To The Moon

Is eToro Losing the Confidence of Active Traders?

I recently revisited eToro after having a frustrating experience back in 2020.

Unfortunately, six years later, the experience felt surprisingly similar.

During a fast-moving oil trade:

• A market close order remained pending for about 10 minutes

• This prevented me from managing risk or re-entering the trade

• The spread was roughly ~$3 wider than what I see on other platforms

The financial loss was small (~$100), but the loss of opportunity and confidence is much bigger.

It made me reflect on something deeper:

Is this just a personal experience, or does the platform itself have structural friction compared with other brokers?

⸻

Platform Friction That Adds Up

Over time, a few issues stand out with eToro:

1️⃣ Wide spreads

Compared with other brokers, spreads can feel significantly wider, especially on commodities and crypto.

Since spreads are a key revenue source for eToro, this may be structural.

⸻

2️⃣ Execution delays

In volatile markets, even a few seconds matter.

A 10-minute pending order can effectively remove the trader’s ability to react.

⸻

3️⃣ Withdrawal fees

• Around $5 per withdrawal

• Plus currency conversion costs

These fees may seem small but create friction for traders moving funds regularly.

⸻

4️⃣ No direct bank linking

One of the most frustrating parts:

eToro often does not support direct bank account linking in many regions.

Instead, deposits usually require:

• credit cards

• third-party payment processors

• wire transfers

This can result in:

• extra transfer fees

• FX conversion costs

• slower funding compared with modern broker platforms

Many competitors allow instant bank transfers or ACH-style linking, which significantly reduces friction.

⸻

How Competitors Compare

Robinhood Markets

• Direct bank linking

• Fast deposits

• zero commission equity trading

• massive retail user base

⸻

Interactive Brokers

• Institutional-grade execution

• tight spreads

• advanced order types

• global banking integration

⸻

Where eToro wins may be beginner traders who lack the knowledge and market information to ask the right questions when things are happening 

To be fair, eToro still has real strengths:

• copy trading / social investing

• beginner-friendly design

• strong global brand recognition

For new investors exploring markets, these features are attractive.

⸻

But Confidence Matters

For active traders, small friction points matter:

• spreads

• execution delays

• withdrawal fees

• lack of bank integration

Each may seem minor individually.

But together they influence whether serious capital stays on the platform.

⸻

My Personal Take

After revisiting eToro after six years, I still see it as a strong social investing platform.

But as a primary trading platform for active traders, the mechanics still feel behind competitors.

And in trading, confidence in execution is everything.