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eToro Review UK

Updated On:
October 28, 2022
Visit eToro*
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eToro Review UK 2022 - Is it any Good

*Please note: As with all investments, your capital is at risk. 79% 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 before you proceed.

Contents:

1. What is eToro?

eToro UK is a multi-asset brokerage that provides access to over 3,000 investment assets, including stocks and shares, ETFs, cryptocurrencies, CFDs, commodities and currencies.

Here is a breakdown of the number of assets by category on the eToro UK platform:

  1. Stocks - 2,630
  2. ETFs - 263
  3. Cryptocurrencies - 120
  4. Commodities - 49
  5. Indices - 13
  6. Currencies - 49

eToro UK review - portfolios
The screenshot above is for illustration purposes only.

eToro was founded in 2007 and currently has more than 20 million users in 140 countries worldwide.

To learn more about the founding story and mission, visit eToro UK’s website.

2. eToro UK’s Pros and Cons

Here are the pros and cons of eToro UK:

Pros Cons
  • eToro charges a 0% commission on real stocks.
  • eToro UK does not offer an ISA or SIPP.
  • eToro requires a low minimum initial investment of US$10 (£8).
  • eToro’s minimum withdrawal amount is US$30 (£24).
  • eToro offers a wide variety of stocks, cryptos and other assets.
  • eToro charges a mandatory US$5 (£4) withdrawal fee.
  • eToro has over 40 ready-made investment portfolios.
  • Fees apply on leveraged, short and CFD orders.
  • There are no limits to the number of trades you can make on eToro.
  • A US$10 (£8) per month fee applies to inactive accounts.
  • eToro's social investing allows you to copy the trades of successful traders.
  • All US ETFs on the platform are only available as CFDs to eToro UK customers.
  • All registered users receive a US$100,000 (£80,000) demo account for free, which you can use to practice trading until you become confident.
  • FX rates apply for non-USD deposits and withdrawals (this can be eliminated by signing up for and transferring funds via an eToro Money account).
  • 3. Is eToro any Good?

    eToro is one of the best trading platforms in the UK at the moment because it allows you to invest in a wide variety of assets and keep them all in one place.

    On eToro, you can buy Bitcoin and other popular cryptocurrencies such as Ethereum, Tether, XRP, Binance Coin (BNB) and Solana. You can also invest in real stocks (at 0% commission), ETFs, commodities, indices and currencies.

    It is entirely free to open an account with eToro, and all registered users receive a US$100,000 demo account for free, which you can use to practice buying crypto, stocks and other assets before committing to them.

    eToro does not charge a deposit fee but charges a 1% trading fee on all buy and sell orders.

     

    Trading on eToro occurs in USD, so a conversion fee will apply if you deposit or withdraw in a currency other than USD. Withdrawals incur a fee of US$5 (£4), and the minimum withdrawal amount is US$30 (£24).

    For UK customers, eToro offers an eToro Money app that allows you to convert your GBP to USD free of charge, thereby eliminating the foreign exchange conversion fees. The eToro Money app also functions as a wallet for storing your crypto holdings and allows for easy transfer of your cryptocurrency from one exchange or wallet to another.


    4. How Does eToro Work?

    Here is a detailed breakdown of how eToro works in the UK. 

    eToro UK review - watchlist
    The screenshot above is for illustration purposes only.

    With a minimum amount of US$10 (£8), you can start investing with eToro in the UK as follows:

    0% Commission Stocks

    1. Customers in the UK and Europe do not pay a commission when investing in real stocks.
    2. eToro also absorbs Stamp Duty charges for users where applicable. This represents an additional saving of 0.5% in the UK and 1% in Ireland.
    3. Other advantages of buying shares on eToro include unlimited trading volume, the ability to purchase fractional shares, free access to TipRanks’ expert stock analysis and eToro’s notifications on volatility and market events.

    Exchange-Traded Funds (ETFs) and Contracts for Differences (CFDs)

    1. A CFD is a very risky trading instrument that involves taking a loan from the trading platform with just one click of a button. This loan helps you increase the size of your investment with money borrowed from the trading platform.
    2. All US ETFs on the eToro platform are only available as CFDs to eToro UK customers.
    3. The 0% commission mentioned above does not apply to stock CFDs.

    Cryptocurrencies

    1. With eToro, you have over 120 cryptocurrencies to choose from, including popular coins like Bitcoin, Ethereum, Tether, XRP, Binance Coin (BNB) and Solana.
    2. eToro does not charge a deposit fee but charges a 1% trading fee on all buy and sell orders.
    3. For UK customers, eToro offers an eToro Money app which functions as a wallet for storing your crypto holdings and allows for easy transfer of your cryptocurrency from one exchange or wallet to another.
    4. Of all the crypto exchanges listed on Koody, eToro has the highest number of popular coins (cryptocurrencies with the highest market capitalisation).

    eToro CopyPortfolios

    CopyPortfolio is a unique and interesting feature on eToro that allows you to follow the financial activity of successful traders on the platform and copy their investment choices in real-time. You can choose up to 100 traders to copy simultaneously. CopyPortfolios sometimes include CFDs, so if you are not interested in CFDs, make sure to check the constituents of a portfolio before copying it. 

    Social Trading

    eToro boasts one of the largest social trading communities in the world, enabling 20+ million users around the world to communicate and share thoughts, knowledge and ideas about the financial markets on the eToro platform.

    5. What Are eToro’s Fees?

    Signing up for eToro and accessing the US$100,000 (£80,000) demo account is free, but a minimum deposit of US$10 (£8) is required to start investing.

    Here are some of eToro’s fees:

    1. eToro Currency Conversion (FX) Fee: 0.5% per deposit.

    2. eToro Withdrawal Fee: US$5 (£4) per withdrawal.

    3. eToro Crypto Trading Fee: 1% per trade (buy or sell).
    4. eToro Inactivity Fee: US$10 (£8) per month after an inactivity period of a year.
    5. eToro CFDs Fee: CFDs attract a commission in addition to spreads, and users may also incur overnight and weekend fees.
    6. eToro Minimum Withdrawal Amount: US$30 (£24).
    7. For More Information on eToro’s Fees: Visit eToro’s fees page.

    6. Is eToro Really Free?

    No, eToro is not free, as all users pay a mandatory withdrawal fee of US$5 (£4) for each withdrawal made on the eToro platform.

    The only commission-free products on eToro are real stocks, and even those could become costly depending on how large the bid/ask market spread is. Cryptocurrency and CFD trades on eToro are not commission-free and come at a cost in addition to the market spread.

    eToro also charges withdrawal fees (as mentioned above), FX fees and inactivity fees. It is possible to reduce (or eliminate) the FX fees with an eToro Money account if you live in the UK.

    To reduce the impact of these costs, it is advisable to hold your investments on eToro for the long term.

    7. Is eToro Good for Beginners?

    Yes, eToro is good for beginners. eToro has a variety of instruments, trading opportunities and unique offerings that make it ideal for beginners.

    Beginners can invest in more than 3,000 assets, including 0% commission stocks, ETFs, cryptocurrencies, crypto-trading pairs, indices, commodities, currencies and CFDs.

    Read: Is eToro Safe for Beginners?

    8. How Do I Trade on eToro UK?

    To trade on eToro, you need to sign up on the eToro UK website or mobile app and submit a few personal details to verify your account. The process involves a quick and straightforward online form, followed by a short questionnaire to gauge your level of experience and to tailor the platform to your investment needs.

    Once your eToro account is verified, you’ll gain access to over 2,000 stocks, most major cryptocurrencies, CFDs, CopyPortfolios and social investing.

    You’ll need to deposit a minimum amount of US$10 (£8) to get started with eToro. Once you make your first deposit, you can start investing in stocks, ETFs, cryptos and other instruments.

    You can also practise with eToro’s virtual demo account or copy other traders or investors based on their gain, success and risk scores.

    9. Is eToro Regulated by the FCA?

    Yes, eToro is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at its permissions on the FCA Register.

    10. Is eToro Safe?

    Yes, eToro is safe. eToro is as safe as any other regulated stock trading platform in the UK. It is authorised and regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA). 

    Additionally, on eToro, your funds are kept secured in tier 1 banks, and all personal information is protected under SSL encryption. 

    Your money is also protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000. This means you might be able to get your money back from the FSCS up to £85,000 if eToro goes bust. Please note that the FSCS does not cover losses arising from the performance of any of your investments.

    Read: Is eToro Safe for Beginners?

    11. How Does eToro Make Money?

    eToro makes money from bid/ask market spreads, commissions and other fees. Like most stock trading platforms, eToro makes money from the market spread on stocks, ETFs, CFDs, cryptocurrencies, and other trading products. It also makes money from commissions on products like currencies, CFDs and cryptocurrencies. Finally, eToro makes money from FX conversion fees, withdrawal fees, inactivity fees and CFD weekend and overnight fees.

    12. How Do I Open an Account With eToro?

    To open an account with eToro UK, visit eToro’s website here. Capital at risk.

    13. Alternatives to eToro

    Alternatives to eToro in the UK include Coinbase for cryptocurrency trading and Freetrade, Interactive Investor and Stake for stock trading and investing.

    Interactive Investor

    Interactive Investor has over 40,000 investments to choose from, including UK and overseas shares, funds, investment trusts, and ETFs. You get a free trade every month, which you can use to buy or sell any investment. Interactive Investor's services include a Trading Account, Stocks and Shares ISA and SIPP.

    Visit: Interactive Investor

    See: Interactive Investor Review

    Stake

    Stake is a global commission-free brokerage that gives you access to 4,500 US stocks and ETFs via a mobile app and web interface. It aims to provide the broadest and most direct access to the US stock market for those who live outside of the US. It does not offer ISA or SIPP.

    Visit: Stake

    See: Stake Review

    *DISCLAIMER

    eToro is a multi-asset platform that offers both investing in stocks and cryptoassets and trading CFDs.

    Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    Past performance is not an indication of future results.

    Copy trading is a portfolio management service provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

    Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

    eToro USA LLC does not offer CFDs, makes no representation, and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilising publicly available non-entity specific information about eToro.

    Click here to visit eToro UK.


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