eToro is a low-cost broker that allows you to invest in the equity markets via an equity trading offer with zero commission, but also in the cryptocurrency market and via CFDs on the currency, commodities, and cryptocurrency markets. The broker also offers a social trading feature; it is even a world leader in this area.
eToro is registered with the AMF as PSAN. It is also possible to invest physically in a selection of 70 cryptocurrencies via the eToro Money Wallet or the eToro trading platform.
We have tested the eToro broker for you. Discover the key figures of the broker in 2022, the eToro range of products and the financial assets it offers, the trading tools made available to customers, the services provided but also the prices charged in 2022. Finally, find our opinion on eToro and the audience it is aimed at.
What is eToro? The history and key figures of the online broker eToro
It was created in 2007 by three entrepreneurs who decided to "turn the world of trading upside down" by making brokerage accessible to everyone, everywhere.
The online broker, from its inception, has been part of the fintech movement with the desire to disrupt the sector and offer an innovative trading approach. In 2009, eToro launched its in-house trading platform, WebTrader, and from 2010, offered a social trading platform, Open Book, with CopyTrader™ functionality.
A year after its launch, Open Book, the world's first social trading platform, wins Finovate Europe's Best of Show 2011 award.
In 2013, eToro launched its mobile trading app, which gives access to all the functionalities of the eToro platform. In the same year, the online broker specializing in currency and commodity brokerage via CFDs offered its clients trading in tangible stocks.
In 2017, the eToro offer was further enriched. In fact, the range of assets offered by eToro is still growing with the addition of cryptocurrencies in CFDs.
With the launch of “eToroX” in 2018, eToro marks its entry into the world of blockchain with a comprehensive offer intended only for professional cryptocurrency investors.
In 2021, the online broker had planned to make its IPO via a SPAC, but the operation was delayed several times. In December 2021, the IPO was finally postponed until 2022.
eToro entered into a definitive business combination agreement in the first quarter of 2021 with the listed specialist acquisition company FinTech Acquisition Corp. V. The combined business will operate as eToro Group Ltd. and is expected to be listed on NASDAQ.
According to the latest information and in parallel with the IPO operation, fundraising from private investors has raised between 800 million and 1 billion dollars, valuing the company between 5 and 6 billion dollars.
Registered and regulated in Cyprus for European use, the eToro trading platform is present in 142 countries and has more than 27 million users. In the 4th quarter of 2021, more than 2 million new users opened an account with eToro. At the end of 2021, the online broker was administering $10.7 billion in client funds.
Since June 2022, eToro has been registered as a PSAN with the AMF, which allows it to offer services for the sale and purchase of cryptocurrencies to French residents.
In just over 10 years, the small fintech has become a benchmark broker, a world leader in social trading, and an expert in cryptocurrency trading with tens of millions of customers.
eToro Review: Characteristics of the eToro brokerage offer in 2022
All actions have 0% commission. Your capital is at risk.
eToro Review: How to invest online with eToro in a wide variety of financial markets.
The online broker eToro offers investors the opportunity to position themselves on the main financial markets through numerous products and assets. The equity markets are thus accessible to eToro customers, but also the cryptocurrency market, the currency market, and the raw materials market.
eToro offers terms of shares and stock market products available on the trading platform of the broker eToro.
The eToro mobile trading platform gives its clients access to the main world stock exchanges (New York, Frankfurt, London, Paris, Milan, Zurich, Oslo, Stockholm, Copenhagen, Helsinki, Hong Kong, Lisbon, Brussels, Saudi Arabia, Amsterdam). The private investor will thus be able to invest in shares, fractional shares, as well as in ETFs.
Please note: it is also possible with the eToro App to position yourself on the stock markets, upwards or downwards, with a leverage effect by trading equity CFDs and/or CFDs on indices.
eToro is much more than a stockbroker; it is a fintech that can be described as a neobroker.
Cryptocurrency trading with the eToro trading platform
The online broker allows you to practice cryptocurrency trading. eToro France allows you to position yourself via CFDs on many cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, Ripple, Dash, Litecoin, Ethereum Classic, Cardano, Iota, Stellar, Eos, Neo, Tron, and Binance, etc.
Crypto CFDs allow you to trade cryptos up or down with or without leverage.
But since June 2022, it is also possible to buy one of the 70 cryptocurrencies available on the eToro platform and the eToro wallet directly. eToro has indeed registered as a PSAN with the AMF (Provider of Services on Digital Assets), which allows the broker to offer French investors and traders the purchase, holding, and resale of crypto-currencies from its platform.
eToro thus makes it possible to hold crypto assets in a wallet or crypto wallet. The eToro Money wallet is a solution to consider for investors who wish to keep their crypto assets over the medium or long term. The eToro Money wallet is a 100% mobile solution that does not allow access to your crypto wallet from a desktop computer.
The eToro cryptocurrency offer is substantial for a stock broker but remains lower than what is offered by players focused exclusively on this market for virtual currency. Thus, the cryptos on eToro are relatively numerous, but the choice is, however, more limited than on an exchange platform such as Coinbase, Binance, or Kraken. For example, without offering an exhaustive offer, it allows you to position yourself on several hundred cryptocurrencies.
Crypto wallet and holding crypto at online broker eToro
Since eToro is registered as a PSAN with the AMF, the broker is authorized to offer digital asset purchase and custody services. Thus, investors are no longer limited to buying crypto assets via derivatives only; they can also physically buy, hold, and send cryptos from the eToro wallet.
The eToro wallet is called eToro money crypto. It is a mobile application that will allow the user to easily perform the basic operations usually available on a crypto wallet. You will have on your eToro Wallet a Bitcoin address as well as a blockchain address for each crypto-currency available. These addresses will allow you to hold cryptos, send and receive them. The transactions carried out with the addresses in question will all be validated transparently by a blockchain protocol.
One of the peculiarities is that the private key associated with the wallet is impossible to lose thanks to a service that will allow you to recover access to your wallet in the event of loss, a concern that many crypto investors have already faced.
The eToro trading offer in the foreign exchange market with the eToro online trading platform
The eToro broker allows investors to take a position in the currency market via CFDs on many currency pairs, such as EURUSD, GBPUSD, USDCAD, USDJPY, EURGBP, EURCHF, etc.
Trading commodities with the eToro app
Finally, the eToro broker allows individuals to gain exposure to the commodities market through the trading of CFDs on commodities. The eToro mobile trading platform allows you to take positions on many industrial commodities such as oil, gas, gold, palladium, copper, silver, nickel, aluminum, etc., but also on many agricultural raw materials such as sugar, cotton, cocoa, wheat, etc.
eToro Review: Which trading tools and dedicated services to manage your investments on eToro in 2022?
The online broker eToro, a truly innovative and disruptive fintech, has always been committed to offering its customers exclusive trading tools, at the cutting edge of technology, with the aim of making online trading simple and accessible to the largest number of people. Opening a trading account with the eToro broker gives you access to these different tools:
Web Trader: eToro's trading platform is intuitive and easy to use, equipped with tools suitable for both beginners and seasoned investors;
Open Book: the world's first social trading platform.
Since 2015, the new eToro integrates both online trading and social trading in a single intuitive and innovative interface.
These tools are, of course, available in a mobile version for trading anywhere and anytime by placing stock market orders from your smartphone or tablet.
Our review of the eToro Web Trader 2022 trading platform
We have tested for you the eToro Web Trader trading platform, which is the trading platform through which you can place your buy and sell orders on all the financial assets available with eToro.
The eToro trading platform integrates the basic functionalities for placing orders as well as a graphical analysis module.
We note that it is possible to create price alerts and that a market sentiment indicator is available, indicating the positioning of traders on each asset.
This is a trading platform that will be perfect for novice traders.
Social trading in eToro
At the heart of the eToro trading platform, a social trading feature allows investors to follow the trading strategies of other users, allowing investors to replicate any trader or investor trading orders they may have. selected.
Equipped with a powerful search engine to filter the thousands of strategies and traders available to find what suits you, you will have the choice between following active traders, long-term investors, or even a selection of typical portfolios.
eToro Review: What are the 2022 prices for the stock broker eToro?
How much does eToro charge for financial market investments?
eToro has very competitive rates that we will detail below.
Stock prices of the online broker eToro
We note in particular the possibility of building up a portfolio of global equities without paying any commission. Indeed, with the “Zero Commission” system (only valid in Europe), no brokerage fees are charged when opening or closing a position in the equity market. Please note that other fees may apply (fees for the use of leverage, derivatives, spread bid-ask, etc.).
With such an advantageous offer for investors, one is entitled to wonder how eToro is remunerated. Indeed, the question of how eToro makes money, given the eToro 0% commission stock and ETF offer, is quite legitimate. Then, if it is possible to buy shares without commissions, other charges may apply.
eToro relies first on an economy of scale with this offer, which attracts many customers. Then, eToro is remunerated above all thanks to the spreads, a technical term that designates the difference between the real quote of the stock market asset and the quotation at which you will enter the market. It is this difference that constitutes the remuneration of the broker.
eToro: fees charged by the online broker in 2022
eToro, like most online brokers, does not charge custody fees, inactivity fees, or account maintenance fees.
Note: eToro charges $25 for withdrawals. The minimum withdrawal amount is $50.
The eToro broker does not charge deposit fees or trading fees other than spreads.
For more details, you can consult the broker's website "information concerning market hours, current spreads, and overnight fees applied by eToro."
Crypto transaction fees at eToro
When an investor physically buys cryptos via his eToro Money wallet, a brokerage commission equivalent to 1% of the transaction amount will be applicable, in addition to the bid/ask spread.
eToro review: how to open an account with eToro in 2022?
For France, go to the homepage of the online broker and click on “Join now”. Next, you will need to complete a form regarding your personal data and submit it to eToro, then review and accept eToro's Terms and Conditions and Privacy Policy, and then submit your registration form by clicking the "S" to register.
You must then, and this is a legal obligation, comply with the measures provided for the fight against money laundering and the financing of terrorism by transmitting a copy of an identity document and proof of residence of no more than 6 months. Then, you will have to complete a questionnaire to determine your investor profile and your knowledge of the financial markets.
You can then connect to your account and make the first deposit of money (by credit card or by bank transfer). You can then sell and buy the assets that interest you.
Note that you can trade in the financial markets from the broker's website or from the eToro iOS app. There is an eToro Android app and an eToro Mac app.
To withdraw your money from eToro, you will need to make a withdrawal request. The client will have to log in to his trading account and click on the "withdraw funds" tab.
These will then be paid into the same account used for the deposit. The registration of the withdrawal request can take up to 2 working days. Then you can get your money back within days. However, it is possible that the withdrawal of funds may take up to 10 working days.
If it is a withdrawal in cryptos, the deadlines and fees may be different.
eToro Review: Should you invest with this broker in 2022?
Would you like to know our eToro opinion because you are hesitating between several brokers? One can indeed legitimately wonder if it is better to choose eToro or an exchange platform for investors in cryptocurrency, many of whom are wondering: eToro or Coinbase? eToro or Binance? eToro or Kraken?
But stock market investors are not left out, and we may wonder which stockbroker to choose between eToro and Boursorama. eToro or Bourse Direct? eToro or Trade Republic? Or even eToro or Degiro?
eToro is undoubtedly one of the most innovative online brokers around. It provides its investors with state-of-the-art tools and gives them access to a multitude of assets, including the most innovative and controversial ones, such as virtual currencies. eToro, therefore, makes it possible to invest in a wide variety of asset classes with access to the equity markets, cryptocurrencies, but also currencies, and commodities.
This social trading specialist is clearly to be preferred if you want to invest by copying the portfolio of experienced traders.
READ: How To Invest In The Stock Market In 2022?
Since 2016, the broker has been offering long-term thematic investment products called “CopyPortfolios” (ex-Copyfunds), “managed portfolios that bring together top traders or various assets as part of a predetermined market strategy,” according to the online broker, who, as usual, relies on technology to develop new products. Indeed, these CopyPortfolios are notably driven by powerful machine learning engines that aim to generate the maximum return at a given time.
Namely: the eToro broker is not prohibited in France. eToro is registered and authorized in France. However, this online broker is not regulated and supervised by the AMF. Given the location of its European headquarters in Cyprus, it is regulated by the Cypriot regulator, Cysec. eToro has a European passport and a registration on Regafi, which allows, under certain conditions, a European financial company to operate in France with the freedom to provide services without having a physical establishment there.
For the live crypto part, eToro is registered as a PSAN with the AMF for custody of digital assets and buying/selling digital assets against legal tender.
eToro Review: Who is eToro for?
eToro is aimed at many investor profiles. The eToro 0 stock and ETF commission offer may appeal to young investors who want to invest at a lower cost in the stock markets, especially since the eToro broker also offers the purchase of fractional shares.
The eToro cryptocurrency offer is aimed at the public seeking diversification who understands the risks associated with the volatility of this asset class. Finally, the commodities market and the currency market, accessible at eToro via the leveraged financial instruments that are CFDs, are to be reserved for a risk-aware public, aware that the majority of customers lose money.
With this type of instrument, who will be able to handle the leverage effect with care and know that the latter can be beneficial in the event of correct anticipation but also catastrophic in the event of poor anticipation?
FAQs
What is eToro used for?
eToro is an online broker that allows individual investors to invest in the stock market, and in particular in the equity, currency, commodity, and cryptocurrency markets, in order to enhance financial capital by generating capital gains.
What are eToro's prices?
The brokerage fees charged by eToro are extremely advantageous in terms of the long-term holding of shares of major global groups on the stock market with the “Zero Commission” system. Note that eToro is also very competitive on certain products, such as derivatives on commodities or US stocks.
What are the advantages of the eToro online broker?
It is the European leader in social trading and is one of the few brokers to make copy trading possible. It also offers a lot of assets, including cryptocurrencies.
What risks to investing with eToro?
eToro offers many risky assets such as commodities and cryptocurrencies via derivative products that should be well understood before investing, as well as live crypto-currencies. In addition, eToro also allows investing in shares of large companies for the long term with no brokerage fees when opening and closing the position.
Disclaimer:
All of our information is, by nature, generic. They do not take into account your personal situation and do not in any way constitute personalized recommendations with a view to carrying out transactions and cannot be assimilated to a financial investment advisory service nor to any incentive to buy or sell instruments.
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