eToro offers commission-fee share trading on over 1,000 global stocks.
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eToro is a multi-asset social trading platform that lets investors trade stocks, exchange-traded funds (ETFs), cryptocurrencies, contracts for difference (CFDs), commodities and currencies. Along with low-cost investing, eToro also offers the OpenBook trading platform, which lets users automatically copy and execute another investor’s trades.
eToro has built a reputation as one of the most innovative and popular online investing platforms since it launched in 2007. It currently has over 10 million users worldwide and provides a range of low-cost investing services.
Along with digital trading platforms such as Freetrade and Robinhood, eToro now offers a free investing account. This means users can buy and sell a range of global stocks with no commission.
With the eToro free stock account, you can buy and sell shares from the world’s biggest exchanges and pay nothing in commission. It’s free to create an account, and there’s no limit on how much you can trade.
Through eToro, you can even buy fractional shares, and invest in companies like Apple, Amazon, Nike, Twitter and Google.
However, as you might expect, there are certain provisions.
Commission-free investing is currently only available in countries under FCA and cySEC regulation, which includes the UK and all major European countries.
You’ll also need to deposit a minimum of $200 US, and zero commission doesn’t apply to any leveraged trades, shorts or stock CFDs.
While you won’t pay commission on basic share buy and sell orders, you’ll still need to pay a $5 US withdrawal fee, and the minimum withdrawal amount is $50.
Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.If you’re more of an advanced trader, eToro allows you to trade contracts for difference (CFDs). These allow you to trade on market volatility without ever having to own the underlying asset. Great if you don’t want a truck full of soybeans rocking up on your doorstep.
Features of eToro’s CFD trading platform include:
Yes. eToro is regulated and authorised by the FCA in the UK and also covered by the FSCS, so you’ll be protected for up to £85,000 in the event the company goes bust.
As with any type of investment, it’s your money that’s at risk when you use eToro, and there’s no guarantee of profits.
On consumer review platform Trustpilot, eToro has 2.5 out of 5 stars and a rating of Poor, based on more than 1,500 reviews.
Things are much brighter in the App Store, where the eToro app has 3.9 out of 5 stars based on more than 150 reviews. On Google Play, the eToro app has 4 out of 5 stars based on more than 32K reviews.
Positive feedback included the ease of use and flexibility to switch between stocks and crypto. Negative feedback centred around technical glitches and the user interface experience.
eToro makes money by charging a range of fees on certain types of trades. While it’s free to start using eToro, you’ll need to pay for most of its trademark trading features and options.
| Fee type | Cost |
|---|---|
| Basic trades | Free |
| Basic account | Free |
| Withdrawal fee | $5 USD |
| CFD trades | 0.09% spread |
| Conversion fee (GBP to USD) | Pips50 |
| Inactivity fee | $10 USD |
The eToro trading screen can be quite confusing at first, especially when it comes to managing your investment watchlist.
Despite the much-publicised commission-free trading option, eToro also comes with a couple of unavoidable fees, mainly around deposits and withdrawals to your account.
To get the most out of its extensive trading platform, you’ll also end up paying a number of standard (and hidden) fees, and these can be confusing for beginner traders.
It takes 30 seconds to create your investing account via the eToro website, but you’ll then need to complete your profile and verify your account. This can take 10-15 minutes.
You’ll need to provide:
You’ll also need to answer a series of questions about your recent trading activity and investment knowledge so that eToro can determine your experience level. You’ll then need to outline your trading strategy, including your risk appetite and financial goals.
Finally, you’ll have to verify your phone number and provide a copy of your passport or ID card, and a utility bill or bank statement, in order to verify your identity.
It can take up to 3 business days for your account to be verified.
Once you’ve been verified, you can deposit funds and start trading. With the free account, you can access many of the regular eToro features like CopyTrading, virtual trading and TipRanks expert stock analysis.
You can add and remove stocks, cryptocurrencies, ETFs, indices, commodities and currencies to your watchlist, and also track your portfolio.
However, when using the platform, keep in mind that only basic stock buy orders are commission-free. It can be quite easy to get carried away and start dabbling in other types of assets, but these will attract trading fees.
You can invest in over 1,000 different global stocks from the world’s leading exchanges, including Apple, Netflix, Google, easyJet, Barclays, Airbus, Adidas.
eToro is the leading social trading platform. This means that you can connect with others to share your investment strategies and discuss trading with the user base. You can also copy other traders’ actions in real-time. This is a nice way of getting the hang of how it works and utilising others’ knowledge and experience.
The platform lets you see the users’ average risk score and gains in the last year. Of course, as always, past performance is not an indication of future results.
The eToro club is a tiered membership program that you can add to your eToro account, based on the amount of realised equity you have on the platform. It offers a range of perks including fee discounts, analytical tools and access to events.
Your capital is at risk
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