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eToro Review UK

In this eToro UK review I’ve tested every part of the platform to find out why over 2.5 million users joined the investment platform in January and February of 2021. Now with a total of over 20 million users, eToro boasts one of the largest social trading communities online, but is this the right platform for your unique requirements?

I hope to demystify some of the information surrounding eToro, and help you compare it to similar investment platforms, so you can make an informed decision as to whether eToro can help you along the path to investment success.

eToro is an Israeli Fintech startup that has been getting a lot of recognition as providing an excellent social trading broking site since its conception in 2007. Social trading on eToro allows you to observe the strategies of some of the more expert traders on the eToro trading platform in order to maximise your own results by copy trading or mirror trading.

Here in the UK, eToro are authorised and regulated by the Financial Conduct Authority which guarantees you an element of safety, however, as eToro is a multi asset trading platform that offers trading CFD assets, eToro can present a high risk option for traders who don’t have a thorough understanding of CFDs. However, eToro also offers 0% fees on stock trading which for investors makes it a trading platform to take seriously.

Minimum Deposit $50

The minimum deposit for UK investors opening a new account at eToro is now only $50*

*Correct at time of publishing – 27/08/2021 – Subject to change. Check website for details.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

eToro Rating Summary

Overall Rating: 9/10
90%
Fees: 9/10
90%
Account opening: 10/10
100%
Deposit and withdrawal: 7/10
70%
Trading platform: 9/10
90%
Markets and products: 8/10
80%
Research: 7/10
70%
Customer service: 7/10
70%
Education: 5/10
50%

Pros

Free trading on stocks
Very quick and easy to open an account
Well designed web trading platform with social trading available

Cons

Very limited education
Conversion and withdrawal fees
High Forex fees

eToro Review UK

Who is eToro?

eToro are a social trading, investment broker with an extensive selection of stocks, currencies, commodities, cryptocurrencies, EFTs and indices available through its innovative trading platform.

Who owns eToro?

eToro is a privately owned fintech company with Israeli, US and Chinese investors with a stake. The founder and CEO is Israeli born Yoni Assia, a visionary with a strong interest in finance and computer science.

In terms of licencing and regulation, eToro are licenced by the following:

  • Financial Conduct Authority
  • Cyprus Securities and Exchange Commission
  • Markets in Financial Instruments Directive
  • Australian Securities and Investments Commission

eToro Product Range Overview

It’s important to establish that the platform you choose is offering the products and services you require to maximise your investment potential. So in this endeavour, I have taken an indepth look at what’s on offer at eToro in this eToro review, and just as importantly, what’s not on offer. I’ve also taken a moment to compare their offering with that of two of the largest investment platforms in the United Kingdom, Interactive Investor and Hargreaves Lansdown so you can gain a direct comparison.

  • CFDs
  • Forex
  • Real stocks
  • ETFs
  • Cryptocurrencies
  • Commodities
  • Indices

This is a comprehensive offering of investments however, in this eToro review I have compared them to a competitor so you can see how this stands up in the marketplace.

RelatedGuide to ETFs for UK Investors

How eToro’s Investment Options Compares to Other Brokers

Investment Option eToro Interactive Investor Hargreaves Lansdown
Stocks Yes Yes Yes
ETFs Yes Yes Yes
Funds No Yes Yes
Forex Yes No No
Bonds No Yes Yes
Options No No No
Futures No No No
CFDs Yes No Yes
Crypto Yes No No
Commodities Yes Yes Yes
Indices Yes No No

From this table you can clearly see that eToro is standing out from the crowd for investors interested in trading Cryptocurrencies. Not only is eToro the cheapest place to trade in Cryptocurrencies, but eToro have launched their very own cryptocurrency wallet which allows users to buy, sell, convert, trade and pay for services using a wide range of cryptos including:(Please note: eToro users under FCA regulation cannot open CFD
crypto positions, only real assets available.)
eToro Crytocurrencies

  • Bitcoin
  • Bitcoin Cash
  • Ethereum
  • Ethereum Classic
  • Ripple
  • Litecoin
  • Cardano
  • IOTA
  • TRON
  • ZCASH
  • Binance coin
  • BNB
  • Dash
  • Stellar
  • EOS
  • NEO
  • Tezos
  • XRP

The eToro crypto wallet app incorporates military level encryption and can be used to store over 120 cryptocurrencies, reflecting the surge in popularity for crypto trading in recent years,

On a negative note, with eToro you will be sacrificing the ability to trade in options, bonds, investment trusts and funds.

eToro is primarily a CFD and Forex broker and its important to note that 67% of retail investor accounts lose money when trading CFDs with this provider. Please note that CFDs are complex instruments and CFD trading is best left to experienced traders.

What really sets eToro apart is their innovative features that change the way you trade which we will look at in more detail next.

eToro CopyTrader Review

Just as the name suggests, CopyTrader allows you to copy the portfolio of more experienced or successful eToro users by browsing through profiles and selecting traders based on their previous performance, both on an annual level and monthly level.

eToro CopyTrader Review

Just to make your selections a bit easier, eToro also assigns each trader with a ‘risk score’ as well as providing information on the number of trades per week, average holding time, charted performance, and news feed comments. This is enough information to give you a real insight and you have the ability to copy up to 100 eToro users at the same time.

Whilst conducting our eToro review we found one of the great advantages of CopyTrader is that you can start copying other traders with no extra charge as there are no management fees. However, the minimum amount you can start trading with at eToro is $50 (note eToro only operates in USD).

eToro CopyPortfolio Review

CopyPortfolio allows you to invest in two main types of portfolio, Top Trader Portfolios which simply put, allows you to invest in a portfolio consisting of the eToro users who are achieving the best returns, and Market Portfolios which allow you to pick a market or theme of CFD stocks, commodities or EFTs.

eToro CopyPortfolio ReviewBearing in mind that trading on CFDs comes with a high risk of losing your money, and 65% of retail investor accounts lose money when trading CFDs with this provider, it’s good news that eToro makes it easy to spot the proportion of CFDs in any specific portfolio. In addition to this, asset distribution, performance and investment strategy are all readily available to help you make the best possible decisions and we particularly like it that eToro will check whether you understand that CFDs are complex instruments and come with a high risk.

Ready to Join eToro?

Please be aware that all trading involves risk. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. This content is for educational purposes only and is not investment advice.

eToro is a multi-asset platform which offers both investing in stocks and crypto assets, as well as trading CFDs.

Please note that 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.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading crypto assets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro Accounts vs Interactive Investor and Hargreaves Lansdown

Account Type eToro Interactive Investor Hargreaves Lansdown
Trading Account Yes Yes Yes
SIPP No Yes Yes
Stocks and Shares ISA No Yes Yes
Cash ISA No No No
Lifetime ISA No No Yes
Junior SIPP No No Yes
Junior Stocks and Shares ISA No Yes Yes
Demo Account Yes No Yes

eToro ISA Review

I was disappointed whilst conducting this eToro review to learn that eToro had chosen not to offer an ISA account, thus removing the ability to trade in a tax efficient way within the UK. However, that’s not to say this won’t be rectified in the future and I will certainly be watching this space.

eToro SIPP Review

The lack of a SIPP account at eToro seems like another big void in their online offering. Giving investors the option to transfer in and invest their pension pots using eToro’s great range of investment options would certainly be a welcome addition.

The account offering at eToro is very basic with just one investment account. This really lets down their offering as an investment platform.

eToro Demo Account

The eToro demo account gives investors the opportunity to trade with $100,000 of demo money before risking any of their own funds on the main trading account. Given the general lack of education on the platform, this is a handy tool to help get to grips with all the products and features of the platform.

eToro Platform Review

eToro has designed a really clean, modern looking trading platform that is easy to navigate and highly functional. This is available both for web and mobile although they have yet to offer a desktop version to the market.

eToro Mobile App ReviewThe eToro mobile app is most certainly an impressive offering to the market. Clean, easy to use, modern, and with a wealth of functionality, we enjoyed using it during our eToro review and it makes for a seamless trading experience whilst on the move. That being said, eToro have only scored 3.4 out of 5 on the app store with a lot of the reviews complaining about mobile app crashes.

In terms of security, eToro have installed an optional two-step login system which whilst it might make it slightly more fiddly to log in, it does provide you with an extra level of security.

Searching, placing orders, and alerts and notifications are all really straightforward and easy to use at eToro and provide investors with a great level of functionality. On the eToro mobile version you can even set a push notification when an asset reaches a certain price point or when your order has been fulfilled.

eToro has a really decent charting offering on the eToro trading platform, giving investors the option to change chart types, chart intervals and overlays, and the ability to compare six different charts at once with their eToro ProCharts functionality. You also have easy access to your eToro account balance.

eToro Research Service and Tools Review

For investors looking for a decent level of technical analysis, eToro won’t disappoint. Unfortunately they only offer recommendations on a limited number of stocks, however, for the ones that do have recommendations, there is a wealth of information available such as average price targets and analyst reports.

Whilst the research offered at eToro was good, it didn’t quite match up to providers like Interactive Investor or Hargreaves Lansdown, mostly due to the limited fundamental data on offer and insufficient research reports. As well as this, eToro has failed to provide investors with financial markets news or stock screeners unlike most of their competition, which feels like a bit of an oversight.

However, eToro makes up for a lot of this with their social trading network. This works like a social feed, where other investors will offer their thoughts on stocks, often with supporting data to help you with your decisions. This social aspect of trading is not widely available and is a great little feature.

In terms of education, eToro has missed the mark. Their only offering are some hour long videos in their trading school, which whilst these do provide useful information regarding trading, financial markets, placing trades and managing goals, they make it difficult for investors to find answers to specific questions without sitting through hours of webinars.

How to copy Traders on eToro

eToro Fees and Charges Review

Whilst eToro are quick to promote their zero commission stock trading fees, there are currency conversion fees, withdrawal fees, CFD fees and inactivity fees which investors need to be aware of.

When I compared eToro to similar trading platforms I found their CFD fees to be roughly in the same range so nothing out of the ordinary there. However, it is worth noting that when trading eToro Forex, the fees are high compared to their main competitors which is worth taking into consideration if you plan to trade on Forex.

As eToro only trades in USD, conversion fees are applicable when you deposit or withdraw money in any other currency. These vary according to the currency and how your money is deposited but range between 50 pips to 250 pips per conversion.

For withdrawals, eToro charges a flat fee of $5 with a minimum withdrawal amount of $30. There is also an inactivity fee of $10 per month once your account has laid dormant for 12 months. As a comparison, Plus500 don’t charge for withdrawals and whilst they do have an inactivity fee, this is not on a monthly basis.

eToro vs Hargreaves Lansdown Fees

Fee / Charge eToro Hargreaves Lansdown
Minimum Deposit $50 £1
Standard Platform Charge $0 0.45%
Trading Fees $0 £11.95
Currency Conversion Yes £0
Withdrawal $5 £0
Inactivity $10 per month £0
CFD Yes £0

Guide to opening an eToro account

There is nothing bad to say about opening an account at eToro. If you are looking for a seamless, fully digital experience that takes moments, then you will find it at eToro.

There are two main types of account on offer, their eToro Live Account where you can start trading and their eToro Virtual Account which gives you the option of experiencing the eToro trading platform with play money.

To open your eToro account you simply need to register your email address or Facebook / Google+ account and you will have immediate access to the eToro trading platform. There is a minimum deposit of $50 to start trading and the minimum amount for a bank transfer is $500.

Of course, in order to fund your eToro account you will need to verify your identity which is not unusual and can be done quickly by uploading a couple of supporting documents.

eToro Deposit and Withdrawal Review

eToro have certainly supplied customers with masses of options when it comes to depositing money including:

  • Visa Credit Card
  • MasterCard
  • Diners Club International
  • PayPal
  • Skrill
  • Neteller
  • WebMoney
  • China UnionPay
  • Yandex

It is important that UK investors understand that eToro only operates in USD which means any deposits will be converted and charged the relevant conversion fee. This fee will also be applicable upon withdrawal back to GBP.

eToro bank transfers tend to take 4-7 business days to appear in your eToro account.

When it comes to withdrawals, eToro does levy a $5 withdrawal fee which is fairly substantial when compared to other brokers. However, by bank transfer the whole process only takes around 2 business days and is very easy to complete on the website.

eToro Customer Service Review

Whilst not outstanding, we did find the customer service offering at eToro to be satisfactory with several channels of communication including a live chat function and a web based ticketing system. The eToro customer service reps are polite and knowledgeable and during our eToro review, our queries were answered in a timely fashion. However, unlike some platforms, there is no customer service on offer outside of normal office hours.

Who is eToro Suitable For?

eToro is a fantastic offering for retail traders who are interested in social trading and copy trading. It is also an ideal trading platform for very experienced traders as eToro offers rewards for successful traders who share their knowledge.

Investors should be aware that 65% of retail investor accounts lose money when trading CFDs with this provider.

This is because CFDs are complex instruments that come with a high level of risk and before engaging with this provider you should consider whether you understand how CFDs work and whether you can afford to take the high risk investment strategy that comes with them.

Is eToro good for beginners?

I felt that eToro would be a suitable choice for beginners for a number of reasons. Firstly the web platform is easy to use, and very clear and quick to navigate and the same can be said for the mobile platform. In terms of fees it is highly competitive, although you do need to be aware of some of the non trading fees which can be a little steep. The account opening process is very quick and beginners can get started with a low minimum deposit.

The other aspect that makes this an appealing platform for beginners is the demo account. This gives traders an opportunity to practice their trading skills without risking any funds.

eToro Ads

Since the appointment of Hollywood actor Alec Baldwin to star in eToro ads, there have been a number of quite bizarre promotions seen across the internet.

One of the latest eToro videos features a sloth copy trading ‘Eric’ who accidently trades whatever Eric is trading, in this case Bitcoin. Whilst we don’t advocate the trading of cryptocurrencies, the ad is still quite amusing!

CopyTrader™ is a clever solution from eToro that enables anyone to copy the best traders on eToro.

 

 

Useful Information

Here I have outlined some useful information to make your experience at eToro as seamless as possible.

How do I contact eToro?

eToro customer support can be contacted with their online ticketing system available on their webpages, or via live chat and email.

However, existing customers can make use of the eToro customer support web chat facility that can be found on your account.

How do I withdraw my money from eToro?

Withdrawing your money from eToro is quick and easy. Simply select ‘Withdraw Funds’ from the tab in the left hand menu and enter the amount you wish to withdraw. You will then be asked to complete an electronic withdrawal request form.

How do I close my account at eToro?

Closing your account with eToro is fairly painless and can be done by clicking the ‘Withdraw Funds’ tab in the left hand menu of your Account Settings page.

eToro Frequently Asked Questions

Is eToro any good?

Yes I think eToro is very and good, and they are a market leader when it comes to social trading and there is no denying that they offer a great service when it comes to opening your account and trading features. However, the eToro Forex fees are high when compared to similar platforms and the withdrawal fees are generally an unpopular addition.

How safe is eToro?

UK eToro customers are protected by the FCA and therefore entitled to up to £85,000 should eToro become insolvent at any time. eToro are also authorised and regulated by the Financial Conduct Authority which is a great sign of its safety, however, as eToro is still considered a startup, it is not listed on any stock exchange and there are no financial statements available from which to check its financial health.

Can I use eToro in the UK?

Yes, at the time of this eToro review, eToro is available in the UK, however all trades are carried out in USD so you will have to pay a currency conversion fee.

Does eToro have an ISA?

No, eToro does not have an ISA, so if you are already beyond your personal allowance, you can expect to incur a tax on any earnings you make while using eToro. If this is an issue then there are plenty of alternative platforms that can offer zero commission trading within the safety of an ISA.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that 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.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

4 Comments. Leave new

  • millan Hemingway
    07/10/2021 2:20 am

    Hi, am I right in thinking that UK users can’t transfer to the money wallet? Why is this? Its left me stuck as I dont want to leave it on the trading platform in a long term position where it is not as safe as offline storage. What can I do? Bitcoin.

    Reply
    • Antonia Medlicott
      26/10/2021 8:16 am

      UK customers can transfer their crypto assets to the eToro wallet as long as you own the coins (not traded them via CFDs) and the positions are un-leveraged. I would add that trading crypto assets is highly volatile so please be careful.

      Reply
  • David Walsh
    06/09/2021 9:13 am

    There are some terrible reviews of eToro on Trustpilot particularly regarding the withdrawal of funds. Can you comment please? Many thanks.
    David Walsh

    Reply
    • Antonia Medlicott
      06/09/2021 9:51 am

      Hi David

      Trustpilot reviews are definitely something we take into account. Based on our experience reviewing investing platforms, reading user reviews always needs to be taken with a pinch of salt. People who have made some bad trading decisions and lost more than they can afford are often quick to blame the platform/brand for the problem. If you look at any investing platform on trustpilot you’ll see a lot of 1 star reviews (it’s not just limited to eToro). We do look for general trends/consistent complaints and try and verify with our own experiences.

      In terms of the specific question around withdrawal of funds, in our testing with eToro UK, as we had all our paperwork to hand to manage the typical AML/KYC questions they are obliged to ask we had no problems and the funds landed back in our account in acceptable timeframe.

      I hope this helps

      Reply

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