Is eToro a trusted app?

Is the eToro trading app any good?

Yes, eToro has one of the best trading apps for social & copy trading and is safe to use for investing and trading as they are regulated by the FCA in the UK.

However, there are a few things to be mindful of.

Firstly, eToro is a new company that has grown quickly and spent a huge amount on marketing for new customers. When companies grow so quickly they also have a long way to fall if new clients and revenues dry up. But, as eToro is regulated by the FCA, UK customer funds are protected (up to £80k) by the FSCS if eToro were to go bankrupt.

The other thing to consider is that whilst eToro offers investing for longer-term capital growth they also offer leverage products like CFDs and forex trading where it is possible to lose money quickly. These products are not really safe (as they are high-risk) or suitable for new investors and are more for experienced and sophisticated traders.

Overall, eToro has one of the best trading apps for social & copy trading. It’s easy to sign up, easy to use and easy to start investing. A great place to start for new investors. Particularly as they offer fractional shares with zero dealing fees and no account charges.

This means you can get started with very little money. There is also a great copy trading feature where you can see and follow what popular investors have in their portfolios.

The only thing to watch out for is the high FX conversion fees when you convert GBP into USD when you fund your account.

It’s also very handy if you need to sell your investments whilst out and about. You can sell stocks on the eToro app by clicking on the portfolio button in the menu, clicking your position and then clicking close.

You can also sell stocks short on the app with CFDs, with the added advantage of setting leverage limits to reduce your risk. Overleveraging is one of the main reasons that people lose money when trading on margin. If you want to sell stocks short on the eToro app, just toggle the switch at the top of the trade screen from “Buy” to “Short”.  Make sure you take into account the overnight funding charges, though, which are a bit more expensive on eToro compared to other brokers for short selling.

One other advantage of eToro is if the app is not working, you can also trade and invest online, unlike some other investing apps that are just app only. So can always access the markets and your eToro account even if you don’t have your phone.

eToro App Screenshots