Is eToro secure?

Is eToro secure?
With eToro you can set up your account so that when you log in you are asked to confirm a code via your phone (e.g. you are sent an SMS), similar to logging in with a bank.

eToro 2-Step Authentication

eToro 2-Step Authentication

This extra layer of security can be interesting so that no one can gain access to your account without your permission.

On the other hand, you can be confident that eToro is not a scam, it is an online broker that has been in operation since 2007 and has millions of users (investors) all over the world.

It is also monitored by various bodies and has to comply with the regulations of the Cyprus Securities and Exchange Commission, the UK’s Financial Conduct Authority and the Australian Securities and Investments Commission – all of which are equivalent to the CNMV in Spain.

eToro Fees and Commissions

A very important aspect of choosing the best online broker for your investments is to look at the fees you will be charged. So that you know what to expect from eToro’s fees, I’d like to give you an overview of the fees you’ll need to look out for:

eToro Spreads for CFDs

eToro’s CFD Spreads

Exchange Rate: The main commission you’ll face with eToro is the exchange rate commission if you don’t trade in US dollars. As I’ve been repeating, every time you deposit or withdraw funds with eToro you will have to do so in USD, you can make deposits in other currencies such as EUR or GBP, but you will be charged (as everyone else would) a fee (e.g. the EUR to USD exchange rate ranges from 50 to 150 pips).
Account opening: eToro does not charge you anything for opening an account.
Inactivity: But be aware that you will be charged an inactivity fee (note that it is $10 US per month) if you do not log in to their platform within 12 months if you have funds or 4 months if you do not have funds.
Deposit: There is no deposit fee with eToro (although if you do not deposit your funds in US dollars you will have to pay an exchange rate fee, see above).
Withdrawal: A fee of $5 US will be charged when withdrawing funds, to reduce the impact of this try to withdraw funds less often and in larger amounts.
Overnight: This is the financing fee that eToro (or any other online broker) will charge you if you have open positions (using leverage) before the market closes. It is a small amount, but it is for each day that you do not close positions so it can end up being quite a bill.
Weekend: This is a similar commission to the previous one, but it is the one that applies to the weekend. So if you still have an open leveraged position on Friday before the market closes, you will have to pay for eToro to lend you that money over the weekend.
Cryptocurrencies: For buying or selling cryptocurrencies eToro does not charge commissions, but trades at spreads (e.g. 0.75% for Bitcoin). But please note that if you want to transfer the cryptocurrencies there will be a fee (e.g. 0.0005 for transfers in Bitcoins) that you bought at the broker, this has a fee.
Spreads: This is the difference between the price at which eToro will buy an asset from you and the price at which they will sell it to you. This price will always go a bit ‘against’ you, they buy cheaper than they sell, and this is how eToro and other brokers fund themselves.

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