Etoro Review for 2024: Features, Pros, Cons, and More !

eToro is a multi-asset trading platform that offers users the ability to trade over 5000 tradable instruments, including Stocks, Cryptocurrencies, Forex, Commodities, CFDs, and more. With a user-friendly interface and innovative features, eToro has gained popularity among both novice and experienced traders. The platform is also known for its social trading solution that allows users to connect with other traders, follow their strategies, and even copy their trades. With a wide range of assets available for trading, eToro offers a unique and innovative approach to investing.

However, the platform has its own strengths and weaknesses. In this article, we will delve deeper into eToro’s features, trading options, security measures, and user experience to provide a comprehensive review of the platform

Company Overview :

Founded in 2007 in Tel Aviv by brothers Yoni Assia and Ronen Assia, together with David Ring, eToro is a financial service provider that offers an online trading, investing, and social trading platform. Yoni Assia is the current CEO of the company, which has around 1700+ employees. The platform serves as a one-stop solution for Forex, Stocks, Cryptocurrency, and CFD trading. 

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more

Pros and Cons of eToro :

Pros

• Regulated in numerous jurisdictions.Regulated by CySEC, FCA, ASIC, FinCEN, MSB, FSA Seychelles, FSC Gibraltar, and FSA Malta.
• Trading of over 5,000 forex and CFD assets plus real stocks/ETFs and 
• Free stock and ETF trading
• Seamless account opening
• Social trading
• Credit/debit card
• 500 index CFD fee  $3.1
• Negative balance protection
• Minimum deposit $50
• The platform offers an engaging communal experience
• Cryptocurrency holdings may be transferred off the platform
• Comprehensive educational resources
• eToro’s influencers offer opinions and viewpoints on breaking news.
• Crypto investors, rejoice! eToro gives you 24 coins to choose from.
• The website and mobile apps are easy to navigate and easy on the eyes. eToro also punches above its weight class in charting.
• Regulated in numerous jurisdictions
• Unique social trading capabilities that allow users to match the moves of popular traders
• 0% fees when buying Stocks
• CEN & FINRA Regulated

Cons

• $5 withdrawal fee
• Only one account base currency
• Customer support should be improved
• Not available in New York, Hawaii, Minnesota, and Nevada
• Investment choices are limited to approximately 2,000 stocks, 2,70 ETFs, a strong crypto presence, and basic options trading.
• You can neither go short nor borrow on margin.
• No limit orders for stocks.
• Experienced investors and traders will crave more capabilities than the skinny tools and features available on eToro. Options trading is only on a dedicated eToro Options app that provides little information on the underlying stocks.
• Stock, ETF, and cryptocurrency trading only available in 47 U.S. states
• Margin trading is not available to U.S. users
• User experience can improve
• 1% commission on crypto

Key Features of eToro :

Regulations and Safety :

eToro is regulated by top regulatory bodies including CySEC, FCA, ASIC, FinCEN, MSB, FSA Seychelles, FSC Gibraltar, and FSA Malta. The broker has established itself as a reputable entity with a strong track record. Although it’s not publicly traded and doesn’t operate as a bank, it ensures the safety of client funds through segregated accounts, with withdrawals processed within one business day. Furthermore, eToro offers negative balance protection, safeguarding traders from excessive losses. 

Deposit and Withdrawal :

eToro does not charge any deposit fees, making it more convenient for traders to fund their accounts. However, withdrawal fees may apply, depending on the chosen method. With a wide range of deposit and withdrawal options, including bank transfers, major credit cards, e-wallets, and more, eToro offers flexibility to its clients. Withdrawals are typically processed within two business days which ensures efficient fund management.

Regulations and Safety :

eToro is regulated by three prominent regulatory bodies, instilling confidence in traders. It holds two Tier one licenses, signifying a high level of financial security. Founded in 2007, eToro has established itself as a reputable broker with a strong track record. While it’s not publicly traded and doesn’t operate as a bank, it ensures the safety of client funds through segregated accounts, with withdrawals processed within one business day. Furthermore, eToro offers negative balance protection, safeguarding traders from excessive losses.

Etoro Fees :

Etoro charges competitive fees for trading assets. There are no account opening, closing, or account management fees. The fees of Etoro may vary based on account types, and asset types. The platform does not charge any fees for trading real stocks or ETFs. Here are the fees and commissions of etoro based on asset class 

(a) Etoro CFD fees: 

• Forex: form: 1 Pips 
• Commodities: 2 pips 
• Indices: 0.02 Points 
• Stock and ETFs: 0.15% 
• Cryptocurrency CFDs: 1%  

(b) Real Stocks & ETFs 

• Commission: Free 
• Overnight Fees: free 
• Custody fees: Free

       (c)  Cryptos Real 

• Buy/ Sell fees:1% 
• Overnight fee: Free
• Custody fee: Free 
• Cryptoasset transfer fee: 2 % 

  (d) Copy Trading fees: No extra hidden costs

(e) Smart Portfolios: No management fees or any kind of commission 

Leverage and Margin :

eToro offers both leveraged and non-leveraged products. The broker provides CFDs as a leveraged product, with a maximum leverage of 30:1. It employs a margin call system, issuing a margin call when a trader’s equity reaches 100% of the required margin on open positions. This margin call level ensures risk management and helps traders avoid excessive losses. Additionally, eToro’s stop-out level stands at 50%, providing an additional safety net.

Furthermore, eToro also offers real stocks, ETFs, and cryptoassets as non-leverage products.

Trading Options and Facilities:

eToro doesn’t allow scalping, hedging, or EA use. But you can use their copy trading platforms. They support almost all order types, like stop orders and limit orders. Even though they don’t have a built-in trading robot or managed account services, they do support One-Cancels-the-Other (OCO) orders and offer a good charting package for technical analysis. With one-click execution, your orders get placed quickly, making trading easier.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more

Final Verdict:

Etoro is one of the leading multi-asset trading platforms. It is a regulated and secured trading platform. The platform offers both leverage and non-leverage tradable assets. The broker does not charge any commission for trading real assets or non-leverage assets. So if you are looking for a one-stop trading trading solution for trading multiple types of assets, you may choose Etoro. The platform is trusted by over 30 million traders and investors worldwide.