eToro

eToro proves to be an easy going broker with some interesting additions that separate it from the flock. Is this segregation a good thing, or does it make eToro the black sheep?

The broker is authorized in several jurisdictions:

eToro (Europe) Ltd is based in Cyprus and as such is under the regulation of the CySEC watchdog. The organization oversees that all brokers work within the confines of the law. The ICF provides a compensation of up to €20 000 for those victimized by the broker’s potential failure.

eToro (UK) Ltd holds an authorization from the FCA to operate. The FCA’s gaze spares none who work above the law. As part of the FCA eToro is a member of the FSCS allowing for a reimbursement of up to £85 000 in case the broker deteriorates.

eToro AUS Capital Australia Pty Ltd is overseen by ASIC, meaning that any misconducts and fraudulent activities will be punished accordingly. There is no compensation fund.

Finally eToro is operates in the USA under eToro USA LLC, as registered with FinCEN. The US is notorious for its strict rules and as such is renowned as the most severe environment for brokers. Be assured that any broker registered there has met the most demanding conditions in the industry. This branch deals exclusively with cryptocurrencies.

It should be known by now that the maximum leverage for the UK and EU is 1:30 (ESMA), while for those outside the zones it can reach 1:400. The spread indicated on the trading platform for EUR/USD is 3 pips.

Etoro offers the following instrument for trading: currency pairs, crypto, commodities, ETFs, indices and stocks.

The broker is reachable in: English, German, French, Italian, Spanish, Arabic, Russian, Chinese, Polish, Dutch, Portuguese, Norwegian, Swedish, Danish, Czech, Romanian, Finnish and Malay.

ETORO LOGIN

Etoro separates itself from the majority of brokers by giving us only one platform that is produced and operated exclusively by and for the firm.

eToro Trading Platform

This terminal tries to offer a more user friendly and compact means to trade, and arguably achieves so but at the price of some vital features. Nevertheless, here are some great aspects of the eToro Trading Platform: CopyPortfolios ability that allows for more rookie traders to copy the strategies and approaches of the top eToro investors; Social Trading which adds a layer of social networking to the whole experience; great chart management; a news feed section and other features.

The leverage can go as high as 1:400 outside of ESMA regulated territory. The spread is 3 pips for EUR/USD. This is significantly larger than the average spread that most brokers offer. There are many brokers out there, a hefty chunk actually, that offer a spread that's half or even lower than eToro's. Check out Think Markets' 0.2 pips spread, or Admiral Markets' 0.5 pips cost of trading.

The broker does not offer a desktop variant of its platform, only a web based one. However, the terminal can be utilized across all devices (Android, Apple).

ETORO MINIMUM DEPOSIT

The minimum deposit is $200.

The following are the funding methods currently at work: China Union Pay, Credit/Debit Cards, GiroPay, Neteller, PayPal, Skrill, WebMoney, Wire Transfer and Yandex.

eToro accepts deposits in 8 different currencies: USD, EUR, GBP, JPY, AUD, RUB, CNH and CAD.

Credit card funding, GiroPay, and eWallet funding happen within 3-5 minutes. Wire Transfer deposits can take up to 7 working days.

The broker does not indicate that there are any depositing fees (besides those imposed by the payment systems), and without a Live Chat option we were not able to get a straight answer.

ETORO WITHDRAWAL TIME AND FEES

As part of both the FCA and CySEC, it is guaranteed that withdrawals will go as smooth as possible with zero issues.

The withdrawal methods are: China Union Pay, Credit/Debit Card, Neteller, PayPal, Skrill Limited UK, WebMoney and Wire Transfer.

The process time for all withdrawal means is 1 day. The typical time frame to receive your money, after it's processed, is 1-2 days for China Union Pay, Neteller, PayPal, Skrill and WebMoney. Credit/Debit cards and Wire Transfer can take up to 8 business days.

Withdrawals are subject to a substantial fee. A withdrawal over $50 will be commissioned by $25. All requests sent in currencies other than USD will be taxed by a conversion fee. This hefty fee would be understandable if all online brokers utilized a commission scheme based on withdrawals, but, as shown by many popular brokers like HF Markets and Pepperstone, one does not need to impose such aggravating fees in order to be taken seriously.

The minimum withdrawal amount is $50.

BOTTOM LINE

eToro is a hard broker to pin down. It’s certainly unique, but in an ambiguous way. On the one hand it is regulated in the best institutes and has a great copy-trading platform, and on the other hand the fees are abnormal and this same platform is lackluster when compared to the MT4. Furthermore, with a spread this high, almost twice the industry average, it makes you immediately rethink your commitment to eToro. If you are to use the CopyPortfolios ability then give eToro a chance, but if not, we don't see a reason to stick with this broker. We urge traders to carefully consider what they really expect from a broker before diving into this one.