Comprehensive Guide For eToro UK Users

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Comprehensive Guide For eToro UK Users

eToro is a fintech start-up and is considered among the first pioneers of social trading. It was founded in 2007 in Tel Aviv, Israel. It is headquartered in Greater London, United Kingdom, with offices in Limassol, Cyprus, Sydney, and New Jersey in the US. The fact that it’s headquartered in London makes it appealing to UK traders and investors.

The eToro trading platform is web-based and also available on a mobile App. It has made a name for itself as the best-known platform for social trading. However, the eToro UK crypto exchange, eToro X, was launched in 2019. By copying portfolios and trades of experienced users, it is possible to invest in the platform and benefit from the knowledge of professional traders. The eToro experience shows that the broker can convince with easy handling and a large selection of trading opportunities. With the eToro platform, a trading platform is on the market that is easy to use even for beginners.

5/5

This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.

Social Trading

With eToro UK, trading can be done manually or by copying trades. Through the CopyTrader function, the trades of other investors can be observed, and the trading activities of successful traders can be copied. All it requires is one click. Based on the information provided, a suitable trader can be selected for copying. In addition to the CopyTrader function, eToro’s offer also allows the CopyPortfolios function. Market orders and pending orders can be placed via eToro’s trading platform.

Online trading at eToro UK can be implemented via an innovative trading platform. The functionality of the trading platform also includes the Popular Investor Program. Through the program, traders can make money when copied by other investors. The management fee is up to 2% and that of the annual assets under management.

The eToro trading platform is equipped with practical tools. Copy-trading has been available to clients via the social trading platform since 2010. A news feed is also one of the functions. Traders can communicate with each other via the news feed. In addition, interesting facts can be shared with the community. When trading or investing in the forex, stock, or crypto markets, comprehensive research must be carried out. Experienced, successful traders can identify certain trends early on because they are well informed about news and how it affects the market.

They do extensive analysis to generate nice profits. For novice traders, social trading minimizes risk and builds the necessary expertise by mimicking trading strategies by experienced traders. Traders can:

  •  Copy trading as passive investments in existing strategies
  •  Copy up to 100 trades from selected investors in parallel
  •  Copy Portfolios with numerous compilations for portfolio diversification
  •  CopyTrader can become a Popular Investor after a certain period

With social trading, eToro UK clients have access to international expertise at their fingertips. Through social trading, the investments of a friend or another successful investor can be replicated and transferred to your portfolio. Social trading is an excellent feature, both for beginners and experts.

CopyPortfolio is a bundle of stocks and other assets you can invest in, like a mutual fund. Of course, these are CFD positions, not holdings of actual securities, but they are traded just like funds or ETFs.

The copy trading feature also allows experienced traders to earn passive income from their expertise. They usually receive a 2% administrative fee.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.

eToro UK Regulation

In the UK, eToro is registered and licensed by the Financial Conduct Authority (FCA) under the license FRN 583263.

eToro AUS Capital Limited is authorized by the Australian Securities and Investments Commission (ASIC) to provide financial services under Australian Financial Services License 491139.

It is also regulated internationally by the Cyprus Securities and Exchange Commission (CySEC) and Markets in Financial Instruments Directive (MiFID).

Is eToro UK safe?

In a word, YES!

Apart from the rigorous regulation by FCA, the broker holds clients’ funds in segregated bank accounts, has deposit insurance, and all personal data is protected under SSL encryption. The segregation of client funds and company assets protects clients’ deposits in the event of insolvency. Deposit Insurance protects customer deposits up to £50,000 per customer. The protection of the customers of eToro UK Ltd. and eToro (Europe) Ltd. also helps to comply with the requirements of MiFID.

More so, eToro is the third company after Huobi and Coinfloor to receive a license in Gibraltar. The Gibraltar Financial Services Commission requires that any company that wants to deal with blockchain technology must obtain a license. The company must prove that it has the necessary funds, the technical systems, and full control of user compliance. Only then will the license be granted. Obtaining a license is therefore not so easy and guarantees the necessary security.

What is the minimum deposit on eToro UK?

The initial minimum deposit for eToro UK traders is $50, while the minimum withdrawal amount is $30.

All deposits via Bank Transfer must be at least $500, and when registering a corporate account, a minimum first-time deposit of $10,000 is required.

Note that the minimum deposit varies depending on one’s country.

In addition, bank transfer, you can deposit and withdraw from eToro UK via the following means:

  • Visa Credit Card
  • MasterCard
  • PayPal
  • Skrill
  • WebMoney
  • China UnionPay
  • Yandex
  • Diners Club International
  • Neteller

There are $5 withdrawal fees, which should be considered.

Available Assets

eToro is a one-stop-shop for all your trading and investing needs in the UK. Here are the assets available on the platform:

  • 2000+ Shares
  • 250+ ETFs
  • 160+ cryptocurrencies
  • Commodities and Forex
  • CFDs
  • Indexes

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

Cryptocurrencies were added in 2017 and are constantly being expanded with new coins. The broker now offers 15 different digital currencies and many possible currency pairs. They include BTC, ETH, BCH, DASH, XRP, LTC, Ethereum Classic, Cardano, IOTA, Stellar, EOS, NEO, TRON, ZCASH, DOGE, Binance Coin, and Tezos.

  • Traders can access leverage when trading with eToro UK.
  • x30 for major Forex pairs
  • x20 for minor currency pairs and gold
  • x10 for commodities, except gold
  • x5 for CFD stocks and ETFs
  • x2 for cryptocurrencies CFDs

This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.

eToro X

eToro X is a subsidiary of eToro. The eToro X platform offers its own wallet (for iOS and Android). In addition to the desktop version, users can also obtain the mobile version via Apple Store and Google Play. A powerful engine ensures that transactions are processed quickly and reliably. Just as eToro UK has opened up access to the traditional market for traders, the new subsidiary exchange is designed to facilitate trading in token and crypto assets and make them accessible to everyone.

The company announced in early July 2019 that it would add 120 ERC-20 tokens to its multi-crypto wallet. Currently, there are 44 tradable pairs on eToro X. Traders have access to multi-signature. It supports BTC, ETH, LTC, BCH, XRP, and XLM, allowing them to transfer and convert cryptos seamlessly. Note that eToro X doesn’t offer margin trading.

This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.

Like other crypto exchanges, eToro X charges maker and taker fees on all crypto transactions depending on the transaction volume. This is shown in the table below:

Monthly trading volumeFeeTaker Fee
Less than $100,0000.10%0.24%
Less than $500,0000.09%0.22%
Less than $1,000,0000.08%0.20%
Less than $500,000,0000.07%0.17%
Less than $10,000,0000.06%0.15%
Over $10,000,0000.03%0.12%

eToro Club

To meet the demands of different types of traders, eToro Club offers advantages. The scope of services depends on the respective club. These are exclusive services that may also include exemption of exchange fees, negotiating lines of credit, premium digital publications, one-on-one Zoom meetings with an account manager, and expert weekly market analysis updates.

These clubs include Silver, Gold, Platinum, Platinum+, and Diamond tiers. The services provided here vary depending on the membership club tier.

eToro Fee Structure

eToro fees depend on the respective trading instrument. eToro UK has variable spreads when it comes to CFDs on forex, cryptocurrencies, and commodities. When trading through eToro, the trading fees are in the form of spreads. The spread depends on the financial product being traded. Major Forex pairs like EUR/USD can be traded from spreads of 2 pips. For trading ETFs, eToro has unified spreads of 0.09%. For cryptos, eToro offers one of the lowest trading fees in the market compared to other exchanges; trading crypto CFDs attracts a spread of 0.75%.

In addition to trading fees, conversion fees may apply, which are charged on deposits and withdrawals. The trading account at eToro can be held in US dollars. Through the website, the broker not only provides a list of spreads. The conversion fees for certain currencies are also clearly listed. The fees are also given here in pips.

Various brokers charge inactivity fees. This is also the case with eToro UK. The inactivity fee is $10 per month and will be deducted from the account, but only if there is a sufficient account balance.

eToro Fees
DepositFree
Crypto Trading Fees0.75% – 5%
Trading Fees Stocks & ETFsFree
Trading Fees ForexFrom 1 pip
Trading Fees CommoditiesFrom 2 pip
Withdrawal$5

 

Bottom Line

Thanks to social trading, eToro UK offers the ideal platform for UK traders in an economy where everyone seeks passive income. With over 14 years of market presence and continuous innovation in the trading space, eToro proves to be one of the most credible and reliable service providers for traders and investors in the UK and the rest of the world.

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