4567 reviews
A social investing platform where you can copy successful traders' portfolios automatically—but dividend investors face significant tax and DRIP limitations.
eToro is NOT recommended for dividend-focused investors. Two major issues make it problematic: no DRIP and a 30% dividend withholding tax.
Because eToro operates through an Irish entity, dividends are subject to 30% withholding at source. US investors cannot typically reclaim this via tax treaties because eToro doesn't provide the necessary tax documentation.
Additionally, there's no dividend reinvestment plan (DRIP). Every dividend payment sits as cash in your account, requiring manual reinvestment.
eToro's standout feature is CopyTrader—automatically replicate the trades of successful investors. Find traders with strong track records, click copy, and their future trades are mirrored in your portfolio proportionally.
You can copy up to 100 traders simultaneously with a minimum of $200 per trader. See real-time performance, risk scores, and complete trading history before copying.
The Popular Investor program rewards successful traders who gain copiers—earn up to 2% of assets under management annually.
eToro pioneered social investing. Your feed shows what other investors are buying, selling, and thinking. Comment on trades, follow investors, and share your own strategies.
This social approach helps beginners learn from experienced traders. However, it can also encourage short-term trading and following the crowd.
The platform gamifies investing with leaderboards and achievements—engaging but potentially encouraging overtrading.
US users can trade stocks, ETFs, and cryptocurrencies commission-free. Fractional shares start at $10, making expensive stocks accessible.
International users also have access to CFDs (contracts for difference) on various assets, but these carry high risk and are not available in the US.
The selection includes 3,000+ stocks from 17 exchanges worldwide, 250+ ETFs, and 80+ cryptocurrencies.
$5 withdrawal fee applies to all withdrawals regardless of amount.
$10/month inactivity fee kicks in after 12 months of no login activity.
Currency conversion fees (0.5-1.5%) apply if your base currency isn't USD.
Crypto transfer fees vary by asset when moving to external wallets.
eToro works best for social/copy traders who want to mirror successful investors, not for dividend-focused strategies.
If you want to learn by copying others and don't rely on dividend income, eToro's unique features may appeal to you.
For dividend investing, consider Fidelity, Schwab, or M1 Finance instead—they offer DRIP and better tax treatment.
Transparent breakdown of all fees you might encounter.
| Fee Type | Cost |
|---|---|
| Stock/ETF Trades | $0 |
| Crypto Trades | 1% spread |
| Minimum Deposit | $10 |
| Withdrawal Fee | $5 |
| Inactivity Fee | $10/month (after 12 months) |
| Dividend Withholding | 30% (Ireland-based) |
| DRIP | Not available |
| Copy Minimum | $200 per trader |
Automatically mirror successful investors' portfolios with CopyTrader.
Learn and engage with a community of traders sharing ideas.
Watch experienced traders and copy their strategies while you learn.
eToro's social and copy trading features are genuinely innovative—there's nothing quite like automatically mirroring successful investors. However, it's a poor choice for dividend investors due to the 30% dividend withholding tax and complete lack of DRIP. The $5 withdrawal fee and inactivity charges also add friction. If you want to copy trade or engage with a social investing community, eToro delivers. For dividend investing and passive income building, look elsewhere—Fidelity, Schwab, and M1 Finance are all superior choices.
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