Discover different account types available on eToro. Which one is the best fit for you?
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Before getting started with any broker, you should consider the type of account that will be the best fit for you.
eToro, under ESMA regulations, classifies its traders into two different account types, namely the Retail Account and the Professional Account. Each account type has its own set of conditions for commission, fees, margin calls, leverage, and minimum deposits.
To have a deeper insight into each account type on eToro, follow this article below:
1. Standard/Retail Account
eToro categorizes all clients as Retail Clients when opening a trading account, who receive the highest level of protection (such as eligibility to the Investor Compensation Fund, Best Execution, and Safeguarding Clients Assets, etc.)
Retail Clients can access all trading assets and trade manually or via Copy Trading (Copy People and CopyPortfolio).
Leverage is, however, restricted for retail clients as the use of higher leverage carries with it a higher degree of risk. The following maximum leverage amounts are applied to all retail clients at eToro:
- x30 for major currency pairs (such as EUR/USD)
- x20 for non-major currency pairs (such as EUR/NZD), Gold, and major indices
- x10 for commodities other than Gold and non-major equity indices
- x5 for CFD stocks (securities) and ETFs
- x2 for CFD cryptocurrencies (due to the current high volatility in crypto markets and the risk it presents, eToro has disabled the ability to open leveraged crypto positions.)
This limitation of leverage rates is a method that eToro protects Retail clients who are non-professional traders/investors from the potential loss of capital.
In addition, Standard clients also receive negative balance protection and margin closeout restrictions.
The eToro minimum first-time deposit on a standard account is $200 with a few exceptions:
- USA: $50
- Australia: $50
- Israel: $10.000
And for the succeeding deposit, it is only 50$.
You should also note that you cannot deposit more than $2,250 or the equivalent amount until your account has been fully verified. Therefore, make sure you complete the eToro verification process as soon as possible to enjoy the full benefits of the eToro platform.
2. Professional Account
This type of trading account is offered to professional traders & investors.
To change your status from Retail client to Professional client, you will need to meet at least two of the following criteria:
- Your financial portfolio should exceed $500,000 and which does not include property or cash.
- You must have made at least 10 forex transactions with a minimum total value of $500,000 in a recent time period.
- You must have at least one year of working experience within the financial sector.
When successfully transferred to professional clients, you will receive various additional advantages, including a dedicated account manager, higher leverage (up to 1:400), and more competitive spreads and fees on trading.
As a professional eToro trader, you also retain your negative balance protection in which eToro will absorb the loss and reset their equity to zero – like for Retail client accounts.
Professional clients, however, waive certain ESMA protections such as the Investor Compensation Fund and recourse to the Financial Ombudsman Service.
3. Demo Account and Islamic Account
Despite the difference between these accounts, both can be used as a demo account or an Islamic account.
eToro is aware that trading is a risky business, and an eToro demo account is ideal for getting started. You can easily open it within 1 minute.
After you sign up for eToro, you will receive a $100,000 virtual money account with which to experiment for free in a risk-free environment. More specifically, you can:
- Open positions with a variety of assets: crypto, stocks, commodities, etc.
- Experiment with leverage, Stop Loss and Take Profit
- Test different trading strategies
- Practice copy trading
- Invest in CopyPortfolios
- Interact with the eToro community
Especially, the trading environment replicates exactly what you will encounter with an eToro live account, so you easily test the effectiveness of your trading strategy and hone your trading skills at your own pace without risking your own fund.
The only difference with an eToro demo account is that you are free to take all the risks you like. This all comes without the worry of losing any of your own money.
Until you are confident and ready to trade with your own fund, you can then open a live eToro account.
The purpose of an Islamic account is that it caters specifically to Muslim traders who strictly comply with Sharia law, which prevents its followers from paying any interest, such as overnight fees, which are seen as wasteful or exploitive.
The minimum deposit for this type of account at eToro is $1,000 when the live trading account is converted to an Islamic Account.
Despite additional terms and conditions applied for the eToro Islamic Account, this type of account allows exemption from the additional commission, account management fees, wider spreads, and interest on leverage.
In conclusion, these above different trading accounts have their own unique and competitive trading conditions. This diversity ensures that traders have access to a trading environment tailored to their level of skills, knowledge, experience, and trading objectives.
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. 68% 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. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
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.