Add Your VPN Review

Disclosure: Privacy Australia is community-supported. We may earn a commission when you buy a VPN through one of our links. Learn more.

eToro Australia Review

By Will Ellis
Last Updated on March 23, 2024
Edited by Adam Turner
Fact checked and reviewed

Many people are jumping into online trading platforms these days. The market is spearheaded by companies which are dedicated to making the trading experience user-friendly and accessible.

One of the biggest names in the social trading sphere is eToro, which offers a trading platform you can use to enter various markets including Australia.

etoro Logo

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

But is eToro actually worth your time? How does it compare against other well-known trading platforms? Let’s answer these questions and more in our in-depth eToro review.

What is eToro?


eToro is one of the most well-known social trading broker platforms, established in 2007 in Tel Aviv. Since then, it’s expanded to many international markets and primarily serves both UK and Australian clients. Australian clients can use eToro thanks to the approval of the Australian Securities and Investment Commission.

eToro boasts the biggest combined social network of various stock in the entire world, with about 11 million users.

Etoro Homepage

A high-quality online trading platform, eToro allows brokers and investors to meet with one another over digital infrastructure and make deals based on several types of stocks or markets.

It’s essentially like visiting a certain kind of stock market for various types of futures or other contracts. The advantage with eToro is that the barrier to entry is extremely low, due to its digital nature and easy account-making process.

However, eToro isn’t listed on any stock exchange and doesn’t have a bank parent. While it does have significant trustworthiness, due to the reach of its operating markets and more than 10 years of good service, you aren’t as well protected as if you were trading traditionally via the stock market in, say New York City.

Isn’t that essentially the risk of any stock trading, though?

In any event, eToro is regulated through both its UK and Australian arms by the local financial authorities. It has leverage and license to allow trading for several complex instruments, making it a great place for high-risk and high-reward trading.

You can also use your own privacy tools, like top-of-the-line VPNs, in conjunction with eToro to further protect your information.

Where Does eToro Operate?


As a licensed brokerage registered by the Cypriot Investment Firm, eToro is regulated in Europe, the UK, Australia, and the United States, where it was most recently licensed.

This said, several types of trades are not allowed permitted within the United States, though they may still be allowed in Australia. This grants eToro jurisdiction in a multitude of “tier-1” trading environments.

For context, the security and trustworthiness of different trading environments are rated on a tier system, with lower numbers indicating better trustworthiness and greater security for users.

For example, Australia is a tier-1 jurisdiction while China is a tier-2. All this is to say that eToro primarily operates in markets where you don’t have to worry as much about shifty business.

How Does eToro Work?


In a nutshell, you sign up for an eToro account and become an investor on its platform. You then get to use its broker license to access various investment packages and stocks directly, with the ability to buy, sell, or make other types of trades using its digital platform. eToro charges you a fee for this service, though it can be based on more than just how much you might make.

eToro works with what’s known as a “No Dealing Desk” model of trading platform. This means that it doesn’t alter the price between you and the market, keeping down the costs so the barrier to entry is very low even if you don’t have a lot of capital. This also allows eToro to quickly process trades and transfers. 

All your activity occurs through their digital platform, which provides good speed. Of course, you’ll want to make sure your own Internet speed is up to snuff to take full advantage.

What are eToro’s Features?


eToro has lots of features that both new and experienced investors will want to take note of.

For starters, eToro offers a social trading platform, which is like a social media platform but for cryptocurrency traders. It is available in Australia and other non-US markets. 

eToro’s social trading platform lets you communicate with other investors or brokers in order to get advice, share strategies and make deals outside of the instantaneous responses of the market. You can also use the CopyTrader feature (which I’ll go over in a bit).

eToro MyWatchlist

eToro also provides a relatively simplistic platform which makes it easy to find your way around even if you are a beginner to complex trading. You can access several data analytics tools, such as charts and various stock index projections, to plan your own deal strategies, determine your stop-loss limits, and much more.

The platform is intuitive and easy to understand, and it allows you to organise your user interface to some extent so you can better personalise your trading workspace.

eToro also allow you to take advantage of a managed portfolio. In essence, this puts your portfolio into the hands of skilled traders for whatever market you want to take part in.

You can also use eToro for active day trading, which usually requires a lot of time and close attention. Day trading is much riskier than traditional trading, but many people make a decent living out of this activity.

eToro provides all its users with access to relevant market data and news that is updated frequently. It’s a lot like Twitter, offering live updates for various trades users might be making, or any markets they are keeping an eye on.

Additional educational resources, like price data and training courses, are available for anyone who wants to become better at trading through eToro.

Beginners also benefit from risk management tools that allow you to preset your portfolio and prevent yourself from making a bad trade due to misinformation or inexperience. This includes a set of mandatory stop-loss levels, forcing you to cease investing in a particular asset if the price reaches to a certain point. Even experts might benefit from this tool, given the volatility of certain markets. 

eToro offers both a desktop interface and a mobile application. This looks pretty similar to the regular trading platform, allowing you to trade, make copy trades, and follow trading social feeds from the comfort of your mobile device.

What’s Copy Trading?


This notable feature isn’t available in the United States but Australians can take advantage of copy trading.

In short, copy trading is an eToro feature that lets new investors take advantage of the success of more experienced stock market players.

Using copy trading, you can make the exact same trades that another stock market investor does, by mimic their sales, purchases, and more. Of course, there needs to be enough of a particular share or contract in order to mimic the trade, but it’s still an innovative and interesting feature.

etoro copytrade
Past performance is not an indication of future results.

You can use copy trading in conjunction with eToro’s social platform, in order to find traders that you want to copy and then go about following their success.

This isn’t intended to be a long-term path to riches with little to no effort on your part, but it is a good way to learn the ropes and see how more successful stock market players making money.

This feature even lets you look into another trader’s portfolio and decide how much money you want to divert into a portfolio just like that one. The depth of this innovation is actually pretty cool.

Furthermore, you can customise this for your copy trading aspect, so you stop if the copied portfolio turns out to be a bad investment and begins losing money. This way, you don’t have to hitch your proverbial wagon to someone else’s star for too long.

The social aspect comes into play even more, as you can see how experienced various investors are before you decide to mimic their trades.

How Easy is it to Open an eToro Account?


Opening an account with eToro is easy, though there are a few hoops you need to jump through before you can begin.

You firstly provide the usual identification information, which can be obtained from regular documents or IDs. You can verify your account with a phone number, proof of address, and so on.

After being verified, you can start trading using eToro immediately.

etoro Logo

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

Depositing funds to begin trading with your eToro account takes place via electronic transfer. Most people link a bank account to their online eToro profile, but you can also use a domestic wire transfer instead. eToro may expand to additional funding options in the future.

Linking your bank account is coordinated via a third-party provider called Plaid. This is fairly secure, so you shouldn’t need to worry about your personal information or funds being hijacked.

The minimum account investment for online banking is $50 for the first deposit and any additional deposits in the future. Wire transfer minimums are $500. Finally, you should also be aware that you can add up to $10,000 maximum to your eToro in a single day.

When it comes to withdrawing, you can immediately withdraw whatever amount is in your account to your linked bank account. This may take a couple of business days, and you can withdraw any amount of $30 or more, so long as you have the funds available.

What Markets are Available with eToro?


eToro is definitely a great trading platform because of the plethora of available markets you can choose from.

eToro provides access to:

  • Stock market 
  • Cryptocurrencies

As you can see, a big strength of eToro is certainly its market availability and variety. Many other subpar trading platforms only grant you access to the typical stock market selections. eToro is likely only going to get better, as it’s recently been allowed into the United States markets, so its selection should increase over the next five years or so.

Related: Best Forex Trading Platforms

What are the Spreads and Fees of eToro?


While many trading platforms automatically charge commissions or broker fees, eToro does not under any circumstance, regardless of the asset you decide to trade. It has a different payment method, charging wholly on foreign exchange spreads.

Spreads, in this sense, are differences in price at the time the trade takes place. So eToro makes a small profit every time you make a trade, regardless of the details. However, this does mean that eToro doesn’t have particularly low spreads compared to other trading platforms that follow this payment method.

Foreign exchange spreads can easily be 1 pip or point for AUD to US dollars, for instance. But they can also be as high as 50 points for various exotic currency pairings or spreads.

Furthermore, eToro requires users to trade in USD. This means that Australians need to convert their currency before they can fund their tradings or withdraw from their account. This is a bit of a downer for any Australian customers, as it’s another step before they can get their money and jump into the action.

They also have to suffer through the conversion rate for AUD to USD withdrawals, which is about 100 pips. Then there’s a US $5 fee on top of all that.

Finally, eToro does charge an inactivity fee if you don’t log into your account within 12 months. This is pretty standard across the trading platform industry, but eToro only charges US$10 per month until you don’t have any remaining funds in your account. So the fee is expected, but a bit lower than average.

All in all, eToro can be affordable but I would hesitate to call it affordable for everyone, right off the bat. It all depends on the types of trade you make and how often you make withdrawals from your account. You can theoretically circumvent a lot of the fees from converting your Australian dollars to US dollars if you only withdraw from your account ocassionally.

At the same time, eToro isn’t super expensive, particularly since it doesn’t charge commission. This point, in particular, is likely to make it popular among beginners who don’t have big lump sums with which to trade.

Customer Support


eToro has a dedicated help section on its website that you can peruse if you need any help understanding the technical parts of your profile.

Furthermore, it offers live chat services 24/5 due to its international availability. Its customer service specialists are generally kind and knowledgeable and may be able to help you learn the ropes of your trading portfolio, though of course, they can’t advise you on any trades. 

Etoro Help Center

I mentioned before that eToro provides lots of educational materials. These are primarily found through the eToro Trading Academy, which comes with lots of resources you can use the better your trading expertise. E-courses, webinars, and trading tips are among the things offered here.

Notably, eToro doesn’t offer any phone service for its customers. This may be because of the difficulty in handling spoken conversations with a variety of customers across multiple different languages, as well as time zones. In any event, a live chat service proved to be more than enough for more of our needs. 

eToro Review Summary


All in all, eToro is an innovative and effective trading platform. It doesn’t charge a lot of fees upfront, which means you can get started without having to deal with tons of ongoing costs.

But its value lies in its excellent desktop and mobile applications and special features, like the mirror trading feature. 

etoro Logo

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

Disclaimer:

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Social trading. eToro does not approve or endorse any of the trading accounts customers may choose to copy or follow. Assets held in your name. Capital at risk. See PDS and TMD.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk. May not suffice as basis for investment decision.


You Might Also Like:

Related posts