One of the most popular forex brokers I’ve reviewed so far is eToro. Founded in 2007, the broker currently serves investors from 170+ different countries. The company also has an understanding of innovative service.
eToro is the pioneer of social trading as the first company to offer social trading services. The company’s official website has about 15 million visitors per month.
I reviewed eToro based on the following criteria.
- Strong regulations (FCA, CYSEC)
- Copy Trading features
- Commission-free trading
- High minimum deposit
- High spreads like 3 pips on EURUSD
The company was established in Israel in 2007. It serves with 3 different licenses regulated by FCA, CYSEC and ASIC. All of them are among the reputable regulations in the world.
As a further guarantee to clients’ funds, eToro is covered by compensation schemes. FCA regulated forex brokers guaranteed by Financial Services Compensation Scheme (FSCS) up to £50.000. Similarly, the CYSEC regulated forex brokers clients’ funds are guaranteed by Investor Compensation Fund (ICF) for up to 20000 EUR.
Therefore, eToro does not have a problem in terms of licensing. The two licenses they have are also very reliable and reputable regulations.
Trading Conditions in eToro
There are basically four different types of accounts in eToro. The Bronze account type is similar to the standard account in other brokers. The minimum deposit is $ 200. Maximum leverage for all account types is 1: 400 in forex pairs and 1:50 in indexes and commodities. The biggest disadvantage of this account is that the spread is higher. eToro offers a fixed spread of 3 pips on EURUSD. I can say that this is a higher spread than many companies.
However, it is necessary to keep in mind the social trading feature. Many companies charge extra for these additional features. However, eToro does not charge extra for social trading service. To achieve this service, it may be normal for spreads to be high.
Social Trading is the most important feature of eToro. Many investors have met with eToro while conducting social trading research. With CopyTrade service offered by eToro, you can see the trade history and success of other investors.
So you can copy the transactions of successful investors. You can find all information about transaction history and profit / loss ratio in the website in a transparent way. Many investors open an account with eToro to take advantage of the CopyTrade feature.
Payment Methods in eToro
There are many different ways to deposit and withdraw money at eToro. Once you are a member, you can fund by clicking on the “Deposit Funds” tab and then entering as many deposit amounts as you want. As you can see below, this process is quite simple.
For withdrawal and deposit methods, look at the table below.
|Payment method||Country||Time it takes for funds to appear in my trading account||Maximum deposit per transaction||Regulatory body|
|China Union Pay||Hong Kong||Instantly||20,000 USD||Government of Hong Kong|
|Credit / Debit card (Visa, Mastercard, Diner’s Club)||UK||Instantly||20,000 USD||FCA|
|Giropay (Sofortüberweisung)||Germany||Up to 1 business day||30,000 USD||BaFin|
|PayPal||Luxemburg||Instantly/ e-cheque payment will take 5-7 business days||20,000 USD||CSSF, Luxembourg|
|Skrill Limited UK||UK||Instantly||10,000 USD||FCA|
|Wire Transfer||All||3-5 business days depending on value date||Unlimited||Dependent on remitting Bank|
|Wirecard – Wire and Credit Card||Germany||2-3 business days||Unlimited – Wire 20,000 – Credit Card||BaFin|
|Yandex||Russia||Instantly or up to 5 business days||5000 RUB||Central Bank of Russia|
I can say that the payment methods are more limited than the other firms, but sufficient.
I can say that eToro, the pioneer of Social Trading, is the best choice to investors who are researching this area. However, it is not very advantageous for investors who have their own trading strategy. Because it has higher spreads than other brokers. I suggest you to look at FXTM for lower spreads.