eToro Review

Is eToro a Trusted Forex Broker?

In this review, we will be focusing on the eToro broker and evaluating its trustworthiness through examination of a number of factors, including fund safety, fees, trading platforms, customer support and more. eToro is an established player in the industry with a strong brand awareness, thanks in part to its long-term marketing plan of entering into high-profile sports sponsorships. To find out whether eToro is the most suitable broker for you, check out the below review, which presents a detailed inspection of everything you need to know about before opening an eToro trading account.

Introduction to eToro: A Brief Overview

eToro, established in 2007, is a popular online trading platform renowned for its social trading features. While eToro is a regulated forex and CFD broker, certain aspects may be a concern to users, particularly its fee structure, with withdrawal charges and overnight fees higher than many other similar brokers on the market. The popular MetaTrader platforms are also not available with eToro.

Meanwhile, the broker’s research tools are insufficient when compared with competitors, with limited options available to experienced, professional traders who tend to prefer to access comprehensive research tools and in-depth fundamental and technical analysis. There is also not currently any way for traders to contact eToro by phone, which may present some concerns to those traders who prefer a more direct form of communication.

Is eToro safe?

Licensing and Regulation

eToro is regulated by multiple authorities, including the FCA, CySEC, and ASIC, ensuring a secure trading environment. Traders can operate with confidence, knowing that eToro adheres to regulatory standards, enhancing the overall trustworthiness of the platform. This regulatory oversight is essential for users concerned about the security of their investments, contributing to a safer trading environment.

Security of Funds & Protection

As is standard practice in the industry, eToro has measures in place to ensure the protection of clients’ accounts. In line with most of its competitors, the broker ensures security through the segregation of funds in separate accounts. Such safeguards serve to provide assurance, in accordance with the relevant regulatory authorities, but it is important to note that actual effectiveness may vary. Consequently, traders should remain vigilant at all times about the potential risks associated with their investments when trading on the eToro platform.

The eToro Trading Platforms

eToro does not offer access to the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, instead providing a trading proprietary platform aimed at both novice and experienced traders. Their social trading platform allows users to follow and copy the trades of successful investors, creating a collaborative trading environment. While the eToro platform is mostly user-friendly, some traders may find that it lacks some important advanced features, making it suitable for those seeking simplicity in their trading experience.

eToro’s Trading Assets

eToro offers a range of trading assets, including forex, stocks, commodities, and cryptocurrencies. The broker offers trading on more than 5,000 instruments, made up of around 4,500 stocks, 55 currencies, 32 commodities, 21 indices and dozens of cryptocurrencies. Traders can diversify their investments, although the platform’s asset variety may not be as extensive as some competitors, limiting options for those seeking specific niche instruments.

Trading Conditions at eToro

Spreads & Commissions

eToro’s fee structure is transparent, with no commissions on stock and ETF trades. However, traders should be aware of higher spreads, especially for less common currency pairs. While the fee structure is relatively straightforward and transparent, traders should take time to properly analyse how the spreads may affect their profitability, especially in volatile markets.

Leverage

eToro offers leverage of up to 1:30 for major currency pairs, 1:20 for minor currency pairs, and 1:10 for commodities and indices. For cryptocurrency CFDs, traders can get leverage of 1:2. The exact leverage amount available is subject to regulatory restrictions based on the jurisdiction of the trader.

eToro’s Customer Support

eToro’s customer support is accessible through live chat and email. While response times are generally prompt, some users may find the lack of phone support inconvenient. The platform’s Help Center and social community contribute to a supportive user experience, although it may not fully satisfy all users’ needs. The availability of customer support through different channels enhances user accessibility and responsiveness, but users may still find limitations in certain aspects of support services.

The FXTS Verdict: Is eToro a Trusted Broker?

In conclusion, eToro provides a trading platform suitable for a wide range of traders. Its commitment to regulation and a diverse range of trading assets make it an option for those seeking a collaborative trading community.

Despite obvious flaws in its educational offering, particularly in terms of analysis and research tools, traders can find value in eToro’s platform, with the social trading aspect adding a unique dimension to the trading experience. However, more experienced traders may wish to skip this broker in favour of more attractive alternatives which already exist on the market right now.