Etoro Review 2022

Introduction

Per eToro, they are innovators, reinventors, disruptors. The folk behind the scenes at eToro have been continually redesigning the money management industry, with the exclusive aim to open up the field to everyone, everywhere. This eToro review seeks to find out if the broker’s self-image is indeed reflective of the truth. 

Acclaimed as a leader in the FinTech revolution, eToro is widely acknowledged as the world’s top social trading network, with unique trading and investment tools. Founded in 2007, the first milestone was achieved with the establishment of the visual FX trading platform. In 2009 eToro unleashed its natively built WebTrader, an intuitive trading platform. Tools were provided for both beginners and seasoned traders alike.

 July 2010 saw the inauguration of OpenBook or the first-ever social trading platform. The CopyTrader feature was trademarked for a good reason. This is where copy trading really began. In 2012 the brokerage released the eToro mobile App. This made available both OpenBook and WebTrader were made available thru a handy mobile app. Trading becomes ‘on-the-go.

In 2013, eToro introduced stocks on their platforms. In 2015 the brokerage refurbished and effectively rebranded itself as a new avatar. The new eToro was an amalgamation of WebTrader and OpenBook features, available thru a single interface.  

The firm has proffered more innovative products and services in subsequent years leading up to the present. Mentionables include CopyPortfolios/CopFunds, still more cryptocurrencies, the US cryptocurrency trading platform. 

Pros and Cons:

Pros

  • US cryptocurrency trading platform offering 15 cryptos; 
  • initial investment amount quite low; social trading. 

Cons 

  • Service as of yet limited to 41 US states; 
  • no forex and equity trading for US eToro clients. 

Is Etoro Scam: Regulations

eToro (Europe) Ltd, a Financial Services Company, bears license number 109/10. The broker is authorised and regulated by Cyprus Securities and Exchange Commission. 

eToro(UK) Ltd bears license FRN 583263. The company is authorised and regulated by FCA or Financial Conduct Authority. 

eToro AUS Capital Limited bears the Australian Financial Services 491139. The company is authorised and regulated by the Australian Securities and Investments Commission. 

eToro (Seychelles) Ltd has license number SD076. Financial Services Authority Seychelles is the regulator of the company.  

Etoro Review: Trading Account Types

The different account types with Etoro claim to follow regulatory bodies. However, the way the accounts are categorised according to jurisdiction makes for confusion. There is evidently no uniform policy in play here.

The eToro money account connects you friction-free with your current eToro investment account, so that you withdraw instantly from it. Zero USD conversion-fee deposits, do fund and crypto in one place. There are no set-up costs. 

Etoro Review: Account Opening

Find the button ‘Trade now’ or ‘Join now. Click it to be led to a form that would require your personal data. You can log in via a Google account or Facebook. Prior to submitting your information, carefully read T&C and the privacy policy. Then, check the appropriate box to show agreement. The clicking of the ‘sign up’ button effectively finishes the application process. 

Etoro Review: Trading Platform

Etoro offers direct trading rather than depending solely on CFD trading. Fractional trading with blue-chip stocks is another eToro offering that sets it head and shoulders above many competitors. 

The platforms with eToro have been touted as easy-to-use and intuitive. For example, the CopyTrader has allowed popular traders to have their trades copied in real-time. In addition, the Popular Investor Program has been created by eToro to motivate traders of great merit to keep getting copied. 

Another in-house product has been the eToro Investment portfolio. These investment portfolios are a grouping of diverse assets, including cryptocurrencies, ETFs, stocks, bundled together on the basis of a preplanned strategy. Each portfolio is concerned with a single theme, combining machine learning and data science. These portfolios are even customised. 

The eToro trading platform is available thru a web browser. Users may trade, and manage accounts from just one platform. Relevant trading platform features:

  • More than 2000 asset classes accessible
  • Technical analysis tools and charts
  • Multiple order types and one-click trading
  • Place order 24/7
  • All copy-trading from one platform 

Mobile trading app

eToro presents users the ability to access mobile trading while on the move. The app has the following functionality: real-time prices and execution; professional charts and analyst tools; multiple markets accessed; copy trading and investing ‘on-the-go’.

Etoro Review: Trading Instruments

The broker offers CFD trading with commodities, currencies, stocks, indices, cryptocurrencies. You can also offer to speculate on index performances. eToro offers CFD trading on indices. 

With eToro fractional shares, you can use CFDs to buy/sell a fraction of a share. There are more than 2000 financial CFD instruments. 

Etoro Review: Commission & Spreads

Your eToro account is free. There is no commission on stocks. There are no management fees. There are no ticketing fees either. There are no rollover fees. 

You may view the fees you paid on your portfolio page, on the history tab, where you will be able to see the fees paid for each trade besides aggregated fees for different periods. 

When opening a new trade, overnight fees show up at the trade window’s bottom. 

Overnight fees are charged each night between Monday and Friday at 1700 EST. This applies to open CFD positions. On Fridays, the weekend fee is charged for most stocks, ETFs and indices CFDs. The fee is charged on Wednesday for the majority of cryptocurrencies, currencies, and commodities. For example, on Fridays, overnight fees for oil and natural gas are charged. Cryptocurrencies overnight fees are not charged on Saturdays and Sundays. 

When you open a new trade, you will see a loss in the position. This is owing to the spread. Moreover, the spread’s final; calculation is made up[on your closing the position. Therefore, the adjustment is at the moment, per closing price. 

Etoro Review: Leverage

Professional traders may access professional accounts for utilising features like leverage of up to 400:1. 

Over leverage – 

Trading ideas ought to cover etoro clients employing volatile instruments. Despite their commission-free stock trading, etoro clients could lose money when trading CFDs. Whenever dealing in margin investment products, a client’s paying attention to his exposure and ensuring the risk is spread is vital to long term success. Margin trading only succeeds with calm risk management. Financial markets respond to complex instruments only with cautious investment advice. ;

Support losing positions – 

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.

The purchase of real/crypto assets is an unregulated service and is not treated by any specific European or UK regulatory framework ( MiFID included). In case crypto assets are purchased on a real/physical basis and not traded as CFDs, you will not gain from the protections available to clients accepting MiFID regulated investment services, say access to the Cyprus Investor Compensation Fund (ICF)/the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service for dispute resolution;

Lack of stops – 

  • This underlines egregious negligence. ;

Misreading the market – 

  • Past performance is not an indication of future results.

Etoro Review: Deposit and Withdrawal

Deposit and withdrawal options with eToro include wire transfer, PayPal, Neteller, Skrill, Klarna, iDeal, credit and debit cards. 

Withdrawals may be made thru wire transfer, PayPal, and credit and debit cards. These are subject to a $5. Any currency other than the USD will incur a conversion fee. 

Etoro Review: Educational and Research Support

There are valuable well-crafted videos, guides and podcasts in all aspects of trading. Cryptocurrencies are a special focus. 

Etoro Review: Customer Support

You may use open tickets for customer queries. Unfortunately, LiveChat is not available in all regions. 

Final Verdict:

You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

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