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eToro review for Australians

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We look at the fees, features, pros and cons of one of the world’s biggest online trading platforms.

Update (18 May 2020): eToro is now offering $0 brokerage share trading on its Australian platform. This means that you have the option to buy and sell stocks directly, instead of trading them through CFDs.

Good for

  • $0 commission on US stocks
  • Copy trading feature
  • World's biggest social trading network
  • One account for stocks, forex, CFDs, cryptocurrency

Not so good for

  • You can only buy US stocks
  • Account base currency always in USD
  • No MetaTrader 4 (MT4)

FYI: Buying and selling stocks directly is different to trading CFD stocks. CFDs are leveraged products where traders speculate on the price movements of underlying assets like stocks, without ever actually owning them.

Important
CFDs and forex are risky investment products and most clients lose money trading with this provider. Consider whether this is right for you before making a decision.

N/A

Standard brokerage fee

NASDAQ
NYSE

Available Markets

Email

Support

Details

Type of brokerOnline only
ASX productsN/A
Available MarketsNASDAQ
NYSE
Standard brokerage feeN/A
SupportEmail
Data indicated here is updated regularly
Name Product Standard brokerage fee Standard brokerage for US shares Inactivity fee Currency conversion fee Markets
eToro Share Trading (US stocks)
N/A
USD 0
USD 10 per month if there’s been no login for 12 months
0.50%
Forex
CFDs
US shares
Zero brokerage share trading on US stocks with trades as low as $50.
Note: This broker offers CFDs which are volatile investment products and most clients lose money trading CFDs with this provider.
Join the world’s biggest social trading network when you trade stocks, commodities and forex from the one account.
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Data indicated here is updated regularly
Name Product Minimum Opening Deposit Minimum Spreads for Major Currencies Commission Minimum Trade Size Platforms
eToro Forex Trading
USD 50
1.0 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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Data indicated here is updated regularly
Name Product Minimum Opening Deposit Minimum Opening Deposit Commission - ASX 200 Shares Available markets Platforms
eToro CFD
USD 50
USD 50
No commission
ASX shares, global shares, indices, cryptocurrencies, commodities, ETFs
eToro Trading Platform
Disclaimer: Volatile investment product. Most clients lose money trading with this provider.
Join the largest social trading network in the world.
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Disclaimer: CFDs and forex are complex financial products that come with a high risk of losing money. Most retail client accounts lose money trading CFDs and forex. Consider whether you can afford to lose your money.

About eToro

eToro was launched in 2006 in Tel Aviv and soon became a global trading phenomenon. Today it has the biggest social network of CFD, stock, commodity and forex traders in the world, with 13 million users worldwide.

The platform soon made a name for itself after spearheading the social trading revolution with its popular copy trading feature which allows users to track and imitate the actions of the platform's top traders.

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

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.

What markets can I trade with eToro?

  • US stocks. Directly buy and sell US stocks listed on the NYSE and NASDAQ.
  • Forex. Currencies are traded on eToro as CFDs and you have 47 forex currency pairs to choose from.
  • Stock CFDs. Trade individual, publicly listed companies as CFDs. eToro gives you the option of trading a number of global share market CFDs.
  • Indices. Stock market indices allow you to trade a basket of companies, such as the top 500 US stocks in the S&P 500.
  • Commodities. eToro offers silver, gold, copper, palladium, platinum, natural gas and oil.
  • Cryptocurrencies. eToro allows you to trade cryptocurrency CFDs such as Bitcoin or Ethereum.

eToro highlights

Here are the notable account features worth highlighting:

  • $0 brokerage. There's no broker (aka commission) fee when you trade stocks.
  • Copy trading. You can follow the trading activity of other users and imitate their trades if they have a good track record. The trading decisions made by eToro users are uploaded to the eToro network, where you can view them in different statistical ways.
  • Market data and news. eToro's platform connects you with users around the world so you can discuss, share and learn market ideas and trading strategies. Its Twitter-like news feature on the OpenBook platform offers live user updates on which trades your peers are making and the markets they're keep an eye on. You also have access to training courses, research papers and price data.
  • Access to to markets. From the one account you can trade US stocks, global forex, commodities, cryptocurrencies and CFDs through any web browser or mobile phone (iOS and Andoid).
  • Risk management. You can choose your desired risk level and the amount you wish to invest with each trade through with mandatory stop loss levels. This allows you to tailor each trade to suit your risk/reward strategy.
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What are eToro's spreads and fees?

eToro does not charge any traditional 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 forex spreads on the market, starting at 1.0 pips for AUD/USD and running as high as 50.0 pips for exotic currency pairings.

Deposit fees. There's no fee to deposit money into your account but eToro users trade in USD, so Australians will need to pay a currency conversion fee of 0.5% for wire transfers or 1% for any other method such as PayPal or card.

Withdraw fees. The same currency conversion fee applies again to withdraw funds. You can withdraw your funds at any time however the minimum you can withdraw is AUD30 and there is a AUD5 withdrawal fee. You can withdraw funds using a credit card (1-2 days), PayPal (1-2 days) or bank transfer (up to 8 days).

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.

Stocks versus CFD stocks

eToro's platform is unique from most others in Australia's market because you can trade contracts for difference (CFDs) and stocks from the one account, so it's important to understand the difference.

CFDs are risky leveraged products that allow you to speculate on the price movements of stocks and other assets such as cryptocurrencies and commodities without ever owning them. Because they're leveraged, both your profits and losses are magnified and you can lose more than your initial investment.

When you trade stocks, you own the underlying asset and your profits can only be equal to the price rise of the stock. This also means you can't lose more than your initial investment.

On eToro's platform you have a choice of adding leverage when you trade stocks. If you choose 1X leverage, you're buying the real stock and you'll see the message 'You are buying the underly asset'.

If you choose to add leverage above 1X, you'll automatically switch to CFD trading as you can see in the image below:

Picture not described

Trading real stocks on eToro.

Picture not described

CFD trading on eToro.

Account comparison

When you sign up to eToro you have the option of opening a retail account or professional account. Below is a comparison of the fees, minimum deposits and spreads.

RetailProfessional
Minimum opening balanceUS$200US$200
SpreadsFrom 1.0 pipsFrom 1.0 pips
Commission per lot$0$7
Leverage1:1 - 30:11:1 - 400:1
Minimum trade sizeUS$50 (For share trading)US$50 (For share trading)

What customer support options are available from eToro?

If you have a question about your account, eToro has a help section on the platform. You'll see a live chat option but this isn't available for Australian users at this stage.

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

Support options:

  • Trading academy
  • Email
  • No phone service
  • Live chat not yet available in Australia

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
  • Supply proof of ID and tax file number

In order to satisfy financial service regulations, you'll need to answer a few questions about how much experience you have trading stocks and other products such as CFDs as well as a short quiz that you'll need to pass to qualify for an account.

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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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