Would you recommend eToro
eToro experiences - How does the popular social trading broker fare in our test?
Since eToro does a lot of advertising, the provider is likely to have run into many people. The broker has specialized in so-called social trading. This allows you to copy the trades of other traders and ideally participate in their performance. We will therefore test eToro in detail below and, above all, take a close look at the possible costs and fees of the broker. We will also go into the good training courses and also talk about customer support.
- eToro costs: The spreads are too high compared to other brokers
- Unfortunately, eToro customer support cannot be reached by phone
- Very good training materials: webinars, trading videos and an e-course
- Unfortunately, only one platform is offered for trading - this is particularly suitable for social trading
71% of retail investor accounts lose money when trading CFDs with this provider
eToro experiences: advantages and disadvantages of the broker
- Large selection of tradable financial products
- Social trading very well integrated into the trading platform
- Very good training offer
- No customer support over the phone
- High costs due to very high spreads
1. eToro test: Which financial products can you trade with the broker?
After our eToro experiences you can trade a lot of different financial products with the broker. Below we have created a brief overview of the tradable markets:
- Indices such as the German share index (DAX) and the American Nasdaq
- Commodities such as oil, silver and gold
- Currencies such as the popular euro / US dollar currency pair (abbreviated: EUR / USD)
- Cryptocurrencies such as Bitcoin (abbreviated: BTC), Ethereum (ETH) and Litecoin (LTC)
- ETFs (Exchange Traded Funds)
Due to the large number of financial products on offer it is very easy to diversify your portfolio at eToro. For example, if you invest all of your assets in just one or a few stocks, there is a high risk of losing a lot of money if the stock moves in the wrong direction. Unfortunately, according to our experience, this can never be ruled out. It is therefore better to spread the risk and position yourself as broadly as possible. If, for example, the stock market does not go well, there is a chance that commodities such as gold or oil will generate good profits in return.
Who would, can also trade the currently popular crypto currencies at eToro. However, you should only invest a little capital, as this can fluctuate very strongly. Great chances of winning are therefore faced with great risks of loss. Overall, we really liked the trading offer at eToro.
Use eToro and copy the successful traders.
2. Which account types does the broker eToro offer?
At eToro there is only one trading account by default. In addition, you can opt for the so-called "EToro Professional Trader Club" Sign in. However, you have to meet certain criteria for this. For example, you have to confirm to eToro that you already have sufficient trading experience. The main difference between the normal account and the professional account is the different levers. This is the normal account Leverage limited to a maximum of 1:30. On the other hand, as a professional trader you can also use leverage of 1: 400. The leverage indicates how much money you can move with the help of your available capital.
For example, if the leverage is 1:20, this means that you can trade with 20 times your capital. If you have 1,000 euros in your account, you can use it to trade a Dax CFD, for example: With a price of around 12,000 points on the Dax, you would need around 12,000 euros. If you want to trade with 2 Dax CFDs (you shouldn't do that as a beginner), you would need 2,000 euros on your account. As you can see, leverage of 1:20 or 1:30 is completely sufficient for trading. With higher leverage, you can potentially make more profits, but the risk of loss also increases.
3. eToro experience with trading costs
Many traders look to a broker primarily at the possible costs that will arise when trading. Unfortunately, our eToro test showed that the broker does poorly here. This can be clearly illustrated, for example, by the prices for trading the popular euro / US dollar currency pair. Here, eToro requires a spread of 3 pips. Pip is used in currency trading instead of points. The spread describes the difference between the buying and selling price. Therefore, the lower the spread, the better it is for the trader. However, there is not just one type of spread, as the following three types can be distinguished from one another:
- Fixed spreads
- Variable spreads
- Variable spreads and commissions (a certain fee is charged for each trade so that you get the lowest possible spreads)
However, eToro only offers fixed spreads, which is a shame, because variable spreads are often cheaper for the trader. The fixed spreads offered are also too expensive at eToro. Because with other providers you get spreads between 1.5 and 2 pips. With 3 pips, eToro is asking too much. However, it depends on the individual strategy how negative the high spreads affect trading: the more trades you execute, the higher the costs. Overall, it would be good if eToro reduced its costs for the trader.
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4. eToro Trading Test: Which payment methods does the broker offer?
With a broker you should also pay attention to which payment options he offers to transfer money to or from his trading account. Deposits can be made as follows:
- by Bank transfer
- with immediate transfer
- via credit card (Visa, MasterCard and Diner’s Club)
- via online payment service providers (PayPal, Skrill, Neteller, etc.)
If you want your money to reach your trading account as quickly as possible, you should use credit cards or online payment service providers such as PayPal for deposits, in our experience. In our experience, a transaction can take up to three working days to complete with bank transfers. The broker eToro demands it for withdrawals generally 25 US dollars. In addition, one should note that withdrawals can only be made from a minimum amount of 25 US dollars.
In our experience, there are certainly brokers who waive a fee for withdrawals. Therefore, eToro does not convince us on this point. ZIt is also annoying that the broker charges a so-called "inactivity fee" from its customers if they do not use their account for a longer period of time. The fee is 10 US dollars and is charged monthly. When the fee is due depends on whether or not deposits have been made into the account: Without deposits, the fee is charged from four months, while with deposits, the inactivity fee is only due after twelve months.
It would of course be best if the broker waived this fee completely.Now to etoro
71% of retail investor accounts lose money when trading CFDs with this provider
5. eToro experiences with the broker's homepage
According to our experience, the homepage of a broker shows that how transparent and customer-friendly it is. What is striking about eToro is that the start page is clearly laid out and the information you need can be found on it quickly. With just two clicks you can also reach the page with the available financial products and, above all, the eToro fees. So as a trader you cannot claim afterwards one would not have known about the too high spreads (see above) at eToro. Overall, eToro refers to social trading in many places on its homepage.
This is not surprising since the broker is one of the largest providers in this field. With social trading, it is possible to follow other traders and, above all, to copy their strategy and trades. In the best case scenario, you can therefore benefit from a successful trader. EToro offers a lot of information on social trading on its homepage. Anyone who would like to deal with the topic in more detail will find a good opportunity at eToro. There are also many FAQs (frequently asked questions) that explicitly deal with social trading.
6. eToro in the test: Which trading platforms does the broker offer?
Unfortunately, the broker eToro only provides one platform for trading. Probably the reason for this lies in the strong focus of the provider on social trading: This would have been more difficult to implement in third-party platforms. Nevertheless, it is a pity that you cannot trade with the MetaTrader at eToro, for example. Because this is the most widely used trading software. Once you have familiarized yourself with MetaTrader, you can usually assume that you can trade with almost any broker.
eToro has been number 1 in social trading for years
The MetaTrader is not very popular for nothing: For example, it is very easy to expand the program using so-called "Expert Advisors". In this way you can add new indicators or even entire trading systems. This also makes it possible, for example, to implement automated trading relatively easily. In our experience, this is very useful, because in this way you are not forced to spend the whole day in front of the trading monitors. Therefore it is very unfortunate that eToro cannot offer you the MetaTrader. Overall, however, in our experience, you can also trade well with your own eToro platform. So even beginners will find their way around after a short familiarization phase.
7. eToro experience with customer support
Anyone who has ever had a problem with their trading platform or a trade will be happy when their broker provides good and competent customer support. UAccording to our experience, you can speak of good support if you can get in touch with your customer advisor as quickly and easily as possible. The best way to guarantee this is that the broker can also be reached by phone. Unfortunately, this is not possible with eToro. Rather, the broker only has the option of applying for a so-called support ticket.
So you can request an appointment with an eToro employee at a certain time in order to communicate with him via live chat. This system seems too cumbersome to us. There are many other brokers who place much more value on good customer support. The broker eToro seems to consciously want to save staff at this point. As our eToro test has shown, the broker has high expenses due to its numerous marketing activities. Apparently, therefore, savings have to be made elsewhere. Of course, this is less pleasant for the customer.
be a professional customer of eToro
8. eToro test: What additional offers does the broker offer for its customers?
In this point, eToro convinced us with its diverse range: The broker offers its customers many additional offers. Above all, we really liked the training courses. Because as a beginner you know nothing or very little about trading on the stock exchange. It is therefore very important to get used to trading. In our experience, this can be done either by reading the abundant trading literature. For many people, however, it is more effective if they are introduced to a new subject by an experienced trader.
In our experience, videos are ideal for this, for example. It is therefore gratifying that eToro offers its customers webinars and trading videos. A so-called e-course is also available. There you learn step by step how trading on the stock exchange works. The course is not only suitable for beginners, but also for traders who want to refresh their knowledge. Overall, it is commendable that eToro offers a good and diverse range of training courses. On this point, other providers could orientate themselves on eToro and also offer better training courses for their customers.
9. eToro in the test: deposit insurance and regulation of the broker
Since the broker eToro is not a German broker, it is also important how the customers' deposits are protected in the event of the provider's insolvency. Because in Germany, as is well known, the German deposit insurance applies up to an amount of 100,000 euros. However, the broker eToro has various headquarters and branches outside of Germany. One of them is in Great Britain, for example. Therefore, the British Financial Supervisory Authority FCA is also responsible. In view of Brexit, however, it is unclear how the location there will develop in the future. In addition, eToro also has other locations in Cyprus and Australia, where the company is regulated by the ASIC.
The location in Cyprus is particularly interesting for German customers. Because as a member state of the European Union, a deposit guarantee of 100,000 euros applies here too. EToro is controlled by the Cypriot financial supervisory authority CySEC. In our experience, the broker is not the only broker that has its headquarters in Cyprus. Overall, from our point of view, nothing speaks against opening an account with the broker. If, on the other hand, you feel more secure with a German broker, there are also numerous providers who have a company headquarters in Germany.Now to etoro
71% of retail investor accounts lose money when trading CFDs with this provider
10. Opinions in the trade press about eToro
In the trade press one often reads relatively positive reviews about the provider eToro. It is not surprising that most of the articles deal with social trading. In many places it is praised that with the help of the eToro platform it is very easy to follow other traders and also to copy their trades with ease. The extensive range of training courses is also highlighted, which makes it easier for beginners in particular to learn how to trade. However, in many tests, the very high costs of eToro were also negative. For example, the broker requires 3 pips for the euro / US dollar currency pair. With other providers you can also find spreads between 1.5 and 2 pips.
In addition, the broker unfortunately only offers fixed and no variable spreads at. Overall, it is recommended to first test trading at eToro on the free demo account. In this way, you can also familiarize yourself with the eToro trading platform. You can then also try to copy trades from other traders. Overall, therefore, the opinions in the trade press about the broker eToro differ. It is only really recommended if you want to try out social trading.
eToro is constantly transforming the industry with new innovations.
Conclusion: eToro is mainly of interest to those traders who are interested in social trading
Our test has shown that the broker eToro can score above all when it comes to social trading. The trading platform available at eToro is specially tailored to social trading. In return, this is unfortunately associated with the disadvantage that no other platforms are offered. For example, we missed the obese MetaTrader. We particularly liked the very good training courses at eToro. Anyone who is just starting out with trading can find a lot of material at eToro to familiarize themselves with stock market trading. E.t is regrettable that eToro does not offer telephone contact for its customer support.
The system that you first have to get a support ticket in order to get in contact with a support employee appears to us to be too complicated. We also noticed the high fees at eToro negatively. Because other brokers offer significantly lower spreads here. As a reminder: eToro requires a spread of 3 pips for the popular euro / US dollar currency pair. However, 1.5 or a maximum of 2 pips would be usual. So if you don't value social trading, you can always find another provider that is significantly cheaper. In any case, however, we recommend trading on a demo account with eToro first, before putting real money into trading. In this way, you can also safely familiarize yourself with social trading.
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. 71% of retail investor accounts lose money when trading CFDs with this provider.
Please note that you should inform yourself 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.
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