded in 2007 by brothers Yoni Assia and Ronen Assia, eToro, a self-described pioneer in the financial technology sector, is based in Cyprus and was previously intended as a mere forex broker. In the course of further development, “Openbook” and thus a social trading option was integrated into the eToro offering in 2010, followed by stock trading in 2013, and since 2016, so-called CopyPortfolios – also known as CopyFunds – have completed the content of the trading platform.

And the next innovation was not long in coming: just under a year later, eToro expanded its offering to include cryptocurrencies, enabling the provider to reach an even broader target group. Oriented towards the company’s own values – simplicity, innovation, entertainment, openness and quality – eToro is following a clear path and pursuing the goal of making global trading markets accessible to all.

Details about eToro’s trading platform

Due to the wide range of offerings and the multitude of features, it is far from easy to summarize the core content and the most important aspects around eToro. In the following, we provide an overview of the “eToro trading world”, focusing on the features that are of particular importance when evaluating such a trading platform.

Cryptocurrencies

While many competitors limit themselves to a handful of well-known cryptocurrencies – most notably Bitcoin and Ethereum – eToro offers traders the ability to trade a total of 17 digital currencies, and cryptocurrency CFDs are gaining significant popularity. Specifically, these cryptocurrencies are available:

  • Binance CoinCrypto Trading eToro
  • Bitcoin
  • Bitcoin Cash
  • Cardano
  • Dash
  • Dogecoin
  • EOS
  • Ethereum
  • Ethereum Classic
  • IOTA
  • Litecoin
  • NEO
  • Riple
  • Star
  • Star
  • Tezos
  • TRON
  • ZCash

In addition, on the eToro platform you can buy numerous (crypto) currency pairs, such as Bitcoin/pound, Stellar/Swiss Franc or Dash/euro. Important to know: As soon as a leverage function is used, settlement takes place via CFDs from this provider. Virtual money can be transferred to a crypto-wallet or managed directly through the Cyprus-based broker.

KryptowährungGebühren/Spread
Bitcoin0,75%
Ethereum1,90%
Bitcoin Cash1,90%
Ripple2,45%
Dash2,90%
Litecoin1,90%
Ethereum Classic1,90%
Cardano2,90%
IOTA4,50%
Stellar2,45%
EOS2,90%
NEO1,90%
TRON3,50%
ZCASH3,50%
Binance Coin2,45%
Tezos5,00%

Stocks, funds and ETFs

When it comes to trading stocks and ETFs through eToro accounts, clients especially praise the huge selection. The platform presents a list of available stocks, which incidentally can be traded commission-free, clearly divided into categories, with a portfolio representing a broad repertoire. Around 2,000 stocks from 17 exchanges around the world attract investors to the platform, who enjoy the diverse mass of securities. Sometimes these assets are eligible for a stock purchase through eToro:

Services (total 300)

  • Amazon
  • Beyond Meat
  • Etsy
  • Hermes International
  • McDonald’s
  • Nordstrom
  • Sysco Corp
  • TUI AG
  • Upwork
  • Walt Disney

Financial sector (more than 400)

  • AIA Group
  • Ameris Bancorp
  • AXA Group
  • China Citic Bank
  • Goldman Sachs Group
  • Link REIT
  • Segro
  • Swiss Prime Site AG
  • Visa
  • Vonovia SE

Health (approx. 85)

  • Amplifon
  • Biogen
  • Cara Therapeutics
  • CureVac NV
  • Johnson & Johnson
  • Medtronic PLC
  • Pfizer
  • Sartorius AG
  • Valneva SE
  • Zoetis

Basic materials (just under 200)

  • Anglo American
  • CVR Energy
  • Kinder Morgan
  • LANXESS
  • Linde PLC
  • Nordex
  • Prosafe
  • Sandvik AB
  • Sinopec
  • ThyssenKrupp AG

Industrial products (about 250)

  • AGCO Corp
  • Caterpillar
  • Castor Maritime
  • Ferguson PLC
  • Getlink SE
  • Halma PLC
  • Lennar Corp
  • Meggitt
  • Persimmon
  • TKH Group

Consumer goods (total 600)

  • Apple
  • Cerus Corp
  • Coca Cola Hellenic
  • Flowers Foods
  • Hennes & Mauritz
  • Kellogg Co
  • PUMA AG
  • Tesla Motors
  • TransUnion
  • Volkswagen AG

Technology (approx. 250)

  • BT Group
  • Dropbox
  • GoDaddy
  • Intel
  • Jenoptik
  • Lenovo Group
  • Microsoft
  • Pinterest
  • TeamViewer AG
  • Verizon

Utilities (more than 100)

  • Clearway Energy
  • Duke Energy Corp
  • Hera SPA
  • Italgas
  • Naturgy Energy Group
  • Sempra Energy
  • SSE
  • Uniper
  • United Utilities
  • Wolters Kluwer NV

eToro

Cloudzzer Free cryptocurrency trading
Cloudzzer Easy account opening
Cloudzzer 100% sure
Cloudzzer Regulatory Authority: CySEC
eToro > Your capital is at risk

The handy filter function allows you to search for stocks in specific industries or exchanges, so users can find what they are looking for comparatively quickly on eToro without having to click through time-consuming lists.

Commodities and Forex

Commodities trading on eToro includes 31 stocks, including gold, silver, copper, oil, sugar and cotton. In the forex section, it is also possible to trade almost 50 currency pairs.

Custody account costs at eToro

There is no need to spend money on a custody account at eToro itself, as there are no custody charges for the account. This fact allows for a cheap entry into the trading business without any ongoing basic costs.

Payment Methods

Deposits can be made at eToro via PayPal, credit card, wire transfer, Neteller, Skrill and Rapid Transfer. However, not all of these payment methods are available in all countries. In addition, the maximum deposit amount differs from one gateway to another. For example, via Neteller and PayPal deposits of up to $10,000 USD are allowed, if you transfer money the “old fashioned way” this limit increases to $40,000 USD.

eToro as a Copy Trading / Social Trading platform

Social trading or copy trading is not only allowed on eToro, it is even explicitly encouraged by Openbook. The platform offers lists of top traders and discloses statistics on their win rate over different time periods. Therefore, even as a layman, you can have a good chance to bet on the “right horse” and make money in social trading through eToro. At this point, however, it should be mentioned that the concept of social trading is repeatedly criticized and should by no means be considered a safe option for making money. As with any trading, social trading also involves the risk of losses.

Regulation

eToro is regulated by the Cyprus Securities Exchange Commission, or CySec, which is the financial regulator in Cyprus.

Security

Of course, security plays an important role in a trading platform. To ensure good protection, eToro relies on standard SSL encryption and 2-factor authentication. If one wants to log in to his eToro account, he not only has to enter his password, but also has to name a newly generated code that is automatically sent by SMS or email.

Deposit Protection

Deposit protection of up to $100,000 is offered at eToro, which should be more than enough for retail investors’ accounts.

eToro website

The eToro website can be accessed via browser and impresses at first glance with its sensible structure and excellent clarity. This makes it easy for new customers to find their way around and take their first actions. Currently, the eToro website is available in twenty languages, including English, German, Italian, Spanish, Polish and French.

Mobile use with the eToro app

LBitcoin Trading eToroPassionate traders don’t want to miss out on the opportunity to trade on the go and keep track of their positions at all times. The eToro app makes it easy and convenient to do just that. The app, suitable for iOS and Android devices, can be downloaded for free and is characterized by its great ease of use. After installation, all important functions can be used via the app, so that you have the broker practically always with you.

Registration and verification at eToro

Creating a new eToro account only takes a few minutes and is very easy. First, you select the green “Register” button on the home page, after which a form opens. There you enter the desired user name, a valid email address and password, check two boxes to accept the terms and conditions, the privacy policy and the cookie policy and finally click on “Create account”. Alternatively, it is possible to register with eToro using a Facebook or Google account, which involves even less effort. In any case, logging into an existing account is done via the “Login” button, which is located at the top right of the eToro website screen.

Simply registering is not enough to be able to use eToro to its full extent. The second step also requires verification, which consists of two parts:

  1. Identity proof

As proof of identity, you can use your ID card, your driver’s license or your passport, although the eToro team explicitly states that passport verification is the fastest.

  1. Proof of address

For proof of address it is sometimes bank statements, telephone bills and letters from the tax office, each no older than six months.

The documents are simply scanned and uploaded to eToro under “Verification”. The verification process starts immediately afterwards and can take a few days. Each client will be notified by email as soon as the verification is completed. Experience shows that, on average, three days elapse between submission of documents and email confirmation of verification.

How it works: Deposit money and start trading with eToro

Before starting to trade (socially), users logically need to transfer money to their account by making a deposit. To do this, log in to eToro and click on “Deposit Money”. You will then be redirected to the deposit form where you can enter the desired amount and currency. Then select your preferred payment method and confirm your entry. Depending on the selected payment gateway, the money can be accessed within a few minutes or up to two days later.

Unverified customers can deposit a maximum of $2,250, regardless of the payment gateway. And for all users, the minimum amount of a deposit via bank transfer is 500 USD, deposits via other payment methods must be at least 50 USD. In addition, the first deposit on retail investors’ accounts has a minimum amount of 200 USD, which increases to 10,000 USD if it is a corporate account.

Withdrawal at eToro broker

The withdrawal process is as simple as the deposit process. The commissions for each withdrawal are displayed during the process, so you always have a complete overview. To initiate a withdrawal, a minimum amount of 30 USD must be available, in which case a fee of 5 USD will be charged. Generally, lower amounts cannot be withdrawn. It is also important to know that a withdrawal at eToro is only possible once the account has been verified. Therefore, new customers are strongly advised to verify quickly after registration.

Buying cryptocurrencies through the trading platform

Cryptocurrency trading platformTrading on eToro is done in the “Markets” section. Cryptocurrencies, such as Bitcoin, Dash or Ethereum, are no exception. And this is how buying digital coins works step by step:

  1. Select the currency and amount

The first thing you need to do is search for the cryptocurrencies you would like to buy, select them with a click and decide on an amount. The eToro website now automatically displays the price history for the day, the last week and the last month.

  1. Start buying and enter the initial currency

Clicking “K” will start the rest of the purchase process, after which you will be prompted to select the desired starting currency.

  1. Specify the recipient’s address and accept the trade

After specifying the recipient’s address and confirming the trade, the cryptocurrencies end up in the user’s account and can be transferred from there to a wallet. Alternatively, digital money can remain in eToro, but must be exchanged back to a FIAT coin in order to be withdrawn.

Selling assets easily

Selling assets is also – as eToro’s experiences confirm – relatively easy to do. Here is how to proceed “step by step” for this:

  1. Open portfolio and view positions

After logging in, the portfolio opens, which is located on the left menu bar of the eToro customer account page. The portfolio summarizes all assets and positions currently held by the user.

  1. Brand Asset

Next, find the asset you want to sell and click “V” there. Before doing so, you can view key information, including the units you own and the profit/loss values.

  1. Confirm sale

An input window will open in which the amount of the transaction must be entered. Clicking “Open trade” confirms the sale and completes the transaction.

Social Trading: Investing in eToro Trader

As mentioned above, eToro focuses on social trading. In this process, as a user you effectively invest in a trader and copy their activities, so it is also called copy trading. With a minimum amount of 200 USD per trader copied, up to 100 traders can be copied at the same time. The maximum amount that can be invested in a trader through eToro is USD 2,000,000. Practical features make social trading through the Openbook division of the trading platform convenient and simple:

  • Copy all trades with Copy Trader
  • Copy new trades with Copy Trader
  • Pause Copy Trading
  • Pause Copy Trading
  • Copy Stop Loss

Copy portfolios invested in through the Multi Asset platform have a minimum investment of $1,000 USD, whether it is a market portfolio or a top trader portfolio.

Fees and spreads on eToro at a glance

For deposits and trading stocks & ETFs, eToro does not charge any fees and there are no fees for holding positions either. That said, users should expect these fees when trading through the platform:

  • Fees for trading cryptocurrencies: from 0.75% to 5%
  • Fees for forex trading: 1 pip and above
  • Fees for commodities trading: from 2 pip
  • Withdrawal fees: 5 US dollars
  • Fees for stocks & ETFs CFDs: from 0.9%
  • Forex trading fees: from 1 pip
  • Fees for short positions in cryptocurrencies: 0.75%
  • Nightly fees for CFD trading and social trading: fluctuates daily
  • Fees after 12 months of inactivity: 10 USD per month

eToro Club

The eToro Club is made for traders who want to take their experience of buying stocks, cryptocurrencies and the like to the next level. The Club community is divided into five different levels, starting from Silver, through Gold, Platinum and Platinum+ and ending with Diamond. The higher the level, the more exclusive features and content will be available to investors, and all eToro Club members will benefit from the following.

  • Club Control Panel
  • Special copy portfolios
  • Live chat support option
  • 85% (90% for Platinum+ and above) of cryptocurrencies
  • Annual tax report

Gold members also receive weekly market analysis, Platinum and above include a personal account manager, the Delta Pro investment tracker, the Trading Central analytics platform and a subscription to the Wall Street Journal, and Platinum+ users can also expect tickets to industry and sporting events, among other benefits. All the other benefits that come with the two highest levels of club membership can be found on eToro’s website. But how does one become a member of the eToro Club? The answer: it happens automatically as long as you have a minimum amount of your own funds. At $5,000 USD you are “Welcome to the Club”, $10,000 USD of equity makes you a Gold member and $25,000 USD upgrades you to Platinum level. The Platinum+ community includes investors with $50,000 or more of realized capital, and Diamond membership is reserved for those whose capital exceeds $250,000.

eToro Popular Investor Program

The eToro Popular Investor program is linked to social trading options and allows people with trading skills to make money by having their trades copied by other users. However, not everyone can become a Popular Investor. Traders must meet these requirements – and a few more – to do so, depending on their rank:

  • Cadet: 500 USD AUM + 1,000 USD equity
  • Champion: monthly payments of 400 to 800 USD + 50,000 USD AUM + 5,000 USD equity
  • Elite: monthly payments of 1.5% to 2% (depending on AUM) + 500,000 USD AUM + 25,000 USD equity
  • Elite Pro: monthly payments of 2 to 2.5% (based on assets) + $10 million of assets + $50,000 of equity

If you meet at least the Kadett requirements, just apply for the Poular Investor Program and you have a good chance of getting in. The money earned from this activity is deposited each month into the popular investor’s eToro account, after which the withdrawal of the amount to the deposited bank account is automatically initiated. And even apart from the financial aspect, moving up the career ladder as a Popular Investor has its advantages. Elite investors, for example, have access to free investment courses, benefit from a personal eToro account manager and are invited to exclusive conferences and events.

The eToro demo account on trial

For those who are interested in trading through the online broker but have no trading experience and are not ready to take on the high risk, eToro offers the opportunity to get started with no risk and no commission.

This is exactly what the demo account was created for. This is an eToro account with a starting capital of $100,000 that can be used to execute trades in practice mode. In other words, there is no “real” money involved; instead, the demo version is purely for practice purposes and therefore represents the optimal opportunity to gain experience with trading without paying commissions and risking losses. As is evident, of course, it is not possible to make real profits and any attempt to arrange payment of the initial capital is doomed to failure. Demo accounts are quasi-simulations that give private investors the opportunity to try things out, get to know the eToro platform and acquire the skills needed to be a successful trader. The demo turns out to be amazingly realistic and based on real-life conditions, with all the important functions – e.g. placing an order, trading ETFs and CFDs from this provider, buying and selling stocks and processing trades – present. In testing, it quickly becomes clear the value of experimenting with demo accounts, so novice retail investors, in particular, should not miss this opportunity.

eToro Support

Regardless of whether you have just registered with eToro or are already part of the community as an experienced investor, situations can always arise where you need help or have questions, for example, about costs and commissions, account management or social trading. This is when a reliable and easily accessible customer service is worth its weight in gold. For these cases, eToro offers not only classic support, but also a help center, which is the first place you should visit. There you will find answers to the most common questions and solutions to the most frequent problems in easy-to-understand articles. Thanks to the search function, you can search specifically for a keyword, so you can find out in seconds whether there is a help article that fits the topic in question. Compared to many of its competitors, eToro has made sure that this information is not only available in English, but also in German and several other languages. If you still can’t find what you’re looking for, you can contact support directly. This works for visitors without an eToro account only via a contact form, while customers with accounts can use the convenient live chat to get in touch with a member of the platform staff in a straightforward manner. Small downside: to date, there is no eToro hotline for urgent cases.

Testing and Rating eToro: What are users’ experiences?

With over 12 million users worldwide, it’s no wonder you can find a lot of eToro experiences and reviews online. Portals, platforms and blogs make comparisons, share experiences and diligently present broker reviews. For this review, we take a look at eToro experience reviews.

Registration and verification of eToro accounts

Most of the customers who have taken the trouble to share their online experiences with eToro confirm the impression we got from the test: both the registration on the platform and the verification of private investor accounts are straightforward and are done in no time. Although the processing of documents sent for verification usually takes a few days, which is sometimes criticized, but this is the norm and is explicitly pointed out, so we can only understand this point of criticism to a limited extent.

Platform content and functions

Most investors find words of praise for the broker’s range of functions: eToro offers everything a trader’s heart desires. For those willing and knowledgeable, this is a great place to delve into and access the wide range of tools and features that make trading on eToro a top-notch, high-quality experience at no additional cost.

Ease of use and operation

Traders agree that eToro’s platform is sensibly designed, creating the best conditions for easy and comfortable use. Even novice traders can get up and running quickly, which is probably partly due to the fact that the numerous optional features, which are more for advanced traders, do not hinder or complicate the main processes. Deposits, withdrawals and trades work according to a simple principle and you don’t need to be a professional by any means to be active on eToro. Therefore, in terms of ease of use and operation, eToro rightly receives an impeccable rating.

Selection of stocks, cryptocurrencies and co.

The selection of stocks, cryptocurrencies, CFDs from this provider and company leaves little to be desired. This opinion is also held by the majority of users. Especially when it comes to cryptocurrencies, eToro can score an above-average selection, while some competitors only offer the classic Bitcoin and some other cryptocurrencies. If you value a wide range of assets, eToro is definitely a broker you should take a look at.

Costs and fees

A key factor when deciding on an online broker is, of course, the costs and fees involved in using them. On this aspect, too, eToro can convince most. Investors almost unanimously rate the fees charged and the costs incurred as reasonable and are willing to pay the money demanded. The transparency with which eToro deals with the issue of fees should also be emphasized at this point. As a user, you know exactly what fees are charged at all times. There is nothing hidden or concealed here. On the contrary: you are always informed in detail and would have to close your eyes to overlook a fee. This uncompromising transparency is deservedly well received and contributes to the serious reputation of the eToro platform.

Support and Help Center

As in our test, investors who spoke online about their eToro experience were able to get in touch with eToro’s customer support without any problems. On average, if the feedback is to be believed, it takes between four and 24 hours to receive a response to a submitted request, a wait time that most users can live with just fine. The only negative aspect is the lack of a hotline. Here we see one of the few points in which eToro still has room for improvement. However, the help center with informative articles can almost make up for this deficiency and ensures that direct contact with eToro support is not even necessary in many cases.

Pros and cons of eToro at a glance

Advantages of eToro

  • Overwhelming selection of stocks, ETFs and cryptocurrencies
  • Reasonable fees and transparent pricing structure
  • No custodian fees for retail investor accounts
  • Regulated by the Cyprus Securities and Exchange Commission
  • Free demo account
  • Website in twenty languages
  • Practical eToro mobile application
  • High user experience
  • Easy deposit and withdrawal process
  • Reliable support and comprehensive help center

Contras of eToro

  • No customer support hotline

Frequently Asked Questions

Is eToro reliable?

eToro is regulated by CySec, is well protected against cyber-attacks and cares a lot about transparency and customer satisfaction, all clear signs of a highly reputable provider.

Is verification mandatory

Basically, one can create an eToro account and move around the platform without completing the verification process. However, if one wants to be active as a trader, verification becomes a mandatory requirement. Therefore, traders are advised to take a few minutes to tackle the verification process – for which, by the way, one does not have to spend money – right after registering.

How to sign up for the eToro community newsletter

Subscription to the newsletter occurs automatically when you create an account. However, you can unsubscribe with a few clicks through your personal account area settings.

Is it possible to take out investment insurance?

Yes. Users receive free insurance from Lloyd’s of London with coverage up to €1 million. This excludes cryptocurrencies.

Are there alternatives to eToro?

The competition doesn’t sleep: XTB, Capital.de and Libertex are just three of many other online brokers. Traders should do a comparison to find out which platform best suits their individual ideas and needs.

Summary on eToro: The best site for traders

A huge selection of assets – especially cryptocurrencies – fair prices, useful tools and a lot of satisfied users speak for themselves: eToro is rightly considered one of the top addresses for traders and is at the forefront, especially in the field of social trading. For beginners as well as for real professional traders, eToro is clearly worth a look.