eToro debuted on New York’s Nasdaq stock exchange in May 2025 after raising a bumper $310 million in its initial public offering (IPO).

The platform has been popular with British investors for some years and recently launched a full do-it-yourself stocks and shares Isa in the UK. 

Amid the buzz around eToro’s roaring IPO and Nasdaq debut, we delve into whether the platform is a solid option for those who want to choose their own investments.

eToro* and close rival Trading 212* both feature in our roundup of the best investing platforms. 

Social trading network: eToro gives you the ability to copy other investors

What is eToro?

eToro* is a trading and investing platform, started in Tel Aviv, Israel, that landed in the UK in 2013. 

eToro made a name for itself as a platform for share investing and buying cryptocurrency. It experienced a surge in popularity in the UK after it introduced commission-free investing for stocks in 2019. It was also buoyed by market volatility during the coronavirus pandemic.

It bills itself as a ‘social trading network’, with features such as the ability to copy other traders and a news feed that works much like a social media platform.

This allows investors to follow certain traders and discuss specific investments.

While eToro has switched focus to stocks in recent years, roughly 25 per cent of eToro’s revenue in 2024 was still tied to cryptocurrency according to its CEO, Yoni Assia.

This is Money says: eToro’s social features are a selling point and can help novices learn from more experienced investors. But you should understand the risks of investing, researching the people you follow and their underlying investments carefully. Their investment goals, time horizon and risk tolerance may be very different to yours.

What accounts does eToro offer?

UK eToro users can open these accounts:

• eToro investment account: A standard account for buying and selling investments with no tax-efficient wrapper, meaning your investments are subject to dividend tax and capital gains tax.
• eToro Isa: Both managed and do-it-yourself options in a tax-free wrapper, offered in partnership with Moneyfarm*.
• eToro GBP Money account: An e-money account that sits alongside your investing account and allows you to deposit, hold and fund trades in your preferred currency. You can get an eToro debit card that allows you to spend money from your eToro account.

eToro launched its do-it-yourself stocks and shares Isa in February 2025 in partnership with Moneyfarm, an online wealth manager. This gives eToro users the opportunity to pick their own investments and hold them within a tax-free wrapper.

Prior to this eToro users who wanted to open an Isa could only choose a managed option, which is also powered by Moneyfarm.

This is Money says: It’s great that eToro now offers a DIY stocks and shares Isa, allowing those who like to pick their own investments to do so within a tax-efficient wrapper. But keep in mind this is powered by Moneyfarm, a separate provider. eToro also doesn’t currently offer a pension. If you want to open your own DIY pension read our pick of the Best Sipp providers.

What can you invest in through eToro?

eToro initially became known as a platform for trading in CFDs and later cryptocurrencies. CFDs are very high risk and This is Money recommends investors avoid them as the vast majority lose money. 

Over the past five years or so, eToro pivoted towards offering more traditional investments, allowing investors to own stocks.

Through eToro you can invest in these asset classes:

eToro’s standard account doesn’t give you the ability to invest in investment funds, which are a fundamental part of many investment portfolios. But you can invest in funds through the eToro DIY stocks and shares Isa, because the account is powered by Moneyfarm, a separate provider. 

You should research eToro’s available investment options carefully. 

For example, owning shares is relatively straightforward. You buy the underlying stock in your name, meaning you own part of the company and can potentially profit from its growth. eToro gives you the option to own shares in this way.

However it also allows you to hold CFD stock positions. A CFD is a ‘contract for difference’ and doesn’t give you ownership of the underlying asset. Instead, CFD trading allows you to bet on the stock’s price movements and use leverage, which is basically a form of borrowing that can both increase returns and magnify losses. CFDs should be avoided.

When it comes to cryptocurrencies the Financial Conduct Authority (FCA), the UK’s financial regulator, believes them to be high risk. The asset class is largely unregulated and very volatile.

eToro has lots of educational resources to help you get to grips with investing. These include guides, videos and podcasts, plus courses that are built around particular topics such as macroeconomics and building an investment portfolio.

This is Money says: eToro states that 61 per cent of accounts lose money when trading CFDs on the platform and cryptocurrencies are high risk and volatile. In our opinion it’s best to stick to the mantra to only invest in what you understand. Unless you’re very experienced in the complex financial instruments and asset classes available on eToro, it’s a good idea to avoid CFDs and stick to stocks and shares.

What are eToro’s fees?

eToro is a cost-effective investment platform. There are no account opening or management fees and it doesn’t cost you anything to withdraw money to another account.

It doesn’t charge commission when dealing stocks and there are no fees for holding your investments.

There may be fees for other types of trading such as CFDs, cryptocurrencies and futures. But again consider avoiding these investments unless you’re very experienced and understand how they work, due to the risks involved.

There are no extra fees for using social features such as copy trading. You’ll only pay fees if there are any involved in the investments made by the user you’re replicating, as if you were investing in them manually.

An eToro Money account allows you to deposit, hold and fund trades in both GBP and USD. There’s a foreign exchange charge of 0.75 per cent when converting GBP to USD.

This is Money says: eToro is a good option for investing at little cost – its fee-free structure rivals competitor Trading 212*. But its foreign exchange charge is relatively high at 0.75 per cent – in comparison, Trading 212 charges 0.15 per cent.

Fintech boom: eToro is one of a number of investment apps that you can try

Is eToro safe?

eToro is regulated by the Financial Conduct Authority (FCA) in the UK. It’s also registered with the FCA to offer cryptocurrency services under the UK’s money laundering regulations. Crypto is not regulated in the UK, so carries no protection.

eToro Money is an e-money account and this is also authorised and regulated by the FCA, but funds in eToro Money aren’t protected by the Financial Services Compensation Scheme (FSCS).

That being said, as with other e-money providers eToro holds your funds in a separate safeguarding account. This means if the firm went bust you should get your money back, minus the costs of sending it back to the UK – for example international transfer fees.

In terms of cybersecurity, eToro says that client data is protected under SSL encryption. You should make sure you’re doing all you can to protect your account including:

• using a strong, secure password that’s unique to your eToro account
• switching on two-factor authentication (2FA), which gives you an extra level of security when logging in
• installing updates to your apps and operating systems as soon as they’re available
• using antivirus software

This is Money says: eToro is a well-established investment platform that’s regulated in multiple countries, which means it should be safe to use. However this doesn’t mean you won’t lose money. You should always understand what you’re investing in and be prepared for your investments to both rise and fall in value.