eToro Australia review 2024: Fees, security, pros and cons (2024)

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eToro Australia has emerged as a popular choice among investors seeking a comprehensive and user-friendly trading platform. Known for its social trading features, eToro allows users to mimic the trades of successful investors, making it an attractive option for both beginners and seasoned traders.

The platform supports a wide range of assets, including stocks, cryptocurrencies, commodities, and forex, offering diverse investment opportunities. Additionally, eToro's intuitive interface and detailed educational resources make it accessible for users at all experience levels.

In Australia, eToro is regulated by the Australian Securities and Investments Commission (ASIC), ensuring a secure and transparent trading environment. The platform's commitment to regulatory compliance and investor protection has bolstered its reputation as a trustworthy and reliable choice.

This review will delve into the features, benefits, and potential drawbacks of using eToro in Australia, helping you make an informed decision about whether it is the right platform for your trading and investment needs.

Key points about eToro Australia:

What does eToro Australia Offer?

User-friendly interface

eToro boasts a simple and easy-to-use interface, making it an excellent choice for both beginners and advanced traders. The home page features key market prices and graphs scrolling along the top, a social media news feed below, and the biggest movers from your portfolio and watch lists on the right.

The straightforward menu on the left allows users to easily navigate through the platform, with a "Discover" option that lets you start investing in the markets of your choice.

Unlike many other crypto and stock trading platforms that can be overwhelming for new users, eToro's layout is intuitive and user-friendly.

Many users comment on how easy it is to use compared to other trading platforms they have tried, making it a favourite among Australians.

110 different cryptocurrencies available

eToro offers a selection of 110 cryptocurrencies, which, while not as extensive as crypto exchanges like CoinSpot and Swyftx, is still a considerable range for a platform that is not solely dedicated to cryptocurrency trading.

eToro users can invest in popular coins like Bitcoin and Ethereum, as well as a variety of altcoins, providing ample opportunities for portfolio diversification.

eToro's integration of cryptocurrency with other asset classes, such as stocks and commodities, makes it a versatile platform for investors looking to manage all their investments in one place. This balance of variety and integration appeals to both crypto enthusiasts and traditional investors alike.

Access stocks from the US and 15 other global markets

eToro provides the ability to trade stocks from 17 different exchanges around the world, including major markets such as the NYSE, NASDAQ, and the London Stock Exchange.

The platform's intuitive interface allows investors to easily search for specific stocks or browse by industry or exchange, making it simple to find and invest in global companies.

This feature is particularly beneficial for Australian investors who may find it challenging to access US stocks and other large international markets.

eToro's seamless integration of global stock trading makes it straightforward to diversify portfolios and invest in some of the world's most prominent companies, all from a single platform.

CopyTrader - automatically copy top-performing traders

eToro's CopyTrader feature is a standout tool that allows users to automatically replicate the trades of successful investors.

This feature is particularly beneficial for beginners who are still learning trading strategies, busy investors who cannot constantly monitor the markets, and experienced traders looking to learn from the top performers.

By selecting traders with high returns over the past 12 months, users can automatically mirror their trades in their personal portfolios. We tested this by selecting four high-performing traders and found that our portfolio experienced decent returns after just two months.

However, it's important to remember that past performance is not indicative of future results, and users should conduct thorough research before deciding to copy any trader on the platform.

Smart Portfolio - diversify by investing in ready-made portfolios

eToro's Smart Portfolios are an excellent solution for investors who are uncertain about which assets to choose, offering balanced and professionally researched portfolios that focus on specific market segments.

These portfolios are meticulously crafted based on eToro's core values of research, knowledge, methodology, risk management, and technology. When browsing through the available options, we found a diverse range of portfolios covering sectors such as Entertainment, Tech, Crypto, and Health.

What makes this feature particularly appealing is that eToro does not charge any management fees for using these Smart Portfolios, making it an effective way to diversify and manage investments without any added expense.

Demo account - practice how to trade using $100,000 of virtual money

One of eToro's best features is the Demo account, which can be quickly activated with a single click. This invaluable tool gives users $100,000 in virtual money, offering a risk-free environment to practice trading and test out their skills.

The Demo account is particularly beneficial for beginners who need to familiarise themselves with the platform and the various trading instruments available.

It allows them to explore the intricacies of trading without the fear of financial loss, and the Demo account mirrors the live trading environment, providing a realistic experience that can be seamlessly transitioned into real trading.

For more experienced traders, the Demo account serves as a testing ground for new strategies and techniques. It is incredibly useful for getting acquainted with various analysis tools, experimenting with different leverage amounts, and testing out different trading strategies.

This hands-on experience helps in understanding market dynamics and the impact of different trading decisions, enabling traders to build confidence and improve their skills.

Social media platform offers interaction with other traders

eToro distinguishes itself as a social trading platform by integrating social media features directly into its website. One of the top features is the News Feed, which allows users to connect and interact with other traders in the eToro community.

This social aspect is incredibly useful for seeking advice, learning from the trades and strategies of others, and sharing insights to help newer investors. The ability to engage in discussions, follow experienced traders, and even replicate their trades fosters a collaborative and educational atmosphere.

This unique combination of social interaction and trading is what sets eToro apart from other brokers, making it an attractive choice for those who value community and shared learning in their investment journey.

Negatives of eToro Australia

One of the main drawbacks of using eToro for Australian users is the currency conversion fee from AUD to USD. When you deposit AUD into your eToro trading account, a currency conversion fee is applied to convert your funds into USD, which can reduce your overall profits.

This fee varies depending on the deposit method; for bank transfers, the conversion fee is 50 pips (0.5% of the deposit/withdrawal amount), while for credit/debit cards, POLi, and PayPal, the fee is 150 pips (1.5% of the deposit amount). Many Australian users would prefer if eToro supported trading directly in AUD to avoid these costs.

Additionally, eToro's fee structure is quite complex. Trading fees vary depending on the asset, there are withdrawal fees, and inactivity fees. This can make it challenging for traders to fully understand the cost of their transactions and manage their investments efficiently.

Simplifying the fee structure would greatly enhance the user experience, making it easier for traders to understand their trading costs.

eToro Australia 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

Cryptocurrency: 1% fee

Stocks and ETFs: Free

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 2% will be charged, with a minimum fee of $1 and maximum fee of $100.

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.

Smart portfolio: There is no management fee to use the Smart Portfolio feature.

CopyTrader: No extra fees or hidden costs.

Is eToro Australia safe?

Yes, eToro Australia is considered safe for trading. It is regulated by the Australian Securities and Investments Commission (ASIC), which ensures that it operates under stringent financial standards and regulations.

eToro also employs robust security measures to protect user data and funds, including encryption, two-factor authentication (2FA), and regular security audits.

eToro holds client funds in segregated accounts, ensuring that your investments are protected even in the unlikely event of the company facing financial difficulties.

This combination of regulatory oversight and advanced security protocols makes eToro a trusted and secure platform for Australian traders.

The verdict

After reviewing eToro Australia, we recommend it as a top choice for traders due to its user-friendly interface, extensive range of assets (crypto, stocks and commodities), and innovative features like CopyTrader and Smart Portfolios.

The platform's robust regulatory compliance with ASIC and advanced security measures provide a secure trading environment.

Although there are some drawbacks, such as currency conversion fees and a complex fee structure, the benefits of social trading, diverse investment options, and educational resources outweigh these cons.

Whether you're a beginner looking to learn the ropes or an experienced trader seeking a new platform, eToro offers a versatile and comprehensive trading experience, making it a great choice for Australian investors.

This information is of a general nature only and should not be regarded as specific to any particular situation. This should not be taken as financial advice to buy, trade, or sell cryptocurrency or use any specific exchange. This is not intended for use as investment, financial or legal advice as each individual's need will vary.