eToro Review 2026 – Social Trading Done Right?

eToro's Market Position in 2026

Brothers Yoni and Ronen Assia started eToro in 2007 with David Ring. Their theory was straightforward: most retail traders lose money partly because they trade in isolation. What if beginners could watch experienced traders and automatically copy their moves? Seventeen years later, 30+ million users suggest the theory held up.

The CopyTrader feature works because eToro made it transparent. You can see a trader's entire history before copying them – every trade, every drawdown, every recovery. Successful traders earn income from followers (up to 2% of assets under management), which keeps them engaged and communicative. It's a weird hybrid of social media and brokerage that somehow works.

In 2019, eToro added commission-free stock trading to compete with Robinhood. Their crypto lets you own actual coins (not just CFDs), which matters to people who want to transfer holdings to external wallets. This mix of stocks, crypto, and copy trading is unusual – most platforms pick one lane.

Should You Trade with eToro?

Bottom line: eToro works well for beginners who learn by watching, passive investors who'd rather copy someone else's strategy, and anyone who wants commission-free stocks without caring much about forex spreads. If you're an active forex trader counting pips, this isn't your platform.

Understanding eToro's Fee Model

eToro's fee structure reflects their business model: make money on active trading (CFDs, forex) while using commission-free stocks as a customer acquisition tool. This creates a clear divide in value – excellent for stock investors, less competitive for forex traders.

The Hidden Costs to Watch

• Currency Conversion (0.5-1.5%): Since eToro accounts are USD-only, non-US users pay conversion fees on every deposit and withdrawal. For a £1,000 deposit, that's £10-15 in fees before you even trade.
• Withdrawal Fee ($5): While small for large withdrawals, the flat $5 fee is proportionally significant for smaller accounts. A $100 withdrawal loses 5% immediately.
• Overnight Fees: CFD positions held overnight incur swap fees. These can accumulate significantly for long-term CFD holders.

Where eToro Offers Real Value

• Stock Trading: Genuinely 0% commission with no hidden spreads on non-leveraged positions
• Copy Trading: No additional fees to copy traders – you pay only the same trading costs
• Crypto Ownership: Real crypto with transfer capability (after verification)

Analyst Take: eToro is cost-effective for US-based stock investors but expensive for non-USD forex traders. Know your use case before committing.

Where eToro Fits

eToro isn't competing with IC Markets on spreads or Interactive Brokers on research tools. They picked a lane – social trading for retail investors – and stayed in it. That focus means they're good at one thing rather than mediocre at everything.

Who Should Use eToro

1. Beginners: Watching what other traders do is genuinely useful when you're starting out. Copying them is even more useful.
2. Stock Investors: The 0% commission on non-leveraged stock trades is real. No catch.
3. Passive Investors: Copy trading lets you outsource the decisions. Whether that works long-term is another question.
4. People who like community: If you want to discuss trades with other users, eToro has that. Most brokers don't.

Who Should Skip It

1. Forex traders: The spreads are fine but not competitive. ECN brokers are cheaper.
2. Algo traders: No MetaTrader means no Expert Advisors. Full stop.
3. Non-USD users trading frequently: The currency conversion fees are annoying.

Final take: 4.0/5 for the right user. eToro knows who they're for and built accordingly. If you want to learn by watching others or just want simple stock investing without commissions, it works. If you want tight spreads or advanced tools, you're looking at the wrong platform.