If you've ever seen an ad telling you to "copy the best investors", that was eToro. It's probably the most famous broker among young people getting into investing, and also one of the most misunderstood.
I've used it (mostly to try copy trading), so here's what it is, what it's good for and, more importantly, what to look out for before you put a single euro in.
Transparency: some links in this article are referral links. If you sign up through them and start investing, eToro may give me a small reward (it costs you nothing extra and you don't get a bonus from it). It doesn't change my opinion, as you'll see below.
eToro in two sentences
eToro is an investing platform founded in 2007 in Israel that mixes a regular broker (stocks, ETFs, crypto) with a kind of social network: you see what other investors do, comment, and if you want, automatically copy their portfolios. It has been listed on Nasdaq since 2025, and in Europe it operates through its Cyprus subsidiary, regulated by CySEC.
What you can buy
- Real stocks and ETFs. When you buy without leverage, the shares are yours (held by eToro in your name).
- Crypto. Bitcoin, Ethereum and friends.
- CFDs. This is the catch. A CFD isn't buying the asset: it's a contract to bet on whether it goes up or down, usually with leverage. If you go short or use leverage, you're in CFD territory even if the screen looks the same.
- CopyTrader. You allocate money to another user and your account mirrors their trades proportionally.
- Smart Portfolios. Thematic portfolios managed by eToro (tech, renewables, etc.).
What it really costs
eToro markets itself as "commission-free", but that doesn't mean free:
- Spread: the gap between the buy and sell price. You always pay it, even if it doesn't show up as a fee.
- Currency conversion: the account has historically run in US dollars. If you deposit euros or pounds, you pay to convert them (and again when you withdraw).
- Withdrawal fee: taking money out has a fixed cost per withdrawal.
- Inactivity fee: if you don't log in for a long time, they charge a monthly fee.
- Overnight fees: only on CFD/leveraged positions, but they eat returns very quickly.
The numbers change often, so check the current fee table on their site before signing up. And if you want to see what an extra 1% a year does to your money over 30 years, play with the fund fees calculator.
The good
- It's very easy to use. You can open an account quickly and the app is intuitive.
- You can buy fractional shares with little money.
- CopyTrader is an interesting way to see how other people actually invest.
- It's regulated in Europe and, if the company went bust, you'd be covered by Cyprus's investor compensation fund (with limits).
The not so good
- How easy it is to do something dumb. A couple of taps and you're trading leveraged CFDs. eToro itself warns that most retail accounts lose money with CFDs.
- Currency and withdrawal costs add up if you make small monthly contributions.
- The social side is addictive. Seeing someone at +80% this year makes you want to jump in right now. That's exactly what turns investing into trading.
- Not ideal for a long-term index core. Depending on your country, there may be tax-advantaged accounts or funds that eToro can't offer.
Taxes
eToro doesn't file anything for you: in most countries, it's on you to declare gains, losses, dividends and copy trading profits. You can download an annual statement from the platform to make it easier. Tax treatment depends entirely on your country of residence, so check your local rules (or ask an accountant) before you start.
So, should I open an account?
If you want it for long-term investing in stocks or ETFs without leverage, or to experiment with copy trading using a small slice of your money, it can fit. If you're building the core of your retirement, I'd stick with cheap index funds and automatic contributions.
If after all this you want to give it a go, you can sign up for eToro with my link. My advice: start without leverage, start small, and don't touch CFDs until you really understand how they work (or just never).
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A significant share of retail investor accounts lose money when trading CFDs. Consider whether you understand how CFDs work and whether you can afford to take that risk. Past performance is not an indication of future results. This is not financial advice.