Yes, the eToro app 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.
eToro Trading App Review
Name: eToro Trading App
Description: eToro’s trading app enables you to view and copy the portfolio of other traders. You can also see the social feed of what is being discussed and trade and invest (in USD only) a wide range of markets. Overall, an easy to use trading app to get started with.
51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Summary
eToro: Best trading app for social & copy trading
- Markets available: 2,976
- Minimum deposit: $50
- Account types: CFDs & investing in USD
- Equity overnight financing: 6.4% +/- SONIA
- Pricing: Shares 0.15%, FTSE 1.5, GBPUSD 2
Pros
- Social and copy trading app
- Easy-to-use app
- Can change your leverage in the app
Cons
- Accounts must be in USD
- High FX conversion charges
- Limited market range
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Pricing
(3.5)
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Market Access
(3.5)
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App & Platform
(4)
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Customer Service
(4)
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Research & Analysis
(3.5)
Overall
3.7
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