eToro Review UK 2024

This eToro Review UK will take a deep dive into the platform, exploring several aspects such as fees, account minimums, supported markets, regulation, safety, supported payments, and more. 

eToro is a leading online brokerage and trading platform with a trusted reputation in the UK. It has amassed a user base of over 30 million and was the first online trading brokerage to support digital currencies with the addition of Bitcoin (BTC) in 2013. In 2017, it expanded into crypto further, adding support for Ripple (XRP), Litecoin (LTC), and others. Users on the platform can also invest in stocks, ETFs, commodities, forex, and indices. 

eToro Review UK: Pros And Cons 

Before we start with our eToro review UK, let’s take a quick look at the pros and cons of the platform.

eToro UK Review: Overview 

eToro was founded in 2007 by brothers Ronen Assia and Yoni Assia and a third founder, David Ring. Yoni is the company’s CEO, while Ronen serves as the company’s executive director. Following its founding, eToro announced its visual FX trading platform in September of the same year. In 2010, it launched its innovative and highly praised social trading feature. This feature allows traders to copy the trades of successful traders on the platform.

2013 saw eToro expand into stock trading, commodities trading, and currency trading. It also expanded into the European, Asian, and Australian markets and added cryptocurrencies to its list of offerings, starting with Bitcoin. 

In 2017, eToro expanded its crypto offering, adding assets such as Litecoin, XRP, and several others. It launched its US crypto platform in 2018 and introduced stock and ETF trading for its US-based clientele in 2022.

The crypto trading platform offers users a simple web-based platform and an intuitive, well-designed mobile application. Users can deposit fiat currency through their debit/credit card or bank account and start trading. Traders can view the current prices, buy and sell assets, and convert cryptocurrencies through the “Trading” tab.

eToro also offers basic market and limit orders, and non-US users can also invest on margin. However, the platform lacks advanced trading features such as conditional orders and advanced charting capabilities.

Your capital is at risk. 78% of retail investor accounts lose money when trading CFDs with this provider.

Tradable Assets 

In this section, we will look at the assets that users on the platform can access.

ETFs 

ETFs, or Exchange Traded Funds, are extremely popular on the eToro platform. They allow UK-based traders to invest in a group of assets through a single trade. These assets can include shares and commodities such as gold and silver.

eToro offers hundreds of ETFs, most of which are managed by reputed institutions such as SPDR, Vanguard, and iShares. A minimum investment of $10 is required to invest in ETFs on eToro.

ETFs suit traders who want to invest in a broader stock market index such as Dow Jones, FTSE 100, or the S&P 500. This is because traders can purchase hundreds of shares through an ETF. eToro also allows investors to trade ETFs through CFD instruments. This allows UK residents to access leverage of up to 1:5 on positions and even short-sell their ETFs.

Indices 

Indices are another highly popular financial instrument that can be traded on eToro through CFDs. They are linked to index funds like the Dow Jones and the FTSE 100. Unlike ETFs that track the stock market index, indices are more suited for short-term traders. They allow investors to speculate if the indices will rise or fall.

eToro gives traders access to 15 indices from several markets. This includes the China 50 and the Hong Kong 50, both giving traders exposure to the Asian economy.

eToro also supports the EURO STOXX 50. This index tracks 50 large-cap companies from the European single market. The minimum trade size for indices on the eToro platform is $200. Traders can also access leverage to the tune of 1:20 for their indices positions.

Shares 

During our eToro Review UK, we found that it is the leading broker for purchasing shares in the UK. The platform offers over 2500 shares from several markets. eToro’s share offering covers most companies listed on the FTSE 100. Popular shares include BT, Vodafone, BP, GlaxoSmithKline, Rio Tinto, and Royal Mail. UK investors can also use eToro to invest in shares from the overseas market.

This includes markets such as the NYSE and NASDAQ, meaning UK traders can purchase shares in companies such as Amazon, IBM, Tesla, Apple, Disney, and Nike. Investors can also add carbon credits to their portfolio by purchasing carbon credit stocks and ETFs in the UK through their live trading accounts. eToro also offers traders access to share markets in France, Germany, the Netherlands, and other markets.

The platform also offers fractional shares starting from just $10. Fractional shares allow users to invest only a few pounds instead of buying a full share. Fractional shares are excellent for new traders who want to access the markets with limited funds. It also helps traders to diversify their portfolios while keeping fund allocation under check. For example, at $10, a trader can purchase fractional shares in 15 companies with a deposit of $150 (around £120).

eToro also offers traders access to dozens of smart portfolios. While we will cover this later, let’s get a brief explanation in. Smart Portfolios allow traders to invest in a diversified portfolio managed by eToro. Users who purchase dividend stocks and shares on eToro receive their payments directly. The dividend will be reflected in the trader’s account balance and can be used to purchase more shares.

eToro also allows users to access shares via CFDs. This allows US-based traders to access leverage of up to 1:5 on a position and even short-sell a company.

Your capital is at risk. Other Fees Apply.

Forex 

Forex is the world’s largest marketplace and comprises investors buying and selling currency pairs such as GBP/USD or AUD/USD. eToro offers traders several forex pairs that can be traded on the platform. It also offers all major and minor currency pairs, along with a selection of exotics as well. Exotic currencies include the Hungarian Forint, African Rand, and Mexican Peso.

Forex trading on eToro is done via CFDs. UK-based traders can trade a forex pair’s future value without owning the asset. Traders can also apply leverage of up to 1:30 on major currencies and 1:20 on minor and exotic currency pairs. For example, a £100 stake in the GBP/USD currency pair could go up to £3000 with the help of leverage.

Regarding minimums, forex pairs on eToro must be traded at a minimum of $1000 (around £815). However, if you apply the maximum leverage of 1:30, the minimum capital outlay is reduced to $33.33 (around £27).

Commodities 

Our eToro Review UK also found the platform offers a plethora of commodities through its commodities trading suite. The commodities suite on eToro covers three major types of commodities: metals, energies, and agricultural products. The metals category includes gold, silver, copper, palladium, and platinum. Energies include commodities such as oil and natural gas. Meanwhile, agricultural products include cocoa, cotton, and sugar.

Traders on eToro UK can also trade oil through futures. eToro supports a range of expiry dates, while CFD instruments back commodities on the platform. This means UK investors can go long or short on a commodity without owning the underlying asset. Traders can trade gold with a leverage of up to 1:20. Meanwhile, other commodities have a lower leverage limit of 1:10.

Traders who want to invest in commodities directly can do so through an ETF. eToro gives traders access to the SPDR Gold ETF and the iShares Silver Trust.

Your capital is at risk. 78% of retail investor accounts lose money when trading CFDs with this provider.

Read Also: How to Trade Commodities 

Crypto Assets

eToro is also an excellent platform for traders looking to access digital currencies such as Bitcoin (BTC) and Ethereum (ETH). In fact, our eToro review UK and several others have found eToro to be the best overall altcoin exchange and crypto platform to buy crypto. The platform supports 80 cryptocurrencies, including all major tokens such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), and others.

Additionally, the platform also offers an array of DeFi tokens. These include Decentralanc (MANA), Uniswap (UNI), Compound, and The Graph. The minimum deposit required to trade crypto on eToro is just $10 (£8). UK-based investors can get exposure to cryptocurrencies such as Bitcoin and Ethereum, which trade for thousands of Dollars. 

The eToro platform also offers traders its Smart Portfolio feature to traders investing in crypto. This allows traders to invest in a broad basket of cryptocurrencies managed by eToro through a single trade.

Let’s look at some of the most popular cryptocurrencies on eToro. 

• Bitcoin (BTC)
• Ethereum (ETH)
• Dogecoin (DOGE)
• Shiba Inu (SHIB)
• Celo (CELO)
• Cardano (ADA)
• Litecoin (LTC) 
• Polkadot (DOT)
• Solana (SOL)
• Stellar Lumens (XLM)
• Bitcoin Cash (BCH)
• Dash (DASH)
• Polygon (MATIC)

Cryptocurrency is unregulated in the UK. The FCA regular has repeatedly warned investors that they risk losing all their money if they buy cryptocurrency, with no possibility of compensation. 

eToro Review UK – Fees And Commissions 

The previous section covered the supported assets and markets on the platform. This section of our eToro Review UK will cover the fees and commissions on eToro. We will also discuss non-trading fees on the platform. First, let’s look at the trading fees and commissions.

Forex, Commodities, Indices, CFDs 

CFDs on eToro, which include forex, commodities, and indices, do not require users to pay a commission. Instead of paying a commission, users need to cover the spread, which is the gap between the bid and ask price of the traded asset. The spread depends not just on the asset class but also on the market. Let’s understand this with the help of a quick example.

When trading major forex pairs such as the EUR/USD and the USD/JPY, the minimum spread is 1 pip. However, when trading a minor pair, such as the NZD/USD, the spread rises to 2.5 pips. Commodities such as oil and natural gas can be traded from 5 pips and 10 pips, respectively, while Gold starts at 45 pips. This is because higher-valued assets come with a higher spread.

Trading indices on eToro are highly competitive, with spreads starting at just 0.75 pips. If you day trade stocks through CFDs, the minimum spread is around 0.09%.

Shares And ETFs

Traders on eToro can buy and sell shares and ETFs without paying any trading commission. This makes the platform a highly cost-effective platform when investing. This is because other platforms to trade shares and ETFs, such as Hargreaves Lansdown, charge £11.95 per share trade.

More impressive is the fact that commission-free offerings on shares and ETFs on eToro extend to the international market as well. This makes it possible to buy shares in companies like Amazon and Tesla without paying premium fees. Users on nearly all other brokers must pay premium fees. 

Another advantage of eToro is the waiver of stamp duty tax. UK residents must pay a stamp duty tax of 0.5% when purchasing shares. However, eToro users are exempt from this tax.

Cryptocurrencies 

eToro supports over 70 major cryptocurrencies on its platform. These can be bought and sold at a commission of just 1% plus the market spread. The commission is built into the buy and sell price of each token. As a result, the price offered by the platform will be applied to the order.

When users purchase cryptocurrencies on eToro, the assets are transferred to the user’s portfolio. The tokens are held securely in eToro’s cold storage wallets. Moreover, the platform does not charge users any fee to store their crypto assets.

Overnight Financing Fees 

Traders must remember that overnight financing fees apply when trading CFDs. The best CFD brokers in the UK charge overnight financing fees. This fee is payable each day the CFD trade remains open, regardless of whether leverage is applied or not. Overnight financing fees on the eToro platform are higher when positions are kept open over the weekend. Fees also increase depending on the stake and leverage applied to the trade.

When placing an order, eToro will state the overnight financing fee in dollars and cents. For example, in the image below, we place a $1000 order on Gold CFDs with a leverage of 20x. Below the “Open Trade” button, eToro tells us that the overnight fee is $1.45 between Monday and Friday. However, this fee increases to $4.36 over the weekend.

Non Trading Fees 

Now, let’s look at the non-trading fees on eToro. 

Inactivity Fee 

Like other online brokers, eToro also charges an inactivity fee. The inactivity fee only applies if the account is inactive for over 12 months. Inactivity, in this case, means not placing a buy or sell order for 12 months. However, the inactivity fee applies only if the user has assets in their portfolio. The current inactivity fee on eToro is $10 per month.

Withdrawal Fee 

Withdrawal fees on eToro are $5 (about £4), irrespective of the amount being cashed out. However, the platform does have a minimum withdrawal requirement of $30 (about £24).

Deposit Fee 

Now, let’s talk about deposit fees on eToro. When it comes to deposit fees, GBP payments are charged a flat fee of 0.5%. The platform offers users access to the UK and international markets. Instead of continuously changing GBP to other currencies, eToro does it at the time of deposit. When the funds are deposited on the platform, they are immediately converted to US Dollars.

A flat fee of 0.5% means that on every £100 deposited, only 50p is levied. 

eToro Features 

Now, let’s look at some standout features of the eToro platform. These features are one of the main reasons why eToro is considered one of the best trading platforms in the UK.

eToro Copy Trading 

The eToro Copy Trading tool allows UK investors to mirror the trades of successful traders on the platform. This allows investors to earn a passive income from the successful trades of the chosen trader. All you need to do is select the trader to copy and your desired stake.

Once this is done, eToro will take care of the rest. Thousands of verified traders on eToro can be copied. Some traders focus on individual assets such as stocks or crypto, while others adopt a more diverse approach.

Selecting a trader to copy on eToro is relatively straightforward. This is thanks to the filers offered by the platform. As a result, traders can choose a trader based on their profits and risk rating assigned by the platform. 

The platform does have a minimum requirement of $200 if you wish to use the Copy Trading feature. Additionally, the size of each position is proportionate to the stake. This ensures that traders of all budgets can access Copy Trading.

How Does Copy Trading Work? 

Let’s understand how Copy Trading works with the help of an example. 

• Suppose you invest $1500 into a stock trader on eToro. The trader in question has an excellent track record on the platform. 
• The chosen trader allocates 10% of their portfolio towards BT shares. A further 30% is allocated to Amazon shares. 
• Remember, you have made an investment of $1500 into this trader. This means eToro will allocate $150 (10% of $1500) to BT shears. It will also allocate $450 (30% of $1500) to Amazon shares.

So what happens when the trader cashes out their Amazon shares when their value increases by 50%? 

• Suppose the value of the Amazon shares increases by 50%. At this point, the trader sells their position in these shares. 
• Remember, you have invested 30% of your $1500 stake ($450) into the shares. This means an increase of 50% will give you a profit of $225 on your original stake. 
• Meanwhile, the BT shares can stay in the portfolio until sold by the seller.

What about the fees? eToro does not charge users any fee to use its Copy Trading feature. Standard fees associated with commission spreads and overnight financing are incorporated into the profit and loss of the positions.

CopyTrader is a product that may include CFDs.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider
whether you can afford to take the high risk of losing your money.

Smart Portfolios 

Initially called Copy Portfolios, eToro’s Smart Portfolios feature gives traders an alternate way to invest in the stock market. Each Smart Portfolio contains a basket of assets selected by the eToro team with a view of tracking a specific market. Let’s understand this better with an example.

The ChinaTech portfolio allows investors to access a basket of technology shares based in China. This includes companies such as Tencent, Alibaba, JD.com, and Baidu. Another Smart Portfolio, DividendGrowth, allows investors to gain exposure to a basket of high-yield dividend shares. In all, there are over 12 strategies to choose from, some including crypto as well.

Smart Portfolios require a minimum investment of $500 (£410). Once you make the investment, eToro manages and rebalances the portfolio on behalf of investors. As a result, investors can earn passively from their investments.

Social Trading 

eToro can also be considered a Social Trading platform, following in the footsteps of other platforms such as LinkedIn. The platform allows clients to engage with one another, leave a comment about an asset, or discuss if the markets will rise or fall in the future. Others can reply to comments or even “Like” it.

Charting And Analysis 

eToro offers users an array of charting and analysis tools. These tools are ideal for experienced traders who undertake complex trades. Let’s look at some of the tools on offer on the platform.

Market Insights 

Most of the assets on eToro come with market insights from leading investors. For example, major stocks come with price predictions from established sell-side analysts. These price predictions offer lower, higher, and average price estimates for stocks. The platform also displays if the market sentiment views the stock as buy, hold, or sell.

Financial News 

Financial news on eToro allows traders to research their assets and estimate the right time to enter or exit the markets. In our eToro Review UK, we found that the platform offers news of developments for the assets it supports throughout the day. All you need to do is click the “News” button on the trading page and select the market.

News stories are taken from leading media houses, ensuring that users are in the loop regarding the latest developments in the market.

Market Sentiment 

The market sentiment bar is another useful tool offered by the eToro platform. The tool is offered on all supported markets and highlights the percentage of eToro users buying or selling a particular asset.

Charting And Technical Analysis 

Our eToro Review UK found that assets on the platform come with an interactive pricing chart. These pricing charts offer real-time pricing on a second-by-second basis. Traders can expand the standard chart and access an assortment of tools, including dozens of technical indicators, such as the moving average, MACD, and RSI.

The charts can also be customized, allowing users to switch between candlestick bars and traditional lines. They can also select time frames ranging from 1 minute to 1 week. In fact, eToro has all the charts and tools required for high-level trading analysis.

Payment Methods 

Our eToro Review UK found that the platform supports several payment methods, such as bank wire transfers, e-wallets, and debit/credit cards.

Bank Wire Transfers 

eToro supports traditional bank wire transfers to deposit funds into the trading account. However, trades must remember that funds can take up to 48 hours to reflect in the account.

E-Wallets 

Another popular payment method supported by eToro is e-wallet. eToro supports several e-wallets like PayPal, Skrill, Neteller, and WebMoney. However, e-wallets cannot be used for cryptocurrency.

Debit And Credit Cards 

eToro supports debit and credit cards issued by MasterCard, Visa, Visa Electron, and Maestro. Deposits made using debit or credit cards are processed instantly. Withdrawals to debit/credit cards are also processed quickly but take a few working days to be credited by the bank. However, like e-wallets, users cannot purchase crypto with a credit card. Crypto purchases can be made only by bank transfers or debit cards.

Withdrawal Times 

Withdrawal times on eToro depend on the supported payment type. Let’s look at the withdrawal time for each. 

• Bank Transfer: Up to 10 business days
• Neteller: Up to 2 business days
• Skrill: Up to 2 business days
• Debit/Credit cards: Up to 10 business days 
• PayPal: Up to 2 business days

While the above times seem considerable, all withdrawals are generally processed much quicker.

Minimum Deposit 

The minimum deposit for UK residents to start using eToro is $10 (£8) across all payment modes. Regarding bonuses, eToro does not offer any sign-up bonuses to UK-based customers. However, it does offer a referral promotion.

Demo Account 

eToro offers users a demo account preloaded with $100,000 in paper funds. This feature can be used by investors of all levels to test strategies or to learn trading. The demo account can be accessed by switching to the platform’s “Virtual Portfolio” mode.

Traders can use the demo account to buy, sell, and trade assets in live market conditions without risking personal funds. Demo accounts are an excellent way of exploring the plethora of features offered by eToro.

The eToro demo account is a boon for complete beginners, allowing them to understand how trading and online investments work. The balance sheet for demo accounts can be topped up by contacting the eToro customer support team. However, most of the time, traders don’t need to top up their demo account.

eToro Review UK: Customer Support 

eToro offers an extensive help centre on its website to help users with any doubt or query. The help centre covers several FAQs, and users will find an answer to nearly all their doubts here. However, you can contact customer support if the section does not address your concerns.

Users based in the UK can reach customer support through the platform’s live chat feature. The live chat feature lets users speak to an eToro representative in real-time. However, the chat feature is available only to registered users of the eToro platform. Alternatively, the platform allows users to raise tickets through the eToro UK login account.

How To Trade On eToro 

This section of our eToro UK review will examine how to create an account and start trading on eToro. We will cover every step in the process, from account creation to placing an order.

Step 1: Open An Account 

Users can access supported markets on eToro by creating an account on the platform. To create an account, go to the eToro website and click on the “Join Now” tab. Type in your email address, select a suitable username, and create a strong password for your account.

Once you click on “Create Account,” you must confirm your email address. You will also be required to enter some personal information when prompted. Enter your mobile number and then answer a few investment-related questions.

Step 2: Verify Your Account 

Next, you must verify your eToro account. You can submit documents such as a passport or driver’s license for verification. UK-based users can add these verification documents later and use the platform as long as the initial deposit does not exceed $2000 (£1700).

Step 3: Deposit Funds 

Once verified, you can deposit funds in your eToro account. Deposits can be processed instantly if you select a UK debit or credit card. However, only debit cards and bank transfers can be used for crypto purchases. The minimum deposit on the platform is $10 (£8).

Step 4: Search For Assets 

Next, you must search for the asset you wish to trade. If you know what asset you want to trade, type the asset name into the search bar and click on “Trade” when the name appears. In the example below, we are searching for shares of Royal Mail.

Alternatively, you can also check for trending assets using the “Discover” tab. You can also search for crypto assets. However, it would be best if you remembered that these can only be purchased using a debit card or bank transfer.

Step 5: Place Your Stake 

Once you click on the “Trade” button, you will come across an order box, as shown below. Here, you can enter the total investment you wish to make. The stake must be made in US Dollars and must be a minimum of $10. Once you have entered the required information, click on the “Open Trade” button to place your investment.

Your capital is at risk. 78% of retail investor accounts lose money when trading CFDs with this provider.

Step 6: How To Sell On eToro 

You can sell your investments on eToro by going to the portfolio section of the dashboard. Once there, you can scroll down and search for the asset you wish to sell. Once confirmed, eToro will execute the order instantly if the market in question is open. If not, the order will be executed as soon as the market opens. Once the sale is completed, the funds received will be added to the user’s account balance.

eToro Review UK: Account Types 

Most traders in the UK can access only one type of account on eToro. This is the standard account and offers access to most supported markets. However, users registering as professional clients can access higher leverage limits and the ability to trade crypto derivatives. Additionally, eToro offers users Islamic accounts with a minimum first-time deposit of $1000.

Conclusion – eToro Review UK

This wraps up our eToro Review UK. Our full review has covered everything you need to know about the eToro platform for UK users. We have looked at all aspects of the platform that could impact traders, such as account types, payments, supported assets, fees, regulations, and more.

We also found that eToro is one of the best CFD brokers in the UK for several reasons, such as its high security, regulation, products offered, and dedicated mobile application.