eToro Review UK - Is It the Best Trading Platform for You?

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eToro: Our verdict

Overall, eToro is a platform with a huge user base (30 million users) and great functionality over multiple asset classes.

It’s secure, user-friendly and has a competitive fee structure. The minimum first deposit ranges from just $10 (in the USA), up to $10,000 (Israel). However, for many countries like the UK the minimum first deposit is $50.

There is also a fractional shares option for investors on a tighter budget, and can also be useful for beginner investors.

eToro is also the originator of ‘copy-trading’, which allows you to copy experienced investors’ trades or share their trading strategies and earn rewards. The brand’s social trading feature sets it apart from competitors, providing a USP that allows users to chat, share ideas, or even make money from the platform based on other profitable investors. As you’d imagine, this feature has become very popular with new and experienced investors, alike and can be seen clearly from the reviews.

Although the fees may be marginally higher in some areas when compared with the cheaper platforms, the ease of use, accessibility, and educational resources makes it an excellent choice for both beginner and experienced traders.

The main downside of eToro is the lack of an ISA or SIPP wrapper, which can be useful for UK investors.

Overall4.5/5

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• Fees
• Investment Options
• User Experience
• Security
• Customer Support
• Investment Education
• Research and Insights
• Accessibility

What’s in this article?

This article will cover many aspects of eToro to help you understand the brand better. We will address areas such as eToro’s products and features, trading tools and charts, its fees, cryptocurrency offerings, stocks, and mobile apps.

We will take a look at the brand’s standing in the UK market and user reviews on platforms like Trustpilot. We will also provide you with an unbiased and detailed evaluation of the eToro trading platform.

Finally, we will compare eToro to other leading trading platforms, discuss its CopyTrading and Smart Portfolios offering, and explore alternative platforms that you may want to consider.

How to decide if eToro is right for you?

Below, we have put together a unique perspective on the different types of products and features that eToro provides to prospective customers.

The table below covers everything from some of the basic features designed for beginner investors and traders, such as the eToro Academy, demo accounts and the social investing platform. It also covers features like their proprietary manual charting software that has been designed from the ground-up for more adept traders.

Let’s delve into the key aspects of eToro to help you make an informed decision…

eToro Pros and Cons

Who should consider eToro?

eToro can be used by traders who are looking for an easy-to-use trading platform that offers social investing features and a world-class APP.

Etoro’s copy-trading feature is a notable aspect of the platform, allowing you to connect with other traders, follow their strategies, and learn from their experiences. This makes it a great choice for traders who want to build a diverse portfolio and benefit from other traders’ collective knowledge and experience.

Another great feature of eToro is its wide range of assets, including stocks, cryptocurrencies, commodities, and more.

Who should not apply for an eToro account?

Below, is an extensive list of the countries that are currently blocked from gaining access to eToro due to regulatory is sanction reasons. Please note, eToro can also not provide access to any US citizen that resides outside of the USA.

Is eToro good for beginners?

Etoro is one of the most user-friendly trading platforms out there. It’s extremely easy to use, with a clean and intuitive interface that makes it straightforward to trade, view your portfolio, and research new trades.

One of the standout features of Etoro is its social trading capabilities. You can connect with other traders, follow their methods, and learn from their experiences, which is perfect for beginners who are just starting out.

eToro’s Academy is an education platform that has a wealth of information to learn everything you will need to become a proficient trader or investor which is another useful feature for beginners.

It’s always great to have a network of experienced traders to turn to for direction and advice. It makes the journey of learning and growing as a trader so much easier and more enjoyable.

So, if you’re a novice looking for a platform that’s easy to use, offers a wide range of assets, and has a supportive community of traders, then Etoro is definitely worth considering. Get started today and take the first steps on your trading journey!

eToro’s fees, commissions and charges

We have collated an easy-to-understand table, below, to help you get to grips with how eToro charge for different assets as well as the additional fees that may apply.

eToro is a market-maker broker (meaning that the company acts as both the buyer and seller in its customers’ trades rather than connecting them with other buyers and sellers in the market).

In addition to the fees listed below, dividends may be credited or debited from your available balance. This means that you may receive or be charged additional fees related to the dividends on your investments.

It is also important to note that fees may be associated with transferring crypto and using the eToro Money wallet service.

Trading jargon: ‘Pips’ and ‘points’ explained

A pip (percentage in point) is a unit of measurement used in trading to express the change in value between two currencies. In most currency pairs, a pip is equivalent to a one-point change in the fourth decimal place (0.0001) of the exchange rate.

Example: If the EUR/USD currency pair moves from 1.1000 to 1.1001, that 0.0001 increase represents a one-pip change.

A point, on the other hand, refers to the smallest price movement in any financial market, such as stocks, indices, or futures. It can have different meanings depending on the context and the asset being traded. In the stock market, a point typically represents a one-unit change in the price of a stock or index.

Example: If the price of a stock increases from $100 to $101, it has moved up by one point.

What can you invest in with eToro?

We have collated the information of the most popular assets that eToro’s customers invest in and trade, so you can see whether your desired asset is available within their platform:

More information on the types of assets you can invest in

You can trade over 30,000 stocks on eToro, easily finding them via a search box or simply browsing by sector or exchange. They also offer stocks-based portfolios curated by leading eToro analysts. These are great ways to follow market trends which interest you without paying portfolio management fees.

eToro offers a range of ETFs that track various markets and industries.

When trading forex on eToro, you are not directly buying or selling physical currencies. Instead, you trade Contracts for Difference (CFDs). These derivatives allow you to speculate on the price movements of currency pairs without owning the underlying currencies themselves. You’ll find about 50 currency pairs on eToro.

It is worth noting that eToro’s forex fees are high compared to some competitors which will put some off. But if you want to follow other forex traders via the platforms’ Copy Trading functionality, you can copy top traders positions automatically.

The maximum leverage that eToro offers is currently x30 for major currency pairs.

eToro offers trading in commodities such as gold, oil, and more.

You can trade major indices, such as the S&P 500 and the NASDAQ, as well as regional indices from around the world.

eToro offers a reasonable range of cryptocurrencies, including Bitcoin, Ethereum, Ripple, and more.

What formats of trading are available with eToro?

eToro provide contracts for difference (CFDs), however, they only provide Options to US customers and they do not provide spread betting in their platform.

What is eToro and How does it work?

eToro is a leading online trading and investing platform that boasts 30 million users from over 140 countries worldwide.

eToro allows prospective investors and traders to access 5,000 instruments across 3,000 tradeable assets, including currencies (forex), stocks, commodities, crypto assets, indices and exchange-traded securities. eToro offers a comprehensive experience in the trading and investing space whilst utilising contracts for difference (CFDs) and caters to a wide range of needs. But is it right for you?

Financials

Globally, eToro experienced its best year ever in 2021, executing 550 million trades which represents a 69% increase from the previous year. The platform also generated $1.2 billion in commissions in 2021, marking a year-on-year growth of 105%.

eToro (UK) Limited: As a subsidiary of eToro, the firm achieved a net income of $264.2 million in 2021, representing a significant increase of 531% from $41.9 million in 2020. To support this impressive growth in the UK market, the firm has reflected the increase in their cost base for operating expenses, which rose from $39.8 million in 2020 to $258.0 million.

Demographics and community

The median age of eToro’s global users is 35 and 86% of the community is male worldwide. Nonetheless, eToro is dedicating significant resources to increase the number of female users by launching a community called #InvestWithHer, which is created and led by women, for women.

On 5th July 2022, eToro Group declared that it would no longer finalise the SPAC (Special Purpose Acquisition Company) deal with FinTech Acquisition Corp. V, which had been announced earlier. eToro cited the circumstances at that time, which led to the decision that completing the merger would not benefit the company. Consequently, eToro opted to terminate the merger agreement and maintain its status as a private enterprise for the foreseeable future.

eToro Group has a robust balance sheet that allows it to keep investing in its products and pursue its growth strategy. The company has demonstrated its resilience to several market cycles and adverse conditions in the past, including bear markets and periods of low cryptocurrency activity, referred to as ‘crypto winters.’

With its diverse range of products, extensive global reach, and strong social features, eToro Group has established a solid foundation that positions it well for further expansion in the years ahead.

A little background on eToro

Founded in Israel by Yoni Assia, Ronen Assia, and David Ring, eToro started as a simple trading platform and has evolved into a global fintech company. Over the years, eToro has expanded its product offerings and geographical presence, now catering to clients in more than 100 countries. The platform initially focused on forex trading but has since diversified its offerings to include various asset classes and innovative features.

Getting Started on eToro

We have summed-up the eToro setup process into 9 steps to get you started, below.

9 steps to register an account with eToro

1. Visit www.eToro.com and click ‘Start Investing’, ‘Join Now’ or ‘Trade Now.’
2. Access the electronic form for entering personal data.
3. Fill in the required information; Facebook or Gmail logins are optional.
4. Review eToro’s Terms & Conditions and privacy policy.
5. Agree to the terms by checking the appropriate box.
6. Click “sign-up” to submit your information.
7. Begin the KYC (Know Your Customer) process as per EU regulations.
8. Provide Confirmation of Residence and Proof of Identity for KYC.
9. Complete a questionnaire to help eToro tailor services to your profile, including investment goals and risk tolerance.

Getting started on eToro is as simple as users providing an email address, choosing a username, and creating a password. To fully unlock the platform’s features and comply with regulatory requirements, you’ll then need to complete the account verification process, which involves providing personal information, such as name, date of birth, and address, as well as uploading proof of identity.

What is eToro’s minimum deposit amount?

The initial required minimum deposit ranges from just $10 in the USA, right up to $10,000 in Israel. However, for residents of countries like the United Kingdom, the minimum first deposit on eToro is $50.

After the initial deposit, the minimum deposit amount is $10 (in the UK and USA) and for all other countries it’s $50. However, when depositing via bank transfer, the minimum amount required is $500 for all countries (conversion fees may apply if depositing in a currency that is not US dollars).

We have collated all the information you will need on first-time deposits, so you can use the table below to see what your minimum first deposit will be.

Please note that these requirements apply to personal accounts. For corporate accounts, the minimum first deposit amounts differ.

eToro demo account

As a new user on eToro, you have the option to create a demo account, which provides you with virtual funds to practice trading and investing without risking real money. This is an excellent way to familiarize yourself with the platform’s features, test your trading strategies, and gain confidence before diving into real trading. To access the demo account, simply log in to your eToro account and switch to the “Virtual Portfolio” mode.

eToro UK security and safety

eToro is considered a safe broker for trading forex and CFDs. As soon as your money enters eToro it is placed in a separate account so that it is protected in the unlikely event if the firm was to become insolvent.

eToro is regulated by tier-1 and tier-2 financial authorities, including the UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC), providing extra security for traders. Aside from the FCA and ASIC, eToro is also regulated by CySec (Cyprus), GFSC (Gibraltar), FinCen and FINRA (United States). So, they are pretty heavily regulated across all countries and this makes them one of the safer choices in this space.

While FCA protection only covers you up to £85,000, eToro offers additional indemnity insurance of up to EUR 1 million per client, providing traders with added peace of mind.

Crypto Security – When it comes to protecting your crypto assets on eToro, they take things very seriously. They use a two-pronged approach by storing some of your assets in a “warm” online wallet and some in a “cold” offline wallet. This way, even if an eToro employee were to attempt to transfer funds, they wouldn’t be able to access the offline assets. And to keep you extra secure, eToro has top-notch monitoring systems in place to catch any shady activity, such as money laundering or double-spending.

Security Protocols – eToro employs advanced encryption technologies and robust security protocols to safeguard users’ data and transactions. Additionally, the platform uses two-factor authentication (2FA) for added account security, ensuring that only you can access your account.

eToro’s CopyTrading and Smart Portfolios

One of eToro’s standout features is its social trading capabilities, which allow you to follow and copy the trades of successful traders on the platform.

CopyTrading enables you to automatically replicate the trading activity of your chosen ‘Popular Investors’.

Smart Portfolios are investment portfolios created by eToro analysts, which are characterised by their innovative nature and long-term focus. These portfolios have their own distinct investment strategies and offer a diversified and convenient means of accessing major market trends that are currently shaping our world. Unlike traditional portfolio management options, Smart Portfolios do not require payment of any management fees.

Both options offer a way to diversify your investments and potentially benefit from the expertise of experienced traders.

What’s the eToro app like?

Etoro offers two different mobile apps for its users: the Etoro Money app and the Etoro Investing app.

The Etoro Money app is designed for managing and using funds on the Etoro platform.

The Etoro Investing app, on the other hand, is designed for trading and investing.

The user experience of both Etoro apps is excellent, with a clean and user-friendly interface that is easy to navigate. We rate their APPS as the best in the business, with a clear and concise layout that makes it easy to access the various trading tools and features. Additionally, the Etoro apps offer a high level of customization, allowing users to tailor the app to their specific needs and preferences

How good is eToro’s customer service?

eToro’s live chat is available 24 hours daily, from Monday to Friday. You can also submit a ticket to their Customer Service Center: eToro promises to get back to you within 48 business hours to the email address registered on your account.

Lastly, if you’re an eToro Club member at the Platinum level or above, you have the added convenience of communicating directly with your account manager via WhatsApp.

Some users report longer than average wait times, especially in the lower club tiers. Some users report a 7-day response time instead of the promised 2 days, and the live chat can be unresponsive.

What are the customer reviews like for eToro?

Etoro has an excellent rating on Trustpilot, with a 4.3-star average from over 19,000 reviews.

61% of users gave it 5 stars, while 23% gave it only 1 star.

Positive reviews speak of ‘no hidden costs’, ‘easy to use and intuitive’ and even additional benefits of a ‘dedicated UK account manager’. Quite a number of reviews mention being invited to special events such as seeing Ed Sheeran at the O2 arena and say things like ‘eToro takes care of its customers’.

Some of the one-star reviews criticised the lack of a UK-based phone line, unresponsive chat service, and being stopped out of trades without warning.

eToro alternatives

If you’re attracted to eToro for the copy trading, you should consider platforms like NAGA or AvaTrade.

For the commission-free aspect of eToro, we think Trading 212 is the best alternative, offering even lower costs.

Read our full article on eToro vs Trading 212

eToro review summary: Should You use eToro?

Overall, eToro is a platform with a huge user base (30 million users) and complex functionality over multiple asset classes. It’s a proper trading platform and, therefore, less suitable for someone who just wants to buy and hold investments over the long term.

It’s secure, user-friendly and has a competitive fee structure. It requires only a £50 minimum deposit which is lower than many brokers and also allows fractional shares, which can be useful for beginner investors.

eToro is also the originator of ‘copy-trading’, which allows you to copy experienced investors’ trades or share their trading strategies and earn rewards. The brand’s social trading feature sets it apart from competitors, providing a USP that allows users to chat, share ideas, or even make money from the platform based on other profitable investors. As you’d imagine, this feature has become very popular with new and experienced investors, alike and can be seen clearly from the reviews.

Although the fees may be marginally higher, in some areas, than the cheapest platforms, the ease of use, accessibility, and educational resources makes it an excellent choice for both beginner and experienced traders.

The main downside of eToro is the lack of an ISA or SIPP wrapper, which can be useful for UK investors.

NB: Please note that trading with Contracts for Difference (CFD) products carries a high level of risk to your capital and is not suitable for everyone. You should only trade with money you can afford to lose and ensure you fully understand the risks involved.

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