eToro stock trading review
A leader in social and copy trading, this platform is a great option for beginner stock traders.
finder.com’s rating: 4.3 / 5.0
- Consider eToro if you’re a beginner who wants a straightforward stock and ETF trading platform with 0% commission and the chance to learn from other traders.
- Look elsewhere if you want to trade options and futures or if you’re looking for a retirement account.
- Bonus: Get $10 when you sign up and deposit $100 in a new eToro account
|Commission-free trades on stocks and ETFs, and no withdrawal fees.|
|Stocks, ETFs and cryptocurrencies.|
|You can only reach out to customer support on live chat or via ticket.|
|Mobile app users love the app’s simplicity but don’t like the lack of proper customer support.|
|Research and tools|
|Traders can interact between themselves through eToro’s platform.|
|No major outages have been reported.|
To learn how our star ratings are calculated, read the methodology at the bottom of the page.
What I think about eToro
eToro is relatively new to the US, but it’s an absolutely massive broker globally, and for good reason. It’s a pioneer in social trading and is a great choice for beginners.
Its trading platform offers a clean interface that’s easy to learn, and deposited funds are immediately available to invest, meaning you can jump right in and begin trading from day one. Its research tools are plentiful, with cleanly presented information that’s easy to digest. If you’re interested in technical analysis, eToro’s charting capabilities are on par with most other brokers.
As a pioneer in social trading, this aspect is one of eToro’s best features. See what other traders are buying or selling, and interact with the community to learn more about trading and investing. This is great for beginners who want to learn from other successful traders. And experienced traders who participate in the Popular Investor program can even turn their trading skills into income. Win-win, right?
eToro is also working on bringing its CopyTrading feature, currently available for crypto assets, to stock trading. With CopyTrader, you can automatically copy the best-performing traders in the community, instantly replicating their trading in your own portfolio.
In all, eToro is a great option for beginners — even more so when CopyTrader becomes available for stocks. The only real downside is that you can only buy stocks, ETFs and cryptocurrencies right now.
There are no options, futures, bonds or any derivatives to choose from. Also, eToro only offers taxable brokerage accounts, no IRAs.
eToro offers a competitive crypto trading platform
In addition to stocks and ETFs, eToro also offers cryptocurrency trading with features like virtual trading and crypto insurance. This review focuses primarily on the company’s stock trading platform.
For more information about the fees and features for trading cryptocurrencies on eToro, check out our eToro crypto review.
Pros and cons of eToro
Consider eToro’s perks and drawbacks for both beginner traders and seasoned investors alike.
- Commission-free trading. There’s no commission for trading stocks and ETFs.
- Fractional investing. Buy any stock or ETF you want for as little as $10 regardless of the share price.
- Social trading aspect. See what other traders are buying or selling in your eToro news feed, and interact with these posts.
- No desktop platform. You can only use eToro’s mobile app or its web-based trading platform.
- Limited account types. There’s no retirement, 401(k) or joint accounts on eToro.
- Limited trading options. If you’re looking to trade options or mutual funds, look elsewhere.
eToro’s stock trading fees are competitive
eToro offers commission-free trading, which is the status quo these days.
Another important fee to consider is the Automated Customer Account Transfer Service (ACATS) fee, which is the fee you pay to transfer securities from one trading account to another.
Suppose you no longer want to trade with eToro, but you don’t want to sell your securities either. Instead, you can transfer your stocks to a new broker. There are generally no taxes to make the switch, but most brokers charge a fee. Note that fractional shares usually aren’t transferable. These will likely be sold during the transfer, which can trigger taxable income.
eToro charges a $75 fee for this service. This is standard.
eToro is best for beginners
With the simple app interface and ability to get insight from an extensive trader community, eToro can be a solid platform for learning and improving your trading skills.
eToro’s stock trading platform is easy to use
The eToro trading platform, both the app and web versions, is easy to learn and not overly complex. Both offer a quick search function that allows you to search stocks and immediately trade.
If you want to first dig into a stock before you trade, research tools include analyst ratings and price targets, hedge fund activity and insider transactions. All this information comes from TipRanks, a leading stock market research and analysis company.
You also have access to standard company stats, including the company’s income statement, balance sheet and cash flow statement.
The platform’s charting capabilities are comparable to most other trading platforms. You have access to tools like Fibonacci retracements and extensions, moving average studies, bollinger bands and more.
One thing eToro doesn’t offer is Level 2 market data. This data shows you who the market participant is that’s making a trade, whether they’re buying or selling, the size of the order and the price offered. This information is valuable for experienced traders who may want to capture small or fast price movements.
How eToro’s social trading features work
eToro’s social trading incorporates elements from social media with trading. You can interact with other users, discuss stocks and follow other traders.
eToro also offers a unique feature called CopyTrader that lets you sync your trades to other users, automatically replicating their trading in your portfolio. This feature is only available for crypto assets at the moment, but when they add stocks and ETFs to the mix — which they’re currently working on — it will be a great feature for fledgling stock traders.
The feature is free and you set the amount you want to copy. When the trader makes a trade, the same trade is made in your portfolio. The minimum amount required to copy a trader is $200. We’ll see if this is the same amount required when stocks are included.
Importantly, you can view each trader’s returns before you agree to copy them. Each trader is also given a risk score. If you meet specific criteria, you too can join the platform’s Popular Investor Program and get paid when other users copy your trades.
eToro’s reviews are overwhelmingly positive
eToro has thousands of positive reviews, which more than outweigh the 18 negative reviews on the Better Business Bureau (BBB). A frequent complaint on the BBB is for unauthorized withdrawals from reviewers’ bank accounts. This complaint is oddly localized to the BBB though.
On Trustpilot, eToro is rated 4.2 out of 5 stars based on nearly 13,000 customer reviews. Satisfied customers highlight the platform’s user-friendliness, helpful support and fractional share trading capabilities. On Google Play, eToro’s gathered almost 110,000 reviews, giving it a 4- out of 5-star rating. On the Apple App Store, it’s rated 4.2 out of 5 stars based on nearly 5,000 reviews.
Altogether, most customers seem to have a positive experience using eToro.
|Better Business Bureau||Rating: C|
|Better Business Bureau||Not accredited|
|BBB customer rating||1/5 stars based on 18 customer reviews|
|TrustScore||4.2/5 stars based on 12,958 customer reviews (worldwide)|
|Google Play app reviews||4/5 stars based on 109,422 customer reviews|
|Apple App Store app reviews||4.2/5 stars based on 4,921 customer reviews|
|Data last updated||February 2022|
Sign up for eToro in 5 steps
Here’s how to join eToro:
- Visit eToro’s website and select Join Now or Get Started.
- Enter your username, email and password and select Create Account. Alternatively, sign up using your Facebook and Google login credentials.
- Verify your email, which will bring you to your account page. Then hit Verify to confirm your account.
- Complete your profile by entering the required personal information, including your name, date of birth, address and Social Security number.
- Deposit funds to begin trading.
Eligibility and required information
Start trading using eToro after you meet these requirements.
- At least 18 years old
- Valid residential address
- Valid government-issued ID
- Live in any state other than NY, NV, MN, or TN — eToro is not available in these states
- Existing bank or brokerage account for account transfers or a debit card
- Valid Social Security number
- Employer’s name, address and phone number
Is eToro legit?
Yes, eToro is a legit broker. Founded in 2007, it has offices in Cyprus, Australia, the UK and the US, with the main headquarters being in Tel Aviv, Israel. With over 25 million users in more than 100 countries, eToro is a well-known trading platform outside of the US.
Their brokerage services are offered through eToro USA Securities Inc, which is registered with the US Securities and Exchange Commission (SEC), and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
All crypto assets are offered through eToro USA LLC. Crypto platforms aren’t as highly regulated as stock platforms in the US, but eToro is registered with the US Financial Crimes Enforcement Network (FinCEN). However, crypto assets aren’t insured by the FDIC or SIPC. Using a cryptocurrency wallet is a good measure to keep crypto assets safe, regardless of which platform you buy them on.
Contact eToro support online
Reach eToro’s customer support in two ways:
- Online chat through eToro’s website, available 24 hours on weekdays.
- Ticket system where you open a ticket and wait for a customer support representative to resolve your issue.
Alternatives to eToro
If you’re unsure whether eToro is the right fit for your trading style, compare other brokers to find one that is. If you want to learn more about a platform, select Go to site to visit the provider’s website.
*Signup bonus information updated weekly.
How we rate trading platforms
★★★★★ 5/5 — Excellent
★★★★★ 4/5 — Good
★★★★★ 3/5 — Average
★★★★★ 2/5 — Subpar
★★★★★ 1/5 — Poor
We analyze top online trading platforms and rate them one to five stars based on factors that are most important to you. These factors include fees, securities available for trade, customer support, customer feedback, platform resources and overall reliability.
For a complete breakdown of how we score each category, read the full methodology of how we rate trading platforms.