eToro review

Tradable instruments

eToro is one of the largest and most well-known brokers, quickly gaining popularity among a large number of users, primarily due to its innovative approach focused on novice traders. Although it is a relatively young company founded a few years ago, it is currently the most visited broker offering trading in Forex, stocks, commodities, cryptocurrencies, indices, and ETFs.

• As one of the largest brokers in the market, eToro offers hundreds of tradable instruments, including a vast array of CFD stocks, indices, traditional commodities, currency pairs, and ETFs. A significant advantage offered by eToro is the ability to utilize multiple filters, allowing you to view only the financial instruments that interest you at any given time.

• In Forex, it's worth mentioning over 30 tradable currency pairs, which may not be too many; however, you will find all the most traded currency pairs in the offering. For traders who don't want to invest too much initially, leverage up to 1:30 will certainly come in handy.

GET A DEMO ACCOUNT AT ETORO
eToro is a multi-asset investment platform. The value of your investments can rise or fall. Your capital is at risk.

The trading platform at eToro is ideal for buying real stocks as well as trading Forex, precious metals, ETFs, and CFD contracts. The eToro platform is packed with technologically advanced trading features that help you trade and analyze underlying assets directly on the platform.

• Stocks: eToro offers a wide range of stocks available for purchase, providing access to global exchanges from many countries. You can also invest in fractional shares, enabling you to buy more expensive stocks if you don't have the capital for a whole share.
• Commodities: At eToro, you can trade Agricultural commodities, Industrial commodities such as oil, silver, gold, platinum, palladium, natural gas, cotton, sugar, cocoa, copper. In total, more than 16 commodities. For trading precious metals at eToro, you can use leverage and speculate on both the rise and fall of prices.
• Currency pairs (FOREX): More than 30 currency pairs available. Trade on leverage, speculating on both the rise and fall of prices.
• Cryptocurrencies: Over 50 real cryptocurrencies, buying without leverage at competitive prices. Unable to speculate on the decline of cryptocurrencies.
• Indices: More than 10 global exchanges and their indices available.
• ETFs: A wide range of ETFs covering various industries.

CopyTrading

Broker eToro has introduced the CopyTrader tool. This tool, as the name suggests, is used to replicate the actions of experienced traders in proportion to your financial capabilities. eToro provides an overview of top traders in a given month along with all the results, graphs, success rates, etc.

eToro not only offers its brokerage services but also social trading services. On the eToro platform, you can see the performances and portfolios of other traders, all from the comfort of your home. You can follow other traders, be friends with them, and leverage their trading experiences.

How does eToro CopyTrading work?

eToro introduces the revolutionary concept of Copy Trading, which allows for the automatic monitoring and copying of traders of your choice. Simply put, it enables trading in financial markets by delegating trading decisions to experienced traders from around the world.

On the information channel of the eToro platform, you can see the basic components of social trading, such as real-time monitoring of other traders' activities and the option to copy their trades. Only on eToro can you monitor other traders' activities and keep track of their latest moves using a watchlist that you can create.

Another useful feature is the ability to copy trades, which is based on eToro's patented technology known as CopyTrader™. This tool allows for the automatic replication of successful traders' actions and taking similar positions as theirs. For those who want to trade online but lack the time or knowledge, this feature is the ideal solution. Simply copy your favorite traders and benefit from their experience and know-how.

Fees

It's no surprise that spreads constitute the majority of fees on eToro. This is a common practice on many trading platforms. These fees apply to over 2000 assets available on eToro. The spread ratio for the EUR/USD currency pair is around 1.0 pips - spreads are variable. This is actually a higher value than what you'll find on most other trading platforms within the industry. We assume the higher fees are related to the social trading feature that eToro offers. On the other hand, we are pleased to announce that there are no commission fees or account management fees.

eToro lags behind its competition slightly in terms of transaction fees and services offered. Notably, there's a higher spread on Forex currency pairs, starting at three pips for the most traded pairs. Similar to competitors, eToro also requires you to be prepared for fees charged by the broker for holding positions overnight.

These fees may change, and it's necessary to monitor any updates on the website. Additionally, eToro charges for long inactivity on your account. During extended inactivity, you'll incur a penalty of $10 per month. It's worth noting the somewhat negative evaluation of the withdrawal fees charged by eToro, which amount to 10 USD.

Fee Type	Amount
Inactivity Fee	$10 per month after 12 months of account inactivity
CFD Trading Fee	Currencies: from 1 pip (percentage point) Commodities: from 2 pips Stocks and ETFs: 0.09% (leveraged purchases)
Stock and ETF Trading Fee	Free
Withdrawal Fee	$5
Deposit Fee	Free

Trading platform

eToro, a leading platform for asset trading, opens doors to endless investment opportunities. With over 5,000 available assets including stocks, and CFDs on commodities, currencies, and cryptocurrencies, eToro offers a wide range of options for investors of different profiles and preferences. One of the key attractions is its low and transparent fees. Investors can trade with minimal costs and clearly see the fees associated with their transactions. This provides certainty and transparency, which is crucial for many investors.

Trading Application

The primary trading platform on eToro is their proprietary trading application, a social trading platform that allows you to connect with investors and traders from around the world. The eToro platform offers a wealth of useful tools including top trader search engines, which can then be followed and automatically copied their trades using the CopyTrader feature.

The eToro platform is not only designed for experienced traders. With features designed for both novices and experts, eToro provides a user-friendly environment for all levels of experience. Beginners can take advantage of educational materials and demo accounts to familiarize themselves with the markets, while experienced traders can use advanced analytical tools and strategies. eToro is a platform that allows you to easily monitor all your trades and manage and analyze your entire trading portfolio.

Passive Investing

For those who prefer passive investments, eToro offers pre-made Smart Portfolios™. These portfolios are constructed based on modern investment strategies and are automatically managed, allowing investors to achieve diversification and optimization of their portfolio without the need to spend hours analyzing the market.

Mobile Application

With eToro, you can also rely on the benefits of mobile trading. eToro offers apps for Android and iOS. You'll also have access to all discussion posts, news, etc., at your fingertips. You can find the Android and iOS apps for free in the stores of both operating systems.

Trading through the eToro broker is suitable even for beginners, who will surely appreciate the opportunity for education and e-learning courses. In the "Learn" tab on the eToro.com website, you'll find a range of useful materials, such as application guides and manuals that will familiarize you with the basics of Forex trading. Among other things, the broker also offers the option to test your newly acquired knowledge through a training mode.

Dividends at eToro

On the eToro platform, you can earn dividends by investing in stocks, ETFs, or indices that pay out dividends. If you hold CFD positions, the dividend payout will be reflected in your balance on the dividend's ex-date.

In the case of holding physical assets instead of CFDs, you will receive the dividend yield directly on the payment date. However, it's important to have these specific assets (e.g., stocks) in your portfolio at least two days before the dividend's ex-date. Dividends are only paid out on physical assets that are not volume contracts (CFDs).

Dividends on eToro may be subject to taxation in accordance with the applicable laws of the country. The percentage of withholding tax varies depending on where the company paying the dividends is domiciled. For U.S. dividend-paying stocks, the basic rate of withholding tax is 30%. However, typically, if you have completed the eToro W8BEN form, only a 15% withholding tax will be applied to your dividends. Your returns will be credited to your account net of tax, so you don't need to pay tax separately; just report these income in your tax return.

Country	Dividend Tax Rate
Belgium	30%
Denmark	27%
Finland	30%
France	28%
Hong Kong	0%
Ireland	25%
Italy	26%
Canada	25%
Germany	26.375% (25% + surcharge)
Netherlands	15%
Norway	25%
Portugal	25%
Austria	27.5%
Spain	19%
England	0%
Sweden	30%
Switzerland	35%

Credibility and security

eToro ranks among the most trustworthy online brokers in the market. Over its existence, it has amassed an incredible +30 million trading accounts, partly due to its provision of services to customers across almost the entire globe.

In Europe, eToro is regulated by CySEC and MiFID, authorities that ensure your investments are in absolute safety. eToro also employs advanced encryption typical of online brokers and guarantees absolute privacy protection to all its customers.

In the highly complex trading world, customers need professional hands-on support, people who are well-versed in the system. eToro offers customer service that can be contacted via chat and email.

While it may not be the most convenient, as other brokers guarantee customer support 24 hours a day, eToro assures its traders that they can get answers as quickly as possible, despite the large volume of emails, chat requests, and calls handled every day.

Withdrawals from the eToro Platform

You can withdraw money from eToro via credit card, PayPal, or bank transfer. We would recommend withdrawing to PayPal, as bank transfers and credit cards can take up to 8 days.

In addition to withdrawal processing fees, which you see at checkout, conversion fees may also be charged if, for example, it is necessary to convert USD to EUR, etc.

Customer support

The way eToro extends a helping hand to novice traders is one of its main strengths. If you ever need assistance, there's a discussion forum, public, and private chats available. You can rest assured that there will always be someone on hand to guide you in the right direction, whether it's a more experienced trader or a member of the eToro customer support team.

As mentioned in the introduction to the review, eToro offers a website with support in Czech. However, as a de facto social network, eToro offers a vast array of ways to address any issues. Live chat, well-crafted FAQs, email and phone contact options are standard, but there are also online guides and video tutorials. Another interesting feature is the so-called Customer Noticeboard, where you can leave your question or comment, to which eToro employees respond very quickly.

Conclusion + review summary

The company eToro has successfully created a sensation out of its trading system by meeting the requirements and needs of customers at any experience level. They've done this seamlessly from registration, through the trading process, to withdrawals. With such an easy-to-use and manageable trading platform, eToro is a very beneficial tool for those looking to try trading in a safer and simpler environment.

Despite some flaws (relatively high spreads), eToro is an online broker that meets the strictest criteria and adds something extra.

It revolutionarily stands out from the rest of the market by being, in essence, a social network where you can find your "friends," or if you will, favorites and followers, whose trades you can copy, or be copied by them, and earn decent money from your followers.

With many educational materials and the option to open a DEMO account and observe trades of other users, eToro is an ideal opportunity for novice traders who will surely appreciate the chance to educate themselves and learn from the best.

What is Copying Stop Loss?

Copying Stop Loss (CSL) works similarly to a regular stop loss. So, if you copy one or more trading strategies of a popular trader, you can set a stop loss for each copied trade to avoid higher losses if the popular trader's prediction is wrong. * The Stop Loss feature is not guaranteed in the case of market slippage.

How do I get paid as a Popular Investor?

Popular investors are paid once a month. The money is transferred to their trading account. These funds can then be withdrawn using the usual payment methods. The amount of these rewards is related to the level of popular investors.

Is eToro a trustworthy and secure platform?

Yes, eToro is a trustworthy platform with a good reputation. It provides users with a wide range of tools and features for trading and investing. However, like all investment platforms, it has its risks, although it is secured and regulated. Investing always carries a certain degree of risk, and it is important for users to make their investment decisions thoughtfully and informatively.

Notice

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. 74% 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.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

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

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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.

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