Review of eToro UK
Review of eToro UK is an FCA-regulated broker in the United Kingdom that provides a unique social copy trading and investing experience. Founded in 2007 and currently with more than 30 million users worldwide, eToro is at the forefront of making investment accessible to the mainstream.
In the UK, eToro offers no commission fees for most trades and low spreads for the most popular stocks, ETFs and currency pairs. It also offers the ability to buy fractional shares, which is useful for those who can’t afford to invest large lump sums at once, allowing them to practice a strategy known as euro-cost averaging. This allows for a more gradual build-up of wealth over time, and may be particularly appealing to those who are paid monthly.
Review of eToro UK: How It Compares to Other Platforms
Besides a zero-commission trading model, eToro also offers CFDs (contracts for difference), which are risky derivative products that let you speculate on the price movements of underlying assets such as currencies or shares without actually owning them. The platform’s leveraging capabilities are regulated by the European Securities and Markets Authority (ESMA) and vary by asset type.
Unlike some of its rivals, eToro doesn’t charge an ongoing maintenance fee, but customers can still incur charges such as overnight and margin interest (margin is a percentage of the opening position which is used to cover trading costs). Additionally, some assets can carry a tax burden, depending on the country in which they are traded.
