Registration, financial regulation
EToro social trading services have been offered in the financial market since 2007, but the company focuses only on collective trading, popularization of market knowledge and short-term investment. The broker’s activities are regulated by the CySEC and FCA licenses, complies with ESMA rules (protection against negative deposit balances), but the official location of the company in Cyprus reduces the level of trust in it.
Warranties and insurance
eToro broker acts as a market maker and announces the protection of customer investments outside the EU, but the conditions and procedure for providing such guarantees are complex and opaque. In the EU and UK jurisdictions, the company guarantees investment protection of up to € 20,000 or £ 50,000. The company does not offer additional transaction insurance at the expense of eToro’s funds or private insurance funds. There is no protection against speculative losses except eToro Take profit or StopLoss in the interface.
eToro minimum deposit: for a trading account $200 ($50 for Australia) and $50 for investors.
It offers 47 currency pairs, 19 CFDs for goods/indices, almost 1500 shares and eToro crypto currency 77 CFDs. In the US jurisdiction, provides its customers only access to crypto currencies. CopyPortfolio application expands the list of assets because its algorithms give wider access to markets outside the CFD format.
Losses on spreads (floating) and swaps/commissions are much higher than those offered by ordinary exchange brokers, for example, on the popular EUR/USD − 3 points, S&P500 − 75 points. Now the company is trying the option of trading without a commission using borrowed funds, but with a higher swap on business days.
Technically, eToro UK is significantly inferior to conventional brokers. The trading platform works as an aggregator of trading signals and allows any participant to easily connect to the process of copying transactions or investing. The client independently forms a packet of signals for himself and determines a comfortable level of risk. eToro stop loss for cryptocurrencies at least 25% of the current price. All customers have access to eToro demo account.
Copying trades (eToro copy trade rservice) and risk control are implemented on standard trading accounts in real-time.
EToro software is based on web technologies and is focused on ease of use, which is convenient only for customers with basic knowledge. The eToro app is not a trading platform, but a communication centre with minimal options for customizing the interface. For example, there is no function of testing strategies on the price history, although performance data from CopyTraders and CopyPortfolios are received in the trading interface.
There is no news flow in the eToro trading platform, all information goes only through a blog − a regular eToro forum with customer messages, the relevance and reliability of the information is not checked.
Of eToro mobile trader versions for iOS and Android are synchronized with the main account but have much less technical capabilities. In mobile software, you can set alerts, as well as receive push notifications.
There is no standalone software version. The company does not work with «alien» software, including MetaTrader 4 (5) and its applications. EToro API for integration into third-party software is not provided, as well as VPS hosting.
Deposit and withdrawal
To replenish/withdraw funds, a standard package of banking services and electronic payment systems, including exotic ones, are offered. The commission for eToro withdrawal fees funds is min $ 25 + commission of the payment system, which is disadvantageous for most small traders. Withdrawals of less than $ 50 are not allowed; a fine of $ 10 for inactivity for 12 months.
On March 7, 2019, eToro crypto launched its own blockchain wallet for Android and iOS; eToro wallet has 15 different crypto currencies in the USA and 16 crypto currencies outside the US jurisdiction in other countries.
Two-level user authentication and standard SSL encryption are offered. The support service works only online, communication takes place through the ticket system and eToro live chat, there is information via e-mail. but the eToro support system is not adapted to constantly monitor the situation.
The educational section of the site was disappointing: a minimum of well-known reference information, basic videos (how does eToro work) and the FAQ. The YouTube library contains only practical platform presentations. There is minimal built-in help in the software interface and a minimum of technical tools for the trader.
The mechanism for copying transactions was implemented on many trading floors, but none of the major brokers was able to integrate the signal service with social communications so successfully. eToro login gives access to the trading platform from any social networks, but this is almost the only positive in this service. The company supports active eToro twitter and eToro Facebook accounts, which are used mainly for marketing and analytical accounts. There is no full-fledged analytics in the system. Up-to-date analytical materials are offered only to investor clients (see eToro popular investor).
Bonuses & Promos & Partnership
Advertising of the company is quite professional and aggressive precisely because its target audience is novice investors and traders. However, eToro develops and supports only the services that are most advantageous for itself: copying, investing, social contacts, and the range and quality of services are average. The eToro partners program is weak. There are no bonuses, contests, discounts or other preferences, although the eToro Club program operates, which provides some additional services for large investors.
Аnd look how well that turned out?
If you are a beginner or are not ready to devote a lot of time to the financial market, then eToro is the best choice for you. Here you can study trading technologies and investment principles at an accelerated pace, and there is even a chance to get eToro dividends. But you need to understand that copying other people’s, even professional, commercial transactions is not a guarantee of profit, however, as well as loss. Very high spreads and commissions complete with technical problems lead to the fact that eToro does not withstand competition with ordinary brokers. For professional traders, this platform can only be useful as a commercial project for implementing their trading signals and strategies.
Overall assessment from the point of view of the prospective client: 71 marks out of 100
You are free in your final choice and let it be the right one!