eToro Broker Review

eToro

A Guide to Forex Trading Scams

Forex is one of the most popular forms of trading. Individuals and institutional investors welcome the opportunity to make money relatively quickly. However, there are also many risks involved, including bitcoin scams, forex trading scams, and falling victim to unscrupulous brokers. While governments propose tighter regulations on forex, the multiplicity of scams mean that traders should tread carefully.

Should You Trade with eToro? Read This Review First

eToro is a popular cryptocurrency trading platform with 17 million users around the world. It offers only cryptocurrencies to US clients and overseas clients can also trade CFDs. It announced it is going public through a SPAC merger. eToro has at least three licenses, one from the higher regarded top-tier FCA. But does that mean you should trade with eToro?

Broker Complaint Registry has done a thorough investigation of eToro’s services and we have created this review to help you decide which financial services are right for you. Our team is comprised of experts in the financial industry and we provide guidance to our clients. We match them with experts that can help them with broker complaints and fund recovery.

Year Founded

2007

Regulation

FCA, CySec, ASIC

Minimum Deposit

$50 in US and Australia, $1,000 most other countries

Product Types

Outside of the US: Forex,indices, stocks, bonds, cryptocurrency, CFDs, ETFs, commodities in the US--crypto only

Products Offered

15 cryptocurrencies for US clients non-US 16 currency pairs, 2,000 assets

About eToro

eToro has 17 million clients in 100 countries. The fees and types of services vary according to the location of the clients. eToro was founded in 2007 and is based in the United Kingdom. It has a license from FCA, or the Financial Conduct Authority which is a top-tier regulator based in the UK. It is going public in a SPAC merger.
eToro has multiple licenses, including those from top-tier regulators, so it fits the first and most criterion for a legitimate broker. It is important to investigate fees and other features to determine whether eToro is the right choice.

Regulation

eToro has at least three licenses, including the FCA, CySEC and ASIC. These are reliable regulators, and FCA has very strict standards before issuing licenses. Additionally, the upcoming merger with SPAC also increases confidence in eToro.
eToro has at least three licenses, including the FCA, CySEC and ASIC. These are reliable regulators, and FCA has very strict standards before issuing licenses. Additionally, the upcoming merger with SPAC also increases confidence in eToro.

Accounts, Fees, Spreads and Commissions

eToro makes money through fees and spreads and in some cases, commissions. The fees depend on the area and the asset traded. For instance, for U.S. clients, fees for cryptocurrencies can range from 0.75% to 5%. Non-US customers do not pay commissions except for short-selling.
There are some minor fees, such as for foreign currency conversion, a modest inactivity fee of $10 for 12 months. There are no fees for withdrawal in the US, but there is a minimum withdrawal requirement of $30. Outside of the U.S., the withdrawal fee is $5.
The minimum for accounts varies widely according to region. The minimums for US and Australian clients is just $50. In most other countries, the minimum is $1,000 and in Algeria is $5,000. Account-holders must verify their identity, and this can often take a few days.

Trading Products

For U.S. clients, eToro provides only cryptocurrency trading. eToro defines US clients as those who are not only citizens but who actually reside in the U.S. Outside of the U.S. clients can trade 2,000 stocks and ETFs from 16 countries along with CFDs. Non-US customers can trade 16 forex pairs. U.S. customers trade 15 cryptocurrencies.

The selection may seem limited for U.S. customers, but it should be noted that many brokers who offer CFD trading do not sign up U.S. clients at all. The fact that eToro offers US clients cryptocurrency trading is an advantage over other brokers who do not work with customers from the U.S.

Technology and Platforms

Trading on eToro’s user-friendly platform is done through pressing “buy” and “trade” and “sell” buttons. Traders have to close an entire position at once and cannot close just a part of it. Non-U.S. clients can activate a stop-loss position to reduce losses.

Research and Education

eToro does not have a large selection of trader educational resources, although there is an occasional webinar that provides instructions on trading. There is some charting and technical analysis. Traders who are new to trading may have to look for information outside of the eToro website. Seasoned traders may have their own research methods and may not see the lack of information on the eToro site as a major disadvantage.

Customer Service

Clients who have accounts less than $5,000 can get support through submitting a support ticket and having a live chat with an eToro representative. Those who hold clients over $5,000 enjoy premium customer service through a personal account manager.

Should You Trade With eToro?

BCR has investigated eToro thoroughly and has concluded that eToro seems like a legitimate trading service. It has at least 3 high caliber licenses and is about to go public, which means it will be subject to more oversight. There are a number of advantages and disadvantages which may or may not matter to individual clients depending on their location and their trading priorities.
For instance, account minimums are very high for non-U.S. clients, there are commissions on U.S. trades and U.S. traders can only trade cryptocurrencies. However, many brokers that trade CFDs offer no services to U.S. clients. Whether or not eToro is right for you depends on your financial goals and region. If you have your own research resources, the lack of educational features on eToro may not be an issue.
Even though eToro is a registered broker, that does not mean there will never be problems with service. If you have a complaint with eToro or another broker, speak to Broker Complaint Register today.

Forex Trading Scam Brokers

Fraudulent brokers are another type of forex trading scam. In general, always avoid brokers who do the following:
  • Are not regulated
  • Do not provide transparency about fees, commissions, and spreads
  • Do not allow a variety of platforms, payment, and account options
  • Are evasive when asked questions and do not adequate customer service
  • Have a fake address or telephone number
  • Has a statement that they reserve the right to adjust fees or rules about withdrawing money or can close an account for any reason

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

Contact Broker Complaint Registry experts if you need to make a complaint against a broker. We deal with a variety of issues, including data theft, broker 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 get a refund.

Have You Lost Money to a Forex Trading Scam? BrokerComplaint Registry Will Help

Contact Broker Complaint Registry experts if you have lost money in a forex trading scam. We deal with a variety of issues, including data theft, broker 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 get a refund.