ETORO
eToro serves UK clients through a unit regulated by the Financial Conduct Authority (FCA) and Australians through an Australian Securities and Investment Commission (ASIC)-regulated entity. All other customers are served by a Cypriot unit that is regulated by the Cyprus Securities and Exchange Commission (CySEC).
eToro is not listed on any stock exchange, does not disclose its annual report on its website and does not have a bank parent.
Being regulated by the top-tier FCA and ASIC is a good sign for eToro’s safety.
HEADS UP: Minimum deposit based on residency and account activation – Be sure to check the minimum deposit that is required to activate your account. After uploading your documents, a deposit is also needed in order to make trades. The amount of the deposit required is based on your residency, and ranges from $10 to $10,000. More details are available in the review’s Account opening section.
eToro USA LCC does not offer CFDs, only real Crypto assets available.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Pros
- Established, global platform
- Innovative and easy to use social trading experience
- Support for fractional shares
- eToro Money cash management service
Cons
- eToro is only available in 46 U.S. states
- Relatively limited ETF and stock selections
- Limited account types, no portfolio margining or options trading
- General lack of advanced trading tools, features, and research
eToro
eToro was launched in Israel in 2007 by three entrepreneurs. The platform originally focused on forex trading, but quickly found traction to expand its product lineup and grow into a global service. In 2010, eToro created one of the first social trading experiences called OpenBook, enabling users to learn from and copy other seasoned traders. The platform continued to show its innovative nature by expanding their services to include stock trading, ETFs, automated portfolios, crypto, and cash management features. eToro now operates in more than 140 countries around the world and boasts 20 million users. 2 The company’s flagship offering is the social investing feature, CopyTrader.
Users can quickly find investors to follow and copy trades based on investor star ratings, coin interests, and performance metrics. With a minimum investment of $200 for this dynamic, traders can copy up to 100 investors simultaneously. This feature is only available for crypto. eToro announced expanded offerings in the U.S. in January 2022, launching support for stock and ETF trading. 3 The U.S. version of the platform now includes these assets and crypto combined with the social trading experience. eToro’s cash management service, eToro Money, and the automated portfolio management service Smart Portfolios are also available in the United States. While the platform is available in more than 40 states, eToro is not available to everyone across the country.
Every user of eToro is given a $100,000 virtual trading account so you can learn more about the market and test different trading strategies before risking your own money. This makes it easier for beginner investors in particular to enter the market. An educational section lets users learn more about investing and trading. However, the range of topics covered is relatively limited and lacks material on financial guidance and goal planning. Tools, calculators, and research functionality is limited as well. A narrow range of available asset types is further restricted to 2020 stocks and 221 ETFs. Important trading functionality like margin accounts and options trading are absent altogether.
