eToro ASX Shares

Key features

eToro’s share trading platform offers beginners and pros alike access to some of the globe’s most popular markets, shares, and asset classes (like crypto) at affordable prices. 

In terms of share brokerage, eToro does not charge a commission. However, there are other fees you need to be aware of. These include: 

• Currency conversion fees when depositing or withdrawing funds in non-US dollars

• A USD$5 withdrawal fee 

• An inactivity fee of $10/month for accounts with 12 months of no login activity, charged to your remaining account balance. 

For crypto investors, there is a 1% transaction fee per trade, whether you’re buying or selling your positions. With eToro, you can invest in some of the most popular cryptocurrencies, such as Bitcoin, Ethereum, Dogecoin, and Cardano. 

Novice traders may benefit from eToro’s free demo account, which gives users $100,000 of virtual currency with which to practice trading. Plus, the social aspect of the platform allows users to discuss with and learn from one another, which eToro describes as “harnessing the wisdom of the crowd” – of course, you’ll need to decide for yourself which nuggets of wisdom to follow and which to leave behind.

One of the platform’s more intriguing tools is the CopyTrader feature. It’s a free feature that allows users to replicate the investing habits of traders they choose to follow in real time. You're able to start and stop copying an investor of your choice at any time and choose how much of your funds to allocate to your CopyTrader pool. 

eToro also offers investors a range of Smart Portfolios – ready-made investment portfolios with built-in investment strategies, themes, and diversification, designed for long-term investing. Themes range from tech, to utilities, ESG, and even the Latin American economy.  As these Smart Portfolios are designed for the long term, the initial investment is a minimum of $500. 

Professional, or seasoned, traders might find the eToro platform’s research, data, and investing tools useful too. These include: 

• The Research Tab (powered by TipRanks): Insights from leading analysts 

• One-click trading: Set up parameters to simplify regular trading habits 

• Stop Loss and Take Profit tools: Set predetermined price points at which you can set your account to automatically close or open a position 

• ProCharts: Technical analysis tool for comparing different financial instruments and time frames. 

Who is it good for

The eToro share trading platform has a range of features that suit novice traders and seasoned investors, so the platform could suit those of all experience levels. Those looking to cut back on fees that eat into profits might find eToro’s fee structure an attractive option too. Finally, the pro features, like charting and analysis, give investors a wealth of information from which to draw, potentially allowing for better-informed trading decisions. 

It’s worth noting, some investment products on eToro cater to investors with a medium to high tolerance for risk. Novice investors should read through eToro’s General Risk Disclosure and Target Market Determinations (TMD) to assess whether this platform is right for them. Understanding the risks that come with investing in certain products is recommended for investors of all experience levels.

Any catches

The eToro platform does not offer CHESS-sponsored shares. Customer funds are held in a Trust Account with JP Morgan Chase and Co. 

The $10 inactivity fee which is charged to those with 12 months of no login activity is a bit of a catch, but that fee is only charged to your available account balance and won’t result in any of your positions being closed to cover it.