Sep 30 2023

eToro Review 2023 - Safe or a Scam? Pros and Cons
eToro review covering their licenses, a detailed review of their copy trading process and their mobile and web trading platforms.
Compare Brokers
Vs.
By Stefano Treviso , Updated on: Apr 07 2023.
💡 Score | 3.5 out of 5. |
🏛 Regulators | CySec, FCA, ASIC, NBRB. |
💳 Minimum Deposit ($) | 20 |
💰 Payment Methods | Credit Card, Debit Card, Bank Transfer, Neteller, PayPal, Skrill Sofort, Apple Pay, iDeal. |
💵 Base Currencies | 5 - USD, GBP, EUR, PLN, AUD. |
📚 Assets Offered | 🔹 Stocks 🔹 Stock CFDs 🔹 Currency CFDs 🔹 Commodities CFDs 🔹 Indices CFDs 🔹 ETF CFDs 🔹 Crypto CFDs |
💪 Retail Leverage | 1:30 |
💪 Pro Leverage | 1:500 |
✍ Custom Leverage | Yes |
🎲 Deleveraged Trading | Yes |
🎓 Demo Account | Yes |
💰 Commissions | None |
Vs.
Capital.com is a global broker founded in 2016 that specialises in CFDs trading with an offering of more than 4,000 different assets along with several trading platforms (TradingView, MT4, MT5 and their own).
Capital.com is reliable and well regulated by reputable institutions. Let's go over each one of their licenses:
From the above list, we can conclude that they hold 2 high value financial licenses and 2 mid-value ones. While analysing their online reputation, we were pleased to find a great amount of positive reviews in several web portals.
Financial
Licenses
Regulation
Regulated
Top-tier Licenses
2
Other Licenses
2
Provided by
TheTradingBible.com
In order for Capital.com to increase their reputation, they must continue to acquire new high value financial licenses and continuously improve their offering and reputation.
Capital.com’s minimum deposit is 20 €, USD or GBP for all payment methods except wire transfer, which has a 250 € (or the equivalent in the currency of your trading account).
Their payment methods are:
* Not all deposit methods are available in Australia.
Capital.com supports the following base currencies:
Capital.com is a great overall-choice for traders looking for asset variety. While it is true that they do not provide exorbitant amounts of assets, they indeed have done a great job in crafting their offer. Let's compare it to similar competitors:
Asset | Capital.com | eToro | Trading 212 |
---|---|---|---|
Stocks | 1000 | 2000 | 10000 |
Stock CFDs | 3800 | 2000 | 1526 |
Currency Pairs | 0 | 0 | 0 |
Currency Pair CFDs | 140 | 47 | 179 |
Commodities | 0 | 0 | 0 |
Commodities CFDs | 33 | 14 | 25 |
Indices | 0 | 0 | 0 |
Indices CFDs | 37 | 13 | 35 |
ETFs | 0 | 0 | 1800 |
ETF CFDs | 115 | 145 | 50 |
Cryptocurrencies | 0 | 0 | 0 |
Cryptocurrency CFDs | 27 | 26 | 0 |
Bonds | 0 | 0 | 0 |
Bond CFDs | 0 | 0 | 0 |
Options | 0 | 0 | 0 |
Option CFDs | 0 | 0 | 0 |
Futures | 0 | 0 | 0 |
Future CFDs | 0 | 0 | 0 |
Capital.com's offer can definitely beat or be beaten by some of its competitors when it comes to highly-targeted offers such as focusing exclusively on stocks or currency pairs but when compared as a whole, they definitely have an edge over the majority of retail brokers.
Capital.com charges spread and overnight fees when a trade is opened with leverage.
Capital.com's spreads are dynamic (constantly changing according to market conditions). Their current offering is definitely competitive when compared to most of their similar user-friendly peers out there. Let's compare them using some of the most commonly traded assets:
Asset | Capital.com | eToro | Trading 212 |
---|---|---|---|
EUR/USD Spread | Dynamic - From 0.8 Pips | Dynamic - From 1 Pip | Dynamic - From 1.4 Pips |
SP500 Spread | Dynamic - From 70 Pips | Dynamic - From 75 Pips | Dynamic - From 166 Pips |
Gold Spread | Dynamic - From 55 Pips | Dynamic - From 45 Pips | Dynamic - From 30 Pips |
TSLA Spread | Dynamic - From $3.30 | Dynamic - From 0.09% | Dynamic - From $0.6 |
XLK Spread | Dynamic - From $0.97 | Dynamic - From 0.09% | Unavailable |
BTC Spread | Dynamic - From $130 | Fixed - 1% | Unavailable |
When it comes to currencies and commodities, Capital.com's spreads are definitely amongst the best ones out there in the realm of commission-free brokers. On the other hand, for equities they definitely have a moderate markup applied.
Capital.com is a commission-free broker, meaning that they don't charge any in-and-out fees on their trades regardless of a user being a retail or a professional client.
Capital.com | eToro | Trading 212 | |
---|---|---|---|
Commissions | None | No commissions on real stocks and ETFs | None |
Their commission-free offer is definitely at the same level of their most well-known competitors.
We’ve finally made it to the interesting part, platforms. If there is one thing we can say about their platform is that it's beautiful, smooth and fast. It's the perfect combination for beginners and intermediate traders. Here are some of our thoughts:
The moment you click on an asset you’ll go inside this view, the individual asset trade window. Here are a few points:
We appreciate the simplified design and the fact that colours change everywhere according to the order type, but having more advanced control for orders would be a great way to motivate professional traders to use this platform.
Figuring out the code, if you want to set a stop-loss-limit order on Capital.com’s platform, you’ll have to open a “buy/sell when price is” order (which means limit) and make sure it’s on the opposite direction of your current trade and also make sure that hedging mode is not enabled so that way you can partially close positions or a whole by opening on the opposite direction.
It’s nice to dumb down things, but sometimes trying to make things too easy is exactly the reason why a professional trader might not feel attracted to it, he wants his usual deal found in professional software, but for beginners it’s a sweet spot.
Some additional benefits of Capital.com’s mobile platform are the included educational resources such as a few short video tutorials on the basic concepts of trading and an in-app news feed.
Their A.I technology is still too young and does not present any groundbreaking benefits worth mentioning besides a few behavioural patterns alerts to warn you of potential bad practises. We’re looking forward to seeing new developments in this area.
Capital.com’s web platform is also built with a very attractive design and ease of use in mind. A few points about it:
Our favourite thing about Capital.com’s web platform is the discovery section, you’ll get all sorts of information from it such as: most traded assets, most volatile, risers, fallers of the day and the cherry on top would be the news and educational resources available at the tip of a finger.
The charts section is simply gorgeous, you can perform technical analysis, add indicators, have browser-like tabs open on top for each chart and trade from them while you glance at the most recent news.
This platform is coming very close to fit the needs of professional traders once they develop some more advanced features.
It should be noted though that professional clients may lose more than they deposit and they are generally not afforded the same level of regulatory protection.
When it comes to research and analysis tools, the first feature that comes to our minds is their "discover" section in their proprietary platform as traders can quickly look at:
Besides this tool, Capital.com provides on their website a dedicated section with Financial Analysis, Insights and Explainers.
Capital.com's research and analysis tools are quite limited and designed for beginners looking for potential assets to trade with a simple user interface. Professional traders won't find much value in this tools.
Capital.com's educational tools are quite comprehensive, here are a few:
By standard, we've never been much appreciative of any broker's financial education tools but in the case of Capital.com we definitely find their offering quite interesting as despite lacking a clearly guided and structured path, they do provide quite a lot of useful resources for new traders.
Capital.com developed a buttery-smooth proprietary trading platform and in parallel joined forces with TradingView and MetaQuotes (MT4) to enhance their offering. While using any of their options we had a pleasant and responsive experience.
We feel a little confused by their strategy, it seems as if they want to market themselves as a professional option yet their product seems to be built with beginners and intermediate trader’s needs in mind. If you’re in any of these categories, Capital.com can be an excellent choice.
When it comes to professional traders Capital.com lacks some crucial elements on their offering such as:
Overall, we believe it’s a great platform for beginner and intermediate traders. They have the potential to become industry leaders as soon as they invest in customising their offer in order to meet the demands of professional traders.
Yes you can. Capital.com is regulated by 4 different financial regulators from which 2 belong to our top-tier licenses category: ASIC (Australia) and FCA (United Kingdom). This makes them a trustworthy broker.
Capital.com is a real broker that holds 4 financial licenses and has physical offices in the United Kingdom, Cyprus and many other locations as they're expanding constantly.
Capital.com is a good broker but not so much an investment app. The difference here lies in the fact that Capital.com's offer is mostly specialised on CFDs which cater more to traders and while they do also offer real stocks for investors their offering is not so big when compared to other brokers.
Remember, the main difference between a trader and an investor when it comes to CFDs is that CFDs are more trading oriented due to their intangible nature (just a contract to speculate) whereas an investor requires real equities to be held for long periods of time.
Capital.com is better than eToro in some areas but not in others. Capital.com's platform is smooth, friendly and easy to use. Transactions execute flawlesly and their asset offering is comprehensive. When it comes to other capabilities such as copytrading and social networking, eToro takes the lead with their social trading platform where traders can communicate in several languages and copy each others' trades.
Withdrawing funds from Capital.com is an easy task. The only requirement to do so is being a verified customer by having submitted your proof of identity and proof of address before any withdrawal occurs. Additionally and if the amounts deposited or withdrawn are large, Capital.com may present other requirements such as proof of source of funds.
Capital.com's platform is quite user friendly, responsive and simple which makes them an attractive choice for beginners but in the end we must always remember something: platforms can come in all sizes, colours and shapes but the act of trading itself will carry the same level of difficulty regardless of the quality of the platform. The platform itself will simply make the experience more pleasant but it won't make you a better trader or help you as a beginner to become profitable.
Yes, Capital.com charges overnight fees on leveraged positions and spreads.
The most likely reason why you can't withdraw from Capital.com is due to an issue with your verification process. Capital.com being a regulated broker by several governmental bodies is required to comply with several laws and especially those related to AML (Anti money laundering). If you correctly verify your identity by providing your ID, proof of residence and proof of funds (only if requested to do so) then most likely your withdrawals will be processed without an issue.
Capital.com offers free demo accounts globally for users to trade and practise with virtual money without risking real funds but if you want to trade, this activity will always require real money. A positive point worth mentioning is that they do not charge commissions on their trades and only charge spreads or overnight fees.
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