Disclaimer: Below content does not apply to US users.
What is eToro Australia?
eToro is a popular broker established in 2007, offering Australian investors access to a range of markets within the one account. Users can trade stocks, ETFs, cryptocurrency and CFDs (forex, commodities, indices, stocks, ETFs and crypto). The key aspect that sets eToro apart from its competitors is the focus on 'social trading'; they have a social media platform allowing users to interact with other traders, and even copy popular traders automatically move for move. This makes eToro a great place for beginner investors and traders to learn.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
Our Overall Thoughts on eToro Australia
eToro is one of our favourite brokers with its modern interface, social trading, and wide array of investment instruments, even including CFDs for cryptocurrencies, which is hard to find in Australia. It's easy to see how eToro has become so popular not just in Australia, but around the world. These are our 3 top reasons for using eToro:
1) Social trading makes eToro a fun place to trade. You can view, post and comment on the latest trading news or speculations with others in the eToro community, and the best feature is CopyTrader. With CopyTrader, you can automatically copy the trades of any top-performing trader you like, replicating their trading in your portfolio. This means that even if you are a beginner trying to learn the ropes, you can still make smart trading decisions based on others' expertise.
2) eToro offers a huge range of investment markets, so you will definitely find some that are suited for you. They have 17 stock markets from around the world, including the most popular NASDAQ and NYSE, 49 forex trading pairs, indices, commodities and even 75 cryptocurrencies, which are not commonly found on other brokers.
3) You can trade CFDs on eToro, with leverage of x30 on major currency pairs, x20 on gold and major indices, x5 on shares and x2 on cryptocurrency. The cryptocurrency CFDs are especially useful because it means you can go short (if you think the value of the coins are going to decrease) and profit from falling prices, which is not possible on regular cryptocurrency exchanges.
One downside for Australians is that your AUD deposits need to be converted to USD when you deposit, and a currency conversion fee is charged. Of course, the benefit is being able to access global stock markets, forex and crypto, with CFDs and leverage on an easy-to-use interface.
Key Features & Advantages of eToro
eToro's popularity in Australia - as well as the rest of the world - is due to the many features offered on the platform. Here are some of the main features and advantages that come with choosing eToro.
Negatives and Disadvantages of eToro
Despite all the great features of eToro, there are a few disadvantages of the platform. To find out more information about these, click on the jump links below.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
What Services does eToro offer?
eToro has a lot of great services, which is why it has attracted so many Australian customers. Let's take a closer look at the best it has to offer.
0% commission when stock trading: eToro does not charge any commission, markup, ticketing fees or stamp duty on stocks on ETFs. This is a great incentive to trade with eToro, since more of your money can go towards your investments. We found it very useful to know exactly how much we are paying per stock, without having to consider any fees.
Access stocks from the USA and 15 other global markets: On eToro you can trade stocks from 17 different exchanges around the world, including the NYSE, NASDAQ and London. The interface is easy to use, and you can search specific stocks, or browse by Industry or Exchange. We found this an excellent feature, because it can be hard to access US stocks and other large markets when you don't reside in those countries. eToro makes it straightforward to invest in global companies.
User-friendly interface: eToro has a simple and easy-to-use interface that is great for beginners and advanced traders alike. The home page (shown below) has key market prices and graphs scrolling along the top, social media news feed below, and the biggest movers from your portfolio and watch lists on the right. The menu on the left is straightforward - click Discover to begin investing in the markets of your choice.
We have reviewed various crypto exchanges and trading platforms and some of them can be quite overwhelming for a new user, but with eToro you won't have that issue. Many of our readers have remarked at how surprisingly simple it is to use, compared with other investing sites they have used in the past.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
Mobile app for iOS and Android: eToro has developed an app for your mobile device to help you stay on top of your investments, anywhere and anytime. On Google Play store, eToro's app has over 10 million downloads, and is rated 3.8 stars from 125,000 reviews.
When we installed the app, we were able to easily find our portfolio, watch list, and news feed. We also found popular traders to follow using the CopyTrade feature. The app also has the Demo account feature where you can practise trading with $100,000 virtual money risk-free.
Demo account - practise trading with $100,000 free virtual money: One of eToro's top features is the Demo account, which is easily activated with a toggle button. It is really useful, as you can practise trading with $100,000 virtual money, with zero risk. We found it a great way to get familiar with various analysis tools, experiment with different leverage amounts, and test out different trading strategies.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
Trade 49 forex pairs: You can trade popular fiat currencies on eToro, eg: USD, EUR, AUD, GBP, NZD, JPY, CHF, and more, with 49 trading pairs currently available. You can easily sell or buy by clicking the S or B next to the forex pair you want, and a popup window appears. Choose the amount you want to buy, as well as setting the amount of leverage, Stop Loss orders and Take Profit orders. Please remember that this is a CFD trade, and with higher leverage comes higher risk. We suggest that you only leverage trade if you are highly experienced, or if you use the Demo account.
75 different cryptocurrencies available: Although eToro is not a dedicated cryptocurrency broker, it offers 75 of the most popular coins, which is impressive. You will find popular coins such as BTC, ETH, XRP, ADA, BNB and DOGE. What sets eToro apart from crypto exchanges is that not only can you buy the actual coin, but if you prefer you can also trade crypto CFDs.
A CFD stands for 'Contract For Difference'. In basic terms, if you buy a crypto CFD on eToro and the price of that particular asset rises, they will pay you the difference. Conversely, if it falls you owe them the difference. You never own the underlying cryptocurrency, you just have a contract with the broker to pay the difference in value from the time of buying to the time of selling. CFDs are a popular financial instrument and it's often leveraged. You can also use this to 'short' crypto as well - let's say you think Bitcoin is going to fall in value. You can profit from the falling price when you trade crypto CFDs which is not possible when you simply buy and sell coins on a regular exchange. You can margin trade with x2 leverage on crypto CFDs.
Crypto staking - earn interest on your coins: On eToro you can stake your cryptocurrency, which is a process where you earn rewards (paid in the cryptocurrency you are staking) for holding them, similar to the way you earn interest in a bank account. The coins you can currently stake are ADA (Cardano), TRX (Tron) and ETH (Ethereum), with support for more cryptocurrencies in the future.
The rewards for staking your crypto are paid out automatically each month, and you receive higher rewards if you reach certain membership levels on eToro. These membership tiers are based on the value of assets you have in your eToro account.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
Trade CFDs (forex, commodities, indices, stocks, crypto): Experienced traders will be familiar with the term CFD, but for those that are new to trading, here is a brief explanation. A CFD is a 'Contract For Difference'. In layperson's terms, if you buy a CFD on eToro and the price of the chosen asset rises, you will be paid the difference. On the other hand, if the price drops, you need to pay the difference. With CFDs, you don't own the underlying asset, but instead you have a contract with the broker for paying the difference in value from the time of buying to the time of selling. CFDs are great because you can bet on the prise to rise OR fall, which you cannot do if you are directly buying the asset. eToro offers CFDs for currencies, commodities, indices, stocks, ETFs and cryptocurrencies.
Margin trading with up to x30 leverage: eToro offers margin trading on their CFDs. If you are not familiar with the term margin trading, it involves using capital borrowed from the broker to invest in an asset. Margin trading means you can access larger sums of capital to leverage your position. You have the opportunity to make larger profits on successful trades, but you must be careful, because the potential loss is also greater. Margin trading is not recommended for the inexperienced, unless you are using a Demo account.
When you margin trade, you contribute a portion of the total order value and the borrowed amount is used to create leverage. Leverage of x10 means that your buying power is 10 times your initial amount. Therefore, if you put in $1,000 of your own money, with x10 leverage, you are borrowing $9,000 from eToro, for a total of $10,000.
eToro offers different maximum leverage amounts based on the asset, as listed below:
Major currency pairs: x30
Minor currency pairs, Gold, Major indices: x20
Minor indices, Commodities (excluding gold): x10
Shares and other underlying assets: x5
Cryptocurrencies: x2
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
CopyTrader - automatically copy trades of top-performing investors: eToro has a unique feature allowing users to copy trades from successful investors. This is great for beginners learning the ropes, investors that are too busy to monitor the markets, or experienced traders that want to improve their returns.
We selected four traders with high returns over the last 12 months, and used the copy trading feature with them. Every trade made by them was automatically replicated in our own portfolio, and after a month, we experienced decent returns. Remember that past performance does not guarantee future performance, and you should conduct your own research before choosing to copy any trader.
Past performance is not an indication of future results.
CopyPortfolio - invest in leading, ready-made portfolios: If you are unsure exactly which assets you want to invest in, eToro can help you with a balanced, professionally researched portfolio, focusing on particular market segments. These portfolios are based on elements derived from their values of research, knowledge, methodology, risk management and technology.
We browsed the portfolios and found a diverse range to invest in, such as Fashion, Tech, Crypto, and Health. Surprisingly, eToro does not charge any management fees to use this feature, which is a bonus.
Social media platform allowing interaction with other traders: eToro is unique in that it has combined social media with trading, by implementing a News Feed on their site. We found it useful for connecting and interacting with other traders in the eToro community. We could seek advice and learn from others' trades, as well as provide our own insight to help newer investors. This is one aspect that really draws us to eToro and makes it stand out from other brokers.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
What We Don't Like About eToro
Currency conversion fee from AUD to USD: For Australian users, when you deposit AUD into the eToro trading account, there is a currency conversion fee to change your funds into USD. This can eat into your profits, and we would prefer if eToro allowed trading in AUD.
The fees depend on your deposit method; for bank transfer, the conversion fee is 50 pips (deposit and withdrawal), and for credit/debit cards, POLi and PayPal, the conversion fee is 150 pips (deposit and withdrawal). For AUD/USD conversion, 50 pips equates 0.5% of the deposit/withdrawal amount, and 150 pips is 1.5% of the deposit amount.
Complex fee structure: There are many different fees charged on eToro and it is not clear or straightforward. There are currency conversion fees, variable trading fees (dependent on asset), CFD (overnight) fees, withdrawal fees and inactivity fees.
Limited range of cryptocurrencies: eToro is not a purpose-built platform for trading cryptocurrencies, and that's why its range of 75 coins is limited compared to the best Australian crypto exchanges. If you are a dedicated cryptocurrency investor, then you might find other platforms to be more suitable. CoinSpot is a top choice, with over 370+ different coins, staking on 21 coins, and $20 free BTC.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
eToro Fees
eToro Deposit Fees
It is free to deposit AUD into your eToro account, but you will incur a currency conversion fee since the funds need to be in USD to trade on the platform. The currency conversion fee for Bank Transfer is 50 pips (0.5% fee) and the conversion fee for Credit/Debit cards, PayPal and POLi is 150 pips (1.5% fee).
eToro Trading Fees
There are different fees based on the asset you are trading.
Stocks: 0% fee
Cryptocurrency: 1% fee
For the following trading instruments, the fee is built into the spread. The spread is the difference between the buy and sell price. One way you could look at it, is that the fee per transaction is half of the spread.
Forex CFD: Spreads start from 1 pip for EUR/USD, AUD/USD, USD/JPY. For full list of spreads, click here.
Commodities CFD: Spreads start from 2 pips for copper. For a full list of spreads, click here.
Indices CFD: Spreads start from 0.75pts for SPX500. To see the various spreads, click here.
Stocks & ETFs CFD: Spread of 0.09%
Cryptocurrency CFD: 1% fee
Please note that CFD positions that stay open overnight incur a small fee, relative to the value of the position. This is essentially an interest payment to cover the cost of the leverage that you use overnight. The fees are charged in USD, per night, per unit, and a full list can be found here.
eToro Withdrawal Fees
Withdrawals incur a flat fee of $5, with a minimum withdrawal amount of $30. There is also a currency conversion fee of 50 pips for bank transfer (0.5% fee) and 150 pips for other methods (1.5%).
eToro Crypto Transfer Fees
To transfer cryptocurrency from eToro, a fee of 0.5% will be charged, with a minimum fee of $1 and maximum fee of $50.
Other eToro Fees
Inactivity Fee: After 12 months with no login activity, eToro will charge $10 per month as an inactivity fee on any remaining available balance. No open positions will be closed to cover the fee.
CopyPortfolio: There is no management fee to use the CopyPortfolio feature.
Pros and Cons of eToro
- User-friendly platform with access to a wide range of investment instruments
- Stock trade on 17 markets (incl NYSE & NASDAQ) with 0% fee
- Invest in 75 cryptocurrencies directly or using a CFD
- Social Trading means you can interact with others and even copy their trades automatically
- Demo account where you can trade risk-free with $100,000 virtual money
- Currency conversion fee for deposits and withdrawals
- Complex fee structure
- Doesn't offer as many cryptocurrencies as dedicated crypto exchanges
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
Verdict
eToro is an excellent broker that has built an easy-to-use platform for beginner investors and advanced traders alike. They cater to their users with a wide range of investment options, social trading, CopyTrader, CopyPortfolio and a Demo account. eToro is a great choice for Australian investors who want to access global stock markets, forex trading and CFDs.
However, if you are interested in cryptocurrency trading in particular, and not the other markets, we suggest you use a dedicated Australian crypto exchange. eToro is not built specifically for cryptocurrency; this is reflected in their limited range of 75 coins and their high trading fees of 1%. eToro also charges a currency conversion fee from AUD to USD when you deposit, which will add another 0.5% - 1.5% on top (depending on deposit method). Compare this to CoinSpot, an Australian crypto exchange with 0.1% market trading fees, staking on 21 coins, and $20 free Bitcoin, and you can see how eToro falls behind. Another option is Swyftx, with 320 coins and $20 free Bitcoin on sign up.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged.
Not suitable for all investors. Capital at risk. See PDS and TMD.
Frequently Asked Questions
Yes, eToro is a legitimate broker that has been established since 2007. In Australia, it is regulated by ASIC, and you can read about eToro’s success in the FinTech industry from top-tier publications, such as CNBC, TechCrunch, and The Telegraph.
Yes, eToro is a safe broker to use. On eToro, clients’ funds are kept secured in tier 1 banks, and all of their personal information is guarded under SSL encryption.
Yes, eToro is a trustworthy broker founded in 2007 and regulated by ASIC. Their customer support team is available 24 hours a day on trading days, meaning eToro clients always have someone to turn to if they encounter a problem or require assistance.
eToro is a safe platform, but there is always a possibility it can be hacked, no matter what security protocols are in place. With eToro, clients’ funds are kept secured in tier 1 banks, and all of their personal information is guarded under SSL encryption.
Yes, eToro can be used in Australia and it is regulated by ASIC.
eToro Service ARSN 637 489 466 promoted by eToro AUS Capital Limited ACN 612 791 803 AFSL491139. Capital at risk. See PDS and TMD. Zero commission does not apply to short or leveraged positions. Zero commission means that no broker fee has been charged when opening or closing the position. Limited stock exchanges only.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. eToro offers both real crypto assets as well as crypto assets as OTC Derivatives.
Real crypto assets are unregulated & highly speculative. Being unregulated, there is no consumer protection. Your capital is at risk.
eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. OTC Derivatives are leveraged financial products and considered speculative. OTC Derivatives may not be suitable for all investors. You don't own the underlying assets. You risk losing all of your investment. This information is general only and has been prepared without taking your objectives, financial situation or needs into account. Consider ourProduct Disclosure Statement (PDS and TMD). See full disclaimer.
