Trading on eToro in Australia

eToro is a global trading platform that is now available in Australia.  You can invest in shares, currencies, cryptocurrencies, commodities and ETFs.  But is it a good option for investing and trading?  I’ve been using eToro to trade for the last few years.  Here is my eToro Australia review.

What is eToro

eToro is an online trading platform.  You can buy and sell shares (both real shares, ETFs and CFDs), forex (currency like the AUD), cryptos (like bitcoin) and commodities (such as Gold and Oil).  It’s also a “copy trading platform”.  This means you can copy trades made by more experienced traders.  Whenever they make a trade, your account also makes a trade.

I currently use eToro to invest in a portfolio of tech companies as well crypto.

Trading on eToro Australia

In Australia you can trade both real stocks and CFDs on eToro.  For most people, I would recommend sticking with investing in real stocks.  CFDs are a more complex financial instrument and are meant to be traded by more advanced traders.

On eToro you can buy and invest in shares like Apple, Alphabet (google), Netflix, Tesla and hundreds more.

Here are some of the advantages of investing through eToro

  • Start investing with $50 – eToro has low minimum investment requirements.  The minimum deposit amount on eToro has recently been changed to just $50 and the minimum trade size is $50.
  • Invest in U.S, U.K and EU Shares – On eToro you can invest in real shares from all over the world.  On platforms like Plus500 you can only trade CFDs.  On eToro you can invest in real shares and your buying the underlying asset.
  • Fractional Shares – eToro Australia supports fractional shares.  This means you can buy a fraction of a share.
  • Near Instant Settlement – you don’t need to wait for funds to clear before you can open more trades on eToro.  When you close a position you can open another one right away.
  • Zero commissions – There are no commissions on real share trades.  You’ll save a fortune in fees compared to using a broker like commsec.
  • No ongoing fees – Some platforms such as IG charge you a quarterly fee for holding shares.  On eToro there are no ongoing fees.  So you can buy shares and hold them for long term profits.

eToro No Commission Example

I use eToro to invest in shares like Apple, Nio and Tesla.  These are companies that align with my values and where I see the world going.  Being able to invest in these shares from Australia – without having to pay any fees, is the reason why I use eToro.

eToro Fees in Australia

There are no commissions when you open a long stock position.  So as you long as you don’t trade with margin (leverage) or open short positions, you won’t be charged any fees.

There is an FX conversion fee when you deposit Australian dollars and it gets converted into USD.  This fee is very competitive and much better than the fee that banks charge when you make overseas purchases.

There is a withdrawal fee of $5.

Trading on eToro Australia

Copy Trading on eToro

eToro Copy Trading is where you copy a trader.  When you copy a trader, you allocate funds that will automatically be used to copy all the trades made by the copied trader.  Whenever they make a trade, your account will make a similar trade.   When they close a trade, your account will close the trade too.

If you have limited trading experience then this could be a good way to see how trading works.

You can find out how to get started copy trading here

Should you trade on eToro?

I don’t think eToro is for everyone.  For most people, if you’re looking to invest in stocks then I would recommend an automated index fund like Raiz or Spaceship.

If you want to have more control over your investments and invest in US, EU and UK shares, then eToro could be a good option.  For example, if you want to own some Apple shares, because you’re a big fan and user of the company, then you can do this through eToro.  If you’re new to trading you can sign up for free and trade with a virtual practice account.

If you’ve already had experience with other forex or stock trading platforms then eToro might be a good option for you.  It’s got a great range of assets and a pretty good trading interface.  It is possible to trade CFDs on eToro.  These are complex financial instruments and much more complex than simply buying a stock.  I would only recommend people experienced in trading and finance look into CFDs.  Stick to buying real stocks on eToro!

Your Questions Answered

Is eToro Safe?

eToro has been around since 2008 so they have stood the test of time.  Funds deposited on eToro are stored securely in tier 1 banks and eToro does operate in accordance with ASIC.    I haven’t come across any issues using eToro and they have a good reputation when it comes to security.

eToro vs Spaceship

eToro is very different to Spaceship (my number 1 performing investment).   Spaceship is a managed product.  On eToro you can access investments like copy trading and copy portfolios, but these aren’t the same as a managed fund.  If you’re looking for a hands off investment, then I would choose Spaceship.  If you’re looking to just invest in U.S shares on your own, then take a look at eToro.

Is eToro Available in Australia?

Yes!  eToro has a local office in Australia and there is a local version of the website.  eToro is still a global trading platform and your account will be based in US dollars.  This is standard across all similar platforms (like Stake and Superhero).

How much money do I need to start Investing on eToro?

You can start investing with $50 USD.  All eToro accounts use a base currency of USD but eToro fully supports Australian customers.  When you deposit AUD it will automatically get converted into USD.

Social Trading on eToro

One of the coolest features on eToro are the social trading features.  With Social Trading, you can see the trades made by all the other investors on the platform.  You can follow more experienced traders to learn more about investing.  Many of the top traders share their trade ideas on their feed.

Can you trade Forex on eToro Australia?

Yes.  Just remember that trading forex is complicated and I believe riskier than investing in diversified portfolio of stocks.  So while you can trade forex, it may not be the best long term investment.  I would leave forex trading to the day traders.

Pros and Cons of eToro

Pros:

  • Access stocks and assets from all over the world
  • Trade partial shares
  • Invest with as little as $50
  • Deposit using PayPal, bank transfer, credit card
  • Copy Trading (copy other, more experienced traders).

Cons

  • Mobile app could be better designed.
  • Withdrawal fee of $5 (although this isn’t charged depending on how much you invest).
  • Fees for short positions and holding over weekends etc.
  • Can’t partially close a stock trade.
  • No ASX shares.

eToro is a good addition to the Australian investing space.  Being able to invest in US shares without any commissions is a big deal and makes investing in these companies more accessible.  eToro now has a local Australian presence and I look forward to seeing them innovate.

You can find out more about eToro here

Disclaimer:

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, 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. 67% 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.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

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. 

eToro AUS Capital Pty Ltd, ABN 66 612 791 803 AFSL 491139. CFDs are highly leveraged and risky, and may not be suitable for all investors. You may lose more than your initial investment. Trading CFDs does not result in ownership of the underlying assets. Copy trading facilities cannot be construed as financial advice. Use these facilities at your own risk and we are not liable for losses incurred. You should obtain your own advice and refer to our FSG and PDS before deciding whether to trade with us

This post is for educational purposes and should not be considered as investment advice. This post is based on individual experience and journalistic research.

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2 thoughts on “Trading on eToro in Australia”

    • Just get in touch with support. If you’re from Australia it should be ASIC. If you’re trading from outside australia then I don’t think you can

      Reply

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