Etoro Review 2021
Our eToro review 2021 will investigate several key areas that we consider important to the interested forex trader. Interested parties can then make an informed decision on whether Etoro is the right broker to trade with. Read closely and decide whether to choose Etoro amongst other forex companies.
What is eToro?
Founded in 2006 by Ronen and Yoni Assia, eToro has experienced significant growth since foundation and is regarded as one of the best forex brokers in the world. Where eToro sets itself apart from most brokers is through their superb social trading platform, WebTrader. Highly respected, extremely popular and groundbreaking, eToro services over 5 millions users in 170 countries worldwide.
Our eToro review has identified that at present, this forex broker is unavailable to traders in the USA. This is due to a regulatory conflict whereby the controlling regulator in the USA, the SEC, does not allow contract for difference (CFDs) instruments to be made available to US residents.
There are two separate jurisdictions under which eToro is regulated.
eToro (Europe) Ltd. is based in Limassol, Cyprus and is a Cypriot Investment Firm. The company is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 109/10.
eToro (UK) Ltd. operates out of London, England and is a registered UK business firm. The company is regulated by the United Kingdom’s Financial Conduct Authority (FCA) under reference number 583263.
Reliability and Security
Because eToro is regulated by two extremely stringent regulatory bodies, there are very strict rules and guidelines that they must abide by to continue operations. In addition, eToro clients are further protected due to the coverage afforded them by the Investor Compensation Scheme (CySec) and the Financial Services Compensation Scheme (FCA). Furthermore, all client funds are kept in segregated accounts that are maintained by highly reliable, tier 1 banks.
The protection of user data is maintained by encrypted Secure Socket Layer (SSL) technology that ensures customer data and information is kept extremely secure.
Etoro Trading Platform
When people ask what is eToro best known for the answer is obvious. The key reason for eToro’s rapid rise in the financial industry lies in its highly innovative WebTrader trading platform.
WebTrader is a social trading application that contains both eToro’s OpenBook and CopyTrader software. OpenBook allows customers to search for traders to follow, while CopyTrader is software that enables a customer to copy others trades into their followers account folder.
The brilliance of the program lies in the user’s ability to maximize their trading success by seeing others trading statistics, their current profit levels and the trading strategies that they implement. By doing so, WebTrader provides the user with the capability to accelerate the learning process and adopt other people’s strategies.
Mobile Trading Capability
eToro’s trading platform, WebTrader is also available for download in app form from the iOS App Store or at Google Play. Much like with the desktop version, the mobile app lets a trader view feeds from other traders, monitor their trading account and to interact with others.
Types of Trading
eToro provides their clients with a considerable range of trade types to choose from including, but not limited to currencies, indices, commodities, CFDs and Exchange Traded Funds (ETFs). During 2014, eToro also provided their clients with the capability to trade in cryptocurrency which is available in CFD trading as a financial security option. The 10 cryptocurrencies currently available for trade on the eToro trading platform are:
- Bitcoin Cash
- Ethereum Classic
Check out our list of the best cryptocurrency exchanges here!
To cater to beginner traders, the broker provides just two types of trading account so that entry-level customers are not left overwhelmed when it comes to making their choice on trading account. The two types of trading account offered are a standard trading account and an eToro demo account.
The eToro demo account provides customers with the opportunity to practice their strategy and familiarize themselves with the eToro trading platform prior to outlaying real money. The standard trading account requires an initial minimum deposit of $50 to activate. Potential traders just need to head to the eToro login and create an account, provide their payment details and then they are ready to get started.
Spreads and Commissions
Potential customers will be pleased to know that there are zero monthly, annual or commission charges for traders who join the eToro trading platform. Rather, eToro earns money by charging a spread on the quoted prices that they obtain from the currency marketplace.
Some of the most popular spreads, and what eToro charges per trade, are listed below:
- EUR/USD 3 pips
- EUR/GBP 4 pips
- GBP/USD 4 pips
- EUR/JPY 4 pips
- USD/JPY 2 pips
- AUD/USD 4 pips
For the convenience of their clients, deposits can be made in a variety of ways following the creation of an eToro login. They can be made via the following payment options:
– Visa, MasterCard and Diner’s Club debit and credit cards
– Bank wire transfer
– Skrill Limited UK
– China Union Pay
– WebMoney UK
Funds are usually deposited immediately into the customer’s trading account following payment.
When it comes to withdrawals, the process is relatively quick compared to many other brokers, taking approximately five days to process. Funds are typically withdrawn via credit card, PayPal or bank transfer.
When a withdrawal is made for the first time, all clients must submit a colour copy of their passport and a utility address that has been mailed to your listed address of residence. Additionally, if your initial deposit during the creation of your eToro login was paid for by credit card, a copy of this credit card must also be submitted. The cost of withdrawals is set at $25.
Promotions and bonuses
Many potential traders are keen to identify what potential bonuses are offered to clients who create an eToro login. Due to the unique set up of the WebTrader eToro trading platform, the brokerage can offer a unique opportunity for their clients to earn additional money via the “popular investor” program. This program enables a trader who allows others to copy his trade strategy to earn additional income of up to 2.3% above the annual assets under their management portfolio. Furthermore, successful investor traders also enjoy a 100% spread rebate for all trades that they enact.
What is eToro like when it comes to offering customer support? eToro provides wonderful customer telephone support service 24 hours a day, Monday to Friday. Their email response is good, with all responses to support answered within 48 hours which is impressive given the size of their client base. eToro does not provide a live chat option but they do offer support in a range of languages including English, German, Italian, French and Spanish.
– Unique, innovative eToro trading platform
– eToro demo account provided
– Low minimum deposit
– Wide range of markets and variety of options
– Well-regulated and highly secure
– Easy to use interface and easy to setup eToro login
– High spread starting at 2 pips, which is much higher than many of their competitors
– Offers no choice of alternative trading platforms
– Customer support not available on weekends and no live chat
When it comes to social trading, eToro is in a league of their own. The eToro trading platform, WebTrader, allows inexperienced traders to learn from the more experienced, successful traders within the social trading network. For the more experienced looking to further enhance their trading skills it also holds great value. But in our opinion, our eToro review finds that its real value revolves around the fact that the inexperienced trader can learn a great deal by immersing themselves in the WebTrader social trading platform making it a great first forex broker.