Our Verdict
Through eToro, users can buy and sell a range of assets (although fees may apply). As with many other investment platforms, eToro offers built-in educational resources, while users can swap ideas and learnings via its newsfeed and other social collaborative functions.
Pros
- User friendly
- Multiple asset class investing
- Social and educational features
Cons
- Withdrawal fees apply
- Inactivity fees kick in after 12 months
On eToro's Website
4.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
All your investments in one place
Join approximately 30M users and explore stocks and ETFs
Capital at Risk. All investments carry a varying degree of risk and it’s important you understand the nature of the risks involved. The value of your investments can go down as well as up and you may get back less than you put in. Read More
Table of Contents
- Who should consider eToro?
- eToro: features and offerings
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Who should consider eToro?
For those new to investing, eToro could be a good point of entry. The platform is considered easy to navigate, and available through a browser or mobile app.
eToro allows users to invest in a selection of over 3,000 stocks and shares. But for those who don’t yet feel confident picking out their own portfolio, there is a ready-made option based a user’s interests and priorities.
eToro could equally be a good choice for those looking to connect with other investors, since the platform incorporates social elements that allow users share their thoughts and ideas.
To get the most out of these features, it could be useful to get to grips with the basics of investment terminology. eToro offers its own education resources, which could help in this regard.
*eToro lists prices in dollars. Use ourcurrency calculatorto convert to pound sterling.
Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.
Featured Partner Offer
1
eToro
All your investments in one place
Join approximately 30M users and explore stocks and ETFs
1
eToro
On eToro's Website
Capital at Risk. All investments carry a varying degree of risk and it’s important you understand the nature of the risks involved. The value of your investments can go down as well as up and you may get back less than you put in. Read More
eToro: features and offerings
As a multi-asset investing platform, eToro gives users the option to invest stocks and ETFs all in one place, as well as offering additional functions.
Invest in stocks
eToro users can invest in over 3,000 stocks as well as a range of ETFs, investing with as little as $10. They can choose their own collection of assets, or a ready-made ‘Smart Portfolio’. Just bear in mind that the minimum investment for Smart Portfolios is $500.
In March 2023, eToro announced it was teaming up with robo-advisor, Moneyfarm, to offer customers a stocks and shares ISA. Moneyfarm provides a range of ready-made investment portfolios in a number of categories, and provides a recommendation based on a user’s stated preferences.
eToro customers will be able to open a Moneyfarm ISA and view their balance through the eToro’s platform. Any money held in the ISA will also count towards eToro’s Club program (more on this below).
Smart Portfolios
Through Smart Portfolios, users can invest in a pre-selected collection of assets, which aim to diversify their holdings.
Some portfolios focus on a specific theme, such as technology, while others are composed with a type of investment strategy in mind.
There are also CopyTrader portfolios which allow users to automatically replicate the portfolios of successful investors on the platform. If these ‘popular investors’ gain enough copiers, they can earn additional income on top of their investment profits if they make any (which is not guaranteed).
Copy trading can be highly speculative, and may lead to significant losses, for several reasons, including but not limited to relying on investment decisions and strategies being used by one or more other individual traders, who may be inexperienced and/or unqualified, or who may have intentions or a risk-tolerance that may differ substantially from yours, and who have no accountability or duty of care to act in your interests. In addition, there are several investment and trading related risks which could lead to trades or results, that may differ substantially from those of any trader copied. Information about any trader, may be limited, incomplete, inaccurate or unreliable, and any past performance figures are not a reliable indicator of future performance. You should always review the relevant risk warnings carefully before using anyCopy Trading service to ensure that you fully understand and accept all the applicable risks. If in any doubt you should take professional financial advice.
To use eToro’s Smart Portfolios, users will need to invest at least $500. For CopyTrader portfolios, the minimum investment is $200. But ‘cashing out’ is only possible by shutting down the whole portfolio.
Social investing community
eToro lets investors connect with one another through a social media-like newsfeed, where news, ideas and strategies are shared and discussed. Regular blogs and personalised alerts are another way users can keep track of the market.
Education
Anyone, even non-users, can visit eToro and gain access to lessons on investment terms, interpreting the markets, and different types of assets through the eToro Academy. Topics range in complexity from beginner to expert level.
However, no content should be relied upon as constituting personal advice or a personal recommendation. Users requiring any personal advice or recommendations should contact an independent and qualified professional financial advisor.
New joiners of eToro will first need to create an account. They can then access a ‘practice account’ that allows a virtual investment fund of $100,000 with which to get to grips with the platform before starting to invest with real money.
eToro club
eToro users who have at least $5,000 in their trading account (including invested cash), are granted automatic membership to the eToro Club.
The club offers perks including investment guidance, free webinars, and access to subscription services such as The Wall Street Journal.
Club membership and therefore available benefits are tiered according to an investor’s balance.
Mobile apps
It’s possible to invest from an Android or iOS device with eToro’s investing app.
Usability
Currently, eToro has a ‘great’ rating of 4.2 out of 5 stars based on 23, 923 user reviews.Customers with a positive experience of the investment platform cited its ease of use as a highlight. Many found setting up an account and getting started with investing simple using the online platform and the eToro app.
The majority of customers had a positive experience with eToro’s customer service and found that their queries were resolved quickly.
Customers with a negative experience of using eToro shared issues around withdrawing funds from their account.
Research and market analysis
eToro offers several tools for market research and analysis:
- Research overview: eToro offers a standard economic calendar, earnings reports, news headlines, daily market analysis and podcasts
- Market news and analysis: users can access news and analysis about a range of assets and market sectors to help users make more informed investment decisions. This includes coverage of political events and quarterly earnings updates
- Newsfeed: eToro’s newsfeed, available in its investment account, offers trading and investing content tailored specifically to the user. It also allows verified users to post updates and view posts from other investors.
Security
While users’ money, and their investment, falls outside the protection of the Financial Services Compensation Scheme (FSCS), the platform does safeguard funds in a regulated bank account, which is separate from company money and held in trust.
This means if eToro went bankrupt, no third party would be able to claim this money and it would be returned to customers.
The platform also secures customers’ personal information using SSL encryption — an internet security protocol that encrypts data before it’s transmitted between computers. Anyone who tries to intercept the data will only see an illegible combination of characters.
Investors can also select two-factor authentication (2FA) for an extra layer of log-in security. This will send a SMS verification code to a user’s phone which will need to be entered to access their account.
Customer service
eToro offers several options to users needing assistance. The Chatbot function uses artificial intelligence (AI) to answer queries 24/7. There’s also a 24-hour live chat function between Monday and Friday.
Alternatively, users can open a ticket in the customer service centre and receive an email within 48 business hours to the address registered on their eToro account.Members of the eToro Club can use WhatsApp to contact their account manager directly.
Freqently Asked Questions
Is eToro safe?
In terms of security, eToro offers two-factor authentication (2FA) option to secure customer accounts. This means a fraudster would need access to both a user’s log-in details and either their email account or phone to pass as them.
Is eToro good for beginners?
eToro’s website and app are considered easy to navigate, which could be particularly helpful for those new to investing.
For those not yet ready to choose their own investment portfolio, there are ready-made options to select based on their interests.
Is it possible to make money from eToro?
Many people can, and do, make money investing with eToro. But many others also lose money.
All investors should expect the values of their investments to go down as well as up. There is no guarantee of a return on investment, or to break even.
How does eToro make money?
In addition to commission charges levied on trades in some circ*mstances, other fees can apply.
There’s a flat fee of $5 on withdrawals, for example. However, this sum is fixed, regardless of how much is withdrawn.
eToro also charges inactivity fees of $10 per month as soon as the account has not been used for a year.
