Etoro Review – The Social Trading Platform
Here is a review of my experience with Etoro (updated 7th July 2021).
I have been trading on Etoro for the past 18 months under the username @stockrockets.
You can check out my stats below.
What I particularly like about Etoro is that it’s a trading platform with a twist.
Through the power of the internet, Etoro brings traders together from all over the world onto their social network.
Think of it like Twitter for investing!
By sharing ideas, traders are able to take advantage of the markets by trading smarter and maximising their profits.
If you are not interested in trading yourself, you can simply copy a more experienced “Popular Investor” on the platform. Popular investors have to demonstrate a decent track record of performance and remain within certain risk parameters to remain in the program. By opening a copy portfolio you can replicate their trades exactly, whilst you sit back and relax.
This is a fantastic idea. Beginners with money to invest from the get-go can outsource the management of their portfolio to a more experienced investor whilst learning the ropes.
My suggestion would be for newbies to try a free demo account, whilst they familiarise themselves with how the platform works without the risk of losing any money.
Etoro offers the unique benefit for beginner traders to see what the best traders are doing, learning from them by reading their analysis or simply by opening a “copy” with them.
As Etoro grows in popularity I thought I’d review some of the key advantages and disadvantages of this rapidly growing social trading and investing platform.
Advantages of Etoro:
- Harnessing the power of the crowd – You can make more informed decisions about the trades you are going to make. You can also bounce ideas off fellow trades to ensure you use each other’s skills to trade smarter together.
- Easy to use platform – the interface is easy to use and easily navigable especially on the mobile app. Buying and selling assets is very easy and the platform offers good analytical tools to assist you in making trades.
Disadvantages of using Etoro:
- Poor Customer Service – As the platform has grown rapidly, customer service has suffered terribly. You only need to check out Trustpilot to see that customer support takes a long time to respond to queries. When I opened my account I had a query about some Tesco dividends and it took over two weeks to resolve the issue! Also when it comes to withdrawing money, it takes a long time to hit your bank account so bear that in mind. This is not too much of an issue for me as any money I invest is for the long term, and ensure I have enough cash for emergencies. Etoro will be releasing a debit card in the future linked directly to your investment account however, so that would solve that issue nicely.
- No Tax-Free Investing – Etoro doesn’t offer an ISA or a SIPP. This is a major drawback for UK-based investors who want to benefit from tax-free growth of their investments. UK competitors such as Freetrade, Trading212, and Hargreaves Lansdown all offer this functionality.
Who is Etoro good for:
- Beginner Traders – as they can quickly learn how to trade stocks. Etoro is a ‘social networking’ trading platform which unlike its UK competitors such as Freetrade, Trading212 and Hargreaves Lansdown. Etoro offers the unique benefit of seeing what other traders are doing, learning from them by reading their analysis or simply “copying” them.
- If you are lazy – as Etoro allows you to copy or replicate the trades of the most successful investors, even the laziest of people can make money on Etoro
Who is Etoro not good for
- Long-term investors – As this is a platform designed for trading as opposed to long-term investors, the fees can be excessive if you decide to buy and hold certain types of investment for long periods. On CFD’s (Contracts for Difference) for example, the fee structure is made up of a spread and overnight fee; whilst this is OK for traders, it is costly for long-term investors. If you are simply looking to buy and hold and are not interested in the social element, check out my review of Freetrade, HERE.
Etoro my experience so far:
As you can see from the picture above (if not clear click to enlarge) Etoro allows people to interact and exchange trading ideas. I am discussing the prospects of cruise and travel provider Saga with another user.
Etoro Review – Final Thoughts
I have been using eToro for over a year and a half now and I love the social aspect of this platform. I like the idea that I am able to bounce ideas off fellow traders from all over the world and see what they think about my trades.
One of the best features of the platforms by far is its ease of use. I find navigating the website and mobile app easy and there are good technical tools and charts to help me trade an asset.
On the downside, Etoro customer service is abysmal but I guess that only becomes an issue if you have any problems.
Overall, however, having reviewed it, I would recommend eToro to any beginner trader who wants to dip their toe into the world of trading.
If you would like to sign up for commission-free stock investing with Etoro you can do so, HERE.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFD assets. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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. This content is intended for informational and educational purposes only and should not be considered investment advice or an investment recommendation
If you would like to learn more information you can find out the most frequently asked questions about Etoro in my article, Trading with Etoro.