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eToro Malaysia Review | Platform, Fees, Pros, and Cons

Thinking about using eToro as your broker for trading in Malaysia? Our eToro Malaysia review covers everything you need to know about this popular broker.
Michael Graw
Author: Michael Graw

Last Updated: June 11, 2020

If you want to trade shares, forex, commodities, cryptocurrencies, or anything else, you’ll need a broker that offers all these assets. With so many options, though, picking the right broker in Malaysia can be a tough decision.

If you’re looking for the very best trading platform in Malaysia, we recommend using eToro. With a huge range of tradable assets, low fees and an array of fantastic features, this market-leading broker delivers a premier trading experience that is hard to beat.

Sound interesting? In this eToro Malaysia review, we’ll take a closer look at everything this broker brings to the table for Malaysian traders.

    eToro: Best Malaysia Trading Platform 2020

    Our Rating

    eToro Malaysia
    • Huge range of tradable assets
    • 0% commission
    • Social and copy trading
    • Highly regulated
    eToro Malaysia
    75% of retail investor accounts lose money when trading CFDs with this provider.

    What is eToro?

    Founded in Israel in 2006, eToro is one of the world’s biggest online trading platforms and is well-known for pioneering social trading. It is regulated by various top-tier authorities such as the Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC) and Cyprus Securities Exchange Commission (CySEC).

    eToro uses a proprietary platform that is updated regularly. You can access the platform directly on your web browser to get access to technical charts, asset information, and other trading tools. It also offers a user-friendly mobile trading platform that is available on the Apple store and Google play.

    To create an account, you just need to fill out the registration form or use your Google and Facebook accounts. The minimum initial amount is only MYR 859.50 ($200). The platform allows you to make deposits through numerous payment methods such as credit/debit cards, PayPal, Neteller, WebMoney, Skrill and wire transfer.

    eToro offers one of the widest range of tradable assets available in Malaysia, with everything from cryptocurrencies and stocks to forex and commodities. In terms of trading costs, eToro is very transparent and does not charge any commission. There is a spread, which varies depending on the assets you want to trade, butthis is very competitive in comparison to other Malaysian brokers.

    Pros and Cons of Using eToro

    Pros:

    • Wide range of financial instruments
    • Regulated by the FCA, ASIC, FinCEN and CySEC
    • Social trading platform
    • Copy trading tools
    • Comprehensive educational resources
    • Accepts PayPal
    • Mobile app

    Cons:

    • Operates in only one base currency
    • $5,000 account minimum for CopyPortfolios

    Tradable Assets on eToro

    So, what can you trade with eToro? One of the best things about this platform is that it offers an extremely wide variety of assets for trading. We’ll break this down to help you better understand what eToro gives you access to.

    • Stocks – eToro gives you access to more than 800 stocks from around the globe. You can trade shares of major US stocks like Apple, Amazon, and Tesla, or buy and sell stocks on the London, Tokyo, and Hong Kong exchanges. Importantly, eToro gives you a couple options for stock trading. You can buy stocks outright and hold them in your portfolio, which makes you eligible for dividends. You can also buy fractional shares, which comes in handy if you don’t want to invest thousands in a single share of, say, Amazon. Or, you can trade CFDs use leverage up to 5:1.
    • Cryptocurrencies – Crypto assets are becoming more and more popular and are now a preferred investment option by many Malaysian traders. On eToro, you can trade many popular cryptocurrencies such as Bitcoin, Etherium, Etherium Classic, Bitcoin Cash, Dash and Ripple. It’s one of the few brokers to allow you to both buy cryptocurrencies and trade them as CFDs, which you can do with 1:2 leverage. If you want to buy Bitcoin or other cryptocurrencies, eToro even offers a cryptocurrency wallet, available as a mobile app, in which you can securely store your coins.
    • Forex – With a wide range of currency pairs, including every major, most minors and several exotics, eToro is easily one of the best forex brokers in Malaysia. You can do your forex trading with leverage for major pairs and 1:20 for minors.
    • Commodities – eToro offers CFD trading for a number of highly liquid commodities, including gold, oil, and wheat. You can trade gold at 20:1 leverage and all other commodity trading comes with 10:1 leverage.
    • Indices – You can trade a number of major stock indices with eToro, including the NSDQ100, DJ30, SPX500 and AUS200. US and UK index CFDs trade with 20:1 leverage, while less liquid indices trade at 10:1 leverage.
    • ETFs –  eToro enables you to invest in exchange-traded funds (ETFs) and trade them as CFDs. Many of the ETFs on the platform are from US institutions, but you’ll also find some global funds with a broader diversity of stocks.

    Fees

    eToro charges some of the lowest fees around, but it’s still important to understand what these fees are and how they work to get a sense for how much trading with eToro will cost.

    Trading Fees

    Trading fees are the charges incurred by placing a trade on any of the assets available on the eToro platform. Importantly, eToro doesn’t charge any trade commissions, so you don’t pay a flat fee when buying and selling assets on the platform.

    Instead of commission, eToro charges a spread. This is the difference between the price you can buy an asset at and the price you can sell it for at the same time. Luckily, spreads on eToro are low  and very competitive with the spreads most other brokers charge for the same trades. The spread varies depending on the asset; for example, spreads start at 0.03% (3 pips) for forex trading and 0.75% for Bitcoin trading.

    If you trade with leverage on eToro, you can also be charged interest for holding positions overnight. That’s because you’re essentially taking out a loan from the broker when trading with leverage. These interest charges are similarly in line with what most other Malaysian brokers charge.

    Non-Trading Fees

    eToro charges withdrawal and inactivity fees, which aren’t associated with trading. The withdrawal fee is a flat MYR 21.50 ($5) charge per transaction before any conversion fees.

    The inactivity fee is charged if you don’t place a trade with eToro for a period of 12 months or more. This fee is MYR 43 ($10) per month and can be avoided by placing one trade per year. While many brokers charge inactivity fees, eToro’s is much lower than that charged by some other platforms.

    Platform Features

    There’s a lot more to eToro than just the assets it offers. Here, we’ll highlight some of the most important features that differentiate this platform from other online brokers in Malaysia.

    Social Trading

    eToro first made its name as a pioneering social trading platform, which essentially combines traditional broker services with a social network. Every user has a social feed that is tailored to your own specific trading interests.

    You can post an update and discuss positions with other Malaysian traders and traders around the globe, and there is a tagging feature that enables you to initiate a conversation with a specific eToro user. The network also provides notifications about the markets’ volatility and changes made by the traders you copy.

    CopyTrader and CopyPortfolios

    Another feature that really makes eToro stand out is its copy trading. The CopyTrader system enables you to view top traders on the platform and automatically copy their entire portfolio and all future trades.

    This feature is free for all traders. Experienced and top-performing traders allow their trades to be copied in exchange for a commission. You can choose to copy 1 or up to 100 traders from the platform based on various factors such as geographical location, risk score, performance or assets. Once you have decided on which traders to copy, you can set aside a portion of the money in your trading account and click on the “Copy” button to begin.

    CopyTrading on eToro

    This system is designed to help traders turn a profit without spending all day following the market. However, we highly recommended that you do your own research and analysis on top of copying your chosen traders’ trading positions and strategies.

    In addition to following individual traders, you can also turn to eToro’s CopyPortfolios. These are managed by eToro itself and offer two different investing strategies. The Top Trader Portfolio is made up of the best and most experienced traders with the highest returns. The Market Portfolio bundles up the various tradable assets such as ETF, commodities and stocks into one unified trading strategy. However, you need to invest at least $5,000 (around 21,257.50 ringgit) into a CopyPortfolio.

    Free Demo Account

    eToro offers a free and unlimited demo account loaded with MYR 429,750 ($100,000) virtual currency. If you use up the $100,000 in virtual currency, you can add funds to your virtual account by opening a ticket with the customer service team and specifying how much virtual funds you need to be added.

    The demo environment enables you to simulate actual trades to help you sharpen your skills and build up different strategies before trading on the live platform. For example, you can use a demo account to try out day trading and learn the ropes before putting your money on the line.

    Charting and Trading Tools

    Charts are valuable assets to traders in that they enable you to track and analyze the historical performance of any financial instrument. eToro has a new feature called ProCharts which allows you to view multiple charts at the same time and to save custom layouts. It also enables you to perform an in-depth analysis of the markets traded by viewing several instruments at the same time or the same instrument with varying parameters. This provides you with a better perspective before placing any trade position.

    In addition, you can visualize and analyze a trader’s performance before you decide to copy their trades. This provides you with a trader’s historical performance over a specified period of time that you wish to analyze. It enables you to technically analyze a trader’s trade in a similar way as you would for any other financial instrument. Using this feature, you can also analyze and compare different traders and markets available on the platform.

    eToroX Crypto Exchange and Wallet

    eToroX crypto exchange

    The eToroX is a platform that is used to facilitate trading cryptocurrencies. You can deposit cryptocurrencies that you already own or those that you have bought on the eToro platform. Although eToroX is a separate platform, you can sign up to it through your regular eToro account.

    eToro also offers its own cryptocurrency wallet, which is available as a mobile app for iOS and Android devices. This is an excellent way to securely store, send and receive cryptocurrencies.

    Risk Management Tools

    Risk management tools in eToro

    eToro also includes several built-in features that you can manage your trading risk.

    The first of these is a stop loss. With a stop loss, you specify a price below the current price. If your asset falls to that stop loss level, eToro will automatically liquidate your position. Stop losses limit how much you can lose if a trade goes badly and are recommended to control risk with every trade no matter the asset.

    Trailing stop loss sets the stop loss order at a fixed percentage above or below the price set. This keeps moving with your price if the market price is in your favor or closes when you reach a certain point should the markets move in the opposite direction.

    A take-profit order is the opposite of a stop loss where the trade is closed once the price reaches a certain point in favor of your position. Take-profit orders can help you lock in gains when a trade goes well, but if you’re investing for the long term it may be better to let your trade run.

    A limit order is an order placed to execute automatically only when the set target is reached. If the target is not reached, no order is placed and it remains open until you close it.

    Popular Investor Program

    Professional traders with unique trading strategies allow their trades to be copied and earn a reward from this.

    To be a Popular Investor, you need a minimum of MYR 4,297.50 ($1,000) in equity, a minimum of MYR 2,149 ($500) assets under management, have traded for a minimum of 2 months and have at least 1 copier.

    There are different tiers in the Popular Investors Program. The rank from the lowest to the highest is cadet, rising star, champion and elite. A Popular Investor in the cadet rank does not earn anything and only requires one copier. A rising star investor has a minimum of 10 copiers and earns a monthly fee of MYR 2149 ($500).

    A champion investor has MYR 21,487.50 ($5000) average equity and earns a monthly fee of MYR 4297.50 ($1,000). Elite investors have minimum average equity of MYR 85,950 ($20,000) and earn a monthly fee of MYR 4297.50 ($1,000) aside from the  2% commission on total assets they have under management.

    Research and Education

    Research and Education at eToro

    eToro has a collection of research papers conducted by their senior market analysts that can provide you with in-depth market analysis. All of these research papers are available for free on the eToro website.

    In addition, eToro has an online trading school that caters to both beginners as well as experienced traders. Here, you can find free webinars, video tutorials, podcasts and blogs regarding market cycles, risk and money management, and new trading strategies that you can try.

    Payment Methods and Banking

    eToro accepts a wide variety of payment methods for funding your account in Malaysia. The easiest way to get started quickly is to fund your account using a debit or credit card. The funds are immediately available for trading.

    You can also deposit money by electronic bank transfer or by using a digital wallet such as Neteller, Skrill, or PayPal. eToro accepts wire transfers, but note that there is a fee for this method of payment and funds may take up to one week to appear in your account.

    Importantly, eToro only operates in US dollars across the platform. If you deposit money in another supported currency, including ringgit, it will be exchanged for dollars at the current exchange rate. eToro will also assess a spread of 50 pips (which is significantly higher than the trading spread) for the conversion.

    As a new user, the minimum deposit you must make is MYR 859.50 ($200). Subsequent deposits require a minimum of MYR 215 ($50). You can deposit up to a maximum of MYR 42975 ($10,000) per day in your trading account.

    Withdrawals incur a fee of MYR 21.50 ($5). You have to submit a withdrawal request before the withdrawal process can begin. Once your withdrawal request has been approved, you’ll receive an email stating that you can now withdraw your funds.

    Desktop Platform

    Trading on eToro takes place on its own proprietary platform, and safe to say it’s one of the most impressive we’ve seen. The platform is very well designed and organized, making it both visually appealing and easy to use.

    When you log in, you’ll see your watch list in the middle of the screen with all the assets you’re interested in. On the left side of the platform, there are links for trade markets, copy trading, depositing and so on.

    Clicking on the trade markets link takes you to a new screen where you can browse market movers and choose your preferred asset class. When you click on the asset class and then select a particular instrument, you’ll be taken to a new screen where you can see stats, a price chart and a feed with posts from fellow traders.

    All in all, eToro’s desktop platform is without doubt one of the best around.

    Mobile Trading

    eToro has a highly intuitive mobile app for iOS and Android devices that you can use to trade on the go. Just like the website, it’s brilliantly designed and laid out, so it’s provides a simple way to trade on your mobile.

    You can access all the broker’s features on the app, including the charts, real-time price data, the social trading network and the copy trading tools. There’s also a mobile app for the eToro cryptocurrency wallet.

    Regulation

    Since eToro is a securities trading platform, it is regulated by the Securities Commission of Malaysia (SCM). Other regulatory bodies that regulate online trading include the Malaysian Investment Development Authority (MIDA), the Sharia Advisory Council and the Finance Accreditation Agency.

    Outside of Malaysia, eToro is licensed and regulated by top-tier regulators such as the Cyprus Securities and Exchange Commission (Cysec), Financial Conduct Authority (FCA), Financial Crimes Enforcement Network (FinCEN) and Australian Securities and Investments Commission (ASIC).

    Since it is a well-regulated platform, you can be sure that your funds are kept secure in a segregated account. Also, all transactions are recorded using the Secure Socket Layer (SSL) technology. This guarantees that your personal information will always be safe.

    Customer Support

    For general inquiries, you can post on the @CustomerService Wall section of eToro where a customer representative or someone from the eToro community will be able to assist you in resolving your issue or answering your questions.

    For specific issues, you can open a ticket. You need to be logged in to your account for this option. Due to the large volume of requests eToro receives, it may take 24 hours or more before you receive a reply.

    For urgent queries, you can log in and have a live chat with a customer service representative. You can also use the help center to obtain quick answers to your queries. Here, queries are classified into various categories for easy accessibility and there’s a search tool to help you find the information you need.

    Getting Started with eToro in Malaysia

    Let’s walk through the process for creating a standard trading account and placing your first trade on eToro.

    Step 1: Open an Account

     

    Step2: Complete the application form.

    To sign up to eToro, you need to provide your personal details, including your full name, a username, your preferred email address, a password and a working phone number. Make sure to read eToro’s terms and conditions as well as the privacy policy. Acknowledge your acceptance of these policies by clicking on the respective checkboxes.

    Complete the process by clicking on the “Submit” button. An email with an account verification link will be sent to your registered email address to activate your account. Alternatively, you can sign up using your Facebook or Google account to speed up the process.

    Step 2: Verify Your Identity

    Verify your identity with eToro by uploading documents

    To comply with regulations, eToro requires that you verify your identify and address. To provide proof of your identity, upload a copy of your passport or driver’s license. For proof of address, upload a copy of your bank statement or utility bill that is less than six months old.

    Step 3: Deposit Funds

    Deposit funds into your eToro account.

    The minimum amount that Malaysian traders can deposit when signing up for eToro is MYR 859.50 ($200). Malaysian traders have the following options to deposit funds into their eToro account:

    • Wire transfer – Minimum first deposit is MYR 859.50 ($200), subsequent deposits should be at least MYR 2148.75 ($500)
    • Credit/debit card – Minimum first deposit is MYR 859.50 ($200), subsequent deposits should be at least MYR 215 ($50)
    • e-wallets such as Paypal, Neteller, and Skrill – Minimum first deposit MYR 859.50 ($200), subsequent deposits should be at least MYR 215 ($50)
    • Electronic bank transfer – Minimum first deposit MYR 859.50 ($200), subsequent deposits should be at least MYR 215 ($50)

    Step 4: Trade

    Choose an asset to trade on eToro

    Once you can see the funds in your account, you are able to start trading on the various trading markets available on eToro. To place a trade, choose which asset you want to buy or sell and click “Trade” to be taken to an order form.

    Enter how much money you would like to commit to your trade, enter a stop loss or take-profit level, and click “Trade” to open your position.

    As a new trader, you can also copy trades of successful traders using the “Copy People” feature. This helps you find highly skilled and profitable traders that match your interest and investment needs. Make sure that you also do your research as well as to avoid significant losses.

    Conclusion

    eToro is one of the most popular brokers in Malaysia, and for good reason. This broker offers Malaysian traders access to thousands of financial assets, has some of the lowest fees around, and offers a wide range of fantastic trading tools. This means eToro offers just about everything you could ask for in a trading platform.

    Want to use eToro for your trading endeavors? Simply click on the link below to sign up and get started today.

    eToro: Best Malaysia Trading Platform 2020

    Our Rating

    eToro Malaysia
    • Huge range of tradable assets
    • 0% commission
    • Social and copy trading
    • Highly regulated
    eToro Malaysia
    75% of retail investor accounts lose money when trading CFDs with this provider.

    FAQs

    Is it safe to trade on eToro?

    Yes. eToro is regulated by several top-tier regulators in the world so you can be assured that your funds and personal information are always safe when trading on eToro.

    What is social trading on the eToro platform?

    Social trading on eToro enables you to copy another trader’s trade and strategies in real-time. You can also copy portfolios either from traders.

    What is the Popular Investor program on eToro?

    The Popular Investor program enables you to earn an extra income on the platform by allowing other traders to copy your trades and strategies. You earn a fixed income per month and up to a maximum of 2% of your annual assets under management.

    How do you open an eToro account?

    It is easy and fast to open an eToro account. Visit the official website, click on the “Sign up” button and fill in your details. You’ll then need to verify your account by uploading your passport and a valid utility bill.

    How do I deposit or withdraw funds on my eToro account?

    You can easily deposit or withdraw funds from your eToro account using local debit/credit cards, wire transfer, eWallets such as Skrill, Paypal and Neteller as well as local bank transfer from your Malaysian account. The minimum first deposit is MYR 859.50 ($200) and the minimum withdrawal amount is MYR 129 ($30).

    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    Michael Graw

    Michael is a writer covering finance, new markets, and business services in the US and UK. His work has been published in leading online outlets and magazines.