Is eToro a scam

eToro experiences & test 2021

TrioMarkets
  • Max. Leverage: 1:300
  • Crypto tradable: Yes
  • Account from: 500 €
CFD trading involves high risk

The success story of the world's leading social trading platform eToro begins in 2007, which is underscored by the more than six million users to date. With this broker, customers can eToro experiences Collect not only through social trading, but also through manual trading. The trading offering includes 1,000+ assets. Real stocks and ETFs can be traded. Currency pairs, indices and commodities can be traded via CDFs. At eToro, it's easy to invest in different financial markets around the world. In addition to long-term options for investors, the broker also offers short-term options for day traders. Private traders can use a maximum leverage of 1:30 for CFD trading. For professional account holders, higher leverage can be used. The minimum deposit is only 200 USD (Euro amount according to the exchange rate). The broker provides a permanently usable eToro demo account for free. Our eToro rating shows that the platform offers access to all necessary trading information both on the desktop version and via the mobile apps. You can read about the advantages and disadvantages of the broker in our eToro review.

eToro rating - 5 arguments for eToro:

  1. Low minimum deposit of $ 200
  2. Maximum leverage for private traders 1:10 to 1:30
  3. Free demo account can be used permanently without any conditions
  4. Immediate access to executable rates in multiple markets
  5. Trading platform available in German and 16 other languages

Go straight to eToro investments now carry the risk of losses

1. Test of eToro regulation: Broker based in Cyprus

eToro is a financial company founded in Tel Aviv in 2006 and active on several continents (Europe, Australia, North America). The Israeli startup made a visual forex platform available to investors under the eToro brand. In 2007, the CFD broker RetailFX Ltd, based in Limassol (Cyprus), became a partner of the financial company. From this merger, eToro (Europe) Ltd. based in Cyprus. This brokerage company with headquarters and regulation in Cyprus has been serving German eToro customers since then.

The official regulator is the national financial regulator of Cyprus, known as CySEC (Cyprus Securities and Exchange Commission). Other customers from the European Economic Area (e.g. traders from Great Britain) are looked after by the London-based brokerage company eToro UK. In Australia, the platform is under the name eToro AUS Capital Pty Ltd. active. Both in Great Britain and Australia, the respective eToro companies are regulated and supervised separately by the responsible financial supervisory authorities FCA and ASIC. These secure regulations show that eToro fraud can actually be ruled out.

At the German BaFin, eToro (Europe) Ltd. registered as a cross-border service provider (FDI) in accordance with Section 53b KWG. This means that the company's business in Germany is legal. However, this does not mean that it is regulated by BaFin. Another fact is that all deposits of German eToro traders are protected by the statutory deposit insurance of Cyprus. This extends to a maximum of 20,000 euros per customer.

Conclusion: There are many providers in the brokerage industry, including not only reputable companies, but also numerous black sheep. Official regulation is an essential indicator that the provider enables fair trading. Due to the CySEC regulation, it can be determined that eToro is reputable. The protection of customer funds is within a framework typical of Cyprus. Trading at eToro UK is more attractive from this point of view.

2. Trading offer rated at eToro: 1,000+ base values ​​from different markets

Compared to the early years, the trade offer has multiplied. With over 1,450 base values ​​from six asset categories, the broker offers extensive and varied trading opportunities. The current retail range includes in detail:

  • Around 1,300 shares from 12 stock exchanges worldwide
  • 83 ETFs
  • 47 foreign exchange
  • 13 indices
  • 6 raw materials
  • 12 cryptocurrencies

Stocks are the numerically strongest underlyings, although they are traded as real stocks or leveraged as CFDs. With leveraged and unlevered trading, customers benefit from a multiplication of trading opportunities. The possible leverage ranges from 1:10 to 1:30 (private traders), depending on the underlying. For professional traders, higher leverage up to 1: 400 is possible.

Conclusion: eToro has greatly expanded its trading offering in recent years. Since trading numerous real stocks and stock CFDs has become possible, and ETFs and cryptocurrencies have become part of the portfolio, many traders have left little to be desired. Day traders and investors are addressed equally. Beginners can take advantage of copy trading to make it easy for them to get started.

3. Our eToro experiences: trading conditions & minimum deposit

At eToro, the minimum deposit is $ 200. Euro is also possible as the account currency. Depending on the exchange rate below the parity of USD and EUR, the minimum amount in euros will be below this. Depending on the payment method, the minimum amount can be higher. In the case of a bank transfer, the minimum amount is 500 euros.

Like any other broker, eToro wants and needs to earn money. This happens when trading on the platform via fees per order. These are spreads and commissions. eToro is a market maker that uses STP (Straight-Through Processing) and NDD (No Dealing Desk) technologies. Trades will be executed in real time on this basis,

The trading costs depend on the respective trading instrument. Spreads can fluctuate depending on liquidity and market conditions. The validity of fee updates directly affects open positions. Fees can change from one day to the next. The eToro trader does not need to wait for an advance notice.

Go straight to eToro investments now carry the risk of losses

Stock & ETF trading in the eToro test

With the introduction of share trading and ETF fund trading, eToro has standardized all spreads for shares and ETFs. The fees for stocks and ETFs are 0.09 percent per order volume. There are no management fees or ticket fees.
Overnight fees (rollover fees) for stocks only apply to CFD trades (with leverage) when selling. A CFD buy order costs 6.4 percent based on the order value + 1-month Libor (benchmark interest rate for international banks). When selling, 2.9 percent + 1-month Libor is calculated. While trading real stocks and ETFs at eToro is cheap, this does not apply unreservedly to trading forex, commodities and crypto currencies

Spread examples forex trading:

  • EUR / USD 3 pips *
  • NOK / SEK 20 pips *
  • USD / CAD 4 pips *

Spread examples of index trading:

  • GER30 (DAX) 200 pips *
  • DJ30 (Dow Jones) 600 pips *
  • China50 1,200 pips *

Spread examples of commodities trading:

  • Gold 45 pips *
  • Copper 2 pips *
  • Natural gas 10 pips *

Spread examples crypto trading:

  • BTC (Bitcoin) 0.75 percent **
  • BTC / EUR (Bitcoin / Euro) 1.90 percent **
  • ETH (Ethereum) 2.9 percent **

* If you hold positions overnight, you will have to pay an overnight fee.
** Fees apply when selling cryptocurrencies or for leveraged positions (crypto CFDs).

The MIFID regulations do not apply to trading in cryptocurrencies. The buying and selling of Bitcoin or Dash, for example, is not subject to any regulation. Traders have no investor protection. They should be aware of the special trading risks.

Conclusion: Anyone who trades stocks or CFDs with a broker should know the trading fees. The spreads for CFDs mentioned on the eToro website are minimum spreads, with changes depending on market conditions and liquidity upwards. Traders should visit the fees page regularly to review the current fees.

4. eToro Review: Web Trader & Mobile Apps

At eToro, traders can expect a modern, intuitive trading platform. You can use it to trade various financial assets online anywhere in the world. The in-house WebTrader includes professional tools for beginners and advanced traders. The WebTrader, which was used for the first time in 2009, was relaunched in 2015. Since then, traders have been able to do both online trading and social trading (copy trading) on ​​a single platform. Beginners can take advantage of the profits of experienced traders by copying their trades.

The platform convinces with functionality and numerous professional charts. It works web-based in the browser. Customers get access to the real account and demo account with a single registration. You can freely determine their use. The platform, which can be used worldwide, is available in German and 16 other languages.

The eToro mobile app for Apple or Android smartphones has been around since 2011. At first there were even two apps as WebTrader and OpenBook. In the meantime, the OpenBook or the coptrading function has been integrated into the WebTrader.

EToro's WebTrader platform and mobile apps enable traders to:

  • Investing in stocks, forex, currency, ETFs and commodities
  • Investing in CopyPortfolios' investment strategies
  • Receive real-time notifications of market events
  • The use of demo account (permanent) and / or real account

Conclusion: The eToro platform can be used as a WebTrader on PC and mobile devices. No download is necessary to use the PC. With the help of the trading app for iOS and Android devices (free download in the official app stores), traders can carry out buy and sell actions on the trading and investment platform and receive notifications of important market events.

5. eToro account opening and bonus test: One-click registration

At eToro, opening an account is child's play. Anyone who has a Google account or a Facebook account can use this to log into eToro. All you need to do is click on the Facebook or Google button. Alternatively, you can set up an account with just a few details. That too shouldn't take more than two minutes. After one click and completing the registration, the new customer is on the WebTrader platform. He can now look around extensively, try out the demo account and make a first deposit. A minimum of USD 200 is required for the initial deposit.

Almost all brokers operating in Europe have been working hard some time ago with more or less attractive and meaningful bonus offers. The benefit for the retailer was, however, limited. eToro has made no exception, even if their bonus offers did not contain any super promises. eToro Europe and eToro UK meanwhile do not offer any bonus or similar trading requests in accordance with the current ESMA regulations.

Go straight to eToro investments now carry the risk of losses

6. Demo account at eToro to test & gain experience

eToro is one of the brokers who are serious about customer friendliness. Of course, customers should trade a lot on the platform because the provider earns money with it. But eToro doesn't want someone to simply start trading inexperienced and without practice. For this he provides you with a demo account. This is not just any demo for say two weeks or a month. No, with eToro may the demo account can be used permanently. Immediately after successful registration, in addition to the real money account, a demo account is automatically available for first eToro experiences. Demo account and real account can be used independently of each other. A first deposit is not necessary to use the demo. The virtual account can basically be managed without any deposit and real trading. The virtual trading capital is 10,000 euros and can be renewed if necessary.

The demo account has the same scope of services as the real trading platform. Real time trading conditions include real-time quotes. Users can practice investing or trading easily and completely risk-free. Every new customer should use the test account extensively and only start trading real money when they have achieved certainty.

Conclusion: eToro offers its customers a free demo account directly in the normal customer account on the platform. An extra registration for the demo is not necessary. Traders can switch between a real account and a demo account at will. The demo account is not subject to any time restrictions. It can be used permanently, for example, to try out your own strategies.

7. eToro experiences with service & education: customer support

The help and education area at eToro consists of a help center, trading academy and live webinars as well as customer service. Typical questions and problems are answered and dealt with in an FAQ area. Direct contact with support is unnecessary in this way. EToro customer service can be contacted in several ways. The easiest way to reach the customer service department is to open a support ticket. Tickets and live chat and tickets are available 24 hours on all working days. Dealers can leave their phone number for a call back. EToro Europe can be reached in writing and by FAX in Cyprus. In the event of a system failure, trades can be managed via the offline website (offlinemode.etoro.com).

eToro is one of those brokers who don't just want to encourage customers to trade and invest. It is important to the provider that beginners and experienced dealers receive training and further education. The extensive educational offer includes learning videos, tutorials and live webinars. The free demo account already mentioned is another top service highlight. The educational offer offers everything traders need to learn CFD trading or to expand their knowledge.

Conclusion: Very limited possibilities for direct customer contact are listed on the website. There is no German branch or office in this country. The ticket center is the place where customers and interested parties can submit their questions in writing. A hotline in Germany is not available. If necessary, the broker offers to call you back by prior agreement.

Go straight to eToro investments now carry the risk of losses

8. Test of deposit and withdrawal at eToro

It is no secret that many brokers allow deposits to be made easily and within seconds, and not all of them are as quick and customer-friendly when it comes to withdrawals. With the leading brokers, traders will find a wide range of payment options and the payment terms are transparent. Credit is paid out quickly after the order has been processed, ideally immediately and free of charge.

At eToro customers can choose between the following payment methods:

  • Bank Transfer
  • Credit card
  • PayPal
  • Skrill
  • Neteller
  • GiroPay (instant transfer)

The broker does not charge any fees for deposits. With the exception of bank transfers, money transfers only take a few minutes or seconds. For the bank transfer not only a minimum amount of 500 euros applies, it can also take several days for the credit to be credited.

Withdrawals are processed in the same way as the deposit.

It can take up to eight working days for credit cards and bank transfers to be credited to the account. With PayPal, Neteller and Skrill, the payout takes up to two working days. While the broker allows free deposits, he charges fees for withdrawals. For every order of at least 25 euros, 5 euros are due. If you change the currency from US dollars to euros or vice versa, additional conversion fees apply.

Conclusion: Customers are quickly logged into the eToro platform and with a click on Deposit a window opens with the available deposit methods. A few clicks and details of the personal payment service are enough for quick and free deposits. Unfortunately, eToro collects a fee of 5 euros for every payout.

eToro revolutionizes the industry again and again with new innovations.

9. Seriousness: All doubts in the eToro test dispelled

Anyone who researches the topic of fraud by online brokers online will find not only official statements from tax authorities but also numerous opinions from disappointed and also cheated customers. The broker is not always to blame. If a trader falls for the "get rich quick" sayings and loses his money on speculation, blame and mistakes are usually sought with others. Accusations are made unfounded and unfounded. The broker is accused of a lack of seriousness. What does reputable broker mean and is eToro scam or reputable?

There are some criteria that a provider should meet so that traders can assume fair trading and investing conditions. This included the official regulation, modern platform with order execution in real time, competent customer service and uncomplicated payouts. eToro meets all of these criteria. The official regulation by CySec ensures fairness when investing. The provider's business model is understandable for all retailers.The broker generates its income primarily through the spread. The numerous good eToro experiences of real customers are another indication that eToro is serious.

Conclusion: From our point of view, there is no doubt about the seriousness of eToro. The Cyprus-based financial company is subject to secure regulation of financial supervision in the European Union. Fees are transparent at the broker, even if they are a bit cumbersome to determine in individual cases due to possible rollover fees.

10. Conclusion of our eToro experience: Brokers for beginners and professionals

eToro has a large community and is rightly called the world's largest social trading broker. Over the years, millions of users have gained experience with eToro. Beginners in particular have benefited from the possibilities of copy trading. Meanwhile, the provider offers experienced investors and day traders extensive trading opportunities and additional income in the context of copied trades of others. At eToro, the overall package of platform, trading offer, benefits and services is right. The trading portfolio includes well over 1,450 assets from stocks to foreign exchange and crypto currencies. With some trading conditions, the broker is well with the leaders in the industry. Traders can control their trading risk well using leverage or a leverage waiver.

eToro is a recommendation because of these advantages:

  1. Functional WebTrader platform browser-based and as a mobile app
  2. More than 1,450 assets of various asset classes are tradable
  3. Permanently usable demo account available (parallel to the real account)
  4. Minimum deposit is 200 euros (500 euros for bank transfers)
  5. Underlyings can be traded with and without leverage.

Go straight to eToro investments now carry the risk of losses

 

eToro is a multi-asset platform that offers investments in stocks and cryptocurrencies as well as CFD trading.

CFDs are complex financial instruments. Because of the leverage, they run a high risk of losing money quickly. 75% of retail investor accounts lose money when trading CFDs with this provider

Please make sure to find out about the risks of CFD trading in advance, as high losses cannot be ruled out.

Cryptocurrencies are not regulated and their prices can fluctuate widely. Therefore, cryptocurrencies are not suitable for all investors. The trading of cryptocurrencies is not subject to any supervision by the EU regulatory authorities. Your capital is at risk.

These notes are intended for educational purposes only and should not be viewed as investment advice.

TrioMarkets
  • Max. Leverage: 1:300
  • Crypto tradable: Yes
  • Account from: 500 €
CFD trading involves high risk