The short answer is: eToro is not a scam.
The longer and more complete answer is found in this article, where we will shed light on the reliable aspects offered by eToro that make this platform far from being a scammed online trading broker.
This broker offers an innovative trading platform that allows you to copy other traders.
Having 10 years of experience in online trading and based on it, we can say that eToro is not a scam.
To personally try the platform and get a feel on its functionalities, you can just access the demo account without making a deposit, which allows you to try to trade and view all the available features. Among others, the “Copy People” function allows you to copy what the most experienced traders do automatically.
You can also decide to copy other traders based on the trend or on their risk score as you can see from the below screenshots from eToro.
If you want more information, check out our free eToro guide.
Is eToro a scam or a secure broker?
We would like to confirm once again: eToro is not a scam. It is a European regulated broker and is therefore subject to the strictest regulations in the industry.
- ESMA (Europe)
- MiFID 2 (Europe)
These protect all clients, especially the least experienced ones or beginners. Therefore, the very fact that this broker is regulated and that this regulation applies in Europe makes it a safe broker.
The regulation refers to that of:
- CySEC in which eToro has a regular license, number 109/10, which is valid in the European Union.
- A licence for the UK (regulated by the FCA with license FRN583263)
- For Australia where it has the ASIC number 491139.
As expected, whenever a broker trades in a serious way, it is obliged to report all the information regarding authorizations and licenses on its website.
eToro is one of these.
As we have seen, in fact, eToro is regulated so it’s both legal and safe.Check out eToro official website.
eToro Demo: is it really free?
Yes, the eToro demo is free and you do not need to deposit any money to start using it.
The eToro demo is the best way to become familiar with this platform. You can open a demo account from here and start practicing for free.
It’s important not only for those who have no trading practice but also for those who do not know this particular platform, which is very different from the others.
With the demo, you can see:
- All the sections dedicated to Copy People (traders)
- Other aspects that, if you have never tried eToro, you probably have never seen on any other trading platform.
eToro Minimum Deposit
The minimum deposit required for those who want to trade with real money is $200.
Some may think that this is too much money to open an account with a broker, but in reality it is an acceptable amount that helps the trader realize that trading in the financial markets is not a game.
Did you go from opening an account with a broker depositing $10 to realizing that your trading became a game?
You almost certainly lost your money.
That’s because sometimes we don’t manage to give the money its fair value.
Trading in the financial markets is not a game and eToro gives us this idea by requiring an adequate minimum deposit. However, here you can choose to do so:
eToro Is Reliable: Take Advantage of Our Free Course
Check out our complete eToro tutorial on our website.
Our review of eToro
When evaluating a platform, your opinion about it is the most important thing.
Other specialized evaluations like ours can help guiding you since we know well the advantages and the limitations of each broker.
Below, we will give a brief overview highlighting its most important advantages and disadvantages.
The advantages of using eToro include the ability to communicate with other users through public discussions and chats, as well as the ability to copy other traders automatically.
In this regard, it should be noted that you can choose the traders to be copied based on the performance rankings on a time basis.
Keep in mind that the same data also includes the level of risk that characterizes the trader. Some may have high risk score, others would go for medium or low. You can choose the score that you are comfortable with.
Other advantages of eToro include:
- The very clear graphics that make it easy to move around the platform and trade.
- The big amount of assets available for trading.
In the beginning, you will also need to do some ‘practice’ to learn how to move on the platform, which includes several sections:
- Copy people (traders)
- Notice board
- Announcements from eToro
In order to learn how to use eToro, start by opening a free demo account. That is how the most experienced traders have started.
What is new on eToro?
There are three main innovations that have been implemented on the platform:
- More advanced filters for the selection of traders to copy
- A selection chosen by the site staff
- An “eToro Club” section that offers personalized services, invitations to sponsored sporting, cultural and financial events
Opinions on eToro
There are many opinions on eToro.
We have already expressed our opinion. However, users can also express themselves, and other websites may have their own opinion about eToro that is different from ours.
In this regard, if you want to make an idea, we recommend you to take a tour on eToro, where there are users who use it every day and can give their opinion of the platform.
eToro is worth it
For a complete guide, we would like to refer you to our complete eToro course where you will find all the instructions on all aspects of the platform.
However, trading on eToro is very easy once you are familiar with the platform and its various sections. The best way to do so is to start by opening a demo account.
If you simply wish to trade, you should follow the following procedure once you have logged in to eToro:
- Click the market item in the left column
- Choose the category and asset you wish to trade
- Click on “Trade”
- Proceed with the order compilation by deciding on the amount, stop loss, take profit, leverage and whether to buy/sell
- Click “Open Trade”
A very interesting aspect of eToro is that in addition to the real-time chart, the comments of various users related to the individual asset are also available.
For example, if you want to trade on the euro-dollar exchange rate: on the platform, just like on Facebook, you can comment and read comments on the euro-dollar exchange rate which is trading in real-time. In addition, you can also view the statistics in a practical way.
There are negative opinions about eToro that are found online. Most of them are from people who lost everything because of risky trading. In this case the problem is not eToro but bad money management and so we don’t think it’s the broker’s fault what happened.
Etoro is undoubtedly one of the best options for those who want to approach the world of online trading in the financial markets.
Before you start trading, you need to learn. For this reason, we recommend that you start practicing with the free demo of eToro for as long as it takes until you feel ready to trade with real money.
It is important to know that no one is obliged to trade with real money, even after registering and using the demo.
Frequently asked questions
In this section, you will find answers to the most frequently asked questions about eToro. We have chosen these questions on the basis of those published on the official website and on the comments made on social networks.
Can you really copy other traders?
Of course. There’s nothing wrong with that and they get a fee for every user who copies them.
How much can you earn with eToro?
Whoever trades with eToro has no profit limit. Profits and losses depend on the performance of your investments, which depend on the financial markets. When you invest in an asset, the economic results depend on the price changes of that asset. When investing in a copytraded trader, the economic results depend on the performance of that trader.
Is it possible to copy more than one trader at a time?
Yes, you can copy up to 100 different investors at any given time.
How can I choose a trader who is safe to copy?
Security in financial markets does not exist. You can choose a trader to copy based on many parameters, such as performance, risk score, type of asset on which he invests, etc..
Can you communicate with other users?
Yes, in different ways. It is no coincidence that eToro was named the first social trading platform.
What are eToro’s commissions?
For simple CFD trading services, eToro behaves like other brokers or simply applies the spread when opening positions. As for actual commissions, these are applied to additional services, such as when you decide to copy a trader with copytrading. However, this is not exorbitant. On the website, you will find all current commissions. For every need, remember that you can communicate with customer service.
You can check all the frequently asked questions by category on the official eToro website.