Carla Moretti
Carla Moretti
With almost two decades of experience in the fast-paced financial industry, Carla has established herself as a powerhouse and an innovative leader.
Table of Contents
    Add a header to begin generating the table of contents

    eToro South Africa Review 2022: Fees, Pros & Cons

    eToro South Africa Review

    eToro South Africa Review: Our Opinion

    eToro is more suited for new traders who are not very educated and experienced in the world of asset trading and investment. Virtual trading account, copy trading, and copy portfolio are helpful features for newcomers in the industry. Moreover, the social platform is a great way to connect with the eToro community, where you can interact with and learn from other eToro traders. People have a shared concern about the high risk of losing money rapidly.

    With 15 years of operating in the industry, eToro is one of the earliest and most established trading exchanges in business today. The exchange is accessible to traders in almost 140 countries and deals in a wide range of fiat currencies. Moreover, it is one of the few exchanges in the world that allow trading in multiple asset markets through their platforms. 

    With that being said, the platform has room for improvement in several departments. For example, it is one of the higher-end exchanges in terms of trading fees for buying and selling crypto coins. Other crypto exchanges, such as Binance and Crypto.com, offer a much cheaper trading experience.

    Similarly, despite supporting over 70 cryptocurrencies, most of these options are restricted for retail clients in several countries, leaving traders with a very restricted set of options.

    An Overview of eToro

    eToro Home Page

    eToro is a Tel Aviv-based financial service company. It was founded in 2007 by brothers Yoni Assia and Ronen Assia, together with David Ring. Yoni Assia is the current CEO of the company. The company was initially launched under the name RetailFX with a mission to provide financial services and make forex trading accessible for everyone.

    In 2009, the company launched its first online web trading platform, which had several trading tools for beginners and more experienced traders both. The following year, they launched OpenBook, which was the world’s first social trading platform. It allowed traders and investors to share their opinions. Moreover, it enabled beginners to adopt copy trading strategies from experts. This feature helped the eToro platform gain a global audience. 

    The company raised around $31.5 million between 2007 and 2013. eToro had launched its own mobile trading app for android and Apple by 2012. In 2013, it introduced stocks and CFD trading. Initially, the offering was limited to 110 stock products only. However, it increased exponentially with time. 

    eToro initiated its launch in the blockchain assets sector and became one of the world’s first cryptocurrency exchanges in 2014 by announcing support for BTC trading. Three years later, in 2017, the crypto offerings expanded, and the exchange started supporting trading for several other cryptocurrencies, including Ethereum, Litecoin, XRP, and more. 

    eToro entered the United States market in 2018, allowing citizens to trade up to 10 different crypto assets. The same year, it also launched a dedicated crypto wallet for android and iOS, putting down roots in the industry. 

    In November 2018, eToro launched GoodDollar – a non-profit focused on reducing global wealth inequality by using blockchain-based decentralized finance technology. The following year, eToro acquired several crypto companies, including Firmo and Delta. 

    Right now, eToro is functioning in over 140 countries and hosts almost 27 million registered users. The exchange supports trading for a range of instruments, including fiat currencies, crypto assets, stocks, CFD (contract for differences), commodities, ETFs, and indices, allowing users to create diversified investments.

    Pros

    Cons

    Regulation of eToro

    Each individual investment account offered by eToro is associated with a specific eToro entity. All of the entities that make up eToro are subject to the regulations of financial bodies that governments or other organizations have set up to safeguard investors and foster stable and well-functioning financial markets. eToro holds a valid CFD broker license.

    Following is the list of regulated licenses in Europe and the US:

    In the UK, eToro operates as a financial services company authorised by the Financial Conduct Authority (FCA) under the Payment Services Regulations 2009 for its payment service activities and by HM Revenue & Customs for its controlled activities.

    Etoro is regulated by CySEC (Cyprus Securities & Exchange Commission), which basically means all your deposits are protected by Cyprus deposit insurance, up to €100,000. It also means that eToro is supervised by a regulator who is able to enforce penalties in case the broker violates the law or policies of CySEC.

    In Australia, eToro Aus Capital Pty Ltd is regulated by ASIC (Australian Securities & Investments Commission). ASIC has issued an Australian Financial Services License.

    In the USA, eToro USA LLC is registered with FinCEN.

    Furthermore, eToro holds a license with the Financial Services Authority Seychelles.

    Key Features of eToro

    The trading platform industry is crowded with hundreds, if not thousands, of exchanges. To stand out in the noise, the industry-leading exchange services offer a number of unique features. These may include special trading tools, advanced live chart views, multiple trading account options, etc. The same is the case with eToro. Being a famous and reputed crypto and stock CFD provider, you can find a number of unique features that set eToro apart from its competitors. 

    Social Trading

    eToro social trading

    One of the best things about eToro is that this exchange is not limited only to trading various asset classes such as stocks, crypto and commodities. The company also offers an industry-leading social trading platform that is free to join for all users. 

    Released in 2010, it works similar to any other social media site. Traders from around the world can come online and interact with each other. They share their opinions regarding different assets, current price position, and expected price action in the future. It is an excellent place for beginners to learn and understand the market while making some profits. Currently, the platform hosts a community of millions of traders from over 140 countries. 

    You’d also be glad to know that eToro follows strict privacy policies which keep your personal information safe and never share your trading data with other traders on the platform.

    Copy Trader

    eToro Copy Trader

    Copy trader (or social trading) is another unique feature offered by eToro. It is one of the perks that come with eToro’s social trading platform. It allows you to copy the trading strategy and portfolio approaches of your favourite traders for maximum profit with just one click. 

    You can visit profiles of different traders and check their past performance as well as monthly and yearly success rates. Moreover, eToro also provides a risk rating for each trader on the platform. Users have the option to either allot their entire portfolio to mirror an eToro trader’s approach or just dedicate a small portion of the whole capital. You also have the freedom to copy as many traders as you like. 

    Every user remains in complete control of their funds and can cancel a trade or exit a position whenever they want. The feature is entirely free, and you don’t have to pay any additional charges to the traders or the platform. 

    eToro proudly boasts a 73% success rate for all the 124 million copied trades made using their platform. However, it needs to be highlighted that a significant number of retail investor accounts lose money when trading CFDS – and it’s not much different with copying trades.

    Popular Investor Program

    eToro is home to thousands of expert traders with advanced trading skills and market knowledge. To accommodate existing expert traders and attract more advanced level investors from around the world, the eToro exchange has launched the Popular Investor Program.

    Through the popular investor program, the company acknowledges the talent and expertise of these traders by offering them a reward for sharing their knowledge on the platform. An advanced trader can earn as much as 2% of the funds they manage through eToro every year. This feature benefits both types of traders: newcomers to the market and more experienced traders.

    Copy Portfolio

    This service is similar to the Copy Trader feature, where you can follow an expert and mirror all their trades. However, here your funds and investments are managed by the eToro company itself

    A professional eToro investment committee professionally studies the market, analyses the historical data and reviews past performance to formulate long-term investment strategies with diversified portfolios and minimum risk potential. This service turns eToro into a sort of no-fee AI investment advising firm. However, we do not recommend blindly relying on this service to seek advice for all your investment decisions. 

    To avail of the service, you just have to select one market where you wish to make a diverse low-risk investment. After that, the platform itself will divide the total capital into a number of assets within that market. You should also note that only users with a minimum $5,000 investment are eligible for this service.

    Demo Account

    So far, you must have observed a certain pattern in the way eToro deals with the platform’s users. The company tries its best in every possible way to help new and even intermediate investors to learn and grow. 

    The next unique feature by eToro, i.e., Demo Account, is probably the best way possible to learn and polish your trading or investment skills in real-time. Any user can open a free demo account, and after opening an account, they will be provided with $100,000 of virtual cash. Users can use this virtual cash to enter trades and make investments in a vast range of commodities and digital assets. Moreover, demo account users will be able to access every asset from all the markets and the entire arsenal of eToro trading tools.

    The site also records your trading activity in the demo account so you can keep track of your success and improvement over time. You can switch between your demo and real account anytime with just a click. 

    The demo account feature is a great learning opportunity for anyone trying to understand the markets better without the high risk of losing their hard-earned real money.

    Available Investment Options on eToro

    Asset and commodity trading has been an essential part of our economy for a long time. Precious metals like silver and gold have been traded as far as you can trace back in history. Similarly, the stock exchange is also almost two and half centuries old. 

    However, over the last few decades, thanks to advancements in technology, new digital investment sectors, such as cryptocurrencies, have also emerged on the surface, giving more options to invest money. Apart from that, ETF trading and CFD trading have also grown in popularity. 

    Most online trading exchanges cover just one or two investment sectors. However, eToro covers a wide range of markets which includes almost every significant investment sector.

    Stocks

    Stocks (more commonly known as shares) are probably the most popular investment option in the online trading world. These equities represent one’s share in the ownership of a company. Different companies, such as Netflix, Amazon, Tesla, etc., issue stocks to raise funds for growth and development. When you invest in stocks of a company, you become a part of it. As the company grows and expands over time, the price of its stocks increases, and your holdings become more valuable. 

    eToro supports trading CFDs of up to 3,000 stocks from different industry sectors and markets. eToro allows you to trade stocks with zero commission which means you are charged with any fee when opening or closing a trade for any spot, short, or leveraged position. Moreover, it also enables you to invest in fractional shares. Fractional shares let investors buy and sell less than one full share of a company. 

    Cryptocurrencies 

    Cryptocurrency is a newly emerged investment sector where you can invest, buy, sell, and trade digital tokens. These assets are one of the practical implementations of blockchain technology. Being decentralized in nature, most of the crypto projects are not owned or controlled by any central governing body. 

    Experts believe that crypto assets and NFTs will be a major part of the industries like fintech and metaverse in the near future. Started almost a decade ago, the crypto market reached the $3 trillion market cap in November last year. The number is a testament to the exceptional growth and adoption in the industry. 

    eToro started supporting crypto trading back in 2014 and became one of the first trading platforms to accept the industry. You can trade cryptocurrencies against fiat currencies as well as other cryptocurrencies. 

    Commodities

    The commodity is a less popular but extremely important investment sector. Any essential good that is used in commerce and can be replaced with other goods of the same type is called a commodity. Gold, silver, natural gas, copper, and oil are some common examples of commodities. 

    Many investors consider commodities an excellent option to diversify their portfolios. Moreover, since the price of commodities moves in the opposite direction to stocks and other markets, many traders rely on commodity CFD trading during the bear market. 

    eToro allows you to invest and profit from commodity CFD trading with flexible leverage and deep liquidity. As of now, eToro allows trading CFDs of the following commodities: gold, palladium, oil, silver, wheat, cocoa, natgas, cotton, platinum, sugar, copper, alluminum, and a few more.

    ETFs (Exchange-Traded Funds)

    Pretty much like mutual funds, exchange-traded funds are pools of investment security that track some specific market, index, commodity, or other assets. An ETF may be following either an individual asset or a large collection of different securities. However, unlike mutual funds, ETFs can be bought and sold on a trading exchange like stocks. 

    eToro allows investing in up to 264 ETFs as an underlying investment as well as trading CFDs of these assets. Through the platform, you can diversify your investment portfolio in a really comprehensive way at a really low-cost entry point and without paying any management fees. Some popular ETF options on the exchange are JP Morgan, SPDR Gold, Emerging Markets Index, NASDAQ 100, and Proshares Ultra S&P 500. 

    Forex

    eToro started as a Forex broker, enabling easy access to trade and invest in currency pairs through the internet. It is still one of the leading online Forex brokers in the world, offering trading on more than 60 currencies at ranging leverage as high as 30:1 (margin trading). Popular options for currency pairs include GBP, USD EUR, JPY, CAD, ZAR, AUD, and many others. The Forex broker allows trading CFDs on the currency pairs. This is standard for broker dealer services, as the goal is to not lose money when trading.

    Cryptocurrencies Available on eToro

    Cryptocurrencies available on eToro

    Any industry-leading financial services company or exchange offering to trade on cryptocurrencies is expected to have a decent number of crypto options. No investor likes to be restricted to only a few digital assets, leaving them no way to diversify their portfolio. However, at the same time, it is necessary that the exchange lists only reliable and safe crypto projects to ensure that investors are not at high risk of losing their capital.

    eToro’s trading platform does a good enough job by allowing users to trade over 70+ different cryptocurrencies. Most of these options are high capital projects, meaning the risk factor is relatively lower. This list includes Bitcoin, Ethereum, XRP, Bitcoin Cash, Dash, Dogecoin, Litecoin, Cronos, Cardano, MIOTA, Stellar, NEO, Chainlink, Uniswap, Aave, Cosmos, Algorand, Basic Attention Token, Polygon, Gala, Fantom, The Graph, and many more. However, you must note that the number of cryptocurrencies eToro offers trading on is not the same for each country.

    eToro South Africa Fees

    The fee structure at eToro can be a little hard to understand, as it charges users a series of different fees, such as currency conversion fees, trading fees, withdrawal fees, overnight fees, and inactivity fees, etc.

    Deposit and Withdrawal Fees

    eToro deposit and withdrawal fees

    eToro charges no deposit fees no matter the size of the amount being funded. However, users have to pay currency conversion fees if the funds are deposited in any currency other than USD. As far as withdrawals go, eToro charges a flat $5 (ZAR 80) fee on all transactions out of the eToro’s retail investor accounts. Moreover, the minimum withdrawal allowed is $50 (ZAR 800). Seek investment advice beforehand.

    Trading Fees

    eToro trading fees

    When it comes to trading fees, eToro’s CFD trading platform charges zero commission on buying and selling stocks and fiat currencies. However, an overnight fee is charged on all the open CFD positions. 

    Unlike most crypto exchanges, the eToro trading platform does not follow the two-part trading fee structure. Instead, the exchange charges a flat 1% trading fee on all buy and sell orders for all crypto options. 

    eToro Crypto trading fees

    Non-Trading Fees

    Apart from the above-mentioned fees, you will also be charged a monthly $10 inactivity fee if you are not using the funds or the account.

    eToro Payment Methods

    Payment Methods for Deposits

    At the moment, eToro offers the following payment methods:

    Credit Cards 

    Visa and MasterCard are accepted. The minimum deposit for credit card purchases is $200. The maximum amount you can deposit with a credit card is $20,000.

    Bank Transfer 

    eToro also accepts bank transfers, which is the cheapest way to fund your account if you have access to this payment method. Some of the advantages of using bank transfers include zero funding fees, instant accessibility, no limits on daily or monthly deposits, and no setup fees. However, the minimum deposit is 500 USD. Other than that, the only downside is that they take time – up to five business days according to eToro’s website, but it could be longer depending on your bank’s policies and procedures.

    Neteller 

    Neteller is an online payment service that allows traders at eToro to transfer money between their bank accounts and eToro retail investor accounts.

    Skrill 

    Skrill is another online payment service that allows traders to transfer money between their bank accounts and eToro retail investor accounts.

    Payment Methods for Withdrawals

    eToro offers a wide range of payment methods to withdraw funds from your account. You can use the following methods for withdrawing money from your bank account:

    eToro Money 

    It provides instant transfer; you can use it to trade on the same day or on the next business day. eToro money is available in most currencies. However, some restrictions apply.

    Credit/debit card 

    This type of withdrawal is only available in some countries. It allows you to receive money directly into your credit/debit card account within ten business days after submitting your withdrawal request.

    Bank transfer

    This is one of the most popular withdrawal methods and is available in most countries. To use this method, you will need to have an active bank account and provide your bank account details during the verification process. You will also be required to verify your bank account by providing your bank’s recent statement or transaction history. This method usually takes up to 10 business days.

    Paypal transfer

    Paypal transfers are not available in all countries but may be offered as an alternative if transfer to banks are unavailable. The process takes up to 2 business days.

    This same process applies to all the other online wallets such as Skrill, Neteller, and iDEAL

    Opening a Coinbase Account

    As with most other platforms, you can become an eToro user without having to deposit funds. However, you will only be able to access a limited number of features and tools. To get started with eToro, simply visit the eToro website and click “Open an Account” on the top right-hand corner of the screen. You will then be prompted to choose between a standard, joint or corporate account. The first option is ideal for individuals looking to trade with their own funds. In contrast, the latter options are suitable for companies that want to use eToro as part of their trading strategy. A step-to-step guide is presented below for your assistance.

    eToro registration form
    1. Register for an eToro account first. Registering for an eToro account is free and only takes a few minutes. It’s also possible to sign up using your Facebook or Google account, or you can simply go to https://www.etoro.com/register/ and click “Sign Up Now!”
    2. Once you have signed up, you will be asked to verify your email address and mobile phone number. You can also choose whether you want to use the desktop or mobile app version of eToro when transacting on the platform.
    3. Be sure to check your spam folder because sometimes emails from eToro may get caught there if they aren’t delivered properly by Gmail or Yahoo! Mail. If this happens, make sure you add support@etoro.com as a safe sender so that future emails from them don’t get caught in your spam folder again!
    4. You can open an account on eToro using your debit or credit card and fund it with a bank transfer. However, this option is only for registered countries such as the USA, Uk, etc.
    5. Fill out the registration form by entering your email address and creating a password (make sure that you remember this password!). You can also add additional information such as your name, nationality, and occupation (optional). Click ‘Create My Account’ once you have entered all the information required on the registration form.
    6. If you have a business, you will be asked to fill out a KYC which will ask for residency proof, identity proof, and all kinds of legal documents to verify a legal business.
    7. After successfully creating your eToro trading account, you will be redirected to the welcome page. Here, you will find a list of features available on eToro and also information on how to trade. However, newly registered users will have to deposit up to 50 USD to access all the features.

    eToro Account Opening Requirements

    Depending on the account type and country of your residence, eToro may ask you to fulfill the following requirements in order to create an account successfully. 

    • eToro requires you to provide your name, date of birth, address, email address, and a valid ID document (passport or national ID card).
    • To be able to trade, you’ll also need to provide proof of address. This can be a utility bill or bank statement that has been issued within the last three months.
    • You also need to provide a valid form of payment (credit card, debit card, or bank transfer).
    • After this, you’ll be asked to provide a phone number and a selfie of yourself holding your ID document for verification.
    • Once your account has been verified, you’ll be able to deposit funds into your eToro wallet and start trading.
    • The first step when signing up is to link an external payment method such as a bank account or credit card. This can be done in just a few minutes and will allow you to deposit funds into your eToro account.
    • Once this has been completed, you can begin trading on the platform.

    Final Thoughts

    eToro is one of the very few exchange platforms where you can trade other financial instruments along with cryptocurrencies. The platform offers a great trading experience with all the required trading tools and chart views. The exchange is specifically great for beginners who wish to increase their market knowledge and trading skills. Through various features, such as a demo account and social media platform for traders, users can educate themselves while making profit on their investment.

    Our extensive analysis of the South African Crypto Exchanges doesn’t stop here. You can also read about our AltCoinTrader review as an alternative to eToro or you can check out our page with the  best crypto exchanges South Africa for more options.

    Readers must acknowledge that there is a high risk of losing money when trading CFD and should seek investment advice from a professional financial advisor prior to entering the markets.

    FAQ

    Most frequent questions and answers

    eToro is one of the world’s top trading exchanges. The platform is fully regulated and licensed by the Financial Conduct Authority in the UK, Cyprus Securities Exchange Commission, and the Australian Securities & Investments Commission. Contact etoro’s customer service with any concerns.

    The minimum deposit at eToro is $50 (ZAR 800). However, if you use a bank account for funding your trading accounts, the minimum deposit will be $500 (ZAR 8,000). For corporate trading accounts, the minimum deposit is at least $10,000 in accordance with the securities act.

    eToro offers trading over a wide range of financial instruments, including stocks, fiat currencies, ETFs, cryptocurrencies, commodities, and indices.

    eToro’s mobile application is among the best mobile trading platforms available in the industry. It has a clean and user-friendly interface with all the tools necessary for trading assets. Investigate a multi currency bank account.

    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. 

    To view our privacy policy read here.

    You may also be interested in:
    Scroll to Top