eTORO RATING -OVERALL SCORE {61.7%} (?)

 

eToro is a large market maker (DD) specialized in social trading. The broker handles more than 3 million accounts and maintains headquarters in Cyprus and other offices in all around the world. The most innovative feature offered is the Openbook Trade Platform that allows social and copy trading. In overall eToro is a good choice only for Forex beginners and for Social Traders.

■ Deposit Requirements: 50 USD

■ Funding: Cards | Bank Wire | Neteller | PayPal | Skrill | Giropay | WebMoney

■ Platforms: OpenBook | WebTrader | Mobile Traders

■ Customer Support: English | Arabic | Russian | Spanish | Chinese | Dutch | French | German | Italian | Japanese | Korean | Portuguese | Turkish

» eToro Website

Chart: eToro Basic Ratings (Based on ForexRating Formula 5.0)

The RatingFormula 5.0 gives a good rating as concerns 'Safety-of-Funds' but a very low score as concerns 'Competition'. eToro spreads are very expensive, and the high slippage is also an issue for day-traders. 

Chart: eToro Special Ratings

eTORO RATING SUMMARY

The following table contains eToro's rating summary based on (i) three rating aspects, (i) three experience levels, and (iii) three trading styles.

FOREX BROKER RATING  (MAX 100%)
  • eTORO FUNDS SAFETY
79.3%
  • eTORO TRANSACTION COST
32.1%
  • eTORO TRADING OPTIONS AVAILABLE
73.2%
  • eTORO TECHNOLOGY
62.5%
  • OVERALL RATING
61.7%
TRADING EXPERIENCE  
  • eTORO FOR FOREX BEGINNERS
65.3%
  • eTORO FOR ADVANCED FOREX TRADERS
49.5%
  • eTORO FOR PROFESSIONAL FOREX TRADERS
45.5%
TRADING STYLE  
  • eTORO FOR INTRADAY TRADERS
50.0%
  • eTORO FOR SWING TRADERS (MID-TERM)
56.6%
  • eTORO FOR CARRY TRADERS (LONG-TERM)
40.2%

eTORO BASIC RATING REVIEW 

eTORO RATING ANALYSIS    
eTORO TOTAL RATING   100.0%  
      61.70%  
A. eTORO  SAFETY OF FUNDS MAX WEIGHT→ 28.0% 22.20% Rating the eToro Safety
A.1 eToro License / Regulation FCA (UK) = 10.0% | FINMA (Swiss) = 10.0% | NFA/CFTC (US) = 10.0% | BAFIN (GE) = 8.0% | ASIC (AU) = 8.0% | FSC (NZ) = 6.0% | CYSEC (Cyprus) = 6.0% | HCMC (GR) = 3.0% | FSC (BVI) = 1.0% | MiFID (EU) = +0.5% rating 10.0% 6.50% eToro (Europe) is regulated CySEC = 6.0% rating, MiFID Rating = +0.5% | Total = 6.5%
A.2 eToro Client Compensation in Case of Insolvency Covering 50,000 USD/EUR/GBP = 5.0% | Covering 20,000 USD/EUR/GBP = 4.0% | Covering 10,000 USD/EUR/GBP = 3.0%
Covering 50,000 USD/EUR/GBP = 5.0% | Covering 20,000 USD/EUR/GBP = 4.0% | Covering 10,000 USD/EUR/GBP = 3.0%
Covering 50,000 USD/EUR/GBP = 5.0% | Covering 20,000 USD/EUR/GBP = 4.0% | Covering 10,000 USD/EUR/GBP = 3.0%
Covering 50,000 USD/EUR/GBP = 5.0% | Covering 20,000 USD/EUR/GBP = 4.0% | Covering 10,000 USD/EUR/GBP = 3.0%
5.0% 4.00% eToro offers client compensation (in case of insolvency) up to 20,000 EUR through ICF = 4.0% rating
A.3 eToro Country of Headquarters UK, USA, Germany, France, Canada, Switzerland, and similar = 5.0% rating | Australia, New Zealand  = 4.0% rating | Ireland, Spain, Italy, Cyrpus, and similar countries = 3.0% rating | Greece, Malta, South Africa = 2.0% rating | Offshore Countries = 0% 5.0% 3.00% eToro maintains headquarters in Cyprus = 3.0% rating
A.4 eToro Years in the Market 10+ Years of Operation = 5.0% rating | 5-10 Years of Operation = 4.0% rating | 2-5 Years of Operation = 2.0% rating | 0-2 Years of Operation = 0% 5.0% 5.00% eToro was found in 2007 (10+ years) = 5.0% rating
A.5 eToro Client Account Segregation Client bank account segregation =  2.5% rating | No = 0.0% 2.5% 2.50% Segregated accounts via multiple financial institutions = 2.5%
A.6 eToro Web Ratings ForexPeaceArmy Rating = 0.5% rating 0.5% 0.20% eToro ForexPeaceArmy Rating is 2.0/5.0 = 0.2% rating
A.7 (+) eToro ADJUSTING RESULTS        
A.7.1 eToro Corporate Size 1 million Trading Accounts = +1.0% rating | 500,000+ Accounts = +0.5% rating | 250,000+ Accounts = +0.25% rating 1.0% 1.00% eToro handles more than 1 million accounts (they say they have 2 million users)=  1.0% Rating
B. eTORO TRANSACTION COST MAX WEIGHT→ 28.0% 9.00% Rating the eToro Transaction Cost
B.1 eToro spread on EURUSD <0.3 pip = 7.0% rating | <0.4 pip = 6.5% | <0.5 pip = 6.0% | <0.6 pip = 5.5% | <0.7 pip = 5.0% | <0.8 pip = 4.5% | <1.0 pip = 4.0% | <1.25 pip = 3.5% | <1.50 pip = 3.0% | <1.75 pip = 2.5% | <2.00 pip = 2.0% | <2.25 pip = 1.5% | <2.50 pip = 1.0% | <2.75 pip = 0.5% 7.0% 0.00% EURUSD Typical Spread is 3.0 pips = 0.5%
B.2 eToro spread on GBPUSD <0.85 pip = 4.5% rating | <1.00 pip = 4.0% rating | <1.25 pip = 3.5% rating | <1.50 pip = 3.0% rating | <1.75 pip = 2.5% rating | <2.00 pip = 2.0% rating | <2.25 pip = 1.5% rating | <2.50 pip = 1.0% rating | 3.00 pip = 0.5% rating 4.5% 0.00% GBPUSD Typical Spread is 4.0 pips = 0.0%
B.3 eToro spread on USDJPY <0.85 pip = 4.5% rating | <1.00 pip = 4.0% rating | <1.25 pip = 3.5% rating | <1.50 pip = 3.0% rating | <1.75 pip = 2.5% rating | <2.00 pip = 2.0% rating | <2.25 pip = 1.5% rating | <2.50 pip = 1.0% rating | 3.00 pip = 0.5% rating 4.5% 2.00% USDJPY Typical Spread is 2.0 pips = 2.0%
B.4 eToro Trade Commissions No Commissions = 7.0% rating | Commissions < $1.0 / lot = 6% rating | < $1.5 / lot = 5% rating | < $2.0 / lot = 4% rating | < $3.0 / lot = 3% rating | < $4.0 / lot = 2.0% rating | < $5.0 / lot = 1% rating |  < $6.0 / lot = 0.5% rating | Higher Commissions = 0% rating  7.0% 7.00% eToro does not charge trading commissions on the tested account type = 7.0%
B.5 eToro Overnight (SWAP) rates Cost < $1.5 = 2.00% rating | Cost < $2.0 = 1.75% | Cost < $2.5 = 1.50% | Cost < $3.0 = 1.25% | Cost < $3.5 = 1.00% | Cost < $4.0 = 0.75% | Cost < $4.5 = 0.50% | Cost < $5.0 = 0.25% 2.0% 0.00% eToro rollover on a Long EURUSD trade worth 1 lot ($100,000) is -$6.0 | eToro rollover on a Short EURUSD trade worth 1 lot ($100,000) is +$0.3 | Total cost in absolute value is $5.7, rating = 0.00%
B.6 eToro Commissions on Funding No Funding Fees = 2.0 % rating | One (1) Free Withdrawal Per Month = 1.0 % rating | Funding Fees Without Free Withdrawal = 0 % rating  2.0% 0.00% Ccommissions on withdrawals between $5 and $25 = 0%
B.7 eToro Inactive Fees No Inactive Fees = 1.0 % rating | Yes Inactive Fees = 0 % rating 1.0% 0.00% Charges some inactive fees = 0.0%
B.8 (+) eToro ADJUSTING RESULTS        
B.8.1 eToro Execution Model ECN Execution = +2.0 % rating | STP = +1.5 % rating | Dealing Desk = +0.0% rating 2.0% 0.00% Market Maker (DD) = +0% rating
C. eTORO TRADING OPTIONS MAX WEIGHT→ 28.0% 20.50% Rating the eToro Options for Traders
C.1 eToro Forex Asset Index 45+ Pairs = 8.0% rating | 40+ Pairs = 7.0% rating | 35+Pairs = 6.0% rating | 30+ Pairs = 5.0% rating | 25+ Pairs = 4.0% rating | 20+ Pairs = 3.0% rating | 15+  Pairs = 2.0% rating | 10+ Pairs = 1.0% rating | Less than 10 Pairs = 0% rating 8.0% 8.00% eToro Provides 49 Forex Pairs = 8.0% rating
C.2 eToro CFDs CFD Trading on MT4 = 2.5% rating | CFD Trading on WebTrader = 1.5% rating | No CFDs = 0.0% 2.5% 2.50% eToro offers CFD trading = 2.5% rating
C.3 eToro CFDs on Futures CFDs on Futures = 1.5 % rating | No CFDs on Futures = 0.0 % rating 1.5% 0.00% No CFDs on Futures = 0.0% rating
C.4 eToro Free Practice Account Practice Account = 2.0 % rating, No = 0.0 % rating 2.0% 2.00% eToro Provides a Practice account = 2.0% rating
C.5 eToro Trading Leverage Leverage > 100:1 = 1.0% rating | Leverage > 75:1 =0.75% rating Leverage > 50:1 = 0.5% rating 1.0% 1.00% 400:1 max Trading Leverage = 1.0% rating
C.6 eToro Bonus/Rebate Promotions   5.0%    
C.6.1 eToro Welcome Bonus (%) Welcome Bonus >50% = 5% rating | Bonus >40% = 4% rating | Bonus >30% = 3% rating | Bonus >20% = 2% rating | Bonus >10% = 1% rating   0.00% No welcome bonus at the time of this review = 0% rating
C.6.2 eToro Trading Rebate (%) Trading Rebate >30% = 5% rating | Rebate >25% = 4% rating | Rebate >20% = 3% rating | Rebate >15% = 2% rating | Rebate >10% = 1% rating | Rebate >5% = 0.5% rating   0.00% eToro Offers no trade rebates = 0% rating
C.7 eToro Min. Account Size Min Account < $100 = 2.00% | Min Account < $250 = 1.50% rating | Min Account < $500 = 1.00% rating | Min Account < $1,000 = 0.50% rating 2.0% 2.00% The min. deposit amount is $50 = 2.0% rating
C.8 eToro Number of Deposit Methods For every deposit method = 0.5% rating | max = 5 methods 2.5% 2.50% eToro offers 5+ deposit methods = 2.5% rating
C.9 eToro Number of Withdrawal Methods For every withdrawal method = 0.5% rating | max = 5 methods 2.5% 2.50% eToro offers 5+ withdrawal methods = 2.5% rating
C.10 Minimum Stop-Order Levels (in pips) 2 pips or less = 1% rating | 3 pips or less = 0.5% rating | 4 pips or less = 0.25% rating 1.0% 0.00% eToro offers more than 5 pips minimum stop-out order distance = 0.0% rating
C.11 (+) eToro ADJUSTING RESULTS        
C.11.1 Offering more than 100 Forex Pairs Offering more than 100 Pairs = 1.0 % rating / No = 0 % rating 1.0% 0.00% 49 Forex pairs = +0% rating
C.11.2 Paying Interest on unused funds Paying interest on Unused Funds = 0.50 % rating No = 0.0 % rating 0.5% 0.00% No = +0%
C.11.3 eToro Contests Contests = 0.25 % rating | No = 0 % rating 0.25% 0.00% No = +0.0% rating
D. eTORO TECHNOLOGY MAX WEIGHT→ 16.0% 10.00% Rating the eToro Technological Efficiency
D.1 eToro Trading Platforms Availability For every Platform = 1.0% | max = three (3) platforms 3.0% 2.00% eToro offers the eToro Webtrader and the CopyTrader = 2.0% rating
D.2 Trading-On-Charts Offering Trading-On-Charts = 1.0 rating | No=0% 1.0% 0.00% eToro is not offering 'Trading-On-Charts' = 0.0% rating
D.3 eToro Slippage on Execution Slippage < 1.00 pip = 1.0% rating | < 1.25 pip = 0.75% rating | < 1.50 pip = 0.5% rating | < 1.75 pip = 0.25% rating 1.0% 0.00% eToro Slippage on execution is more than 1.75 pip = 0.0% rating
D.4 eToro Automated Trading Allowance Automated Trading is Allowed = 2.0 % rating  / No = 0 % rating 2.0% 2.00% eToro allows automated trading = 2.0% rating
D.5 eToro MT4 Platform Availability MT4 is Provided = 2.0 % rating / No = 0 % rating 2.0% 0.00% eToro does not offer the MT4 platform = 0.0% rating
D.6 eToro Mobile Apps iOs= 1% rating | Android = 1% rating | Windows Mobile is 0.5% rating | max = 2% rating points 2.0% 2.00% eToro offers an MT4 App for iPhone and Android = 2.0% rating
D.7 eToro Allowing Scalping / Hedging Yes, both are allowed = 1.0 % rating | Only Hedging / Scalping = 0.5% rating | Both are Forbidden = 0 % rating 1.0% 0.00% eToro forbids both Scalping and Hedging = 0.0% rating
D.8 eToro Customer Service 24/7 Support = 1.0 % rating | 24/6 Support = 0.5 % rating | 24/5 Support = 0 % rating | email support = 1.0% rating | Phone support = 1.0 %. | Live Chat support = 1.0% | Skype support = 1.0 % | Forum support = 1% | Call-Back = 0.5 % rating 4.0% 3.00% eToro offers 24/5 Customer support = 0%, via eMail, Phone, Live Chat = 3.0% | Total rating is 3.0%
D.9 (+) eToro ADJUSTING RESULTS        
D.9.1 eToro PAMM / MAM Accounts PAMM / MAM Accounts = +0.5% rating | No = 0 % rating 0.5% 0.50% eToro is offering PAMM/MAM accounts = +0.5%
D.9.2 eToro Free VPS Free VPS = +0.5% rating | No = 0 % 0.5% 0.00% eToro is not offering a free VPS hosting service = +0.0%
D.9.3 eToro API Trading API trading = +0.5 % rating | No API = 0.0 % rating 0.5% 0.50% eToro offering API trading via 3rd parties = +0.5%
    TOTAL eTORO RATING 61.70%  

 

eToro Licenses and Legal Information

The broker belongs to a large group that maintains offices in all around the world. These are the three licenses found:

(1) eToro Europe, under CySEC (Cyprus) regulation, Registration Number: 109/10

(2) eToro Australia, under ASIC regulation, Registration Number: 335692

(3) eToro USA, under CFTC/NFA (USA) regulation, Registration Number: 0382918 

 

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eToro Rating Review

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