eToro is a forex and CFD broker founded in 2007, regulated by CySEC in Cyprus, the FCA in the UK and ASIC in Australia. It is best known for social and 'copy' trading, where you can mirror other traders' positions. Copying a trader does not transfer their risk away from you — you still bear the full loss if it moves against you. We publish only verifiable facts here: no spreads, minimums or star ratings until a hands-on review.
Regulation and safety of funds
eToro operates through separately licensed entities authorised by CySEC (Cyprus), the FCA (United Kingdom) and ASIC (Australia). For most EU residents the CySEC-regulated entity passports in under MiFID II; a UK resident is typically served by the FCA-authorised entity. The protections that attach to your account — client-money segregation, the relevant investor-compensation scheme and your complaint rights — follow that specific licence, not the brand as a whole or the strongest licence the group holds elsewhere.
This entity check matters more at eToro than at some brokers because the firm also operates outside the EU/UK perimeter in other regions. Always confirm the exact legal entity named in your account agreement, and verify it on the CySEC or FCA register before depositing. The ESMA-style retail protections — a 30:1 leverage cap on majors, negative-balance protection and the bonus ban — apply through the EU/UK entities, but they do not make trading low-risk: the standardised risk warning still states that most retail CFD accounts lose money.
Platform and social/copy trading
Unlike the MetaTrader-led brokers in this comparison, eToro runs a single proprietary platform rather than offering MT4, MT5 or cTrader. Its defining feature is social trading: you can follow other users, see positions other traders have taken, and use 'copy' features that mirror another account's trades in proportion to your own funds. For a newer trader this can feel approachable, but it introduces a specific trap — copying a trader does not reduce your risk. You still bear the full loss if the copied positions move against you, and past performance of any trader is not a reliable guide to the future.
Because there is no native MetaTrader, traders who rely on a specific MT4 or MT5 expert advisor cannot port it across to eToro. As with any platform, the only reliable way to judge fit is to place trades on a demo account and confirm the order types, charting and execution match how you actually trade — and to treat 'copy' as a feature to understand, not a shortcut around the risk of loss.
Costs, and what we will not invent
The real cost of trading with eToro is the spread plus any other charges plus overnight financing, and it varies by instrument, entity and market conditions. eToro's fee structure — including any withdrawal, inactivity or currency-conversion charges — has changed over time and differs by entity, so any figure quoted by a third party can be stale. We deliberately do not publish a spread, a minimum deposit or a star rating for eToro until we complete a hands-on review; an unverified number on a peak-risk financial product would undermine the whole point of an independent guide.
To assess the real cost yourself, read eToro's own current fee page for the entity that serves your country, check how each instrument is priced, and factor in overnight financing if you hold positions and any conversion cost if your account base currency differs from your funding currency. Under ESMA and FCA rules eToro cannot offer you a trading bonus as a retail client, so any 'bonus' aimed at EU or UK retail traders is itself a warning sign.
Pros & cons
Pros
- Multi-regulated (CySEC, FCA, ASIC) — each verifiable on a public register.
- Single, well-known proprietary platform with social and copy-trading features.
- Established operating history dating to 2007.
- Approachable interface that many newer traders find easy to navigate.
Cons
- No native MetaTrader, so MT4/MT5 automated strategies do not port across.
- Copy trading can create a false sense of safety — you still bear the full loss.
- The entity (and protections) serving your country may differ from the strictest licence the group holds.
- We have not completed a hands-on review, so we publish no spreads, minimums or ratings.
Frequently asked questions
Is eToro regulated in Europe?
Yes. eToro holds a CySEC licence in the EU and an FCA licence in the UK, through separate entities, alongside ASIC in Australia. Because eToro also operates outside the EU/UK, confirm the specific entity that serves your country on the relevant register before depositing.
Does copy trading on eToro reduce my risk?
No. Copying another trader mirrors their positions in proportion to your funds, but you bear the full loss if those positions move against you. Past performance of any trader is not a reliable guide to the future, and most retail CFD accounts lose money.
Does eToro support MetaTrader?
No. eToro runs a single proprietary platform rather than MetaTrader. If you rely on a specific MT4 or MT5 automated strategy, eToro is unlikely to fit your workflow — check before opening an account.