With eToro, you can invest in a diverse range of assets. From cryptoassets and stocks to commodities, currencies, CFDs, indices, and ETFs, eToro provides you access to various markets. It has the potential to be a one-stop trading shop, especially if you are looking to build a diversified portfolio, outside of the traditional 60/40 style structure that is typically only made up of bonds and stocks.
That’s the beauty of eToro, because unlike other platforms that might only cater to one instrument type, with eToro you don’t have to worry about juggling multiple accounts for the different assets you want to trade as everything is in one place.
It also has many features, such as Smart Portfolios, copy trading, an active community feed and the eToro Academy, which could enhance your experience and aid your investing decision-making.
Let’s explore if eToro is right for you.
For CFDs: 51% 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.
For Crypto: Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
What can you trade and invest in on eToro?
eToro offers over 4,700 financial instruments from various asset classes. As of January 2024, it is possible to trade and invest in these types of assets through the eToro platform:
- Cryptoassets.
- Stocks.
- Commodities.
- Currencies and CFDs.
- Indices.
- ETFs.
Let’s explore these asset classes in more detail.
Cryptoassets
As of April 2024, you can buy and trade over 100 cryptoassets on eToro. Having such a diverse range of investment opportunities is always attractive, plus eToro is always working to provide more options. For now, though, not only does it offer you the ability to trade well-known cryptos like Bitcoin and Ethereum, it also has names that might not be as familiar, like Chainlink or Zcash.
While eToro also has crypto crosses, currency crosses with crypto and commodity crosses with crypto, if you are a UK-based user you will not be able to trade these. This is because trading crypto derivatives is not permitted by the Financial Conduct Authority (FCA).
As crypto can be a very volatile financial instrument, it is important to ensure you equip yourself with the knowledge and expertise before deciding to invest. The eToro Academy can be a great place to start with its extensive library of free learning resources that you can peruse through at your own pace. eToro Club members will also have access to a UK account manager, so you have someone to talk to when considering your investment options.
Another important feature of eToro’s is its eToro Money crypto wallet, which allows you to transfer, send, and receive Bitcoin, Bitcoin Cash, Cardano Ethereum, Litecoin, Stellar, Tron and XRP.
For Crypto: Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Stocks
Stocks are another great staple of the investing landscape and eToro is home to over 4000 of them from a variety of markets around the world.
Plus, what makes eToro particularly attractive when trading real stocks on the stock market is that it charges zero commission, so you won’t incur broker fees when buying or selling shares (excluding short or leverage positions). There are no management, rollover, or ticket fees, either. It is worth noting that other fees apply. You can also buy in bulk (more than one share), but you can also buy just a fraction of a share starting from $10. Fractional trading allows you to access more expensive stocks even if you cannot purchase an entire share.
Commodities
As of January 2024, you can buy 32 commodities through eToro. They range from well-known assets such as gold, oil, gas, platinum, and silver, to lesser-known commodities such as oats, orange juice and even carbon emissions. Which commodity is right for you completely depends on your trading objectives, but it’s helpful that eToro offers so many as you are more likely to find a commodity that suits your purposes and trading style.
Currencies
There are over 40 currency pairs available to trade on the eToro platform. Currencies trading, also known as Forex trading, can sometimes be complex but the eToro platform with its diverse range makes it a straightforward experience – that’s not always the case with other trading platforms.
Indices
If you believe in a particular market – say the US tech sector – you may want to buy an index that gives you exposure to all the stocks within it. It’s a form of passive trading which you can do through eToro. If this form of investing interests you, there are 21 indices from different countries that you can choose from on the platform. The usual suspects are there, such as the Nasdaq for those tech stocks if you want, but there are also indices you may not have heard of - such as the NL25 index.
ETFs
ETFs are a prepacked collection of securities which tracks an underlying index – for instance the Vanguard S&P 500 ETF tracks the S&P 500. At eToro, the number of exchange-traded funds available for trading on its platform is high. With over 430 currently available, if you want exposure to an ETF, you will likely find one you want here. They are popular because they are seen as being diversified already given the nature of an index as well as being lower in cost than actively managed funds.
A note on CFDs
For currencies, commodities, indices, and some ETFs and some stocks, eToro offers the opportunity to trade Contracts for Difference (CFDs). These are complex financial instruments which allow you to speculate on the price movement of an asset, without ever actually owning it. It can compound gains, but also losses substantially. When trading CFDs, what can be helpful about using eToro specifically, are its advanced trading features such as its stop-loss and take-profit orders. Utilising features like these can be good ways to help you mitigate your risk especially when trading with leverage. This widens the range of tradable financial instruments available to you.
For CFDs: 51% 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.
Why eToro? 10 features that make eToro stand out from the crowd
When reviewing the eToro platform, we found a diverse range of features that may help you become a better investor and get more out of your investing activities. Specifically, we liked the following features.
- eToro Academy
- CopyTrader
- Smart Portfolios
- The Social Feed
- Trading Charts
- Virtual Portfolios
- ESG Score
- eToro Club
- eToro Money
- UK Account Manager (eToro Club members)
With all these features, it is easy to see why eToro is such a popular investor choice. Its wide range of functionality makes investing far easier and more accessible.
Let’s explore these in more detail.
eToro Academy
eToro believes that financial education should be free and accessible to all, which is why it provides a wealth of free resources via the eToro Academy. If you struggle with some of the terminology behind investing as well as fully understanding what cryptoassets or contract for differences are, then the Academy is a great place to start. For instance, the “CFD Trading for Beginners” online lesson will help you understand the core elements of trading CFDs. Or, other great lessons cover subjects like the methodology behind the Bitcoin halving or how to set up stop-loss and take-profit orders.
The eToro Academy’s extensive library of articles, guides and video tutorials is a wonderful tool that can help you make the most of your trading and investing experience. It’s a great way to make sure you’ve got the basics covered before you get started investing and to help you build knowledge on your investing journey. We were big fans of the video ‘Investing Terms You Should Know’ and 'How to Build Your Portfolio, Step by Step’. These videos are great as eToro breaks down some complex investment jargon into more digestible ideas and leave you feeling motivated to get started.
The Academy is also a fantastic resource for cementing your knowledge of cryptoassets and some of the different types of coins out there. The library has so much information around both better- and lesser-known cryptos and can be a real helping hand.
CopyTrader
eToro's CopyTrader is a social trading feature that allows you to copy the trading actions of top-performing investors and apply them to your own portfolios automatically. eToro has a big online community of investors you can copy, giving you access to a wide range of unique strategies with the CopyTrader feature also giving you the option to copy trades in real-time.
The process is user-friendly, with the ability to start or stop copying, add or remove funds, and manage your portfolio with just a few clicks on the eToro app. All you need to do is select the user you wish to copy, click ‘Copy’ and then enter the desired allocation amount. Crucially, the CopyTrader feature is automatic, with no additional charges, and you can invest alongside your selected traders, buying the same assets.
eToro's community of traders and investors is one of the largest within the online trading community. It enables you to connect, share, and learn from others. It can be useful as it means you can harness the expertise of other traders, saving time and leveraging their knowledge and experience.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. Past performance is not an indication of future results.
Smart Portfolios
A team of eToro analysts build the company’s range of Smart Portfolios, which you can select for investment according to your risk profile and goals. They are long-term investment portfolios, each with their own investment strategy. They offer you a straightforward way to access market trends without having to pay expensive portfolio management fees which another brokerage or fund management group may do. They’re also great if you're just starting out on your investment journey, as they mean you don’t have to structure your own portfolio.
There are over 90 Smart Portfolios to choose from, which span a range of investment styles, trends and industries with new ones being added regularly. One exciting addition is eToro’s Partner Portfolios. They are created in collaboration with investment partners and experts in many different areas. These partnerships have resulted in AI-led investment strategies and advanced sentiment analysis. There are also crypto-focused portfolios, so you can gain access to a wide range of these assets with a single investment.
To make use of this feature, all you need to do is pick a theme you believe has return potential, then find a Smart Portfolio which fits in with that. You can then start investing in your chosen portfolio from $500.
The Social Feed
If you use eToro, you can expect to see its personalised, social news feed. It merges many aspects of social media with online trading. It’s a unique tool which allows you to stay informed about the financial instruments and assets you prefer, while also encouraging interaction with others in the eToro community. You can share updates, tag relevant instruments or individuals, comment on posts, and save posts you want to keep on hand.
eToro sends timely notifications, alerting you when those you copy create new posts or if there is any news on assets on your watchlist.
Trading Charts
Using charts can be a fantastic, visual way of helping you make investment decisions. eToro’s charting tools are easy to read and can help you analyse the historical performance of each financial instrument you are thinking of investing in, or have in your portfolio already. eToro can offer these charts thanks to its partnership with TradingView. The charts help you quickly see market sentiment for an asset by reflecting any changes in the supply and demand of an asset, helping to inform your future investment decisions.
Demo Account
If you need to get your confidence up before you start trading and investing, you can try eToro’s demo or virtual account. The demo account replicates real market conditions, so you can experiment with different strategies if you need to, without any of the real-world financial risk.
Every demo account allows you to start with $100,000 in ‘dummy’ funds so that you can practise trading with various assets such as crypto, stocks, commodities, Smart Portfolios and more. You can also trial the platform’s advanced analysis tools, explore features like CopyTrader, stop-loss and take-profit and others just the same as when you’re on the real trading platform. It’s a great way to try out all of eToro’s features without the risk.
ESG Score
If you are interested in ESG investing, eToro’s ESG Score feature will interest you.
Providing ESG data on investments is an innovative feature that helps set eToro apart from its competitors. The company can offer this scoring system thanks to its partnership with ESG Book - a global data analytics leader. It means the company can provide market-leading sustainability data on major corporations. The scores, which are adjusted daily using real-time market news in addition to company-reported data, mean you will always have an up-to-date view of an asset.
You can use these ESG scores to filter your investable universe for your portfolio or, once you have invested in a company, as a monitoring tool. For example, a worsening of a company’s ESG score may be a reason for you to research in more depth what might be going on at the company.
eToro Club
The eToro club is a membership program by eToro structured in tiers, with perks increasing the higher up club members go. To join, there is no formal application process, instead, when you are an eToro member, you automatically enter the Club when you have enough equity or Tier Balance – currently $5,000. Your Tier Balance is the available cash in your eToro trading account plus your total amount invested in the eToro trading account (excluding Crypto & CFD investments), excluding products and cash value available in your eToro Money account.
The advantages for you if you are a club member include a personalised service. If you are a Silver member or above, you would have the option of email, phone and WhatsApp support. It’s also possible to benefit from lower fees, discounts and access to an eToro money account, which enjoys market-leading FX rates.
As a member, you also have access to resources such as exclusive webinars, free subscriptions to financial publications, invitations to VIP events in the fintech industry and even complimentary tickets to sports matches or cultural events.
eToro Money
eToro Money is an e-money account and app that connects seamlessly with the trading app. It enables users to save time and money, with discounted FX conversion fees on deposits to the trading platform, and the ability to make instant withdrawals.
With eToro Money, Club members can receive an exclusive eToro debit card giving them access to spend their funds whenever they need. The card offers market-leading exchange rates when travelling abroad, and, closer to home, users can make easy money transfers with friends and family as well as set up Direct Debits. eToro Money is free, with no subscription or hidden costs.
How straightforward is it to use eToro?
We found the eToro platform clear and uncomplicated to use. We thought these factors were particularly straightforward in our trial run:
- Account opening.
- Mobile app and desktop.
- Buying and selling assets.
Account opening
Opening an account with eToro is straightforward. You will need to provide them with your personal data, read their terms and conditions, and provide proof of identity. You can deposit funds by bank transfer from your bank account or via a debit card, once your eToro account is open. The minimum deposit you must give depends on where in the world you are living. For the UK it's $100.
Mobile app
The eToro mobile app works smoothly and is user-friendly. It’s available on both Android or iOS devices. We liked it because it was easy to navigate. We never found ourselves searching for what we needed - such as our account information.
Buying and selling assets
Trading assets – be it big name US stocks like Apple or smaller fractional shares of an ETF – is quick and straightforward to do on eToro.
If you are still unsure, remember you could try eToro’s free demo account first. To do so, all you have to do is create an account for free, and access the demo account, by selecting Virtual Portfolio - which is in a menu under your username. From that point on, you can practise trading live markets, without risking any of your own money.
Is eToro right for you?
eToro is an impressive online trading platform. Its mobile app is slick and easy to use, while the diverse range of assets available for trading sets it apart from its competitors. Whether it’s right for you, though, is down to your own personal circumstances, risk profile and financial targets.
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% 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.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Image credit: Shutterstock
