eToro

Should You Trade with eToro? Read This Broker Review First?

About eToro

eToro is a broker that is often seen in YouTube advertisements featuring actor Alec Baldwin. Celebrity endorsements have a profound effect on consumer trust. However, it is also important to look beyond the ads and investigate the companies and brokers behind them. eToro was founded in 2007 and has licenses from 1, 2, and 3 tier brokers. It has an impressive selection of 2,300 trading products. 

eToro sounds good, has a professional website and an ambitious marketing campaign but is it the real deal? If eToro is a legitimate broker, is it right for your financial goals and trading needs? It is important to research answers to these questions before signing up with eToro or any other broker. 

We have investigated eToro thoroughly and have produced this broker review to guide your trading decisions. Broker Complaint Registry has a multitude of broker reviews that will help you do research before signing up with a financial service. Broker Complaint Registry is the right place to turn when you have lost money to a broker or through other scams.

Year Founded 2007
Regulation ASIC ; FCA
Minimum Deposit $200
Product Types 2300 instruments, including exchange-traded securities, forex, CFDs, and popular cryptocurrencies.
Products Offered More than 2300 products to Trade, proprietary web-based platform

Regulation

The first thing traders should look for when researching brokers is whether or not they have a license or and what caliber license they have. eToro has various licenses including the top-rated ASIC from Australia and the U.K’s Financial Conduct Authority or the FCA. 

 

eToro satisfies the criterion of a regulated broker. The FCA and the ASIC have particularly high standards. They demand ongoing documentation and inspections to ensure that all licensees are complying with their regulations. The FCA and ASIC also act quickly on customer complaints and can deal with issues effectively. 

 

Why does it matter if a broker is regulated? Brokers without licenses can get away with cheating traders and are harder for authorities to track. Regulators have thorough information on the brokers they give licenses to and can take action if there are complaints.  Brokers that have no licenses are more likely to get away with forex trading scams and other unethical practices. 

 

eToro has two first-tier licenses and which should give traders peace of mind. Although even regulated brokers can participate in problematic practices, traders can complain to regulators or fund recovery services such as Broker Complaint Registry.

Accounts, Fees, Spreads, Commissions

Some brokers make money with fees and commissions, but eToro uses spreads. Although it doesn’t contain extraneous fees, eToro’s spreads at 1 pip for the EUR/USD pair are considered high for the industry. 

There are some perks, however, for those who have higher caliber accounts. These account types vary according to how much money is being traded. The VIP account, for instance, offers a personal account manager, the waiving of certain fees and private signals. 

The rates for cryptocurrency conversion are as high as 5%. Trading of cryptocurrency for eToro is a typical 0.75%.

Platforms and Trading Products

eToro offers 2,3000 trading products, including forex, exchange-traded products, securities, CFDs, and cryptocurrencies. There are a total of 47 forex currency pairs available. 

eToro gives traders access to its platform, but it does not offer the popular MetaTrader. All trading is manual and those who want to engage in automated trading should consider another broker. However, this broker does allow social copy trading, which involves, as the term implies, copying the trades of other people on social media. 

It is also possible to trade cryptocurrencies on eToro and to have a digital wallet so traders can hold the underlying assets.

Education and Research

One of eToro’s notable strengths is its educational and research resources. Beginners can learn the ropes of trading with instructional videos on the site and YouTube. eToro also produces webinars for their traders. 

Seasoned traders who want to do full research before making trades can use eToro’s resources for fundamental analysis, measurement of consumer sentiment, and technical analysis. There is also an informational well feed that resembles that seen on Twitter.

Pros and Cons of eToro

Pros

  • Top tier regulation
  • Wide selection of trading products
  • Advanced research and educational tools
  • Social copying trading

Cons

  • Fairly high spreads
  • No MetaTrader or automated trading

Should You Trade with eToro? 

eToro is a well-regulated broker with licenses from the FCA and the ASIC. It has a wide variety of trading products and strong educational and research resources. After investigating this broker thoroughly, it seems that eToro is a regulated, legitimate broker. 

This doesn’t mean that all of its services are right for all traders. Those who prefer automated trading, for instance, may want to look for another broker.

Even though eToro is regulated, that doesn’t mean that disputes with clients can’t arise from time to time. If you have a dispute with eToro or other brokers, it is important to have someone in your corner who can negotiate and strive to get your funds back. Broker Complaint Registry is the right place to go when you have a dispute with a broker.

Do You Have a Complaint with a Broker? Broker Complaint Registry Will Help

 Contact Broker Complaint Registry experts if you need assistance with a broker complaint.  We deal with a variety of issues, including data theft, forex trading scams, and crypto complaints. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.