eToro Investing Guide: Everything You Need to Know (2023)

eToro is a social trading and multi-asset platform that allows users to trade and invest in various financial instruments, such as stocks, cryptocurrencies, and commodities. Launched in 2007, eToro has become a popular choice for investors worldwide, with more than 20 million registered users, including an increasing number of Australians.

The platform’s user-friendly interface, social trading features, and access to diverse markets have contributed to its growing popularity as an accessible option for Aussies looking to start investing. This explainer will provide an in-depth look at eToro, its features, fees, and how to set up and close an account.

Most recently, eToro announced a partnership with Twitter, that will display real-time information about stocks and shares, cryptocurrencies, commodities, and other investments to the social media site’s users.


Here are some of the features you can access on eToro:

Variety of Investment Options

eToro offers a wide range of assets, including global indices, currencies, and ETFs, as well as access to both domestic and international stock markets. Users can create personalised portfolios or opt for pre-built ‘smart portfolios’. In addition, eToro provides access to alternative asset markets, such as cryptocurrencies, forex trading and commodities, enabling users to create balanced and diversified investment portfolios.

Cryptocurrency Trading

Users can trade some 76 popular cryptocurrencies on eToro. The platform also facilitates crypto CFD trading and staking for experienced investors, with a dedicated platform and wallet for cryptocurrency enthusiasts.

Diversified Portfolios

‘Smart portfolios’ help investors explore pre-selected collections of assets to diversify their holdings, with options for industry-specific or strategy-based portfolios. This feature can make it easy to set up a diversified portfolio without spending hours researching which stocks should be included in your investment mix.

Interactive Community and CopyTrading Feature

Users can connect via a social media-style news feed to discuss news, strategies, and market updates. Choose between a public or private profile and receive personalised alerts and regular blogs. Follow and copy successful investors’ trades with the CopyTrader feature, making it simple for beginners or those looking to learn from others. You can visit your favour traders’ pages and read about their investment strategy and their portfolio mix. Popular investors can also earn rewards based on their number of followers.

Educational Resources and Tools

eToro Academy offers educational content on investment concepts, market interpretation, and asset types for various skill levels. New users can access a ‘practice account’ with a $100,000 virtual fund. Other resources and tools include CopyTrader; eToro Academy; eToro Plus, which features investment analysis; weekly crypto round-ups and insights, and ‘Digest & Invest’ podcasts across a range of investment topics.

SMSF Access

For those who want to use their investment earnings to help fund their retirement, you can also open a self-managed superannuation fund via eToro. Do your homework first, or speak to your financial advisor, to ensure this is the right path for you as SMSFs aren’t suitable for everyone.

eToro Club Membership

Investors with a minimum of $5,000 profit from sold assets can join the eToro Club, with additional tiers based on your equity level. For example, if you have $5,000 balance you can join the Silver tier subject to meeting the criteria, while top-tier Diamond members need a balance of $250,000. Benefits include personalised investment guidance and free webinars, as well as discounts on eToro fees, VIP events and complimentary subscriptions to financial publications.

Mobile Compatibility

eToro offers mobile apps for Android and iOS devices, making investing convenient on the go. The eToro Money account wallet app allows easy storage of your holdings and fiat currencies, as well as for those trading cryptocurrencies.

Platform Security

Licensed by ASIC in Australia, eToro takes user security seriously with advanced encryption and optional two-factor authentication for an added layer of protection. You can read more about eToro’s licensing in Australia here.

Mind the Fees

While eToro offers a wide range of features and markets, it’s essential to be aware of the fees associated with trading on the platform, which the company explains in detail on its fees page.

eToro offers commission-free trading on stocks and ETFs without any management and administration fees, making it attractive to beginner traders. However, there are a range of other fees you should be aware of before trading on the platform, including:

Withdrawal Fee: eToro charges a $5 fixed fee for withdrawals with a minimum withdrawal amount of $30.

Buying and Selling Crypto: eToro charges a simple 1% fee on buying and selling crypto on the platform. The fee is included in the price shown when placing an order.

Spread: This is the difference between the buy and sell price that can change depending on market conditions and the asset you are trading. You’ll pay this fee when you open a CFD position on eToro.

Overnight fees: These are charged for CFD positions that remain open after trading hours. They depend on the type of instrument you’re trading (commodities, currencies, indices, stocks, ETFs, or crypto assets). Triple fees are charged for positions held over the weekend and are levied on specific days depending on the instrument (commodities on Friday, currencies on Wednesday, indices on Friday, stocks and ETFs on Friday).

CopyTrader and Smart Portfolios: There are no extra fees or hidden costs, but spreads and overnight fees may be applied according to each opened copied position.

Stocks/ETFs: No added commission is charged, and no overnight fees apply. Each transaction is subject to a market spread that is reflected in the valuation of the position immediately upon opening.

Conversion fees: Withdrawals and deposits are conducted in USD. Any non-USD transaction, including AUD deposits, are subject to a conversion fee.

Inactivity fee: After 12 months with no login activity, a $10 monthly inactivity fee is charged on any remaining available balance left in the account.

Please note that the above information is a simplified version of the fees and may not include all details. Always refer to eToro’s official fee page for complete and up-to-date information.

Who is eToro suited for?

eToro is an accessible and user-friendly investment platform, making it an ideal choice for those new to the world of investing. eToro offers a selection of stocks and shares to invest in on both its web and mobile applications. For those hesitant to create their own portfolios, eToro’s ‘CopyTrader’ feature allows users to mimic the trades of successful investors, from as little as $200.

One of eToro’s main attractions is its social aspect, which provides a community of traders with varying experience levels. Through the dedicated news feed, users can gain insights and learn from one another. While a basic understanding of investment terminology is necessary, eToro’s educational resources can help you quickly grasp essential concepts.

Cost-effectiveness is another advantage of eToro, as it does not charge commission or deposit fees on stocks and ETFs. However, there are other fees that can catch you out if you aren’t aware, such as a flat $5 withdrawal fee, inactivity fees, currency conversion fees, and crypto investing fees. New investors should familiarise themselves with these charges by consulting eToro’s fee page to avoid any surprises.

How to Set Up an eToro Account

Setting up an eToro account is a straightforward process. Following these steps, you can quickly create an account and start trading on the platform:

Step One: Sign Up

  1. Visit eToro’s website ( and click on the ‘join now’ or ‘trade now’ button.
  2. Complete the registration form by providing the required information, such as your full name, email address, username, and password.
  3. Read and accept eToro’s terms and conditions and privacy policy.
  4. Click on ‘Sign Up’ to complete the registration process.

Alternatively, you can sign up using their Facebook or Google account for a faster registration process.

Step Two: Verify Your Account

Before you can start trading on eToro, they need to verify their account by providing the following documentation:

  1. Proof of identity (POI): This can be a passport, driver’s license, or national ID card. The document must be valid and clearly show the user’s full name, date of birth, and photograph.
  2. Proof of address (POA) : This can be a utility bill, bank statement, or credit card statement issued within the last six months. The document must clearly show the user’s full name and residential address.

Users can submit the required documents through eToro’s platform by navigating to their profile settings and clicking on ‘complete verification’. This can take a few days, and you will receive a notification once your account has been verified.

Step Three: Fund Your Account

Once the account verification process is complete, you will be able to deposit funds into your eToro account by following these steps:

  1. Log in to your eToro account and click on the ‘deposit funds’ button.
  2. Enter the deposit amount and the selected currency.
  3. Select your preferred deposit method: credit/debit card, PayPal or POLi.
  4. Confirm by clicking ‘deposit’.

Please note that eToro may charge currency conversion fees when depositing funds in a currency different from your account’s base currency.

Once the deposit is successful, users can start exploring eToro’s features, such as social trading, and begin trading a wide range of assets, including shares, cryptocurrencies, forex, commodities, and more.

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How to Close Your eToro Account

Closing your eToro account is a simple process. Follow these steps to close your account:

  1. Close all open positions: To close your account, you need to close all open positions (trades) first. Navigate to your portfolio, click on each open trade, and select the ‘Close Trade’ option. Confirm the action to close the position.
  2. Withdraw funds: Before closing your eToro account, ensure you have withdrawn all remaining funds. Go to your account’s ‘Withdraw Funds’ section and follow the prompts to complete the withdrawal process. Keep in mind that there is a $5 withdrawal fee.
  3. Go to account settings: Click on ‘Settings’ and then ‘Account’, scroll down and select ‘Close your eToro account’ at the bottom of the page.

Remember that closing your eToro account is a permanent action and cannot be undone.

The advice and information provided by ForbesAdvisor is general in nature and is not intended to replace independent financial advice. ForbesAdvisor encourages readers to seek expert advice in relation to their own financial decisions and investments. This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency as an investment class.

Frequently Asked Questions (FAQs)

Can you use eToro in Australia?

Yes, eToro is available for use in Australia, allowing Australian residents to access a variety of investment options such as stocks, ETFs, cryptocurrencies, and more. eToro is regulated by the Australian Securities and Investments Commission (ASIC), ensuring a secure and compliant trading environment for Australian users.

Where is eToro based?

eToro was founded in 2007 and has offices in various locations worldwide, including the United Kingdom, United States, Europe and Australia. As a global platform, eToro serves millions of users across multiple countries, offering diverse investment options and social trading features.

How do you copy trade on eToro?

To copyinvestors on eToro, navigate to the platform’s ‘copy people’ section. Browse through the list of available traders and review their performance, trading history, and risk profile. Once you’ve identified a trader you’d like to copy, click on their profile and select the ‘copy’ button. Allocate the amount you wish to invest in copying their trades and confirm the action. From then on, your account will automatically replicate the selected trader’s future trades in proportion to the allocated amount.

Is eToro regulated?

Yes, eToro is regulated by multiple financial authorities in different jurisdictions. In Australia, eToro is regulated by the Australian Securities and Investments Commission (ASIC), which allows it to offer financial products as part of its AFSL. Please note, that cryptocurrency is still unregulated in Australia, so eToro’s AFSL does not cover these digital assets. In Europe, eToro operates under the supervision of the Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA) in the United Kingdom. These regulatory bodies ensure that eToro adheres to certain financial standards, providing a secure trading environment for its users.

How are dividends paid on eToro?

Dividends on eToro are paid when you hold stocks or ETFs that distribute dividends. When a company you’ve invested in announces a dividend, eToro will credit your account with the appropriate dividend payment minus any applicable withholding taxes. It is important to note you could still be liable for taxes with the Australian Taxation Office (ATO) after receiving a dividend, depending on your personal situation and whether the dividends are franked or not. The dividend payment will be added to your available balance, which you can use to open new positions, withdraw, or reinvest as you see fit.


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