eToro is an FCA regulated CFD broker. It offers a unique social trading and copy trading feature on its proprietary trading platform. Check all the pros and cons of choosing eToro in the UK before opening your account.
eToro is an online broker that provides trading and investment services on various financial instruments. They offer a unique social trading platform where clients can conveniently copy trades of other traders around the globe.
eToro is an established broker with a proprietary trading platform. It is regulated by Several regulatory authorities in various jurisdictions. There are several pros and cons of choosing eToro in the United Kingdom.
eToro UK Pros
eToro UK Cons
We are committed to providing honest and unbiased reviews of forex and CFD brokers for clients based in the UK. Traders and investors must check and compare every aspect of the brokers before choosing any FSP in the UK.
Our review includes details of regulations, fees, account types, trading platforms, available instruments, and several other important factors.
Table of Content
|Broker Name||eToro (UK) Ltd|
|Regulation||FCA, ASIC, CySEC|
|Year of Establishment||2007|
|Trading Platforms||eToro Proprietary|
|Trading Instruments||3000+ CFDs on forex pairs, commodities, indices, shares, ETFs, cryptocurrencies|
eToro Safety Pros
eToro Safety Cons
The safety of traders and investors with any financial service provider depends largely on the regulation under which clients are getting registered.
Clients residing in the UK are registered at eToro under the regulation of the Financial Conduct Authority (FCA). Following are the details of major regulatory licenses held by eToro globally.
FCA is a top-tier financial regulator in the jurisdiction of the UK. Clients can cross-check the latest details of regulations from the official FCA website. Clients registered under FCA regulation are protected by up to £85,000 per client in case of an unsettled dispute or bankruptcy of the broker.
The FCA-regulated entity of eToro has a local office in the UK on the 24th Floor, One Canada Square, Canary Wharf, London, E14 5AB.
eToro acquired the regulatory license from the ASIC in 2017. The Australian Securities and Exchange Commission is a top-tier regulatory authority based in the jurisdiction of Australia.
eToro AUS Capital Limited is the legal entity of eToro that is regulated under ASIC with license number 491139 and ABN number 66612791. Only the clients residing in the jurisdiction of Australia are registered under ASIC regulation.
eToro was initially incorporated in 2007 by co-founders Ronen Assia, David Ring, and Yoni Assia. It is a privately held firm and is not listed on any stock exchange.
The broker started its operation as an online forex broker with the name RetailFX. Later on, they added more financial products, and the name was changed to eToro. Currently, it is a well-regulated FSP that accepts clients from various countries.
Due to FCA regulations, eToro can be considered safe for clients residing in the UK.
eToro Fees Pros
eToro Fees Cons
We have covered every part of the fees that can possibly be incurred by traders in the UK. Each component of trading and non-trading fees has been reviewed. Following are the components of fees charged at eToro.
The average typical spreads for major currency pairs CFDs start from 1 pip and 2 pips for commodities CFD. The average spread for EUR/USD is 1 pip and for Gold is 45 pips. The spreads are variable and can widen during volatile market conditions.
The following table compares the average typical spread of various instruments at eToro vs other well-regulated forex and CFD brokers in the UK. The spreads in this table are with the Standard account type that does not involve any trading commission. Since there are no choices for account types at eToro, the spreads will remain the same for each retail client at eToro.
|Trading Instrument||FXTM||eToro||CMC Markets||Pepperstone|
With the help of the table above, it can be assumed that the spreads at eToro in the UK are lower than some brokers but it is not the lowest. There are a few FCA-regulated brokers in the UK that offer lesser spread on forex and CFD instruments.
Deposits are free at eToro through all the accepted methods but a withdrawal fee of $5 is incurred for each withdrawal. If the clients are withdrawing in currency other than USD, a conversion fee will also be applicable for the conversion of the withdrawal amount.
The currency conversion fee, as well as the withdrawal fee, can be avoided by using the eToro Money Account. The eToro Money Account has been described below in this review. There is no commission for copying the trade orders of other traders at eToro. Only the spreads and overnight charges (if applicable) will be incurred while copy trading.
Overall, according to our review and comparison with FCA-regulated CFD brokers in the UK, eToro has an average fee structure. There is no trading commission but buying cryptocurrencies as an asset (without CFD) will incur a 1% commission.
The spreads are moderate when compared with other CFD brokers in the UK. The non-trading fees are slightly high as $5 is incurred for each withdrawal along with the currency conversion fee (if applicable).
There are no choices of account types at eToro with different trading conditions. Each client gets similar features and trading conditions in the UK.
USD is the only available base account currency at eToro. GBP or any other currency cannot be chosen as the base account currency.
eToro offers additional services to clients that hold more than $5000 equity in their account or portfolio. This grants access to eToro Club membership that has 5 different tiers.
The additional services with basic silver membership ($5000 equity) include customer success agent, daily market summary, live webinars, exclusive portfolios, 85% cryptocurrency staking, etc.
The number of services increases as clients are promoted to a higher tier of eToro Club. Clients can enjoy benefits like free withdrawals, crypto fee rebates, tickets to sporting events, subscriptions to financial publications, etc.
The eToro Club membership does not affect the fee structure or availability of financial instruments for trading and investment. The trading conditions are the same for all types of traders at eToro.
The eToro Money Account can be very useful for those individuals who wish to deposit and withdraw with currencies other than USD. The eToro Money account is similar to a wallet which can be used to send, store, and receive fiat or crypto holdings.
The withdrawals through the eToro Money account from the main eToro account are free of any commission or currency conversion charges. Clients can also use the eToro wallet balance through a VISA debit card.
The eToro Money account is provided by eToro Money UK Ltd. The money held in the account is protected by Financial Services Compensation Scheme. Only the members of the eToro Premium club can open the eToro Money Account.
The account opening process is simple and fast at eToro. A new account can be opened and verified within a day.
Step 1: Username and e-mail
The first step after you click on “sign up” on the official website of eToro is to select a unique username and enter the email address. Clients also need to select a password before moving further.
Step 2: Complete Profile
Once you enter the email and password, you will be redirected to the web trading platform of eToro where you can see trading instruments and get familiar with the platform. On the top left corner below your username, there will be an option to “complete profile”. The real or demo account can also be selected from here.
Once you click on “complete profile”, the first step is to enter your full name, gender, and date of birth. Make sure to enter the same details as on the national ID.
Step 3: Address
The next step in completing the profile is to enter the address along with the country and National Insurance number.
Step 4: Trading Experience
eToro will take a quick survey of your trading experience by asking questions related to your personal trading experience. After this, your mobile number needs to be entered which will be verified via OTP to move further in the account opening process.
Step 5: Deposit Funds
After completing the above steps, clients can deposit funds using their preferred methods. The minimum deposit amount is $10 for UK clients and money can be deposited either in USD, GBP, EUR, and AUD.
The amount deposited in any currency will be converted to USD according to prevailing conversion rates.
After the deposited amount gets reflected in the account balance, clients can place trade orders on any of the available instruments through the trading platform.
The demo account at eToro can be opened within a minute by anyone. Traders do not need to provide personal details or verify documents to open a demo trading account. A demo account at eToro can be opened only by providing the email address and choosing an available user name.
After redirecting to the dashboard, the demo account can be opened by clicking on the switch to virtual. The virtual account or the demo account initially gives $100,000 in USD. The currency of the virtual account can be changed to GBP, EUR, and other currencies but the value will remain the same as the amount will be converted to the chosen currency.
Once the virtual account is opened, clients can open and close trading positions on all the available instruments. All the features for research and education can be used through the virtual portfolio or demo account at eToro.
The virtual account can be highly advantageous for beginners who wish to learn and practice their trading strategies. The profits and losses on the virtual account will be virtual and cannot be withdrawn from the demo account.
eToro accepts multiple methods for deposits and withdrawals in the UK. We have reviewed the methods through which clients can transact in the UK.
The minimum deposit amount for clients residing in the UK is $10. The minimum amount for the initial, as well as the subsequent deposit, is $10 in the UK. The minimum deposit amount through wire transfer is $500. The minimum withdrawal amount at eToro is $30.
The deposits through all the accepted methods are free of additional commission. Withdrawals through all the methods will incur a fixed commission of $5 on each withdrawal.
Clients at eToro can only trade with their proprietary trading platform. eToro does not offer MetaTrader or cTrader trading platforms.
We have separately reviewed the trading platform at eToro for web, mobile, and desktop.
eToro Web Trading Platform
eToro web trading platform is user-friendly and can be a good choice for beginners. Each available instrument at eToro can be accessed for trading, analysis reports, a live news feed, and charts through the trading platform.
Each instrument at the eToro web trading platform has a separate feed where clients can connect and interact with each other. The eToro platform has better social media connectivity than MT4 or MT5 platforms.
The statistics, basic details, market trends, price trends, and history of each instrument are available on the proprietary trading platform of eToro.
The trade and investment orders of any client using the eToro trading platform can be copied by other clients. No additional fees or commission is charged for copying any of the traders. The pricing structure remains the same as that without copying for each instrument.
Any trader or investor can make their profile public. This allows other clients to copy your trade orders. eToro separately rewards the top traders and investors that are most copied. The historical returns, portfolio, most traded instrument, and other detail can be checked for any public profile before copying it.
The eToro web trading platform is ideal for beginners as it has a clean design with useful features. The web trading platform is available in 21 languages and has an optional two-step login feature for increased safety. Market, Limit, Stop-loss, and Trailing stop-loss orders can be placed through the eToro web trading platform. The portfolio report and fee report are also available to the traders.
eToro Mobile Trading Platform
The eToro mobile trading platform has similar features to the web trading platform but on a smaller screen. The eToro mobile trading platform can be downloaded on Android and iOS devices. It has 2 step login and traders can also log in through fingerprint and facial recognition.
eToro Mobile trading platform is also available in 21 languages. Swiping left and right allows easy access to the portfolio and placing trade orders. Mobile trading apps generally have limited features but the eToro mobile trading platform allows traders to access and work upon charts with multiple time frames and useful features.
eToro mobile trading platform is among the best forex trading apps available for Android and iOS devices in the UK.
Desktop Trading Platform
eToro does not offer any trading platform for desktop devices. This means that traders can only trade through web trading platforms and mobile trading platforms of eToro. The eToro trading platform cannot be downloaded on Windows and macOS desktop devices.
Overall, the eToro trading platforms are user-friendly and ideal for all types of traders. They offer useful tools for traders and allow convenient copy trading without any additional cost. The trading platform at eToro is a major reason to choose eToro over other brokers. MetaTrader, cTrader, or any other trading platforms are not available at eToro.
The customer support service at eToro is different for existing clients and visitors. The visitors can only raise queries by raising tickets on the website. The existing clients can connect through a live chat with the support executives.
Compared to other regulated CFD brokers in the UK, we found support services to be limited at eToro. After opening the account, the clients can connect via email and live chat support.
However, if the account equity is more than $5000, clients get the silver eToro Premium Club services. This includes a personal relationship manager that can assist the traders at any instance while trading.
Local phone support is not available at eToro for clients in the UK. However, there are plenty of FAQs that can resolve major queries of traders.
Beginners in forex trading must always look out for the brokers that offer good quality content to educate the traders and assist them in research. eToro offers various tools that can be very useful for UK clients in learning about forex trades.
eToro Research Tools
eToro offers a good variety of research and education tools to assist the traders in making informed decisions in forex trading. Each financial instrument has a separate research section apart from the charts and specific news feed.
The research section provides details to the registered clients about the market sentiments, the ratio of buyers to sellers, support & resistance, and a price prediction report by eToro experts. eToro also offers a social network feed for each financial instrument where traders can connect with other traders to discuss trading strategies and ideas.
eToro Education Tools
The education tools at eToro can be availed without opening a trading account. They regularly publish news and analysis reports concerning the financial markets.
The eToro academy is a learning platform that includes various videos and courses related to trading and investment in financial markets. The eToro learning platform grants access to guides, podcasts, webinars, and several other educational videos.
The eToro Plus educational tools provide market insights for daily, weekly, and monthly price movements in capital markets. The eToro Bull Club is a platform where successful investors and financial leaders share their ideas and educate the viewers to perform better in the financial markets.
We didn’t find any shortcomings in the research and education tools provided by eToro. Compared with other FCA-regulated forex and CFD brokers in the UK, we place eToro among the best in terms of research and education segment.
Opening an account with eToro grants access to trading on a variety of instruments. The maximum leverage that clients can use is restricted as per the regulatory regimes of the FCA.
Following are the instruments that can be traded at eToro.
|Asset Class||Number of Instrument||Maximum Leverage|
|Currency Pairs||49||1:30 for majors, 1:20 for Minors|
|Commodities||32||1:20 for Gold, 1:10 for others|
It must be noted that apart from cryptocurrencies, all other assets can only be traded as CFD. This means that there is no physical buying or selling of the underlying asset. Only the price difference between the opening and closing of the position is settled via cash.
Yes, eToro is a well-regulated CFD broker in the UK. It has a user-friendly trading platform and a unique copy trading feature that is free of added commission. eToro can be among the best choices for copy trading. It can also be an ideal choice for beginners as the trading platform is convenient to use compared to MetaTrader or cTrader.
The customer support services are below average for the clients that have lesser equity. eToro can also be costly for some clients as GBP is not available as the base currency and each GBP deposit involve a currency conversion fee. Withdrawals also incur a commission of $5.
The spreads at eToro are slightly higher which comes at the expense of a user-friendly platform and free copy trading. Clients cannot choose any other trading platform apart from the eToro Proprietary platform.
USD is the only available base account currency. Clients in the UK making deposits in GBP need to be converted according to prevailing conversion rates at eToro. Withdrawals will also involve currency conversion apart from the fixed commission of $5 on each withdrawal.
$10, the minimum deposit amount at eToro is different for every region and also depends on the method of depositing. For UK clients, the minimum deposit amount for all methods is $10 except for wire transfer. The minimum deposit amount through Wire Transfer is $500.
Binance is a cryptocurrency exchange while eToro is a CFD broker and cryptocurrency exchange. Binance can be used to trade and invest in cryptocurrencies only. Cryptocurrencies can also be traded or held on eToro but this can also be used for trading CFDs on forex, stocks, indices, commodities, etc.
Yes, eToro is a CFD and crypto trading platform where clients can make money if they make profits on the trade orders. However, if losses are booked on trades, clients can also lose money. It is advisable for beginners to trade via a demo account before using the real account to gain some experience. More than 70% of beginners lose money while trading CFDs.
No, eToro is a financial services provider that allows clients to trade on various financial instruments mostly through CFDs. Profits, as well as losses, can be made on CFD trading. It involves financial risk and is not a scheme to get rich quickly. It is only ideal for those who are ready to risk their money in the short term in financial markets.