eToro Review UK

eToro is best known for its standout feature: social trading, which allows users to automatically copy the portfolios of top-performing traders—making it accessible even to those with little market experience. On top of that, eToro offers zero-commission trading on stocks and ETFs, making it an appealing choice for cost-conscious investors.

Originally launched as a startup in Israel in 2007, eToro has grown into a global platform with over 20 million users. In this comprehensive review, we’ll take a closer look at eToro’s services in the UK and explore whether it’s the right broker for your investing goals.

Pros and Cons

Is eToro safe?

Yes, eToro is safe for UK clients. It is regulated by the Financial Conduct Authority (FCA), which enforces strict rules on client fund protection and financial conduct. UK users benefit from segregated accounts, negative balance protection, and access to the Financial Services Compensation Scheme (FSCS), which can cover up to £85,000 in case of broker insolvency.

Main Features

In this table, we summarise some of the key features of this broker, which we will examine in detail throughout this eToro review:

eToro

• Equities, ETFs, crypto both real and derivatives
• Social trading e copy trading
• User-friendly platform and demo account

Visita

61% of investor accounts lose money by trading CFDs with this provider.

Available Investment Products

From the perspective of available investment assets, eToro offers a diverse range of options to choose from, including stocks, commodities, cryptocurrencies, currencies, indices, and ETFs. Each asset class possesses its unique characteristics and can be traded using various investment strategies.

On eToro, some positions involve the direct purchase of assets, such as long positions without leverage on stocks, ETFs, and cryptocurrencies. Conversely, other positions involve Contract for Difference (CFD) trading, which provides additional options such as leveraged trading, short positions, fractional ownership, and more.

1. Stocks: eToro offers its users more than 2,700 stocks in 17 different markets. This variety of stocks has expanded over time and will almost certainly continue to grow. You can trade in markets ranging from the United Kingdom, the United States, or Europe to Japan and even Saudi Arabia.
2. ETFs: Investing in ETFs on eToro by opening a long position without leverage means that you are investing in the actual asset and that the ETF is bought and held in your name. However, eToro also provides additional features through CFD trading. Some of the most popular ETFs on eToro are SPY, TLT, HMMJ, QQQ, and TQQQ.
3. Indices: The indices available are also traded via CFDs, which offer the possibility of using leverage and short-selling. The most relevant ones are the Nasdaq, the DAX, and the S&P 500.
4. Commodities: Commodities are only traded as CFDs, which offer various investment possibilities. On eToro, you can trade with more than 30 different types of commodities, including gold, oil, silver, sugar and others.
5. Forex: Currencies are only traded via CFDs, allowing you to go short or use leverage. There are more than 50 currency pairs. Some of the most popular ones are EUR/USD, USD/JPY and EUR/GBP.
6. Cryptocurrencies: Cryptocurrencies are also available on eToro, but UK residents can only buy or trade real assets (crypto derivatives are not allowed).

Fees and Commissions

eToro has a zero-commission, variable-cost structure. While there are no commissions, each asset's price on the platform includes the spread—a variable cost. The spread is essentially the difference between the buy and the sell price. eToro has mid-range spreads—for instance, the spread on the EUR/USD pair may be 1 pip, while other brokers may offer lower spreads, some starting at 0.1 - 0.4 pips.

Buying stocks and ETFs comes with zero commissions: there are no management or other fees if you open a long, unleveraged position, meaning you buy the real asset. The spread is built into the price shown on the eToro platform.

If you want to open a short position and/or use leverage, you will use CFDs. In this case, apart from the spread, you may have to cover the overnight fee (swap) if you leave your CFD positions open for more than one trading day.

As we have seen, many, if not all, products can be purchased through this popular instrument. Trading CFDs on eToro has many advantages, but it also comes with a whole series of additional fees. Generally, it is 0.06% daily + 0.19% weekend.

Finally, buying and selling crypto comes with an additional 1% fee, which is already included in the price shown on the platform (added to the spread).

Finally, there is a conversion fee, which depends on your payment method (e.g., if you deposit GBP, it will be converted into USD in your trading account). The inactivity fee of $10 per month applies only if your account has been dormant for at least 12 months. When withdrawing money, you need to pay a fixed fee of $5, and you can withdraw a minimum of $30.

Minimum Deposit and Withdrawals

What is the minimum deposit on eToro?

The minimum deposit varies from country to country—in the UK, it is $100. Exceptions are bank transfers (which must amount to at least $500) and corporate account registrations (in this case, the required deposit is $10,000).

First-time deposit: $100 (via credit/debit card or bank transfer) for UK residents.

Subsequent deposits: Minimum of $10 (£ equivalent) per transaction

What are the withdrawal fees on eToro?

Minimum withdrawal amount: $30 (or equivalent). All withdrawal methods have this minimum.

Withdrawal fee: $5 USD flat fee per request. If your account currency differs, a conversion fee applies

Does eToro offer Stocks and Shares ISA?

Yes, eToro offers Stocks and Shares ISAs (Individual Savings Accounts) to UK residents. This allows users to invest in a tax-efficient manner, meaning any gains or dividends made within the ISA are free from UK capital gains tax or income tax. If you're looking for one of the best stocks and shares ISAs, here's what you need to know:

Key Features of eToro’s Stocks and Shares ISA:

• No Management Fees:
  eToro's Stocks and Shares ISAs come with no management fees or annual account fees. This makes it an attractive option for investors who want to keep costs low.
• Same Low Trading Fees as GIA (General Investment Account):
  The trading fees inside the ISA are the same as those in a General Investment Account (GIA), which means you benefit from eToro's competitive fee structure.
• Flexible ISA:
  eToro offers a flexible ISA, which means you can withdraw and replace funds in the same tax year without losing your ISA allowance, making it more flexible compared to other providers.
• Annual Contribution Limit:
  The contribution limit for ISAs is £20,000 per year (as set by HMRC), and this applies to the total amount you can invest in ISAs across different types (stocks, cash, etc.).

Important Considerations:

• eToro’s ISA currently allows investments in stocks, ETFs, and other eligible assets within the platform. However, some other types of investments (e.g., cryptocurrencies) might not be available within the ISA wrapper.
• As with all ISAs, the amount invested in an eToro ISA is tax-free on any capital gains and dividends.

If you're looking for a tax-efficient way to invest and want to take advantage of eToro's user-friendly platform, this could be one of the best UK stocks and shares ISAs for you.

Trading Platform

While more advanced platforms with complex tools are available on the market, eToro’s platform stands out for its simplicity, accessibility, and strong feature set—all of which are completely free to use. For many traders, especially beginners and intermediate users, it offers an excellent balance between ease of use and functionality.

eToro provides both a web-based platform and a mobile app, both known for their clean, intuitive interfaces. The web platform works directly in your browser—no downloads required—and gives easy access to watchlists, charting tools, and trading features.

The mobile app, available on iOS and Android, is equally well-designed and lets users manage trades, follow markets, and set up customisable push notifications for key updates. Overall, eToro’s platform is a solid choice for those who want a user-friendly trading experience without sacrificing essential tools.

Social Trading and Copy Trading

eToro copy-trading feature enables investors to replicate the transactions and trading strategies of master traders in real-time. Simply put, the platform displays the most successful traders and investors, a description of their strategy, risk, and objectives, and you can choose to copy their entire portfolio with a set amount of money (typically $200 or more). If the trader changes the portfolio composition, yours will be adjusted automatically. This way, your portfolio's risk and returns will always remain the same as the master trader's.

It's important to know that you don't need to invest as much as the master trader. The copied portfolio will be invested in the same proportion only (for instance, 5% in Facebook shares, 10% in indices, etc.), so you can invest any amount, provided it's higher or equal to the minimum investment listed by each master trader or investor.

Clients have access to the portfolios, trading history, risk ratings, and success/failure ratios of each master trader or investor, a distinctive feature of the platform. No management fees are associated with replicating other eToro traders' trades.

However, it is essential to exercise caution when determining the amount to invest and to diversify across various low-risk expert investors or traders. It's important to note that the risk of copying operations is never zero, and if the investors you copy incur losses, you will experience the same. The key lies in researching and identifying the right master traders or experts to copy.

How to copy eToro Traders

To copy a trader on eToro, you have to register on the platform and follow these steps:

1. Choose a trader: you can choose based on performance, assets, objectives, etc.
2. Choose an amount: decide the amount you want to invest, which will be distributed automatically.
3. Click on the "copy" button.

Copy Trader eToro: Popular Investor

This program, exclusive to this broker, rewards investors who share their knowledge and rewards them. Each Popular Investor can receive monthly payments, a spread discount of up to 100% and an annual payment of up to 2.5% for their managed assets (AUM).

eToro divides its best traders into 4 different categories indicated with a star at the bottom right of the user's profile image, based on certain prerequisites:

These will receive a whole series of advantages:

Smart Portfolio

Previously called CopyPortfolio, the eToro smart portfolio is one of the most advanced products that can push copy trading to new levels.

There are three types to choose from:

• Top Trader Copy portfolios, created directly by eToro, are CopyPortfolios.
• The Market Copy Portfolios are created on specific themes or sectors.
• Partner Copy Portfolios are created by partners other than eToro, investment companies, or independent entities.

This new method of thematic investment is designed by eToro itself to help its customers diversify their investment portfolios.

eToro

• Equities, ETFs, crypto both real and derivatives
• Social trading e copy trading
• User-friendly platform and demo account

Visita

61% of investor accounts lose money by trading CFDs with this provider.

Education

eToro offers a solid range of educational tools designed to support both beginner and intermediate traders. Its "eToro Academy" includes free video tutorials, webinars, and written guides that cover everything from trading basics to more advanced strategies. Users can also benefit from the Demo Account, which provides $100,000 in virtual funds to practise trading risk-free.

Additionally, eToro’s social trading environment allows users to learn by following and copying experienced investors, making it easier to understand market trends and strategies in real time. Overall, eToro's education is accessible, practical, and ideal for those looking to build trading confidence.

How Does eToro Compare to its Competitors?

When comparing eToro to its competitors, it’s important to consider key features and user experiences. eToro offers a user-friendly platform with unique social trading features, allowing investors to copy the trades of others. However, platforms like DEGIRO, as discussed in a DEGIRO review, are favored for their low-cost structure, particularly for those trading in stocks and ETFs, offering more straightforward pricing. On the other hand, the Hargreaves Lansdown review highlights its strengths in providing a broad range of investment options, robust research tools, and exceptional customer service, making it a strong contender for long-term investors. Each platform has its own set of advantages depending on the investor’s goals and trading style.

Here is a table comparing some of the top brokers:

Bottom Line

In conclusion, our assessment of eToro is positive. The broker offers several notable advantages, such as engaging in social trading through exclusive financial products like copy trading and smart portfolios. This advantage is particularly valuable for those looking to invest their savings while simultaneously learning from observing the best traders. Additionally, the blog provides a wealth of interesting ideas, and the ability to trade from mobile devices is convenient for those on the go. Both platforms, as previously mentioned, are user-friendly and intuitive.

However, it is important to acknowledge the reported disadvantages, some of which have been highlighted in negative reviews. While overall costs remain relatively low, the spreads for opening long or short positions are considered somewhat high. The available tools, particularly for forex trading, are limited, and many charts are deemed too simplistic, which hinders effective technical analysis. Improving this aspect is crucial, as charts are a fundamental tool for both traders and users.

Overall, eToro presents significant advantages but also areas for improvement.

To summarise, eToro is a standout broker known for its extensive range of products, competitive costs, reliable social trading platform, and strong regulatory compliance. While the broker has some shortcomings, it is still worth considering and trying out.

FAQs

What is eToro?

The initial feature introduced by this broker was online trading in the forex market. In 2009, the company launched its user-friendly trading platform, WebTrader, which has since become one of the best trading platforms in the UK, assisting beginner traders by equipping them with the necessary financial tools.

Subsequently, it expanded its product offerings to include real stocks and ETFs (limited to companies listed on the Milan Stock Exchange, with only CFDs available for stocks). Since 2017, there has been significant growth in cryptocurrency trading on the eToro online trading platform. However, it's important to remember that cryptocurrency derivatives are not allowed in the United Kingdom.

Additionally, eToro offers the option of social trading, which can benefit individuals who lack the time and/or sufficient experience in financial markets to trade independently. This feature allows users to copy the portfolios of top investors and traders and replicate all changes automatically and in real time.

How to Pay Taxes on eToro UK?

Paying taxes on your eToro investments depends on your country of residence, as tax laws vary by jurisdiction. Below we’ve provided a general overview of how taxes work for UK residents, which you can use as a guide.

Taxes on eToro for UK Residents:

1. Capital Gains Tax (CGT):

• Capital Gains Tax applies when you make a profit from selling investments (e.g., stocks, ETFs, or cryptocurrencies) on eToro.
• The UK has an annual CGT allowance (called the Annual Exempt Amount), which for the 2024/2025 tax year is £6,000. This means you won’t pay CGT on your profits as long as they’re below this amount.
• If your profits exceed the CGT allowance, you will need to pay tax on the gain:
  • Basic rate taxpayers: 10% on gains above the allowance.
  • Higher rate taxpayers: 20% on gains above the allowance.
  • Additional rate taxpayers: 20% on gains above the allowance.
  • Residential property and carried interest gains will be taxed at 18% or 28%.

2. Dividends Tax:

• Dividends you receive from stocks or ETFs on eToro are also subject to tax.
• The first £1,000 of dividend income is tax-free under the Dividend Allowance.
• Dividends above this amount will be taxed:
  • Basic rate taxpayers: 8.75%
  • Higher rate taxpayers: 33.75%
  • Additional rate taxpayers: 39.35%

3. Cryptocurrency Taxation:

• Profits made from trading cryptocurrencies (such as Bitcoin, Ethereum, etc.) are also subject to Capital Gains Tax in the UK.
• If you exchange or sell cryptocurrencies for a profit, you’ll need to report the gains on your tax return, similar to stocks or other investments.
• Losses made in crypto trading can offset gains made from other investments in the same tax year.

4. eToro Tax Reporting:

• eToro provides annual tax reports summarising your investment activity, including profits and losses. This can make tax reporting easier.
• You can access these reports directly from the eToro platform in your Tax Report section.

5. How to Report Your Taxes:

• For UK residents, you’ll need to self-assess your tax situation and report your capital gains and dividends on your Self-Assessment tax return.
• This includes reporting your total taxable income from eToro, including profits from trading, dividends, and any other applicable gains.

How to Pay Taxes on eToro:

1. Track Your Earnings:
   Make sure to keep a record of all your transactions, including any gains, dividends, or losses, throughout the year. eToro provides statements and reports to assist in this process.
2. Complete Your Tax Return:
   If you’re required to submit a Self-Assessment tax return (in the UK), ensure you report any taxable earnings from eToro. This includes capital gains, dividends, and any crypto gains.
3. Pay Your Taxes:
   Once your tax return has been submitted and assessed by HMRC, you will need to pay any taxes owed by the specified deadlines. This can be done online via the HMRC website.

Additional Notes:

• eToro’s role: eToro does not directly handle or deduct taxes on your behalf. It is your responsibility as an investor to report and pay the appropriate taxes based on your profits.
• Tax advice: If you’re unsure about your tax obligations or how to report your income from eToro, it’s always a good idea to consult a tax professional or an accountant.

By following the above steps and keeping track of your trading activity, you can ensure you comply with tax laws in the UK.

How to open an account on eToro step-by-step?

Go to the eToro website to start the account opening process:

1. Click to create a new account, add your data (such as your email address and nickname), and create a password). You can also create an account using your existing Google or Facebook account.
2. Validate your account by uploading your personal ID and proof of address.
3. Complete the risk assessment questionnaire.

Which base currency to choose?

eToro has 1 base currency available, USD. You may have to pay a conversion fee if:

• you trade with assets not in USD
• you make a deposit/withdrawal in a currency other than USD.

Once the form is filled out, the documents are uploaded, the type of account is chosen, and the survey is completed, eToro will verify your account, and you can start placing your orders right away.

What is eToro's customer service like?

We are aware, particularly through reviews and user feedback, of the significant assistance provided by customer service, especially for newcomers to the platform. The company excels in this aspect by offering multiple avenues to reach the customer service team, which is consistently responsive, knowledgeable, and readily available to assist via:

1. Support chat: there is a live chat on the platform for all customers (24/7).
2. Support ticket: This feature is available to eToro users and allows you to send a message directly to the platform's customer service. This is a great alternative for problems that do not need an immediate response (which usually takes place within 24 hours).

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