eToro

eToro is a multi-asset investment platform offering access to over 6,000 financial instruments. As one of the world’s largest social trading platforms, it combines traditional investing with a community-driven approach.

Founded in 2007, the Israeli fintech company specialises in CFD trading, stocks, ETFs, and futures, alongside a dedicated focus on cryptocurrency markets.

Designed with beginners in mind, eToro provides a user-friendly experience while also offering advanced features for seasoned traders. However, its structure may be better suited to short-term trading rather than long-term investing.

Commission-Free Trading

eToro provides commission-free investing on stocks and popular ETFs, making it an accessible option for cost-conscious traders.

You can invest in popular UK shares, US stocks, ETFs from as little as $10.

CFD Trading

eToro offers Contracts for Difference (CFDs) across a wide range of assets, including stocks, indices, commodities and forex. CFD trading allows users to speculate on price movements without owning the underlying asset, enabling both long and short positions.

With leveraged trading options, eToro provides opportunities for greater market exposure. What is CFD trading?

Cryptocurrency Trading

eToro offers access to over 100 cryptocurrencies, including Bitcoin, Ethereum, and XRP. Users can buy, sell, and hold digital assets with real-time market access.

With features like crypto staking and a secure digital wallet, eToro provides a streamlined experience for those looking to invest in digital currencies.

eToro’s CopyTrader

eToro’s CopyTrade is a distinctive social trading tool that enables users to replicate the trades of experienced investors automatically. This feature is particularly appealing to those who may not have the time or expertise to manage their own portfolios actively.

Key Features:

Real-Time Trade Replication

When you choose to copy a trader, each of their trades is mirrored in your account proportionally and instantaneously. This means that if the trader buys a particular stock, the same stock is purchased in your portfolio, maintaining the same allocation.

Diverse Selection of Traders

eToro offers a vast array of investors to copy, each with unique strategies, risk levels, and asset preferences. You can filter potential traders based on criteria such as nationality, investment style, and performance metrics. This diversity allows you to align your investments with traders whose approaches resonate with your financial goals and risk tolerance. ​

Risk Assessment Tools

To assist in making informed decisions, eToro provides risk scores for each trader. These scores, ranging from 0 to 10, reflect the volatility of the trader’s portfolio. A higher risk score indicates a more volatile investment approach, which can be crucial information for aligning with your risk appetite.

No Additional Copying Fees

Using the CopyTrader feature does not incur extra charges beyond the standard spreads and transaction fees associated with the trades. This transparency ensures that you are aware of all costs involved in your investment activities.

While past performance can offer insights, it’s essential to remember that it does not guarantee future results. eToro highlights that the value of investments can fluctuate, and investors should be prepared for potential losses. ​

eToro Fees

eToro offers a transparent fee structure, designed to keep costs low for UK and US users, with commission-free trading on many assets. Here’s a breakdown of what to expect:

Trading Fees

• Stocks & ETFs: Commission-free for most trades, with no additional charges on opening or closing positions.
• Cryptocurrencies: A flat 1% fee applies to both buying and selling. Transfers to the eToro Money wallet incur a 2% fee, with set minimum and maximum limits.
• CFDs: Spreads apply depending on the asset, and there are overnight fees for positions held beyond market hours.

Account & Transaction Fees

• Withdrawals: Free for GBP and EUR accounts. USD withdrawals incur a $5 fee, with a $30 minimum withdrawal.
• Currency Conversion: As eToro operates in USD, deposits or withdrawals in other currencies may incur conversion fees.
• Inactivity Fee: A $10 monthly fee applies if you haven’t logged into your account for 12 consecutive months.

For the most accurate and up-to-date information, it’s always a good idea to check eToro’s official fee page.

Considerations for UK Investors

Regulatory Oversight: eToro operates under the supervision of the UK’s Financial Conduct Authority (FCA), ensuring adherence to stringent financial standards and providing a layer of protection for investors. ​

Investor Protection: As a UK-based investor, your funds are protected up to £85,000 through the Financial Services Compensation Scheme (FSCS). This safeguard offers peace of mind in the unlikely event of the platform’s insolvency. ​