Luis Clark
Luis Clark
Luis is a personal finance expert who has been passionate and writing about crypto for more than five years.
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    Etoro UK Review 2023: Fees, Features and Security

    eToro-uk-Review

    Etoro UK Review: Our Opinion

    Our eToro review reveals that the provider offers a user-friendly multi-asset platform and copy trading platform that’s best for intermediate traders. However, eToro is laden with several cons like a low selection of cryptocurrencies, inactivity fees, and currency conversion fees for non-USD deposits and withdrawals. And also a $5 withdrawal fee. That said, eToro does offer its perks when compared with traditional crypto exchanges as its users can invest in stocks, exchange-traded funds, commodities as well as cryptocurrency. It also allows trading CFDs.

    An Overview of eToro UK

    eToro-Home-Page uk

    Founded in 2007 by Ronen Assia, Yoni Assia, and David Ring, eToro is headquartered in Tel Aviv-Yafo, Israel with offices in the United Kingdom, Cyprus, Australia, and the United States. The company is authorized by the FCA in the United Kingdom, it is regulated by the CySEC authority in the European Union, ASIC in Australia, and FinCEN in the United States.

    eToro has had several issues with several regulatory bodies; it was fined by CySEC in 2013 for detected weaknesses concerning its operation and organization structure and blacklisted in Quebec in 2015 as an unauthorized international firm encouraging citizens to create retail investor accounts.

    At the moment, eToro operates in over 139 nations, hosts more than 2.3 million financed accounts, and has 27 million retail investor accounts.

    The company operates in various industries including social investing (copy trading), financial services (exchange-traded funds (ETFs), stocks, commodities), cryptocurrency, and online investments. In terms of its services, eToro is a (CFD) Brokerage and portfolio management service firm.

    Pros

    Cons

    Key Features of eToro UK

    eToro Money Crypto Wallet

    crypto wallet etoro uk

    The eToro Money crypto wallet is a secure multi-crypto wallet that enables users to easily buy, sell transfer and receive cryptocurrencies. With the wallet, users can receive, store and transfer their preferred crypto assets anywhere on the blockchain with their unique, private on-chain address.

    The eToro Money crypto wallet is available to users in eligible countries. The users must have a fully verified eToro profile to be able to use the eToro wallet.

    The wallet has high-level security features and standardization protocols including DDoS protection. Users are also required to complete phone number verification to be able to use the platform.

    eToro Money

    eToro Money is an e-money account that allows users to enjoy free and instant deposits and withdrawals. eToro Money is provided by eToro Money UK Ltd for UK clients. eToro Money complements the eToro investment platform and enables users to maximize the way they manage their funds.

    It is free, users are not charged any FX or conversion fees for deposits, subscriptions, or any other hidden cost. There is also a Visa card attached to it which is available to club members in eligible regions.

    Asides from managing fiat currencies, eToro Money also allows users to send, receive, and store different cryptocurrencies in the eToro Money app.

    You can deposit to and withdraw from your eToro investment account via eToro Money. As already stated, deposits and withdrawals done via this method are cheaper and faster.

    To make an instant deposit into your eToro investment account via eToro Money, do the following:

    Step 1: Fund Your eToro Money Account

    The best way to fund your eToro Money account is via bank transfer. To do this,

    Add eToro Money as a new payee to your bank account.

    After this, open the Cash Screen in the eToro Money app and select the “Account” tab. Once you do this, your eToro Money sort code and account number will be displayed.

    Copy the details and share them with your bank account. Once this is done, you will be able to transfer funds from your bank account to eToro Money. Transfers are often instant but in some cases, they can delay for about 2 hours.

    In some cases, your transfer may not go through because your bank will require an 11-character Bank Identification Code whereas your BIC only has 8 characters. To resolve this, add 3 uppercase “X” (“XXX”) to the end of the BIC code.

    Your IBAN could also be the reason why your transfer doesn’t go through. If you enter the country you are from along with your IBAN, your bank may not recognize it. To avoid this, instead of adding the country you are from, enter Malta along with your IBAN, this is because it is a Maltese IBAN and your bank will automatically recognize it.

    Once you are done with the transfer from your bank to eToro Money, proceed to the next step

    Step 2: Deposit to your Investment account

    Open your eToro investment account and click “Deposit Funds”. Once you do this eToro money will be displayed as the default option, select it.

    Input the amount you wish to deposit and click “Deposit”.

    A confirmation screen will be displayed, to confirm the transaction. Once you do this the deposit process has been initiated.

    As already stated, you can make instant withdrawals of funds that are not in open positions from your investment account via eToro Money.

    Below are the steps on how to make instant withdrawals.

    Step 1: Withdraw the Funds from your investment account.

    Open your eToro investment account and click “Withdraw Funds”

    Input the amount you wish to withdraw. The minimum withdrawal amount is $30.

    eToro Money will be displayed as the default withdrawal option, select “Withdraw to eToro Money”.

    Your funds will be instantly transferred. The transfer can, however, be delayed for some reasons including security.

    Step 2: Withdraw the Funds from your eToro Money to your Bank Account.

    Once the transferred funds reflect in your eToro Money, you can easily transfer them to your bank account. If it’s your first time making the transfer to the bank account, you will need to first add a new payee from the eToro Money app.

    After setting a new payee, go to the Cash tab and select “Payments”.

    If you still haven’t set a new payee, click “Create a new Payee”.

    If you have set the Payee, select the account you wish to make the transfer to.

    Enter the amount you wish to transfer and click “Continue”.

    Type in a reference and click “Send”, a confirmation message will be displayed on your screen. That’s it, you are done.

    eToro Money is available to users who have a verified eToro investment account. Users can send and receive money with a personal sort code and IBAN (EU-SEPA) or account number (UK-UK)

    Funds held in eToro Money are kept in a designated safeguarded account at an authorized credit institution in the EU and UK. The funds cannot be used for anything other than facilitating customers’ payment transactions. In rare cases such as insolvency, customers’ losses are restricted to the cost of repatriation of funds only.

    Funds in eToro Money are not protected by the depository compensation scheme in Malta or the Financial Services Compensation Scheme in the UK.

    Demo Account

    eToro’s demo account is designed to help newbies become successful traders by giving them a platform to practice investing and trading before trading in the actual markets. Users who do not want to lose money while trading can test out their trade strategies in the demo account.

    Every eToro demo account is credited with $100,000 in virtual funds. This is used for trading in the virtual portfolio. Users who wish to add funds to their virtual accounts can do so by opening a ticket with customer service. The maximum virtual balance for the demo account is $100,000, the support team can, however, remove funds from a demo account down to a minimum of $2,000.

    The demo mode simulates the actual market and mirrors all price movements. This means that demo account traders can earn or lose money while trading.

    To set up a demo account, you will need to first create an eToro profile. Once this is done, you can access the demo account by going to the menu under your username. Click on the menu and select “Virtual Portfolio”. That’s it.

    The demo mode also gives users access to all the features available on eToro. They can follow real-time trends of different instruments using advanced analysis tools, try ready-made thematic portfolios, and easily manage their virtual portfolio. They can also connect with successful traders from around the world and copy their portfolios.

    The demo mode gives users access to over 3,000 instruments from leading global markets. This includes ETFs, currencies, crypto, stocks, etc. It also allows them to experiment with different risk levels by applying leverage, take profit and stop loss. This will allow them to know which strategies can make investor accounts lose money when trading.

    The demo mode also has the Copy Trader feature, this feature functions the same way as it does in the real mode. CFD trading and leverage are also available.

    Users can switch between the demo mode and the real portfolio whenever they want to by using the Real/Virtual menu.

    Copy Trader

    eToro’s copy trader allows you to replicate the actions of successful traders. This is perfect for inexperienced traders who do not want to lose money while trading. It is also ideal for traders who do not want to have the time to watch the markets. That said, a lot of retail investor accounts lose money by copying the wrong trader. So this feature must be used carefully.

    With copy trader, these traders can automatically replicate the trades of top-performing traders in their portfolio. When the trader loses money while trading, the copying accounts lose money, also when the account makes a profit, the other accounts also gain.

    eToro does not charge users any management fees or hidden fees for copying other traders. Users are however charged spreads on the copied trades and other transaction fees where applicable. The traders being copied get paid directly as a part of eToro’s Popular Investor Program.

    The process of finding top traders to copy is quite simple. eToro has a “Copy People” screen where users can find top traders using different methods. There is also an “Editors Choice” section where popular investors are featured.

    Alternatively, you could use the search tool to locate and filter top traders. eToro displays the location, gain, risk score, and other vital information on the eToro profile of the trader being copied. This is to enable users to find the best one to copy.

    All accounts with public profiles can be copied, but only ones under the eToro Popular Investor Program will get paid for being copied.

    To activate copy trading, all you need to do is to select the user, you wish to copy, input the amount you wish to commit to the copy trading, and click “Copy”.

    All positions are duplicated in real-time and in direct proportion to when you activated the copy trading. You can pause a copy, set a stop loss for the copy, or add and remove funds whenever you wish to.

    The minimum amount required to copy a trader on eToro is $200. The minimum amount for each copied position is $1. Any position that does not meet the $1 minimum will not be opened.

    Cryptocurrencies Available on eToro UK

    Cryptocurrencies-available-on-eToro uk

    eToro supports just over 20 cryptocurrencies. These include Bitcoin, Ethereum, Bitcoin Cash, Litecoin, XRP, XLM, Binance Coin, Dogecoin, Shiba Inu, Polkadot, etc.

    eToro Fees

    eToro has a complex fee structure that may appear confusing to new investor accounts. There are also some unclear fees that you may incur while using your eToro profile. That said, eToro users are not charged for opening an account, management fees, or stocks and shares ISA (withdrawal fee, inactivity fees, Bid/ask market spread, and DX conversion fees will apply for Stocks and Shares ISA).

    Stocks and ETFs

    • $5 withdrawal fees
    • No rollover fees

    FX conversion fees for non-USD deposits and withdrawals in your eToro Profile

    • No broker fee

    Cryptocurrency

    eToro users incur a 1% fee for buying and selling (1% isn’t for both buying and selling but calculated individually for buys and sells) cryptocurrency via eToro.

    This 1% fee is included in the price shown to you when you close or open a position. However, the 1% fee is added to the market price (Bid/Ask spread). So a 0.2% tax burn mechanism, an operational fee of 0.1% is added to eToro’s bid/ask prices in addition to the standard 1% fee involved when buying or selling cryptocurrencies.

    Compared to traditional crypto exchanges, eToro retail investor accounts lose a lot in fees when all charges are added.

    There are no eToro fees for sending or receiving transactions. Network fees are however applicable. For crypto-to-crypto conversions, users will have to pay a 0.1% conversion charge in eToro fees.

    Trading CFDs

    On the eToro trading platform, you’ll be charged a spread and overnight fees for trading CFDs. For currencies, the eToro trading platform charges 1 pip in trading fees. If you are trading CFDs commodities on the eToro trading platform you’ll be charged from 1 pip as well. Trading CFDs Indices start from 0.75 points in spreads, while stocks and ETFs (CFDs) start from 0.15%. Crypto CFDs fees are the same as regular crypto trading fees. This is in addition to the overnight trading CFDs fees.

    eToro Money UK Fees

    There are no deposit fees when using eToro Money. However, for ATM transactions, eToro users are charged up to £1000, and FX conversion fees apply.

    General Fees

    • Deposit Fee: Free
    • Withdrawal Fee: $5
    • Conversion Fees: Charged according to pips. However, when depositing or withdrawing money from the eToro trading platform there are tiered discounts for eToro club members. Diamond Club members get a 100% discount, while platinum members get a 50% discount. These discounts do not apply to transfers made via credit or debit card and to transfers in GBP, EUR, and AUD using Skrill or PayPal.
    • Inactivity Fee: After 10 months of no login to your eToro profile, the trading platform will charge a $10 per month inactivity fee.

    Payment Methods

    The eToro trading platform offers its UK users several payment methods including eToro Money, credit/debit card, Skrill, Neteller, bank transfer, Rapid Transfer, and online banking.

    eToro Money

    • Deposit Time: Instant
    • Currencies: GBP
    • Country: United Kingdom
    • Maximum Single Deposit: £250,000 but unlimited for Black Card users
    • Withdraw Availability: Yes Instant withdrawal

    Credit/Debit Card

    • eToro supports Visa Electron, Maestro, MasterCard, and Visa.
    • Deposit Time: Instant
    • Currencies: GBP, USD, AUD, and EUR
    • Countries: Global
    • Maximum Single Deposit: £33,500 (for eToro USD LLC it is $40,000)
    • Withdrawal Availability: Yes

    Bank Transfer

    • Deposit Time: 4 to 7 days (eToro suggests that you quote the transaction ID to prevent delays in crediting your funds).
    • Currencies: GBP, USD, EUR
    • Countries: Global
    • Maximum Single Deposit: Unlimited
    • Withdrawal Availability: Yes
    • The minimum first-time deposit for UK users is $50. However, all deposits via bank transfer must be at least $500.

    Skrill

    • Deposit Time: Instant
    • Currencies: GBP, USD, EUR
    • Countries: Global
    • Maximum Single Deposit: $10,000
    • Withdrawal Availability: Yes

    Neteller

    • Deposit Time: Instant
    • Currencies: USD, EUR, GBP
    • Countries: Global
    • Maximum Single Deposit: $10,000
    • Withdrawal Availability: Yes

    Online Banking

    • Deposit Time: Instant
    • Currencies: GBP, EUR, PLN, CZK, DKK, SEK, NOK
    • Countries: United Kingdom, Belgium, Austria, Latvia, Germany, Norway, the Netherlands, Finland, Lithuania, Spain, Slovakia, Sweden, Czech Republic Estonia, and Poland
    • Maximum Single Deposit: £33,500
    • Withdrawal Availability: No

    Rapid Transfer

    You do not need to register with Rapid Transfer to use the payment method.

    • Deposit Time: Instant
    • Currencies: EUR, USD, GBP
    • Countries: UK and EEA
    • Maximum Single Deposit: £4,614
    • Withdrawal Availability: No

    Unverified accounts on the eToro platform are restricted to a total deposit amount of $2,250 and PayPal isn’t available in the United Kingdom.

    Security

    eToro adheres to the standards set by the Financial Conduct Authority (FCA) in the United Kingdom. Customers’ funds for the different account types are held in different locations. This means that the Federal Deposit Insurance Corporation (FDIC) insurance coverage for each account is different.

    Cash held in investing account for crypto, stocks, or ETF trading is deposited with eToro USA LLC. eToro USA LLC is insured for up to $250,000. This FDIC insurance exists because the cash is held in an eToro bank account at Signature bank or Silvergate Bank. Also, users’ funds in the eToro Options account are deposited with eToro’s clearing firm Apex Clearing Cooperation.

    eToro also stores users’ crypto assets in a combination of hot and cold wallets. Employees are not authorized to transfer crypto from eToro cold storage.

    It uses advanced encryption, and state-of-the-art monitoring tools to quickly detect and prevent fraudulent activities.

    Users’ accounts with two-factor authentication and rate limiting on account operations such as login attempts.

    Users who detect a security issue while using the eToro platform can quickly report it to the support team via email at responsibledisclosure@etoro.com.

    Staking Rewards

    eToro supports staking for 3 crypto assets including Cardano (ADA), Ethereum (ETH), and Tron (TRX). For bronze members (US eToro account users) the eToro platform offers 75% in staking rewards for all supported cryptocurrencies. For silver, gold, and Platinum members, eToro offers 85% off for all eligible crypto assets.

    Users with a diamond, platinum+ club membership offer 90% on supported stakable assets. Cardano and Tron require specific holding days before you are eligible to get rewards. For Cardano, you’ll need to hold the crypto asset in your eToro platform account for up to 9 days. On the 10th day, you’ll start receiving staking rewards.

    Tron holders will be eligible to start receiving rewards for holding the digital asset on the 8th day of holding it as the cryptocurrency has a 7-day hold period before you receive rewards.

    eToro account holders receive their staking rewards earned automatically every month with no action required on their part. Every eToro platform user staking eligible assets on the service also receives a monthly email that discusses how much in staking rewards they got and how it was calculated for each eligible staked cryptocurrency.

    eToro makes money in its staking service by keeping a percentage of the yield. Although the eToro platform does not state how much it keeps.

    While this is how eToro makes money with its staking service, eToro charges this fee to cover legal, technical, and operational costs involved as well.

    Opening an eToro Account

    eToro-registration-form uk

    To open an account on the multi-asset platform (eToro investment account) you’ll need the following:

    • To be 18 years and more (eToro will request proof of age)
    • A smartphone and/or a computer connected to the web
    • To be resident in a nation where eToro services are offered (eToro will request residency proof)
    • An email address that you have access to
    • A phone number that’s linked to your smartphone

    Once you have all the above ready, you can open an account. To do so, follow the steps below:

    • First, go to the ‘Create an Account’ page on the eToro website.
    • Select your username and input your email address and choose a password you’ll remember. Or you can sign up using your Google or Facebook account.
    • Next, go through eToro’s Terms and Conditions, Cookie Policy, and Privacy Policy, and then tick the relevant boxes to accept each one.
    • Hit the Create Account button.
    • Next, go to your email inbox and click the verification link to verify your address. To do so, when you open your inbox you should see an email from no-reply@connect.etoro.com with a message and a verify now button. Click the button and you’ll be redirected to your eToro account and you’ll get a confirmation message.
    • For the next stage, you’ll need to add your personal information and investment experience as there’s a high probability that retail investor accounts lose money if they sign up with the wrong skill level.
    • To get started, in your eToro account, hit the Complete Profile button and then go through the message that shows up, and then click Continue.
    • Complete your basic personal data. This information must match your Proof of Identity.
    • Hit the arrow to continue. Type in your address which should also match your Proof of Address.
    • Next, enter your country of citizenship and place of birth. You may be requested to complete an ID number.
    • Choose the relevant answers to finish the investment knowledge assessments. And accept the terms and conditions to proceed.
    • Once that’s done, you have to verify your phone number. This is part of the mandatory eToro platform verification process. To do so, select one of the following options: From Home or Settings.
    • If you choose the From Home option click on Verify on the main menu on the home page. Next, input a valid mobile phone number and hit Send SMS.
    • Enter the SMS code you received on your device and click Verify as well as check the green banner under your screen to confirm that you have verified your phone.
    • If you choose from Settings go to Account Settings which is located in the left-side menu of your eToro platform account.
    • Beneath Credentials, tap on the ‘Add’ button beside your phone number. Input a valid mobile number and hit Continue.
    • Enter the SMS code you received on your smartphone.
    • Clean Verify and check the green banner under the page to confirm that you’ve verified your phone.
    • Next, you’ll need to verify your identity. eToro requires valid proof of identity. This can be a copy of your passport or a government-issued identification card. The identity document must hold your full name, photograph, valid expiry date, and date of birth.
    • When taking a photograph of your identity document you must not cover any of the above details. They must also be very readable.
    • After this, eToro will require a proof of address document. This must be a different document than the one you used for proof of identity. The proof of address document must be under the name you used to open your eToro account and dated within the previous 3 months. This is excluding valid government-issued identification like a driving license.
    • It should also contain the below details: your full name, date of issue, issuing authority, a reference to the issuing authority, and your current residential address.
    • eToro accepts documents issued by a utility company, government agency, bank, or judicial authority. Proof of address documents can be any of the following: driving license, water, gas, internet, or phone bills. It also supports bank statements/credit card statements, council tax or municipality bills/government tax letter, social insurance statement, and house rental official agreement (issued by the government).
    • eToro does not support pension or insurance documents, receipts, invoices for purchasing goods, and handwritten bills.

    Once you’re through you can now make a deposit.

    Trading Experience on eToro UK

    eToro offers a trading experience best fit for beginner and intermediate crypto investors. The platform measures your investment skills during signup using relevant questions and tailors your account accordingly. It also offers social trading features that allow complete beginners to trade its products by copying other traders. There’s even a demo account where newbies can practice trading. Likewise, seasoned traders can offer their trading skills and expertise to other users and earn extra income by being a signal provider on the copy trading platform.

    eToro offers its services via its web and mobile platforms.

    Customer Service

    eToro offers customer service online. Users with complaints can reach the support team by opening a Customer service request.

    It also has a well-equipped Help Center. Users are encouraged to check the Help Center for possible solutions to their complaints before opening a request.

    Customer Satisfaction

    eToro offers good services to its customers. Most customers testify to the ease of use of the platform and a responsive and helpful support team. eToro has a 4.5-star rating on Trustpilot.

    Does eToro Offer Education?

    Yes, eToro offers education via its Online Trading and Investing Academy. The education center caters to both beginner and experienced investors. You’ll find podcasts, courses, tutorials, and much more to aid your trading endeavors on the platform.

    Is eToro Right for You?

    eToro is right for beginner and intermediate crypto traders who don’t mind high fees and are searching for a social trading platform that’s easy to use with a big community.

    Final Thoughts

    The eToro trading platform is a good platform for UK residents as it offers a large number of payment methods in the region. However, for cryptocurrency investors, there are much better exchanges that offer more crypto assets and products like an NFT marketplace. eToro also has high and hidden trading fees which may discourage most traders.

    Our extensive analysis of the UK Crypto Exchanges doesn’t stop here. You can also read about our Coinjar Review UK as an alternative to eToro.

    FAQ

    Most frequent questions and answers

    Yes, UK citizens can use eToro.

    Yes, eToro is good for beginners as it offers an easy-to-use platform and social trading which enables traders to get started without advanced trading Knowledge.

    eToro charges high trading fees and has a complex fee structure.

    We always try to provide the most accurate information available, and make sure our team follow through.
    If you want to know more about our Crypto Exchanges Review Methodology follow the link below

    Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual’s needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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