eToro Australia Review 2024 - Everything you need to know
eToro is one of the largest and most innovative trading brokers in the world — and in Australia, they operate under the AFSL license, number 491139. All of its clients have access to a wide range of financial instruments, such as US stocks. And that’s why we’ve prepared an in-depth review of the eToro experience in Australia!
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eToro Australia - General Information
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USD |
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$50 |
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1:1 |
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From 0.1 pips |
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Stocks, Cryptocurrencies |
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Advanced Copy Trading Platform, Free US Stocks Trading |
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n/a |
eToro Australia Pros and Cons
While eToro represents great opportunities for all kinds of traders, just like any other platform — it comes with its pros and cons. And here are some of the advantages and disadvantages of trading via eToro in Australia!
👍 Pros
• $100,000 demo account for beginners
• Extremely user-friendly interface
👎 Cons
• A limited number of cryptocurrencies
• AUS to USD currency conversion fee
• Overly complex fee structure
eToro Australia – Best For Copy Trading
In the past couple of years, copy trading is a form of financial investment that has gained immense popularity on the Internet. Basically — as an inexperienced user, you “subscribe” to the trades of more professional traders, and copy their work with your own money — hence the name.
With this in mind, it’s important to point out that eToro Australia has an incredibly well-developed copy trading platform. And it works with demo accounts as well, so you’ll be able to spend a virtual $100,000 you get upon registering before you have to deposit any actual money.
On eToro, the copy trading features are basically a small social network in and of itself. You’ve got a clean feed in the middle, and a dashboard with different sections on the left — where, among other things, you can choose the “Copy People” feature to find new traders.
Crucially, there is far less room for fraudulent activity than on other platforms. All traders have their real photos on their profiles, as well as their full names. Each trader shares market news, their own news, and even some personal content on occasion. There are also comment, share, and like features. Also, most importantly — you can view the trading performance of every trader on their profile through intricate statistics and graphs.
Rules and Regulation
Forex regulation in Australia
The Australian Securities and Investments Commission (ASIC) serves as the primary regulatory authority overseeing Forex activities within the country. Its mandate involves ensuring compliance with regulations, maintaining market integrity, and protecting investors.
To obtain a Forex license in Australia, firms must:
- meet ASIC’s capital requirements
- implement certain risk management protocols
- adhere to anti-money laundering (AML) regulations.
Investor protection in Australia
Australia has strong investor protection mechanisms, with ASIC playing a pivotal role in safeguarding investor interests. Through market surveillance, enforcement actions, and investor education initiatives, ASIC promotes fair and transparent trading practices.
Additionally, the Australian Financial Complaints Authority (AFCA) offers recourse for investors in case of disputes with financial service providers, further enhancing investor confidence in the market.
Taxation in Australia
Forex trading profits in Australia are typically subject to taxation under the Australian tax system. Individuals engaging in Forex trading may be liable for capital gains tax or income tax, depending on various factors such as trading frequency, duration, and intent. However, certain tax exemptions or deductions may apply, and it's essential for traders to consult with tax professionals to ensure compliance with applicable tax laws.
Can I Trade Cryptocurrencies in Australia?
Yep, as an Australian citizen, you can easily use eToro to trade cryptocurrencies. Just bear in mind that, seeing as Australian law recognizes crypto as neither a foreign nor an Australian currency, it’s instead viewed as an asset and property — and that means it’s subject to capital gains taxation.
As for the trading capabilities of eToro itself, it functions perfectly well in Australia — you can use the platform to buy and sell cryptocurrencies as actual tokens, or trade CFD derivatives based on the changes in crypto prices.
When it comes to the different cryptocurrencies you can trade in, you’ll be happy to know eToro supports 110 different cryptos — including all the heavy hitters, such as Bitcoin, XRP, Ethereum, Litecoin, etc.
eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Summary
Today, eToro is one of the most diverse online brokers, with users from all over the world in a large number of countries — including Australia. All eToro clients can trade in a wide variety of financial instruments, and the broker has gained a lot of traction due to its immensely user-friendly interface and proprietary trading platform.
FAQs
Is eToro safe for crypto trading?
Safety is always one of the most important features for any kind of online broker — and especially for crypto trading. With that in mind, you’ll be pleased to learn that eToro keeps all traders’ funds in tier 1 banks, while all personal information is tightly guarded via SSL encryption.
Can you make money on eToro?
eToro is a perfectly legal and legitimate online broker, where you can trade in all kinds of securities. That being said, any kind of trading, even with the best broker, comes with significant risk — so don’t chase profits with an investment you can’t afford to lose.
Is eToro legal in the USA?
Yes, eToro is regulated by a number of financial entities and agencies in many world countries — and it’s been legal in the United States since 2018.
Is eToro or Degiro better?
For Australians, eToro is better, as DEGIRO is better suited for European citizens — after all, eToro was a purely international brokerage from its inception.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).