eToro review: CFD and forex social trading

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Follow the lead of experienced forex traders with eToro, the world’s largest social trading network.

Social trading is a relatively new investment concept, where online investors can learn from and imitate the actions taken by leading traders. eToro is the largest social trading network in the world, with more than five million active members around the world.

3.0 pips

Minimum Spreads for Major Currencies

US$200 (to CopyTrade)

Minimum Trade Size

eToro Trading Platform

Platforms

Details

Type of brokerOnline
Available markets47 global currency pairings, commodities, cryptocurrency, index CFDs, stock CFDs
Minimum Spreads for Major Currencies3.0 pips
LeverageUp to 1:30
Commission$0
Minimum opening balance50
Minimum Trade SizeUS$200 (to CopyTrade)
PlatformseToro Trading Platform
SupportLive chat
Updated February 29th, 2020
Name Product Minimum Opening Deposit Minimum Spreads for Major Currencies Commission Minimum Trade Size Platforms
eToro Forex Trading
USD 50
3.0 pips
$0
US$200 (to CopyTrade)
eToro Trading Platform
Margin FX is a complex financial product and traders are at high-risk of losing all of or more than their initial investment.
Social trading, advanced charting tools, plus receive exclusive benefits through the eToro Club (membership is tiered based on the equity in your trading account).

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Updated February 29th, 2020
Name Product Minimum Opening Deposit Commission - ASX 200 Shares Available markets Platforms
eToro CFD
US$50
No commission
ASX shares, global shares, indices, cryptocurrencies, commodities, ETFs
eToro Trading Platform
CFDs are complex financial products and traders are at high-risk of losing all of or more than their initial investment.
Join the largest social trading network in the world.

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Disclaimer: Trading in financial instruments carries various risks, and you can lose more than your capital. This article may contain general advice. You should always seek professional advice when deciding if a product is right for you.

Quick verdict

Good for
  • Copy trading feature
  • World's biggest social trading network
  • Educational material and data
Not so great for
  • Account base currency always in USD
  • No MetaTrader 4 (MT4)
  • Can't directly buy shares with Australian account

About eToro

eToro was launched in 2006 in Tel Aviv and soon became a global trading phenomenon. Today it's known for having the largest combined social network of CFD, stock, commodity and forex traders in the world, with 11 million users.

The platform made a name for itself largely thanks to its popular copy trading feature which allows users to track and imitate the actions of the platform's most successful traders.

Starting with their OpenBook platform and later their eToro trading and investing platform, they can be almost solely credited with spearheading the social trading revolution. If you're looking for more than just a standard forex or CFD broker, then the social trading elements outlined in this review are for you.

Is eToro trustworthy?

eToro is regulated by financial authorities in the US, Europe and Australia. In Australia, it's licensed by the Australian Securities Investment Commission (ASIC) under the trading name eToro AUS Capital Pty Ltd.

Among popular user review sites, feedback has been mixed. On the complaints side, reviewers primarily point to the withdraw fees, spreads and poor online customer service. The positive reviews highlight eToro's user friendly platform and OpenBook feature which allows users to share live trading news and ideas with each other.

Ratings from review sites:

  • Forex Peace Army: 2*/5
  • AU Trustpilot: 2.5*/5
  • ForexBrokers.com: 4*/5

Fund withdrawal: You can withdraw your funds at any time with eToro however the minimum you can withdraw is $50 and there is a $25 withdrawal fee. You can withdraw funds using a credit card (1-2 days), PayPal (1-2 days) or bank transfer (up to 8 days).

Note: Forex and CFD trading itself always carries risks which you should be aware of, so read up before you start investing. Do your research before signing up to any forex or CFD trading platform.

Snapshot of eToro's platform

  • Markets: 47 global currency pairings, commodities, cryptocurrency, index CFDs, stock CFDs
  • FX commission per lot: $0
  • CFD broker fee: $0
  • Spreads: From 1.0 pips
  • Minimum opening balance: $200 (to copy trade)
  • Trading platforms:eToro Trading Platform
  • Account types: Demo (unlimited), Retail, Professional
  • Mobile trading: Yes
  • Deposit methods: Credit Card, PayPal, Neteller, Skrill and WebMoney
  • Leverage: 1:1 - 400:1
  • News and advice: News and user updates via OpenBook
  • Expert advice: No
  • Support: Live chat
  • Regulation: ASIC, FCA, CySEC

eToro highlight features

As one of the most popular trading platforms in the world, eToro's platform has more than a couple of draw-cards. Here are the key account features worth highlighting:

  • Copy trading. As an eToro user you can view the trading activity of other users and then copy them to make your own, better informed trades. The trading decisions made by eToro users are uploaded to the eToro network, where you can view them in different statistical ways. If you follow other traders, eToro duplicates every trade made in the accounts you choose to follow.
  • Market data and news. The eToro platform connects you with users around the world so you can discuss, share and learn about market ideas and trading strategies. Its Twitter-like news feature on the OpenBook platform offers live user updates on which trades they're making or what markets they're keep an eye on. You also have access to training courses, research papers and price data.
  • Access to to markets. The eToro trading and investment platform provides easy access to global forex, commodities, cryptocurrency and CFD markets through any web browser. If you're on the go, you can access your eToro trading account via your mobile browser, or on the dedicated Android and iOS apps.
  • Risk management. You can edit both your desired risk level and the amount you wish to invest with each trade through the use of mandatory stop loss levels. This allows you to tailor each trade to suit your risk/reward strategy.
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What markets can I trade with eToro?

  • Forex. eToro offers traders the ability to choose between 47 forex currency pairs. Currencies are traded on eToro as CFDs.
  • Stock market CFDs. Trade individual, publicly listed companies as CFDs. eToro gives you the option of trading a number of global share market CFDs.
  • Indices. Instead of investing in individual companies, stock market indices allow you to invest in a basket, such as the top 500 US stocks in the S&P 500.
  • Commodities. If you're looking at diversifying your portfolio by investing in commodities, the options eToro has on offer include silver, gold, copper, palladium, platinum, natural gas and oil.
  • Cryptocurrencies. eToro allows you to trade cryptocurrency CFDs such as Bitcoin or Ethereum.

What are eToro's spreads and fees?

eToro does not charge any broker fees or commissions, regardless of the asset being traded. Instead it charges entirely on foreign exchange spreads. For this reason, eToro doesn't have the lowest spreads on the market, starting at 1.0 pips for AUD/USD and running as high as 50.0 pips for exotic currency pairings.

Withdrawal and deposits. eToro users trade in USD, so Australians will need to convert their AUD when they fund or withdraw from their account. The conversion rate for AUD/USD withdrawals and deposits is reasonably high at 100.0 pips. In addition to the FX fee, you'll also need to pay a US$25 withdrawal fee.

Inactivity fee. If there has been no login for 12 months, eToro charges an inactivity fee of US$10 per month until any remaining funds are removed. No open positions will be closed to cover this and the fee will stop once a user logs in.

RetailProfessional
Minimum opening balanceUS$200US$200
SpreadsFrom 1.0 pipsFrom 1.0 pips
Commission per lot$0$7
Leverage1:1 - 400:11:1 - 400:1
Minimum trade sizeUS$1 (For copy trading)US$1 (For copy trading)

What customer support options are available from eToro?

If you have a question about your account, eToro offers a help section on its website. If you can't find the answer you're looking for, live chat is available.

You can also learn more about trading forex and CFDs through the eToro Trading Academy, which provides webinars, an e-course, trading tips and a dedicated education centre.

Support options:

  • Live chat
  • Trading academy
  • No phone service

How do I open an eToro Australia account?

It's free and easy to create an eToro account. Simply apply online by clicking the go to site button at the top of this page and follow these steps:

  • Supply your full name
  • Enter your email address and phone number
  • Create a username and password

In order to satisfy financial service regulations, you'll also need to provide proof of ID so your account can be verified. To do this, you'll need to provide scanned colour copies of a government-issued ID, such as your driver's licence.

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eToro frequently asked questions

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6 Comments

  1. Default Gravatar
    Jaicingh
    January 10, 2018

    Hi
    I am having trouble logging I to my account even tried to reset my password ,
    Is the system down.
    Please advice.

    • Avatarfinder Customer Care
      Rench
      January 10, 2018

      Hi Jaicingh,

      Thanks for your inquiry. Please note that we are not affiliated with eToro or any company we feature on our site and so we can only offer you general advice.

      Please visit eToro official site and contact them directly to report an issue with your log in details.

      Best regards,
      Rench

  2. Default Gravatar
    Bob
    December 14, 2017

    I want to buy 1000 ripple and hold them for an indefinite then sell at some future time.
    How much do I have to deposit in my account (Australian dollars). They are currently 60cents US.
    What will be the purchase fees? Sales fees? Are there any other applicable fees?

    • Default Gravatar
      Ash Munoz
      December 21, 2017

      Hello Bob,

      Thank you for visiting finder.

      If you wish to buy and sell Ripple in Australian Dollars (AUD), you can directly go to Coinspot. According to their website, if you will buy 1000 XRP (Ripple), you will be paying $1257.69 (AUD) which already includes 2-3% of the total transaction. The value of Cryptocurrencies differ/ changes from time to time so it will be better to visit the exchange where you will be making the transaction to check for their current rate.

      Other fees and charges can be found on this page as it explains how you can buy/ sell through Coinspot.

      I hope this helps.

      Let us know if there is anything else that we may assist you with.

      Cheers,
      Ash

  3. Default Gravatar
    Rob
    December 9, 2017

    I am in Australia. Can I sell in Australia and what are your payment methods. For example creditcard/debit card, paypal, bank account?

    • Avatarfinder Customer Care
      Joanne
      December 11, 2017

      Hi Rob,

      Thank you for visiting finder, we are an Australian financial comparison website and general information service.

      Yes trading or buying and selling is allowed in Australia. For payment methods, you can deposit money into your eToro account by credit card, debit card, PayPal or bank wire transfer.

      Cheers,
      Joanne

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