eToro combines a traditional binary option brokerage service with social aspects, making it possible for you to follow other successful traders and utilize their trading strategies. You can also benefit from other traders electing to follow your trading decisions, provided that you allow this information to be visible to other users. It is up to you if you want to participate in the social aspects of eToro or if you just want to use it as a traditional binary options broker.
In addition to offering binary options, eToro also facilitates trading in stocks, commodities, currency pairs and indices. Stocks are available from over 250 different stock companies from around the globe, and you have over 30 currency pairs at your disposal for forex trading. eToro isn’t ideal for traders looking to trade in many different commodities; at the time of writing only three commodities are on offer here.
eToro is regulated by the UK Financial Conduct Authority (reference #583263).
Short facts about eToro
|Welcome bonus||15% – 25%|
|Minimum deposit||200 USD|
|Minimum trade||25 USD|
|Maximum trade||100,000 USD|
|Mobile trading app||Yes|
|Demo account||Yes, with a $100,000 play money trading balance|
The trading platform can feel a bit busy at first, especially if one gets carried away by the social features. We recommend that you start with the basics of trading first, and then gradually branch out into social features, advanced tools, and more. You can use the demo account (virtual portfolio) to learn how the platform works without risking a penny.
On the left hand side, you will find a menu through which you can access your account details, including your real and demo portfolio and your bespoke watch lists.
If you select Markets in the menu, a full range of assets will open up. You can filter them by category first and then utilize more specific filters to narrow down the field. Making a selection and clicking the Trade button will open the trading window.
The trading window is filled with information, and can be a bit overwhelming the first few times. You will find the Sell or Buy button at the top. The trade amount box is located below the asset information, and the value can be adjusted using the -/+ buttons.
Under the trade amount box, you will find a field where you can control leverage. Using leverage is the same as borrowing money from the broker to make a purchase. With leverage, you can end up owing money to the broker and you can lose more money than what you have in your account. Using leverage will also cost you money if you keep positions open over night or during the weekend. Maximum leverage allowed at eToro is x25 for standard purchases. For certain exceptional purchases, including certain currencies, the highest possible leverage is more than x25.
Mobile trading app
There is one eToro app for Android and another one for iOS.
Binary option payouts
It is difficult to compare the eToro payouts with those of other binary option brokers, since eToro uses a different system. It is important that you familiarize yourself with how payouts are calculated at eToro before you invest any money.
eToro open position fees
eToro will charge you a fee for positions held overnight and during the weekend if they are leveraged.
- You keep a $10,000 position open over night, with no leverage. You pay no fee.
- You keep a $10,000 position open over night with a x5 leverage, i.e. a $50,000 position. This will cost you £8.48 for that night.
Deposits & Withdrawals
Examples of transaction methods accepted by eToro are PayPal, Neteller, Skrill, Giropay, wire transfer and major credit cards.
The smallest possible deposit is 200 USD.
Etoro withdrawal fees
|Size of the withdrawal||Size of the withdrawal fee|
|Smaller than 200 USD||5 USD|
|200 – 500 USD||10 USD|
|Above 500 USD||25 USD|
A downside with eToro is the fact that they charge you a withdrawal fee on all withdrawals. Most of their competitors will allow you to make at least one withdrawal per month from your account without having to pay any fee.
Examples of features and perks available to eToro clients:
- Charting, including candlestick charting available via each asset screen
- Learning area with guides and tutorials
- Social trading news feed