eToro Tax UK for 2020

We found 11 online brokers that are appropriate for Trading UK Tax Compliance.

eToro Tax UK Guide

eToro Tax UK

eToro is one of the most popular online brokerages in the world. It is renowned as one of the best brokers for cryptocurrency trading and social trading.

eToro reviews are also quoted as an excellent broker for trading the financial markets.

The online broker eToro was launched in 2007, and has since grown into a major player in financial markets around the world. The broker is based in Cyprus, but has offices in the UK, USA and Australia.

It thus provides reassurance through an international presence and solid regulation by CySEC for European traders, but also by the FCA in the UK and ASIC in Australia.

In this article, we will discuss the features of eToro trading in detail and eToro tax in the UK.

How eToro works?

The eToro platform has grown dramatically since its launch, adding more and more advanced tools that have attracted millions of users.

Today with the cutting edge of technology, eToro trading has become very secure and user-friendly.

eToro has focused on facilitating online trading for beginners, in particular with a very easy to use eToro platform and tools such as CopyTrader and CopyPortfolios, advanced social trading offers, which make eToro an excellent choice to start trading.

It is the world's leading social trading network (eToro CopyTrading) with several million registered users. The eToro online broker is suitable for all profiles of traders.

It is particularly a good choice for novice traders. With the ease of use and user-friendly help novice traders understand trading and begin safely in a virtual eToro trading account.

eToro Copy Trading offerings additionally allow novice traders to copy the investments of top eToro traders. It is also a good way to begin and learn trading by copying experienced traders and avoiding beginner mistakes.

The eToro Tax Burden

The profits are generally not taxable, but traders do need to remember the position HMRC takes.

eToro provide agreements for distinction (CFDs). These are controlled by the FCA (Financial Conduct Authority), thus the UK and NI purchasers obtain a solid degree of assurance once exchanging at eToro.

eToro (UK) Ltd speaks to the UK’s primarily based arm of the organization and are listed at Corporation’s House. Being directed by the FCA guarantees the UK and NI customers approach official channels for debates.

Retail traders can raise issues with the regulatory bodies, If eToro ceases to function in any capacity.

Client security is excellent and means that the UK and NI capital specialists will utilize the Company with outright certainty.

The eToro platform is accessible by traders 24/7, however specific resources can only be traded if the financial market is open for trading. Stocks recorded on the London securities market are accessible throughout UK stock exchange hours.

Outside of the exchanges hours, it's conceivable to open 'orders' which can be held until the market is again available.

Etoro Sign-up: Keep your own records

If you decide to trade and invest through the brokerage firm eToro, within 30 minutes you will hold an account and can begin investing if you follow the following steps:

You can then top up your account with the amount that you wish to invest in. Congratulations, you now have an account with eToro. You can start your investment immediately by clicking on the commercial markets link and choose the type of investment you require.

eToro differs from the remainder of the brokerage firms and prefers to provide assistance to help its members in their investment work, For this the company adopts several different methods of making deposits and withdrawals and among these methods are the following:

eToro platform experience

The integrated search is predictive and easy to use. Just type in the name of a company and you can find it quickly, then you can view the information regarding your enquiry or open a trading position. You could also add this to you favorites so you could access searches quickly and easily.

The eToro platform also allows you to easily track your portfolio in real-time.

EToro's mobile platform is well designed and intuitive, making it easy to use even for a beginner.

The eToro trading app is available for free for iOS and Android. It is also the best social trading app, with the eToro CopyTrader offering, which allows copying top traders at eToro.

Boosting your earnings

Mostly eToro does not provide offers or rewards on accounts, due to the restrictions and obstacles set by the law, but the investor can benefit from the offer to become a VIP, through which he enjoys many discounts of up to 100% on spread and up to 2% on expenses in the UK.

Do note that a cash purchase of physical stocks and ETFs incurs 0% commission.

However, trading CFDs for leverage or short selling stocks and ETFs incurs a commission of 0.09%.

Added to this is the spreads which can vary according to the markets

EToro has been involved in providing the best trading platforms by following the latest technologies on the Internet, to facilitate for its members to enter profitable trading deals. These platforms are considered social trading sites, as the company encourages its clients to social networking and exchange experiences, skills, and information between each other These platforms are discussed below:

The eToro mobile trading platform is one of the latest global platforms, as it is compatible with all mobile devices through the HTML5 online application. This platform holds the patented CopyTrader technology to automatically print their trades.

The WebTrader eToro platform, a platform with extensive technology, has an excellent display, and has the ability to trade from anywhere in the world.

The eToro OpenBook platform, this platform gives the trader the ability to communicate with other traders to benefit from their information and experience, it also has a distinct interface and a large display screen to provide clients with all the information necessary to carry out their investment operations.

eToro and UK Tax Our verdict

Forex, CFD, Stocks, Commodities and Cryptocurrency trading all have different UK tax implications.

Consult a UK tax professional to confirm but HRMC is more interested in how you traded rather than what you traded.

HMRC may consider you a speculator gambler or investor.

A speculator gambler has no consistant process or frequency of trades. If HRMC considers you a professional trader you may be liable for some tax in the UK.

A professional trader treats trading as a business. If it is your main source of income you may be liable for income tax, corporation tax or even gapital gains tax.

eToro trading Corportion tax

Corporation tax in the UK is 19%. If you are a professional trader you can trade through your own limited UK company.

eToro Income tax in the UK

Depending on the amount of profit you generate through your eToro trades, the income tax you will have to pay will range from 0% to 45%.

eToro and UK Capital Gains Tax

If you buy an asset on the eToro platform for £2000 and later sell the asset for £8000. This would mean that you would have to pay tax on the gain of £6000. There is a tax free allowance that means you are tax free upto £12,300.

How much capital gains tax you pay will depend of if your are a basic rate or high or additional rate tax payer.

Capital gains tax rates on financial assets for 2020/2021 range from 10% to 20%.

eToro provides many advanced accounts and platforms, in addition to provding new clients the opportunity to train through them.

In addition to the above, eToro trading-related fees like spreads and swaps, the broker may also take a few other account-related fees.

EToro is considered one of the best brokerage firms, although it is newly established. It was able to occupy an advanced place among the brokerage firms and has received many awards and recognition for its efforts.

Opening an account and making deposits with eToro is completely free, regardless of the payment method chosen. However, withdrawals are subject to a fixed fee of £5 per withdrawal.

Accessing the Platinum Club eToro membership level (balance £25,000) eliminates withdrawal fees.

Inactivity fees may also be applied to inactive accounts.

eToro is regulated by the financial authorities of the European Union and the United Kingdom (FCA), Cyprus (CySEC), and Australia (ASIC) and during the year 2019 it was licensed and opened licensed offices in the USA (FinCEN).

This means that you are protected by these authorities in the event of any problem that conflicts with the regulations.

More eToro Guides and Research

If you are researching eToro make sure to read through the below eToro related guides. You will find something useful.

We've collected thousands of datapoints and written a guide to help you find the best eToro Tax UK for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best UK tax compliance below. You can go straight to the broker list here.

Reputable eToro Tax UK Checklist

There are a number of important factors to consider when picking an online UK Tax Compliance trading brokerage.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering UK Tax Compliance.

We compare these features to make it easier for you to make a more informed choice.

Top 15 UK Tax Compliance of 2020 compared

Here are the top UK Tax Compliance.

Compare UK Tax Compliance min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are UK tax compliance. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more UK tax compliance that accept UK tax compliance clients

Broker eToro IC Markets Pepperstone FXPrimus Axitrader Swissquote AvaTrade forexmart phoenixmarkets ezinvest ETX Capital
Rating
Regulation Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Dubai Financial Services Authority (DFSA) Financial Conduct Authority (FCA) Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI) Cyprus Securities and Exchange Commission (CySEC) Cyprus Securities and Exchange Commission (CySEC) Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA)
Min Deposit 200 200 200 100 No minimum deposit 1000 250 1 500 500 100
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 12,000,000+ 60,000+ 10,000+ 10,000+ 10,000+ 300,000+ 200,000+ 10,000+ 10,000+ 10,000+ 10,000+
Benefits
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Offers STP
  • Allows scalping
  • Offers STP
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
Accounts
  • Demo account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • Raw Spread account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • ECN account
  • Managed account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
Spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
Platforms Web Trader, Tablet & Mobile apps MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, Mac, ZuluTrade, Web Trader, Tablet & Mobile apps MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps MT4,WEB,desktop MT4,mac,Android.iPhone/iPad MT4,mac,Android.iPhone/iPad MT4, Mac, Mirror Trader, Binary, Tablet & Mobile apps
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
etoro
Sign Up with
icmarkets
Sign Up with
pepperstone
Sign Up with
fxprimus
Sign Up with
axitrader
Sign Up with
swissquote
Sign Up with
avatrade
Sign Up with
forexmart
Sign Up with
phoenixmarkets
Sign Up with
ezinvest
Sign Up with
etxcapital
Risk Warning 71% of retail investor accounts lose money when trading CFDs with this provider. Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money Losses can exceed deposits Losses can exceed deposits Losses can exceed deposits 79% of retail investor accounts lose money when trading CFDs with this provider Your capital is at risk Your capital is at risk Your capital is at risk Losses can exceed deposits
Demo eToro
Demo
IC Markets
Demo
Pepperstone
Demo
FXPrimus
Demo
Axitrader
Demo
Swissquote
Demo
AvaTrade
Demo
ForexMart
Demo
Phoenix Markets
Demo
EZINVEST
Demo
ETX Capital
Demo
Excluded Countries IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA BR, KR, IR, IQ, SY, JP, US AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. US, JP US BE, BR, KP, NZ, TR, US, CA, SG BE, CA, IR, JP, KP, US, BA, ET, IQ, UG, VU, YE, AF, LA, TR, SY, IL BE, CA, IR, JP, KP, US, BA, ET, IQ, UG, VU, YE, AF, LA, TR, SY, IL US, BE, CA , SG, BE

All UK tax compliance in more detail

You can compare UK Tax Compliance ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.

We also have an indepth Top UK Tax Compliance for 2020 article further below. You can see it now by clicking here

We have listed top UK tax compliance below.

eToro Tax UK List

eToro
(4/5)
Min deposit : 200
eToro was established in 2006 and is used by over 12000000+ traders. 71% of retail investor accounts lose money when trading CFDs with this provider. eToro offers Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency, Index Based Funds, Exchange Traded Funds (ETF)

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC)
IC Markets
(4/5)
Min deposit : 200
IC Markets was established in 2007 and is used by over 60000+ traders. Losses can exceed deposits IC Markets offers Forex, CFDs, Spread Betting, Share dealing, Cryptocurrencies

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC)
Pepperstone
(4/5)
Min deposit : 200
Pepperstone was established in 2010 and is used by over 10000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money Pepperstone offers Forex, CFDs, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217
FXPrimus
(4/5)
Min deposit : 100
FXPrimus was established in 2009 and is used by over 10000+ traders. Losses can exceed deposits FXPrimus offers Forex, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID)
Axitrader
(3/5)
Min deposit : 0
Axitrader was established in 2007 and is used by over 10000+ traders. Losses can exceed deposits Axitrader offers Forex, CFDs, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Dubai Financial Services Authority (DFSA)
Swissquote
(3/5)
Min deposit : 1000
Swissquote was established in 1999 and is used by over 300000+ traders. Losses can exceed deposits Swissquote offers Forex, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)
AvaTrade
(3/5)
Min deposit : 250
AvaTrade was established in 2006 and is used by over 200000+ traders. 79% of retail investor accounts lose money when trading CFDs with this provider AvaTrade offers Forex, CFDs, Spread Betting, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI)
forexmart
(3/5)
Min deposit : 1
ForexMart was established in 2015 and is used by over 10000+ traders. Your capital is at risk ForexMart offers Forex trading, CFD trading, Social trading, Share Dealing, Crypocurrency trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,WEB,desktop

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
phoenixmarkets
(3/5)
Min deposit : 500
Phoenix Markets was established in 2013 and is used by over 10000+ traders. Your capital is at risk Phoenix Markets offers Forex trading, CFD trading, Spread Betting, Social trading, Share Dealing

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,mac,Android.iPhone/iPad

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
ezinvest
(3/5)
Min deposit : 500
EZINVEST was established in 2008 and is used by over 10000+ traders. Your capital is at risk EZINVEST offers Forex trading, CFD trading, Spread Betting, Social trading, Share Dealing

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,mac,Android.iPhone/iPad

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
ETX Capital
(3/5)
Min deposit : 100
ETX Capital was established in 2002 and is used by over 10000+ traders. Losses can exceed deposits ETX Capital offers Forex, CFDs, Spread Betting

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, Binary, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)