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Etoro review

Overall eToro can be seen as a trustworthy and worthwhile broker. eToro is a popular online trading broker and the leading social trading platform that was established in 2007. There are over 2,000 tradable instruments that can be traded through eToro’s trading platform.

eToro at glance:

🏛️ HeadquarteredTel Aviv-Yafo, Israel
🏛️ Nigerian Based OfficeNo
👍 Accepts Nigerian Traders?Yes
📅 Year Founded2007
📱 Nigerian Office Contact NumberNone
⚖️ RegulationCySEC, FCA, ASIC, FinCEN, FINRA, SIPC, DNB, FSA
🔎License NumberCyprus – 109/10

United Kingdom – 583263

Australia – 491139

Seychelles – SD076
⚖️ CBN RegulationNone
✴️ Regional RestrictionsCanada, Japan, Brazil, Turkey, North Korea, Iran, Cuba, Albania, Serbia, Sudan, and Syria
☪️ Islamic AccountYes
📈 Demo AccountYes
📈 Retail Investor Accounts1 Retail and 1 Professional, with several trading opportunities
📊 PAMM AccountsNone
📊 Liquidity ProvidersNone indicated
Affiliate ProgramYes
📊 Crypto trading offered?Yes
🚀 Offers a Nigerian Account?No
💻 Dedicated Nigerian Account Manager?No
📈 Maximum Leverage1:30 (Retail), 1:400 (Professional)
📈 Leverage Restrictions for Nigeria?No
💳 Minimum Deposit (₦)83,200 Nigerian Naira or equivalent to $200
💳 Nigerian Naira Deposits Allowed?No, only USD, GBP, EUR, and AUD
💰 Active Nigerian Trader Stats1.3 million
💰 Nigeria Daily Forex Turnover$1.25 million+
💳 Deposit and Withdrawal OptionsCredit Card
Debit Card
PayPal
Neteller
Skrill
Rapid Transfer
iDEAL
Klarna/Sofort Banking
Bank Transfer
Online Banking – Trustly (EU)
POLi
💰 Segregated Accounts with Nigerian Banks?Yes
💻 Trading PlatformseToro proprietary trading app and web platform
💰 Tradable AssetsForex Pairs
Commodities
Exchange-traded funds (ETFs)
Indices
Crypto Assets
Stocks
🌐 Offers USD/NGN currency pair?No
🌐 USD/NGN Average SpreadN/A
📈 Offers Nigerian Stocks and CFDsNo
👨‍💼 Languages supported on WebsiteEnglish, Italian, German, Russian, Simplified Chinese, Traditional Chinese, French, Arabic, Polish, German
👥 Customer Support LanguagesMultilingual
👥 Customer Service Hours24/6
👥 Nigerian-based customer support?No
💰 Bonuses and Promotions for NigeriansYes
✴️Education for Nigerian beginnersYes
📊 Proprietary trading softwareYes
💰 Most Successful Nigerian TraderUche Paragon ($20 million net worth)
✔️Is eToro a safe broker for Nigerians?Yes
✔️Rating for eToro Nigeria7/10
✔️Trust score for eToro Nigeria91%
👉 Open Account👉 Open Account

eToro Review – 13 key points quick overview:

  1. ✅eToro Overview
  2. ✅eToro Regulation and Safety of Funds
  3. eToro Account Types and Features
  4. eToro Account Registration
  5. eToro Trading Platforms
  6. eToro Range of Markets
  7. Stocks Trading and Non-Trading Fees
  8. eToro Deposits and Withdrawals
  9. eToro Education and Research
  10. eToro Bonuses and Promotions
  11. eToro Verdict on eToro
  12. eToro Pros and Cons
  13. Frequently Asked Questions

Overall Rating

Min Deposit

USD 50 / 20725 NGN

Regulators

CySec, FCA 

Trading Desk

None

Crypto

Yes

Total Pairs

47

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

eToro Overview

👉 eToro is a multi-asset platform that offers commission-free trading across a wide range of complex instruments across asset classes.

👉 In addition, eToro also offers free insurance, a range of social trading opportunities, complete client fund security, and the opportunity to invest with experts. There are over 2,000 tradable instruments that can be traded through eToro’s award-winning proprietary trading platform that can be used on either mobile devices or the web.

👉 There are no hidden fees or hidden trading costs, and active traders can qualify for free insurance through Lloyd’s of London up to 1 million EUR, GBP, or equivalent in AUD. eToro offers several trading opportunities and is known for its eToro Investment Portfolios, or Smart Portfolios, that group several assets together according to the investor’s strategy or a predetermined theme.

👉 This eToro review will provide traders with the details that they need to consider whether the broker is suited towards their unique trading objectives and needs.

eToro Regulation and Safety of Funds

eToro regulation

👉 The brokerage service offered by eToro is provided by several entities including:

➡️️​ eToro (Europe) Ltd. is a Cypriot Investment Firm registered under HE20058 and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 109/10.

➡️️​ eToro (UK) Limited is an entity in the United Kingdom with registration number 7973792. eToro (UK) Limited is regulated and authorized by the Financial Conduct Authority (FCA) under 583263.

➡️️​ eToro AUS Capital Limited (ABN 66 612 791 803) is licensed by the Australian Financial Services License under 491139. This license is issued and overseen by the Australian Securities and Investments Commission (ASIC) in Australia.

➡️️​ Gleneagle Asset Management Ltd (GAML) is an entity with the necessary license to operate a registered managed investment scheme. GAML operates the eToro Service which is promoted by eToro Australia under ARSN 637 489 466.

➡️️​ eToro (Europe) Ltd. is also registered with De Nederlandsche Bank N.V. (DBN) as a cryptocurrency trading service provider.

➡️️​ In the United States, eToro USA LLC is registered with FinCEN as a business offering a wide range of Money Services. In addition, eToro USA Securities, Inc. is registered with FINRA. This provides eToro USA with the necessary licensing and authorization to provide United States clients with a wide range of services.

➡️️​ In Seychelles, eToro (Seychelles) Limited holds a registered office where the entity has been awarded a Broker-Dealer license with the Seychelles Financial Securities Authority (FSA) under license SD076.

👉 Both eToro Europe and eToro UK operate under the Markets in Financial Instruments Directive (MiFID) and comply with all its requirements. eToro UK Ltd. is a member of the Financial Services Compensation Scheme (FSCS) to provide investor protection to eligible clients.

👉 Traders are protected by the FSCS if the broker enters insolvency, or the company ceases its operations. In addition, the FSCS also provide support if there is a shortfall in client money or customer assets.

👉 eToro Europe Ltd is a part of the Cyprus Investor Compensation Fund (ICF) that offers investor protection of up to €20,000 for claims against the services and products offered by this entity.

👉 eToro keeps all client funds and assets safe in segregated accounts, separate from the broker’s own funds. The separation of funds is supervised both internally as well as externally, with eToro only using the services of reputable payment institutions and payment providers.

eToro Account Types and Features

👉 eToro offers two investment account options between a retail and a professional account, offering several trading and investment options under this.

Live Trading Accounts

Etoro retail account

✅ Retail Account

👉 The Retail Account provides traders access to over 2,000 financial instruments and the use of eToro’s proprietary trading platform. When traders register an account with eToro, they can either trade using copy trading, or they can trade manually. The Retail Account offers restricted leverage up to 1:30 because of strict requirements by MiFID and other market regulators, safeguarding traders against a degree of risk.

👉 Retail traders can rest assured that they are covered by the Investor Compensation Fund and that negative balance protection is applied to the retail account. The retail account requires a minimum investment of 83,200 Nigerian Naira before traders can get started.

👉 eToro offers its clients access to a wide range of investment options through Smart Portfolios, which is a new and innovative way to personal investing. Investors can choose between fully allocated and balanced portfolios that focus on certain market segments that are relatable and easily understandable, all part of a comprehensive and popular investor program.

👉 The award-winning CopyTrader technology of eToro is leading and allows anyone to enter the financial markets and emerge a more experienced trader. The average yearly profit is over 83.7% of the most copied traders in 2021.

👉 There are no management fees charged when traders use the eToro copy trading solutions and there is a transparent pricing policy with no hidden fees.

👉 Apart from offering cryptocurrency trading, eToro clients can now stake their Proof-of-Stake tokens through the eToro platform, allowing them to earn interest when they provide liquidity to these blockchain protocols.

✅ Professional Account

➡️️​ To qualify as a professional trader, eToro requires that all prospective traders undergo a test that will determine their sustainability and whether they qualify for this account. Professional traders who sign up with eToro must acknowledge that there are several strict guidelines from the ESMA in place including the eligibility for the Investor Compensation Fund and recourse with the Financial Ombudsman Service.

👉 For a trader to be considered a professional, they must meet any two of the three criteria as indicated below:

➡️️​ Their professional portfolio value must exceed $500,000 and this must exclude property or cash.

➡️️​ The trader must have a verified trading history in which they traded significant position sizes according to the discretion of eToro.

➡️️​ The trader can have previous experience in the financial industry where they worked in a professional position relating to speculation, derivatives, and/or trading.

👉 While other online brokers take away the negative balance protection offered to professional traders, eToro still ensures that professional traders are covered if the market conditions cause a negative balance. If a professional trader’s account goes into a negative, it will be rebalanced, and the loss will be absorbed by eToro.

👉 Professional traders are given access to maximum leverage up to 1:400 with reduced margin rates. Despite their level of expertise, professional traders are urged to ensure that they minimize the degree of risk that could result in a loss by using effective risk management protocols.

✅ Demo Account

Etoro demo account

👉 A demo account is a practice account that offers traders a certain amount of virtual trading funds that they can use, allowing them to enter the live market without risking their capital.

👉 There is a certain degree of risk involved when trading financial markets and eToro offers its clients a risk-free platform where they can test strategies, practice trading, and explore what the broker offers in a safe trading environment with real market conditions.

👉 eToro offers a demo account that is credited with $100,000 in virtual funding, allowing traders to practice trading across a huge range of assets. Beginner traders can use the demo account to learn about the markets, learn trading strategies from top-performing investors, and more.

👉 Advanced traders can hone their trading skills without risking any of their real money, allowing these traders to easily switch to a live trading account hassle-free.

✅ Islamic Account

Etoro islamic account

👉 Depending on the trading style and the trading strategy of the forex trader, they may keep their trading positions open for longer than 24 hours on a trading day.

👉 This means that the trader could incur an overnight or rollover fee. This is a type of interest that is prohibited by Riba principles of Sharia law, which means that Muslim traders are often restricted in forex trading.

👉 The Islamic Account option that eToro offers come at a hefty price tag of a $1,000 minimum deposit when traders want to convert. In addition, Muslim traders are also subject to strict additional terms and conditions.

Overall Rating

Min Deposit

USD 50 / 20725 NGN

Regulators

CySec, FCA 

Trading Desk

None

Crypto

Yes

Total Pairs

47

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

eToro Account Registration

etoro sign up

👉 To register an account, traders can navigate to the official eToro website and select the option to either “Join Now” or to “Trade Now.” Traders must complete the electronic application form that loads.

👉 Before applying, traders must read and accept the Terms and Conditions. Before the account can be approved, all clients are subject to the Know Your Client (KYC) procedure where they must confirm their residence and their identity by providing the relevant documentation.

👉 In addition, traders must complete a questionnaire to determine their level of experience and skill of the trader, allowing eToro to provide custom service packages that are suited to the trader.

eToro Trading Platforms

etoro trading platform

👉 eToro offers the use of its proprietary trading platform and mobile app that provides access to over 2,000 financial assets. The platforms are known for their transparent trading costs, a wide range of features, and ready-made smart portfolios for investors.

👉 The trading platform is user-friendly, intuitive, and offers safe and secure deposit methods and withdrawal options.

10 Best Forex Brokers in Nigeria for 2022

Rank

Broker

Review

Regulators

Min Deposit

Official Site

#1

AvaTrade Islamic

4.8/5

User Score

#2

4.7/5

User Score

#3

4.5/5

User Score

#4

Tickmill Review South Africa

4.4/5

User Score

#5

4.7/5

User Score

#6

4.6/5

User Score

#7

4.7/5

User Score

#8

4.8/5

User Score

#9

4.7/5

User Score

#10

4.7/5

User Score

eToro Range of Markets

👉 eToro offers a wide range of instruments that can be traded including:

➡️️​ Forex Pairs

➡️️​ Commodities

➡️️​ Exchange-traded funds (ETFs)

➡️️​ Indices

➡️️​ Cryptocurrency

Stocks Trading and Non-Trading Fees

Etoro fees

Spreads

👉 The variable spreads that traders can expect will depend on the financial instrument being traded and the market conditions on the specific trading day. eToro charges spread that are marked-up to include the broker’s fee, allowing traders to enjoy commission-free trades.

👉 The typical spread on forex major pairs starts from 1 pips EUR/USD.

Commissions

👉 eToro does not charge any commissions on trades, which is why spreads have mark-up added.

Overnight Fees, Rollovers, or Swaps

👉 Traders who hold CFD positions overnight may incur a fee that is relative to the value of the position. The fees charged/credited will reflect the driving factors of supply and demand across different financial markets.

👉 Overnight fees for EUR/USD, for example, are $-0.00000857 on a short (sell) position and $0.00005637 on a long (buy) position.

Deposit and Withdrawal Fees

👉 Deposit fees are not charged on any of the deposit methods offered. However, eToro charges a withdrawal fee of $5 for withdrawals, which will cover expenses that are involved with any money transfers.

👉 In addition, traders must note that there is a currency conversion fee that starts from 50 pips when traders deposit fees in currencies other than those accepted for this purpose. There is also an inactivity fee charged on dormant accounts that will be deducted from the trader’s account balance.

eToro Deposits and Withdrawals

Etoro deposit and withdrawal

👉 eToro offers the following deposit and withdrawal methods:

➡️️​ Credit Card

➡️️​ Debit Card

➡️️​ PayPal

➡️️​ Neteller

➡️️​ Skrill

➡️️​ Rapid Transfer

➡️️​ iDEAL

➡️️​ Klarna/Sofort Banking

➡️️​ Bank Transfer

➡️️​ Online Banking – Trustly (EU)

➡️️​ POLi

eToro Education and Research

etoro academy

👉 eToro offers the following educational tools and resources:

➡️️​ News Feed

➡️️​ Analysis

➡️️​ eToro Academy

➡️️​ eToro Plus

👉 eToro does not offer any standalone advanced trading tools or research resources on the website. However, there are several resources offered through the proprietary platform including chart analysis tools, economic calendar, graphical objects, technical indicators, news feeds, and more.

Overall Rating

Min Deposit

USD 50 / 20725 NGN

Regulators

CySec, FCA 

Trading Desk

None

Crypto

Yes

Total Pairs

47

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

eToro Bonuses and Promotions

👉 eToro offers Nigerian traders a referral program that allows them to earn when they successfully refer another trader. This trader must register a live trading account and deposit the necessary amount. There may be other terms and conditions that traders must fulfil to become eligible for this promotion.

eToro Verdict on eToro

👉 eToro is a trusted trading solutions provider and the leading social trading platform that offers traders and investors a wide range of options. eToro is well-established and trusted by traders from around the world.

👉 Strict regulation and compliance with certain laws ensure that the broker keeps client funds protected and protects traders against risky investments. eToro offers traders a choice between manual trading and copy trading, which lets traders copy the trades of successful and experienced traders and investors.

eToro Pros and Cons

✔️ Pros❌ Cons
eToro has a strict and solid regulatory frameworkThere are limitations on leverage for retail traders
Client fund safety is guaranteed and there is consumer protection offeredThere is a limited selection of retail investor accounts
eToro offers commission-free tradingFixed spreads are not offered
There are over 2,000 complex instruments that can be tradedThe spreads are not the tightest
The broker offers several trading opportunities and a social trading featureThere is a high minimum deposit on the Islamic Account
There is an award-winning proprietary platform offeredThere is an inactivity fee charged on dormant accounts
eToro offers 24/6 dedicated customer services
eToro offers a demo account and an Islamic Account
Algorithmic trading and margin trading supported
Real time quotes are offered alongside a wide range of benefits
The mobile app is secure and features robust security such as two-factor authentication
The app can be used as a wallet app for digital currencies
Offers several resources that help traders make improved financial decisions with confidence
Offers several helpful tools and services as a solid basis for investment decision along with investment advice
Provides access to several popular cryptocurrencies that can be traded and crypto staking services
There is a comprehensive portfolio management service and popular investor program offered

 

Frequently Asked Questions

 

Is eToro suitable for beginner and professional traders?

Yes, eToro is a forex broker that accommodates all types of traders regardless of their trading style, trading experience, or their objectives.

Does eToro charge commissions per trade?

No, there are no commission charges on trades.

Which trading platforms are supported by eToro?

eToro offers a proprietary trading platform that is available as a web-based terminal and a mobile app.

Is eToro regulated and by whom?

Yes, eToro is well-regulated by CySEC, FCA, ASIC, FinCEN, FINRA, SIPC, DNB, and FSA.

What is the overall rating for eToro out of 10?

The overall rating for eToro is 7/10.

9.4/10 - (13 votes)

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