Exploring eToro: Is it a Suitable Platform for UK Investors?
eToro Debuts on Nasdaq, Assessing its DIY Investing Platform
In May 2025, financial trading platform eToro made its debut on the NASDAQ stock exchange, following a successful initial public offering (IPO) that raised $310 million. This Israeli-founded company, already popular among British investors, recently introduced a self-directed stocks and shares Individual Savings Account (ISA) in the UK.
Ever since eToro introduced commission-free investing for stocks in 2019 and gained popularity during the market volatility caused by the coronavirus pandemic, it has been hailed as a growing competitor in the investing platform industry. The company's uniqueness lies in its "social trading network" concept, offering features such as the ability to copy other successful investors and a news feed resembling a social media platform, enabling users to follow and discuss specific investments.
What is eToro?
Founded in Tel Aviv, Israel, and established in the UK in 2013, eToro offers a trading and investing platform. In 2024, cryptocurrencies still accounted for roughly 25% of eToro's revenue, according to CEO Yoni Assia. The platform allows users to trade Contracts for Difference (CFDs), cryptocurrencies, stocks, exchange-traded funds (ETFs), currencies, indices, and more. However, investors are cautioned that CFDs are high-risk financial instruments, and This is Money suggests generally avoiding them due to the risk of loss.
UK Account Options
eToro offers the following types of accounts to UK users:
- eToro Investment Account: A standard account for buying and selling investments, subject to dividend tax and capital gains tax.
- eToro Isa: Both managed and self-directed options within a tax-free wrapper, offered in partnership with Moneyfarm.
- eToro GBP Money account: An e-money account that holds and funds trades in GBP and provides debit card support for spending from the account.
In February 2025, eToro introduced a self-directed stocks and shares ISA in partnership with online wealth manager Moneyfarm. Prior to this, users could only opt for a managed ISA powered by Moneyfarm.
Cryptocurrency Investing
While eToro's social features are lauded as a notable advantage for novice investors, it is worth noting that cryptocurrencies, a significant part of eToro's revenue, carry high risk and volatility as they are largely unregulated.
Fees
eToro boasts a cost-effective investment platform, with no account opening, management, or withdrawal fees. It does not charge commission when trading stocks, and there are no fees for holding investments. However, it's essential to be aware of possible fees for trading CFDs, cryptocurrencies, and futures due to their associated risks. Users may also incur a foreign exchange fee of 0.75% when converting GBP to USD.
Safety and Security
eToro is regulated by the Financial Conduct Authority (FCA) in the UK and is registered for cryptocurrency services under the UK's money laundering regulations. eToro Money accounts, holding user funds, are also authorised and regulated by the FCA. Though investment platforms can be considered safe due to their regulation, users should still exercise caution and understand their investment choices, as losses are possible.
The Enrichment Data highlights the key features and benefits of eToro's do-it-yourself stocks and shares ISA, including commission-free trading (for US stocks and ETFs), a tax-efficient wrapper, and a user-friendly experience. However, potential limitations such as a narrower range of available markets and withdrawal fees should also be considered. Overall, eToro's DIY Isas offer tax-efficient access to global markets and cryptocurrencies for UK investors, combining simplicity, educational resources, and the copy trading feature.
- The commission-free investing for stocks introduced by eToro in 2019 has made it a growing competitor in the personal-finance industry, particularly within investing.
- In addition to stocks, eToro allows users to trade a variety of assets, including cryptocurrencies, Contracts for Difference (CFDs), exchange-traded funds (ETFs), currencies, indices, and more.
- UK users of eToro can now invest in cryptocurrencies within a tax-free wrapper by utilizing their self-directed stocks and shares Individual Savings Account (ISA).
- Caution is necessary when investing in cryptocurrencies, as they carry high risk and volatility due to their largely unregulated nature.
