Opening an account on a trading platform takes less than ten minutes. Choosing the right platform for investments requires more thought. eToro attracts millions of users with its simple interface and massive communication, but several features deserve careful examination before depositing money.
This article details five specific points that may pose problems for French investors on eToro, particularly those aiming for long-term investments rather than active trading.
1. Dollar conversion fees on every deposit and withdrawal
When you fund your eToro account from a French bank account, your transfer in euros is automatically converted into dollars. The platform applies currency exchange fees on every deposit and withdrawal.
Specifically, an investor who deposits euros, buys a European stock quoted in euros, and then withdraws their profits undergoes two conversions. Each conversion eats away at the invested capital. Over a horizon of several years with regular contributions, the cumulative cost becomes significant.
A French or European broker offering an account denominated in euros avoids this mechanism. Before investing, there are several reasons not to choose eToro that specifically relate to these types of fees that may not be immediately visible.
2. Spread hidden behind the “zero commission” promise on stocks
eToro’s communication highlights commission-free stock purchases. This wording deserves nuance. According to pricing analyses published in September 2026, eToro may apply a commission of $1 or $2 when opening and closing a stock position, depending on the country of residence and the exchange.
Beyond this variable commission, the platform also earns through the spread, which is the difference between the displayed buy price and sell price. This spread exists on all assets: stocks, ETFs, cryptocurrencies, commodities.
Why does this detail matter? Because a beginner investor often compares brokers solely based on displayed commissions. A wide spread can cost more than a transparent fixed commission. Traditional brokers generally display a fee per order, making comparison clearer.
3. Limited protection of 20,000 euros via the Cypriot ICF fund
For a client residing in the European Union, the contractual relationship is through eToro (Europe) Ltd, supervised by CySEC (the Cypriot authority). In the event of broker failure, the Cypriot compensation fund (ICF) covers clients up to a maximum of 20,000 euros.
This ceiling does not protect against market losses or declines in a cryptocurrency. It only applies if the broker itself goes bankrupt and cannot return your assets. This level of coverage deserves consideration by anyone thinking of placing a significant amount there.
4. Absence of PEA and French tax wrappers
eToro does not offer a Plan d’Épargne en Actions (PEA), life insurance, or PER. For a French investor, these wrappers provide significant tax advantages in the long term.
The PEA, for example, allows for tax exemption on capital gains after five years of holding (excluding social contributions). On eToro, every gain realized is subject to the common flat tax, with no optimization possible through a tax wrapper.
- PEA not available: impossible to benefit from the exemption after five years on European stocks
- No life insurance: no access to euro funds or advantageous transmission
- Complex tax declaration: income from a foreign broker requires declaring an account abroad and calculating capital gains yourself
This last point often surprises new users. Each year, you must fill out form 3916 (declaration of an account abroad) in addition to the standard declaration of gains. A French broker generally pre-fills the IFU (unique tax form), simplifying the process.
5. MiCA compliance and crypto regulatory status in France since July 2026
As of July 2, 2026, the transitional period of the European MiCA regulation has ended. A platform must now have a European MiCA authorization to offer crypto services to French clients.
This change means that it is no longer sufficient to check an old national registration (the PSAN status granted by the AMF). Compliance with the MiCA framework is now mandatory to serve clients in France.
Before buying cryptocurrencies on any platform, the verification to be done is simple: consult the whitelist published by the AMF and ensure that the provider is listed with the correct authorization. This reflex applies to eToro as well as any other market player.
- Check the regulatory status on the AMF website before any deposit
- Distinguish the old PSAN registration from the new MiCA authorization
- Monitor regular updates to the whitelist, as the regulatory landscape evolves
The choice of an investment platform is not limited to the usability of the application or the number of available assets. Actual fees, protection in case of failure, applicable taxation, and the regulatory framework are all criteria that impact the final profitability of an investment. Comparing these elements among several brokers remains the best reflex before committing your capital.
