eToro is an online brokerage platform that operates since 2007. The platform offers multiple assets to be traded (including basic stocks, commodities, indices, more complex CFD’s and progressive currencies), many assisting tools and several innovative features, such as social trading (with options to copy other traders or portfolios). The company was founded in Israel and operates globally, with registered headquarters in Tel-Aviv and London.
eToro platform has build its recognizable reputation amongst more than 9 million users globally by offering top-notch services, multiple trading instruments from markets all over the world, impressive innovative features and a user-friendly accessible graphic interface for clients with varying levels of experience.
Below you can find a short overview of some of the key features of the platform and services that it offers.
(NOTE: Before we continue, we have to give a disclaimer that the trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. CFDs are complicated instruments that are never guaranteed to provide you supplemental earnings. In fact, Around 67% of all retail investors experienced a loss while trading CFDs. Make sure to keep this in mind before attempting to use the eToro platform yourself. All the information found on this website is not official trading advice and all practices shown are referenced for the use of the Demo account only.)
eToro offers a wide variety of assets of multiple categories to be traded on the platform, ranging from some of the most established stocks and commodities, to newer currencies or more complex CDFs. Some of them can be traded in both long and short positions (stocks, currencies, ETFs), allowing to hold ownership of the actual asset, and some can be traded only using CDFs (commodities, currencies, indices).
eToro furthermore allows to trade with leverage i.e. capital borrowed from the broker to open positions with greater exposure than the one achieved with the actual amount of investment. It can be used for trading in both short and long positions. Each trader has the option to choose leverage multiplier for their trades, however some assets offer greater degree of leverage than others. For example, stocks can be traded with x1, x2 and x5 leverage, while currencies can be traded with up to x30 leverage multiplier.
eToro’s selection of trading instruments is suitable for traders with varying duration of investment horizon. There are options available for day traders as well as investors into short and long term options.
Fees and commissions
Commissions charged for trading depend on the type of asset in question. But overall, the following fees apply:
- No commissions on stock trades
- No management or additional broker fees, even when you copy other traders or ready-made portfolios
- eToro charges spreads on currencies, commodities, indices and CFDs (stocks and ETFs); the exact amount depends on the asset
- Overnight fees and weekend fees are charged to cover for the interest expense of keeping CFD positions open overnight / over weekend.
- Some conversion charges may apply depending on the currency used in your bank account, as eToro operates in US dollars by default. Otherwise, a 5$ withdrawal fees is applied for each transaction.
eToro’s unique feature allows traders to interact and share their trading experiences with each other. The platform provides an option for its users to share their knowledge and experience, as well as copy each other’s trades, hoping to create a supportive and collaborative community amongst its users.
Every trader can access the news feed, where any trader is free to show their successes, discuss doubts or share major updates, related directly to trading and to the market overall. You can access it on the left side of the trading interface.
This innovative feature allows you to replicate the trades of well performing traders and view their actions in real time. You can choose the trader of your preference, decide on the amount you would like to invest and the traded positions of the chosen trader will be replicated. The pleasant addition is the absence of any management or hidden costs to execute this option.
These ready-made portfolio comprise an assembly of various assets to invest into. These could be either portfolios of best performing traders (with each trader’s positions replicated as a fraction of the total portfolio) or market portfolios with a variety of financial assets. These options offer various benefits, including diversification and risk minimization, reduce the time spent on researching, analyzing and balancing investments and so on.
This option allows you to earn income by allowing others to copy your investment portfolio i.e. being copied by other traders. You have to satisfy certain conditions, such as the total time you have traded, risk score and the amount of leverage used.
Depending on your success and meeting certain criteria accordingly, your level can change from Cadet, to Rising Star, Champion and finally Elite Popular Investor. The higher your rank, the greater your rewarding payment is.
Safety and Data Protection
Despite the possibility to share their trading successes, every trader can maintain their profile private, making their account invisible to other users and not available to be copied either.
There are several steps of verification for each trader opening their account to confirm their identity to ensure security for all users of the platform. This is not a lengthy process however, but it does require you to submit several documents and identity documents.
eToro uses SSL data encryption and multiple firewalls for sensitive data transmission.
eToro offers several security mechanisms to protect you account, such as for example the two factor authentication mechanism during signing in.
Since eToro is registered in multiple countries, there are likewise several regulatory authorities checking its performance, in particular FCA, ASIC and CySEC. The mechanisms of protection for each client depends on their geographical location.
Hopefully this article gave you an overview of key aspects of eToro platform, do not forget about the associated capital loss risks and you do enjoy trading!
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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. 67% 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.
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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