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eToro

eToro Review

Registered in Cyprus, UK, US, and Australia, eToro is a multi-asset platform that lets users trade in traditional stocks and shares as well as in major cryptocurrencies. In contrast to other crypto trading services, it offers a social trading feature, which means that users can simply mirror the trading strategies of the other investors. This makes the service ideal for beginner traders who perhaps don’t quite trust their own judgment yet, as does its simple interface and training mode. However, users should watch out for occasionally high spread fees and overnight fees (applicable to leveraged trades), which can often mean that they end up paying more than they might with other crypto-related services.

General info

  • Web address: eToro
  • Support contact: Link
  • Main location: Limassol, Cyprus
  • Daily volume: ? BTC
  • Mobile app available: Yes
  • Is decentralized: No
  • Parent Company: eToro Group Limited
  • Transfer types: Bank Transfer, Credit Card, Debit Card, Crypto Transfer
  • Supported fiat: USD
  • Supported pairs: 16
  • Has token: -
  • Fees: High (Compare rates)
Open Account 75% of retail CFD accounts lose money.

Pros

  • Easy to use
  • Excellent social trading feature
  • Helpful ‘virtual account’ training feature
  • Regulated platform

Cons

  • Somewhat higher fees for leveraged trades
  • Withdrawals don't work for all cryptocurrencies
  • Not an exchange, so there's no buyer/seller marketplace

Screenshots

Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75 % 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.

The information below is not investment advice.

eToro key features

eToro is an ideal social trading and multi-asset platform for investors who are new to the investment world. The platform has been pioneering online investment space since 2006 and has earned its reputation as a credible broker. eToro platform is an excellent option if you're interested in cryptocurrency or traditional assets like stocks, commodities or ETFs, and operates as a one-stop-shop for all these products.

etoro review homepage
Disclaimer: Indicative prices for illustration purposes.

Advanced traders may benefit from eToro margin trading, which is not the cheapest option out there yet allows you to access a myriad of trading instruments with leverage. Less experienced traders can benefit from eToro social trading where you can follow and copy seasoned investors, their research, and insights.

The key features of eToro include:

eToro social trading. eToro offers a unique social trading experience, which makes it the best social platform for traders. You can follow, copy, interact with your favorite traders, and create a custom news feed to keep tabs on your preferred assets and their news.
Best platform for learning. Plenty of educational materials, including a virtual portfolio for training.
A vast range of assets. Aside from 16 cryptocurrencies, you can also learn and trade in traditional markets like stocks, bonds, forex, ETFs, commodities, and other markets.
Excellent customer support. If there’s an issue, you can reach eToro’s team via phone, live chat, and support ticket. Besides, the platform is translated into more than 20 languages. The customer service is available Monday to Friday 24 hours per day.
Mobile trading apps. eToro is easily accessible on the go so that you can make trades from your Android or iOS powered phone.

eToro trading instruments include:

  • 47 currency pairs (including EUR, USD, CAD, GBP, AUD, PLN, SGD, SEK, JPY, and many others).
  • 13 stock index CFDs (SPX 500, UK100, NSDQ100, China50, AUS200 and others).
  • Over 1300 stock CFDs.
  • 83 commodity CFDs (including oil, gold, silver, copper, natural gas and platinum).
  • 16 cryptocurrencies (BTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA, EOS, NEO, XLM, IOTA, TRX, ZEC, BNB. XTZ).

Disclaimer: Cryptocurrencies are a highly volatile unregulated investment product. No EU investor protection.

Sign up on eToro75 % of retail investor accounts lose money when trading CFDs.

In this eToro review, we focus on its fees, usability, security, deposit and withdrawal methods, and the company's background.

eToro background

Founded in 2006, eToro has a history stretching further back than Bitcoin and crypto. It started its life as an online foreign exchange brokerage. In 2010, it launched its famed copy-trading feature, which enables users to copy the investment strategies of successful traders.

It made its first move into crypto in January 2014, when it began offering Bitcoin trading to the three million users it boasted at the time. At the time, these were contracts for difference (CFD) trades, which meant that the trader didn't purchase the underlying asset (e.g., bitcoin). Instead, it constituted an agreement that he or she will either pay the difference if the asset drops in price, or will receive the difference if it rises. However, eToro switched to offering direct trades in crypto in September 2018, so now you actually own and can withdraw the cryptocurrencies you buy into eToro wallet. Since March 2019, eToro is finally open to the US residents.

eToro team
eToro's core team. Source: eToro.com

Today eToro boasts over ten million users, with its growth primarily driven by the crypto boom. And for a platform of its size, its interface is streamlined and straightforward to use, while its mobile app makes managing your portfolio on the go painlessly convenient.

eToro fees

Compared to ‘standard’ crypto platforms (e.g. Coinbase, Kraken, Binance), eToro’s fee structure is a little different, and slightly complicated.

Since eToro is a brokerage service and not an exchange, it doesn’t charge trading fees the way regular crypto exchanges do. However, you’ll pay something called “spread fees” when selling crypto, and when buying crypto using leverage (i.e., when borrowing from the platform to make a purchase). In other words, if you want to sell (or margin trade) a cryptocurrency, you have to pay a percentage of the sale price. This percentage derives from the ‘spread’ of the asset and constitutes the difference between its ‘buy’ price and its ‘sell’ price.

For example, if you sell one bitcoin at a market price of USD 7,000, you’ll also have to pay 0.75% of the value of this one bitcoin (0.75% being the current BTC spread value at the time of writing). Assuming that 1 BTC equals USD 7,000, you’ll have to pay USD 52.50.

And for any advanced trader taking out a leveraged position on a cryptocurrency, eToro also charges ‘overnight fees,’ which are often referred to as ‘rollover fees’ on other crypto trading platforms. Because the trader is borrowing money from eToro to hold a trading position, eToro essentially charges them interest.

Spread and overnight fees at eToro

Let's review the spread and overnight fees for some of the most popular cryptocurrencies currently listed on eToro:

CryptocurrencyeToro Spread FeeeToro Overnight Fee (per unit)
Bitcoin0.75%4.377224
Bitcoin Cash1.9%0.161194
Ethereum1.9%0.117836
XRP2.45%0.000158
Cardano2.9%0.000033
EOS2.9%0.002339
Dash2.9%0.062788
Binance Coin2.45%0.013034
TRON3.5%0.000013

As indicated by the table above, overnight fees for BTC are pretty steep. By contrast, traditional crypto platforms are cheaper. For instance, Kraken charges 0.01% every four hours when holding leveraged BTC/EUR or BTC/USD trades. So, if someone has a trade worth 1 BTC on Kraken, they’ll have to pay around 0.00056 BTC if they hold onto this position for 24 hours, whereas an eToro customer would pay approx. 0.0075 BTC.

Similarly, the spread fees generally mean that trading buying or selling crypto on eToro is more expensive than trading on other platforms. For example, Binance and Bitstamp each charge 0.1% for every trade a user makes, which compared to eToro’s spread fee of 0.75% for BTC is noticeably cheaper.

And lastly, eToro also charges withdrawal fees and inactivity fees. The withdrawal fee is a flat USD 25, with users being allowed to withdraw amounts of USD 50 and above. Meanwhile, the inactivity fee is $10 per month. It is charged to every user whose account hasn’t been active for 4 or 12 months, depending on whether they have made a deposit.

Note that eToro adjusts its fees according to the market conditions, so by the time you read this review, they may already be different.

etoro TRADING REVIEW
eToro charts. Disclaimer: Indicative prices; current market price is shown on the eToro trading platform.
Visit eToro75 % of retail investor accounts lose money when trading CFDs.

Security of the platform

If you were to review eToro's website and platform, you would find that eToro has experienced no significant scandals in the past. Nevertheless, security isn’t eToro’s major selling point. It is mostly because, up until 2017, cryptocurrencies weren’t directly traded and transferred using the eToro platform. Instead, users held a contract for difference (CFD), meaning that they agreed to either pay or receive the difference if the price of a coin sunk or rose.

In other words, eToro didn’t hold any crypto that was owned by its customers. There was no need for it to use the kinds of security measures deployed at competing crypto platforms, such as cold wallets and multi-sig verification.

Today, it does offer direct cryptocurrency , but the website doesn’t specify what crypto security measures it takes to protect customers' assets. Mind that eToro wallet keeps your private key, so you have to trust the platform to keep your funds secure. That said, it does hold its customers' holdings separate from its bank accounts. Also, eToro deals only with major, internationally recognized financial institutions, such as Barclays Banks and Coutts. Besides, eToro is one of the most secure platforms in terms of its general compliance with financial regulation, being regulated by CySEC in Europe, FinCEN in the US, and the FCA in the UK.

Go to eToro75 % of retail investor accounts lose money when trading CFDs.

eToro usability

etoro usability review
eToro social trading. Disclaimer: Indicative prices; current market price is shown on the eToro trading platform.

While eToro offers a couple of essential features that make it highly suitable for starting and novice traders. It provides a Virtual Portfolio, which is a ‘demo mode’ that lets users trade without staking any real money. Using this mode, you can buy as much ‘virtual’ bitcoin, dash or XRP as you like and watch how each cryptocurrency performs.

eToro’s use of copy trading is excellent for traders who don’t feel confident in their ability to consistently select winners. With the CopyTrader system, eToro lets you copy the best-performing traders in a variety of asset markets (e.g., commodities, stocks, ETFs, and crypto). You choose how much to invest, and then it mirrors every action the trader takes. Besides, users can make adjustments here and there (such as copying only new trades rather than all open positions).

The layout of eToro’s platform is user-friendly and easy to navigate. The user has a control panel on the left-hand side of the screen. The right-hand side shows all the charts, data, and profiles you’ll need to make your investment choices. Likewise, eToro's mobile apps allow you to do pretty much everything you can do on the desktop version of the platform. The ability to receive notifications on the go means you’ll be able to stay on top of your trades regardless of where you are. The apps are available for both Android and iOS devices.

eToro social trading

eToro review social trading
eToro social trading feature. Dislcaimer: Indicative prices; current market price is shown on the eToro trading platform.

eToro's copy trading enables you to copy the actions of traders of your choosing. It is like having seasoned traders from all over the globe trade on your behalf. You can follow specific traders in the social feed, monitor their actions in real-time, and opt-in to copy everything they do.

As such, eToro is the social media platform of traders which bridges the gap between you, your favorite traders, and favorite markets.

Disclaimer: Past performance does not guarantee future results. Trading history presented is less than 5 years and may not suffice as basis for investment decision.

eToro deposit and withdrawal methods

At the moment, eToro users can deposit only fiat currency into their eToro account, unless you transfer cryptocurrency directly to the eToro wallet. Besides that, you can use your credit/debit cards and a variety of other options, such as wire transfer and PayPal. All fiat funds held by eToro are actually in the US dollars, so if you deposit EUR or GBP into your account eToro will convert it to USD. As such, you will incur you a conversion fee.

Withdrawals work in much the same way, with credit/debit card, bank transfer, and PayPal options all available. However, there is a flat fee of USD 25 for every withdrawal, so make sure to plan your withdrawals to avoid extra costs. The eToro crypto wallet also allows the platform users to hold and withdraw cryptocurrencies it supports.

etoro withdrawal methods
eToro withdrawal methods.

Final thoughts

eToro is a unique social investment platform with a diverse variety of investment products. Although it comes at a higher cost compared with regular crypto trading services, the benefits outweigh the costs as eToro offers significantly more. Overall, eToro is an excellent place to start learning about the online investment world, diversify your portfolio, connect with other investors, and build a career as a wholesome trader.

Visit eToro75 % of retail investor accounts lose money when trading CFDs.

Frequently asked questions (FAQ)

Where is eToro based?

eToro has offices in London, United Kingdom, Sydney, Australia, New Jersey, USA, Israel, and Limassol, Cyprus.

In which countries eToro is legal?

eToro is accessible in most countries in the world. Due to the challenges and legal regulations, eToro is not available in the following countries: Afghanistan, Albania, Belarus, Bosnia and Herzegovina, Botswana, Brunei, Burundi, Canada, Chad, Congo Republic, Crimea, Cuba, Ethiopia, Guyana, Guinea & Guinea-Bissau, Iran, Japan, Laos, Libya, Mali, Myanmar, Namibia, Nicaragua, North Korea, Palau, Samoa, Serbia, Somalia, Sudan, Syria, Turkey, Uganda, and Yemen.

Due to regulatory reasons, eToro is also unavailable for the US citizens who reside outside of the US.

Is eToro regulated?

Yes. eToro is regulated by the Financial Conduct Authority (FCA) in the United Kingdom, Cyprus Securities and Exchange Commission (CySEC) in Cyprus, and the Australian Securities and Investments Commission in Australia.

Is eToro trustworthy?

eToro is one of the most trustworthy platforms out there. It has been operating since 2006, have a good track record, cooperate with the law, and is regulated by FCA (United Kingdom), CySEC (Cyprus), and ASIC (Australia).

How does eToro make money?

Like most platforms, eToro earns when users pay fees. The most common source of income spreads, but there are also overnight fees, currency fluctuations, exchange rates, and leveraged trading.

What happens if eToro goes bust?
Leaving your funds on eToro introduces additional counterparty risk. Despite that, eToro is a member of the Investor Compensation Fund for Customers of Cypriot Investment Firms which compensates the clients of bankrupt forex brokers. Nonetheless, the maximum payout is 20,000 EUR per client, so if it goes bankrupt, you could lose at least some of your funds without a refund.

Does eToro pay dividends?
eToro is one of a few brokers that does pay its brokers dividends. You reap all the dividends multiplied by leverage, as stated in the dividend calendar. They will show up under the “Refunds” section and will be used to pay for the platform’s accrued fees. If the net difference between the “Refund” amount and fees is positive, you will be credited the difference when the trade is closed.

Does eToro have fees?
eToro does not charge any deposit or trading fees except for spreads. There is also a $25 withdrawal fee and extra overnight and weekend fees for CFD positions. The size of the fee varies per traded instrument.

What is the minimum deposit for eToro?
The minimum deposit on eToro is $200.

How do I invest in eToro?
After you open an account on eToro and make the first deposit, you can invest in various CFDs and cryptocurrencies with a simple few clicks. Alternatively, you can copy other traders moves and invest together with them.

How do I deposit in eToro account?
eToro supports many deposit methods, including credit and debit cards, wire transfers, PayPal, Skrill, Neteller, Webmoney, and UnionPay.

How do I withdraw money from eToro?

eToro allows you to withdraw money through the same methods used for making deposits. These include wire transfers, credit and debit cards, e-wallets, and cryptocurrency transfers from eToro wallet to external wallet. The process takes approximately 24 hours.

Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as
well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing
money rapidly due to leverage. 75% 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.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short
timeframe and therefore are not appropriate for all investors. Other than via CFDs,
trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory
framework.
space

Summary

  • Web address: eToro
  • Support contact: Link
  • Main location: Limassol, Cyprus
  • Daily volume: ? BTC
  • Mobile app available: Yes
  • Is decentralized: No
  • Parent Company: eToro Group Limited
  • Transfer types: Bank Transfer, Credit Card, Debit Card, Crypto Transfer
  • Supported fiat: USD
  • Supported pairs: 16
  • Has token: -
  • Fees: High (Compare rates)
Open Account 75% of retail CFD accounts lose money.