eToro UK

Written by Mike Druttman

Fact checked by Nick Zelver

Updated Sep, 2024

Prelude

Being a verified eToro user and a UK resident, I've navigated the intricacies of trading various assets on this platform, including stocks, indices, commodities, and cryptocurrencies. Through my journey, I've gathered valuable insights and experiences specific to trading within the UK context.

In this guide, I'd to share these learnings, offering a comprehensive overview of what you, as a fellow British trader, can expect and need to know when using this platform. From regulatory nuances to unique market opportunities, I'll delve into the aspects that make trading with this broker in the United Kingdom a distinct experience.

Getting Started

So let's say you're interested to register with this broker. What do I need to open an eToro account UK, you might ask. 

If you are from the UK and would like to register for an account with eToro, go to their website and register. Make sure that you are agreeing to the terms and conditions of eToro UK limited, the company that is regulated by the FCA. Then, check the inbox of the email that you used to register. This will then open a link which will take you to the platform with a notification that your email address has been verified.

You may choose to explore the platform first by using the demo feature, or you can finish the verification process by completing your profile so you can make your first deposit and start trading.

Minimum Deposits Explained

To engage in live trading on the platform, the account needs to have funds. So what is the minimum UK deposit for eToro? 

For those residing in the UK, the minimum deposit is approximately £90. This figure is based on the platform's standard minimum deposit of $100, as it operates with the US dollar as its base currency.

The exact amount in GBP may vary slightly due to fluctuations in the exchange rate. When depositing in GBP, eToro conveniently handles the currency conversion to USD, though this is subject to a nominal conversion fee. Aside from that, succeeding deposits are much lower at $10 only. However, if you are making a deposit through a wire transfer, the minimum deposit is $500.

Such amount makes it affordable for anyone to open an account since the initial deposit requirement is not that high. In comparison, I found out that brokers like Plus500 and AvaTrade require slightly higher first-time deposits at £100.

Regulation & License from FCA

One common concern and question that I usually get is, is eToro legal in the UK. Definitely, YES. This broker serves its clients in the UK via eToro (UK) Ltd., a Financial Services Company that has authorization and license to operate in this country. Its office is located on the 24th floor, One Canada Square, Canada Square, London E14 5AB, United Kingdom.

If you are a UK resident, then your account needs to be under this corporate entity. Take note that upon making your initial deposit and based on the Terms and Conditions that you agreed on during the registration process, the account that you just registered shall be under a particular eToro entity and regulation. For other eToro countries, they could fall under a different entity.

Login for UK Traders

I realized that eToro has a universal login page where users can sign in and access their account. This means the login for UK traders is basically the same for traders from any country.

Logging in can be done via etoro.com/login or via their mobile app for Android or iOS.

You can sign in by entering your username or email address and the password for this account. Alternatively, you can log in via your Facebook account, Google account, or Apple ID if you have linked them during the registration.

The Demo Account: Virtual Portfolio

Any user who has successfully registered an account with this broker will be given access to a free and unlimited demo account. There's no need to activate this feature or request for it because all active accounts are allowed to use the platform in virtual mode.

Labelled as "Virtual Portfolio", it is pre-loaded with $100,000 demo credits. If you prefer to use the GBP currency, the amount will change depending on the value of the GBPUSD exchange rate at the time you accessed the platform.

Here's the deal: You can open a free demo account!

The eToro demo account requires no commitment. All you need to do is register for an account and you'll be granted access to this feature so you can explore the platform without any risks.

eToro UK Platform

eToro currently has 2 platforms available: a web-based version and mobile apps for iOS and Android-powered phones.

1. The web-based version is designed to be accessed on a web-browser like Google Chrome, Mozilla Firefox, Microsoft Edge and Opera. This doesn't require any software installation since you just need to go to etoro.com on your browser, login to your account, and start trading.
2. eToro's mobile apps for Android and iOS were designed to be used for smartphones that have touchscreens. There's no difference between the app for Android and iOS since their layout and features are the same.

Understanding Leverage

Curious about what is the leverage on eToro UK? It's essential to know that leverage varies by asset. For major currency pairs, such as GBPUSD, leverage can reach up to X30. In contrast, indices like the UK100 (FTSE100) offer a maximum leverage of X20. Notably, real crypto trading on eToro doesn't provide leverage, but you can access up to X2 leverage for crypto CFDs.

Investing in UK Company Shares

One aspect of eToro that stands out to me is the ability to invest in shares of UK companies, with over 300 options available. A common query is: do I own the shares on eToro UK when I purchase them? The answer is yes, for direct stock purchases. These stocks are bought in your name and held in a segregated omnibus account. However, remember that in CFD trading, you're not owning the actual stock.

How Does It Compare?

In my quest to understand the nuances of various trading platforms available in the UK, I conducted a comprehensive comparative analysis between eToro and its well-known counterparts. Here's a detailed breakdown of my findings:

Please note: For a more in-depth comparison of each broker alongside eToro, we invite you to visit our dedicated comparison pages. These provide detailed insights, helping you make an informed decision.

Identifying Top eToro UK Traders

With eToro's popularity in the UK, many wonder who are the best eToro traders to copy in the UK. To find out, I explored the platform, focusing on the most copied UK-based traders and analyzing their performance from 2019 to 2022. Keep in mind, though, that comparing their current year's performance is challenging as the 2023 rates are still fluctuating.

Contacting eToro UK: Phone Support Unavailable

In my attempt to find a local contact phone number for their UK office, I discovered that it's not listed on their website. To clarify this, I reached out via their live chat service. The response confirmed that, as of now, the do not offer phone support for UK clients, despite having a physical office in the region.

For any inquiries or assistance, UK clients are advised to utilize their Customer Service page or live chat support, which can be accessed through this link: etoro.com/customer-service.

Fees for UK Clients

The fees for UK residents is similar to almost every user from all over the world. When you trade CFDs, eToro will charge your account with an overnight fee every time you open a position after trading hours. If you keep a position open during the duration of the weekend, eToro will charge you for three nights or three overnight fees.

• Overnight fees This is calculated depending on the amount of leverage being utilized and it also depends on whether you are engaging in a buy or sell trade.
• Withdrawal fee:  To cover expenses involved in making international money transfers, eToro charges a fixed withdrawal fee of around £5 for any amount from the minimum withdrawal amount of £30. This rate also applies to traders based in the UK.
• Inactivity Fee: If your account has been inactive for more than a year, you will be charged with an inactivity fee of £10 every month. If your eToro account becomes dormant, meaning you have not accessed your trading account for 6 years, eToro UK will send the money in your account to a charity that they support.

UK Taxes

Thinking if trading with eToro is tax-free for UK clients? No. As a UK citizen and resident trading with this broker, it's important for you to be aware that the UK government imposes a Capital Gains Tax on all trading activities done within the United Kingdom jurisdiction.

eToro UK Stats: 69% of Traders Are from Europe and UK

This latest data is taken from their latest investor update. Based on this released report, there were 2.8 million funded accounts, 73% of which were from Europe and UK as of December 31, 2022. Keep in mind that 2023 figures are only released when the current year has ended.

Personal Takeaways

Through my personal exploration and testing of eToro's platform, I've found it to be exceptionally user-friendly and accommodating for a variety of investment preferences. The platform offers access to an impressive array of assets, including over 300 UK stocks and a diverse range of cryptocurrencies. One of the standout features for me has been eToro's vibrant social trading network. This unique aspect of the platform allows users to gain insights from seasoned traders, observe their investment strategies, and even replicate their trades.

The ability to interact with and copy the positions of experienced investors adds a layer of learning and engagement that goes beyond what traditional brokers offer. Moreover, eToro's regulation by the Financial Conduct Authority (FCA) in the UK adds a reassuring layer of security for your investments. The modest initial minimum deposit requirement of around £80 (equivalent to $100) makes it accessible for those starting with smaller budgets. Overall, my experience with eToro has been thoroughly positive, blending ease of use with a depth of features and a secure trading environment.

eToro is a multi-asset platform which offers both investing in stocks, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.