✖ CFD Risk and ComplexityMany instruments (especially crypto and forex) are offered as CFDs — which involve leverage and higher risk. ✔ $100,000 Demo AccountTest the platform risk-free before depositing real money — great for beginners. EToro brings a lot to the table — especially for new and casual investors — but like any platform, it comes with trade-offs. Below is a clear overview to help you decide if it’s the right fit for your needs.

Minimum $100 to $500 deposit range

And with over 4,500 stocks from big exchanges like New York and Hong Kong, there’s a lot to explore. You can pick stocks from industries like tech or healthcare, and see prices in real-time, so it feels like you’re right there trading on an exchange. EToro lies somewhere between a trading site and the social media of online brokerage, but unlike other social brokers with multiple traders, you can learn from or copy trades directly. EToro users often highlight the social trading elements and the unique fee structure, particularly the upfront payment model for crypto trades. In this review, we will take a look at eToro and what makes it unique along with its security features as well as an overview of its pros & cons.

However, note that crypto assets are not SIPC-insured and availability differs by state. EToro maintains strong regulatory coverage and robust fund protection tied to your location and account type. Securities are generally insured (e.g., SIPC in the U.S., FSCS in the U.K.), but crypto assets carry limited or no formal protection. Basic trading features count as one factor in the overall and beginner rankings.

What Are the Risks or Downsides of Using eToro?

An investor in a buy position will receive 70% of the gross dividend for US-listed shares and 85% for other shares. If the investor is in a sell position, he will lose 100% of the gross coupon. It allows you to set up notifications about your open positions or trading hours, to keep you updated in real time on the latest market updates. If you want to monitor your investments wherever you are, eToro has also come up with a free and smooth mobile app. The fees vary depending on the cryptocurrency you choose to trade at eToro.

They are one of the few brokers to offer this type of registration. On the eToro trading platform, the social trading and Virtual Portfolio really set it apart from other platforms. So when you’re taking this platform head-to-head with others, be sure to keep those innovative features in mind. We’ve got that 1% fee on crypto transactions and no commission on stock and ETF trades that we’ve already talked about.

Platform Security: How eToro Protects Your Data

Yes, eToro in the United States engages in payment for order flow (PFOF). However, we couldn’t get clarity for the Europeans so it’s unclear. PFOF is an important source of revenue for many new brokers, including Trade Republic. This practice involves routing your orders to certain market makers, who then pay the broker for the right of executing these orders. PFOF can work at your detriment, as brokers may prioritise payment over executing the best possible trade for you.

EToro’s website and app are considered easy to navigate, which could be particularly helpful for those new to investing. Investors can also select two-factor authentication (2FA) for an extra layer of log-in security. This will send a SMS verification code to a user’s phone which will need to be entered to access their account. However, no content should be relied upon as constituting personal advice or a personal recommendation.

Portfolio Analysis

• Account maintenance fees are completely waived, and registration is naturally free.
• This allows you to follow and copy successful trades while studying their methods.
• You invest a single amount, say $500 or $1000, and that investment is automatically spread across all the assets in the portfolio.

Ever since then, eToro trading has continued to expand its offerings, becoming a comprehensive trading hub for investors across the globe. The answer is comparatively simple, as eToro relies on a clever combination of fees and spreads. As a leading online broker, eToro generates its main revenue through spreads and fees. Unlike a traditional securities account, eToro operates as a trading account that is offered without custody fees.

Is eToro Safe

However, this mode can also be dangerous if anything goes awry, so it may be more suited to advanced investors. If you buy a “non-leveraged” crypto, you own the crypto (you are not investing in a derivative). When you invest in real cryptoassets, eToro purchases the tokens on your behalf and registers them in a segregated account under your name. If the platform seems too complex to use, it probably isn’t right for you. EToro’s simple interface offers some of the world’s leading fintech instruments, online learning courses, an innovative mobile app, a weekly newsletter, and much more.

You can create a business account

In the U.S., it is registered with FinCEN and holds money-transmitter licenses in many states. They are also registered with the SEC, which helps to ensure they follow strict rules. If you don’t log into your account for a continuous 12 months, eToro will deduct a $10 fee per month from your balance. This fee continues until you log back in or your account runs out of funds.

• There’s also a 0.5% transfer fee (minimum of $1, maximum of $50) when you transfer funds from your eToro account to the Money wallet.
• This is a safe environment to learn all about the platform and its unique features like CopyTrading, Smart Portfolios and more.
• Fortunately, eToro is one of the most regulated and transparent platforms in the industry, with licenses across multiple jurisdictions and strong measures to protect client funds.
• Verification can help ensure real people are writing the reviews you read on Trustpilot.

Potential Risks of the eToro trading platform

As seen from the comparison table, eToro mainly maintains its edge in the competition by including cryptocurrencies within its offerings. While the selection of coins is not as extensive as you’d find from specialised cryptocurrency exchanges, it’s still respectable and makes the broker a good option for all-around traders. When it was first launched in 2007, eToro was largely focused on forex trading. The platform expanded its product portfolio to include stocks, ETFs, and commoditiesand quickly found traction globally. Today, its available in more than 140 countries and boasts over 20 million users, highlighting its appeal to a diverse range of traders.

It takes into account factors such as regulatory authorizations, industry certifications, corporate governance practices, and overall reputation. By analyzing and assigning weights to these factors, the Trust Score provides users with valuable insights into the platform’s reliability for trading. This independent assessment aids users in assessing the platform’s trustworthiness and reliability, helping them make informed decisions. Opening an account on eToro is a swift process that can be completed within minutes. You can start by exploring the platform and trying out trades on the virtual demo account. However, it’s crucial to upload your ID and a bank statement with your name no later than two weeks after opening the account or when you decide to use real money.

A simple, all-in-one app where you can invest in stocks, ETFs, crypto, etoro forex broker review commodities, and even copy the trades of top investors. TradingChooser is the leading destination for comparing top online brokers. Created by a team of experts and passionate traders, our primary goal is to equip traders with crucial information about the most reputable online trading platforms. Our in-depth analyses help users identify the best brokers to meet their trading needs, ensuring a well-informed trading experience.

In fact, we went a step further and opened personal accounts on the platform ourselves. This allowed us to experience firsthand the safety measures implemented by eToro and assess its reliability. In the following sections, we will share our findings to help you make an informed decision about the safety of eToro as a broker in the UK. Many users left positive remarks about eToro’s user-friendly and stable platform along with the dedication of their account managers.