Social trading has become increasingly popular in recent years, and eToro is one of the UK’s leading platforms. In our eToro review we will help you decide whether it is the right trading platform for you.
Review of eToro UK
Whether you are new to trading or an experienced professional, you have likely heard of eToro, thanks mostly to their extensive advertising throughout the UK. However, you may be less familiar with the concept of social trading and investing.
In our review of eToro, we will explore how it works, how much it costs, pros & cons and some popular alternatives to help you decide whether it is the best social trading platform for you.
Before you begin: When trading and investing on eToro your capital is at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.
What is eToro?
In short, eToro is a social trading and investment platform designed to make the process of trading easier. They are the pioneers of social trading, which allows a user to copy the trades of other users on the platform who have have a proven history of successful trading. In theory, following a successful trader will increase the likelihood of profitable trading.
Top traders on the eToro platform who share their knowledge and allow others to follow their trades also benefit, as they receive a small percentage of their followers profit. You can view the leading traders (including their profits) here.
The concept is popular with those who are new to trading, as the platform allows a user to automatically copy the leading traders within the community. It is also appealing to experienced traders, who can increase their profit margins when allowing others to copy their work.
eToro has rapidly grown in popularity over the past few years, as it provides a simple and straightforward approach to trading. However, it is important to understand that many investor accounts lose money when trading high-risk CFDs.
Are you a new trader?
If you are new to social trading, consider opening an eToro Demo Account. These accounts are a great way to practice and check whether eToro is the right platform for you, without the risk of losing money.
What can you trade on eToro?
One of the most popular features of eToro is the ability to easily trade a number of different markets. Below we will highlight some of the most popular markets.
- Cryptocurrency: Whether you are interested in Bitcoin, Ethereum, Ripple or any of the leading cryptocurrencies, you can find them on eToro. Find the full list of crypto markets here.
- ETFs: An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, similar to stocks. An ETF consists of multiple assets, including commodities, stocks or bonds.
- Stocks: eToro makes it easy to find stocks from a wide range of industries (tech, finances, etc.) and exchanges (London, New York, etc.). eToro has a large range of stocks available.
- Indices: Market indexes represent an entire stock exchange, and eToro offers 13 of the leading indices from around the world. Easily trade and invest by copying top traders.
- Commodities: The eToro platform allows users to invest in 6 commodities – oil, gold, silver, copper, natural gas and platinum. Receive live reports of trading as it happens.
- Currencies: Easily trade between 47 currency combinations, including USD, AUD and GBP. Follow top currency traders and investors to capitalise on expertise and experience.
eToro makes it easy to focus on either one market or invest across multiple different markets.
eToro Fees – How much does it cost?
As part of our eToro review, we have highlighted the main fees you are likely to experience. eToro fees are charged in USD. As with all trading platforms, the fees on eToro can change from time to time, so we recommend you check the current rates at eToro.com.
- Withdrawal Fees: $25 – eToro uses a flat rate withdrawal fee of $25 per transaction.
- Overnight Fees: Varies – If you hold your position for more than a day, you are essentially lending from the broker, so will pay a small fee.
- Account Fee: FREE – There is no account fee for opening and holding an account.
- Deposit Fee: FREE (for USD) – Other currencies may have a conversion fee – see here.
- Conversion Fee: Varies – Deposits and withdrawals in a non-USD pay a conversion fee. The GBP conversion fee is 50 pips.
- Custody Fee: FREE – There is no eToro custody fees.
- Inactivity Fee: $5pm – Accounts that are inactive for over a year are charged a monthly fee.
- Minimum Deposit: $200 – As well as the fees listed above, it is important to consider that eToro has a minimum deposit.
eToro offers low trading fees, and their pricing structures are transparent. However, you will pay an inactivity fee of $5 per month after a year of inactivity, so if you decide that eToro isn’t right for you, make sure you close your account.
Promotional & Bonus Codes
Typically, you won’t find any valid eToro promotion codes. Whilst some advertisers claim to have promotional codes and coupons, the offers typically consist of opening a free eToro account. However, you don’t need a code to do this as everyone can open a free account at eToro.com.
You may also here about eToro Bonus Codes, which provided investors a bonus to their first deposit on the trading platform. However, this is no longer available or offered by eToro.
If eToro have any current vouchers or bonus codes, we will list them below.
An in-depth eToro review wouldn’t be complete without a section on the available cryptocurrency markets. The eToro crypto market has all of the top cryptocurrencies, and the innovative and user-friendly platform makes trading crypto easy.
Below are some of the most popular cryptocurrencies on eToro:
- eToro Ripple (XRP) – Monitor XRP insights and copy the trades of the top Ripple traders.
- eToro Bitcoin (BTC) – Easily trade Bitcoin by copying the traders who are experts in BTC.
- eToro Ethereum – Trade Ethereum on the world’s leading and largest social trading platform.
- eToro Litecoin – Copy expert Litecoin traders, and increase your profits when they perform.
With any cryptocurrency market, prices can fluctuate, so the eToro crypto market may not be suitable for all traders.
Is eToro Safe?
Before you start investing on any platform, it is important to ensure you check that the provider is safe and it is not a scam website. From our investigation, eToro appears safe to use. However, as we have already highlighted, and with any trading, the markets can fluctuate, both increasing your profits or decreasing your capital. As a general rule, only invest funds you can afford to lose.
There are a number of factors that indicate eToro is a legitimate company, and not a scam. Firstly, they are registered with and authorised by the Financial Conduct Authority (FCA) with reference number 583263.
If eToro (UK) Ltd becomes insolvent, UK investors will be compensated up to a maximum value of £50,000, which is guaranteed by the Financial Services Compensation Scheme (FSCS).
eToro also have a registered address in the UK, which is 24th Floor, One Canada Square, Canary Wharf, London, E14 5AB. Having an office based in the UK helps to show that a company is legitimate and trustworthy.
Other Safety Features
The eToro website is encrypted with an SSL certificate, which helps to protect your privacy and secures online transactions. You should be wary of websites that do not use an encrypted service for online payments. Look out for “https” at the beginning of the web address. Many website browsers will also notify you if a website is not secure.
Is eToro a scam?
The short answer is no, eToro is not a scam. Many traders use the platform to generate profits. The trading platform allows newcomers to follow experienced traders and make money when they make profitable trades. However, like any trading platform, your capital is at risk and you may lose money if a bad trade is made.
How much will I really make with eToro?
How much money you can make on eToro is dependant on a number of factors. Some of the main factors include:
- How much you invest – The more you invest, the higher your potential profits when trades are successful. It is always recommended to invest money you can afford to lose, as trades can go up and down.
- Whether you are a top trader or copier – Top performing traders who show consistent performance may be eligible to become a top trader, and benefit from monthly bonus payments and rewards.
- The level of top trader – If you become a top trader, there are different levels of commission. Top traders can earn $1K per month PLUS 2% annual AUM. Find out more about the perks of being a top trader.
- The markets/risk that you choose – Some markets are more volatile than others, so you could have a bigger financial return, but you also have a bigger risk of the trade under-performing and losing money.
- Your success rate – One of the most important factors in whether you will make money using eToro is your success rate. If you choose to follow a trader who fails to perform or invest badly, you may lose money.
A great way of checking how much money you can make from the eToro trading platform is to create a free demo account, which comes pre-loaded with $100,000 for you to trade and invest.
Although eToro is a pioneer within the social trading industry, there a few alternative platforms that you should consider, as we will explore below.
Coinbase vs eToro
When it comes to comparing Coinbase and eToro, both are quite evenly matched. Overall, eToro does provide a slightly better platform in terms of fees, available crypto investments and mobile trading, but the differences are only minor.
A large difference between the two trading platforms is the minimum deposit required, which is $200 for eToro and just $1 for Coinbase. If you are looking to trade crypto markets, it may be worth taking a look at Coinbase, however if you are interested in other markets, eToro may be the right platform for you.
eToro vs Plus500
eToro excels in a number of different areas, including the number of different investments available, research tools and fees. Customer service is also generally regarded superior at eToro. In terms of the mobile trading platforms, they are quite similarly matched.
Whilst there are some crossovers, Plus500 and eToro do hold differing regulations and are not authorised in every location. It may be worth checking if they are authorised and regulated in the region you plan to trade.
eToro Pros & Cons
Below is a quick review of eToro pros and cons to consider before registering.
eToro Review Conclusion
eToro is the world’s leading social trading platform, and for good reason. They have a simple and user-friendly interface which makes trading easy. They also offer fantastic rewards for top traders, and copiers can easily follow the best performers in each market.
In terms of fees, eToro has some of the cheapest prices available. However, if you decide eToro isn’t for you, be sure to shut down your account or you will be charged a monthly inactivity fee of $5 per month.
As highlighted throughout our eToro review, there are plenty of markets to choose from, including their highly-rated crypto market. It is quick and easy to switch between markets, depending on your preferences.
Overall, eToro is a great social trading platform for anyone who is new to trading. It is also beneficial for professional traders who are happy to share their expertise for a share of the profits. However, as with any trading, it is important that you only invest money you can afford to lose, as trades can go up and down.
We hope you have found our eToro review useful, and have a better understanding of the fees, available markets and how social trading works.
To review eToro for yourself, why not start with a free $100,000 Demo Account.
eToro Review UK: This eToro review is aimed at a UK audience, and whilst it may be suitable for a wider readership, some content of the review may only be relevant to UK residents. Whilst we make every effort to ensure all information is correct and accurate, information, fees and offers may change from time to time, so please check directly with eToro.
Whilst this article does contain affiliate links, which help raise money for our charity partners, the opinions and review of eToro is written from an impartial viewpoint.
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