eToro review 2024: Is it the best trading app in the UK?

8 min Read Published: 06 Sep 2023

etoro reviewIn this article, we review online trading platform eToro* and look at how the eToro app works. We provide a list of eToro's key features, explain eToro's fees and charges and summarise eToro's pros and cons. We recommend that you read the review in full, but you can skip to specific sections using the following links. Alternatively, watch our eToro review on YouTube below.

1 minute summary - eToro Review

  • Minimum initial deposit $10
  • Free to deposit money, however, there is a $5 withdrawal fee (Minimum withdrawal $30)
  • Copytrader feature* where investors can copy the trades of other successful traders. Investors can choose to copy just one or build a team of up to 100 traders simultaneously. Capital at risk
  • Free eToro demo trading account* where investors can trade with a virtual $100k
  • Fractional share trading
  • CFD share trading
  • No free share when you sign up. Money to the Masses readers can receive a FREE SHARE worth between £10 and £100* by depositing a minimum of £50 in a Freetrade basic account (capital at risk)

What is eToro?

eToro is a global online trading platform founded in Tel Aviv in 2007. It has almost 30 million registered users worldwide and allows users to trade stocks, commodities and currencies, as well as Exchange Traded Funds (ETFs) and Contracts For Difference (CFDs). eToro is the leading platform for social trading, a feature that allows less experienced users to copy the trades of other more successful traders* in real-time.

How does eToro work?

eToro* allows users to buy and sell a large range of global stocks, shares and cryptocurrencies either online or via its app. Additionally, eToro allows users to trade CFDs, meaning investors can place trades based on the volatility of certain assets rather than having to actually own them. eToro offers commission-free trading meaning users do not pay any dealing charges or management fees. It is free to open an account and UK users can start with an initial deposit of $10 USD.

If you are considering using eToro, it is important to understand the risks and these include: The value of your investments may go up or down. Your capital is at risk. Crypto assets are highly volatile and unregulated. No consumer protection. Tax on profits may apply. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider.



eToro products

Below we list the main products and features of the eToro trading app. Disappointingly, eToro does not offer a Stocks and Shares ISA or SIPP. Those looking for a trading app that offers a Stocks and Shares ISA may wish to look at our reviews of Freetrade and Trading 212.

eToro Key features

  • Smart portfolios – formerly known as ‘Copy Portfolios', investors can diversify their investments by investing in a number of different assets that track a particular investing theme or strategy
  • Copytrader – Copy the trades of other successful traders. The Copytrader feature provides access to thousands of investors, each with a unique strategy and risk level. You can choose to copy just one, or you can build a team of up to 100 traders simultaneously. Click on the link to find out more about the eToro's Copytrader feature*.
  • Demo trading account – allows users to create ‘dummy' trades up to $100,000 USD in a practice account. Click on the link to find out more about the eToro demo trading account*.
  • CFD Trading – investors can trade fractions of shares and leverage trades up to 30x
  • Fractional shares – investors can trade fractions of shares allowing easier access to expensive shares such as Amazon, Apple and Tesla
  • Leveraged trading – investors can leverage trades up to 30x
  • In-depth research – provides insight and analysis from leading experts
  • Professional charts – a tool that allows users to compare data from different financial instruments
  • Stop-loss and take-profit alerts – allows users to set the opening or closing point of open positions to maximise profits and protect losses
  • Offline trading – allows users to place trades even if the platform is experiencing server issues or is down for scheduled maintenance
  • Free investment insurance – provides insurance against loss in the event of eToro's insolvency or misconduct.

Is it free to trade and invest with eToro?

While eToro users can trade commission-free there are other fees and charges that are not immediately obvious. As a UK user, there is a currency conversion fee each time you deposit funds. There is also a withdrawal fee of $5 USD for each withdrawal you make and an inactivity fee of $10 USD per month once the account has been inactive for a year or more. eToro also charges ‘overnight' and ‘weekend' fees on open CFD positions. Users can see the charge at the bottom of the trade window when opening a new trade as shown in the image below.

eToro overnight and weekend fees explained

Finally, there are fees in the form of the ‘spread'. The spread is the difference between the buy price (offer) and the sell price (bid) that is quoted for a particular asset. eToro explains the spread on its website saying ‘as soon as you open a new trade, you will see a “loss” in the position — this is due to the spread'. When trading products with a spread, traders are essentially hoping that the price moves beyond the price of the spread. If it does, it can be closed for a profit. So while trading is provided commission-free, it isn't necessarily fee-free as there are charges in the form of the spread.

How much does eToro cost?

Below we list the fees that are applied when you trade via the eToro app:

Fee Type Fee charged When is the fee charged
Commission fee $0 N/A
Currency conversion fee 0.5% for UK users Every deposit (No fees if transferring from an eToro Money account)
Overnight fee Dependent on the asset held Daily – every weekday. Charged on CFDs that remain open overnight
Weekend fee Dependent on the asset held Either every Wednesday or Friday – depending on the asset. Charged on CFDs that remain open throughout the weekend
Inactivity fee $10 USD Every month after an inactivity period of 1 year.
Withdrawal fee $5 Every withdrawal (Minimum $30)

So while it is free to trade shares on the eToro app, those that hold assets for long periods or regularly withdraw money will quickly see the fees mounting up. UK users also need to be aware that there is an additional currency conversion fee applied each time you deposit money.

What is the minimum deposit for eToro?

UK users need to deposit an initial minimum of $10 USD with eToro. Any subsequent deposits must meet the $10 minimum and if you wish to make a bank transfer then you'll need to deposit at least $500 each time. We have summarised the minimum deposits with eToro below.

  • eToro minimum first-time deposit – $10 USD
  • eToro subsequent minimum deposit – $10 USD
  • eToro minimum deposit by bank transfer – $500 USD

It is also worth noting that as a UK user, there is a currency conversion fee of 0.5% each time you deposit funds with eToro.

Does eToro have a minimum withdrawal amount?

The minimum withdrawal amount is $30 USD and eToro users are charged $5 USD for each withdrawal.

What is eToro Money and how does it work?

eToro's money account works alongside the eToro trading platform and allows users to instantly deposit and withdraw money from their investment account fee-free. Users can opt for the ‘Green' account which allows users to withdraw up to £2,000 per month for free (a charge of 1% applies thereafter) or the ‘Black' account which allows users to withdraw up to £10,000 per month (again a charge of 1% applies thereafter)

While there are no set-up fees or subscription fees for the eToro money account, eToro states that the account is free ‘until 2024', which could mean that they may be planning to introduce fees in 2025.

  • Reduced fees – The eToro money account connects to the eToro investment account allowing users to deposit money fee-free and with no USD conversion fees
  • Instant withdrawals – Users can access their funds immediately
  • Debit card – Get a VISA debit card with no set-up fee or monthly costs
  • Sort code and account number – Allowing users to send and receive money to any UK bank
  • Financial protection – Money held in the eToro money account is not protected by the Financial Services Compensation Scheme (FSCS) but eToro safeguards the money by holding it in a separate regulated bank account. eToro maintains that if it were to go into liquidation then a third party would not have access to this money and it would be returned to you.

How does eToro make money?

eToro makes money by charging a number of fees to its users including currency conversion fees, inactivity fees, withdrawal fees and overnight and weekend fees on open CFD positions. It also makes money from spreads which is the difference between the buy and sell price of a particular asset.

Is eToro safe?

The eToro trading platform is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and is covered by the Financial Services Compensation Scheme (FSCS). This means that in the event that it goes bust your investments will be protected up to £85,000.

However, it is worth noting that any money held in the eToro Money account is not protected by the Financial Services Compensation Scheme. Instead, the money is safeguarded by being held in a separate regulated bank account and eToro states that in the event that they go into liquidation, the money would be returned to you.

Additionally, eToro provides its clients with free investment insurance provided by Lloyd’s of London. It provides coverage of up to £1m GBP, Euro or AUD (depending on the region) in the event of eToro’s insolvency and in case of ‘Event of Misconduct'.

Importantly, the insurance only covers cash, CFD positions and securities. Cryptoassets trading (non-CFD) are not covered by the insurance.

It is worth remembering that as with any type of investment, the value can go down as well as up and so there is no guarantee that you will make money when using eToro. In fact, eToro itself states that ‘74% of retail investor accounts lose money when trading CFDs with this provider'.

eToro customer reviews

eToro is rated as ‘average' on Trustpilot, with a score of 4.4 stars out of 5.0 from over 20,000 reviews. Users say the site and app is easy to navigate and that they particularly like the CopyTrader feature. Many of the 1-star reviews complain about the high withdrawal fees and poor customer support.

eToro is rated 4.0 out of 5.0 on Google play from over 133,000 reviews and 3.8 out of 5.0 on the Apple app store from over 8,000 reviews.

Pros and Cons of eToro

Pros of eToro

Cons of eToro

  • Currency conversion fee of 0.50%
  • Withdrawal fee of $5 USD each time you withdraw money
  • Poor customer support

Summary – Should you use eToro for trading and investing?

eToro* is a popular trading platform that allows investors to trade stocks, commodities and currencies free of any commission. It is particularly popular among those who wish to buy and trade cryptocurrency and eToro has a number of helpful guides as well and provides investors with their own secure eToro crypto wallet. Perhaps its most impressive feature and one that sets it apart from other trading apps is its social trading feature that allows investors to copy the trades of other successful traders. Customer reviews of eToro are mixed and while eToro allows investors to trade ‘commission-free', there are a number of fees that new users should be aware of, fees that aren't charged by the likes of Trading 212 and Freetrade.

 

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. But as you can clearly see this has in no way influenced this independent and balanced review of the product. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers – eToro

eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFD assets. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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.