eToro Review 2021

eToro Review 2021

Daniel Chan

October 5, 2021

Cryptocurrency

What is eToro?

eToro is a popular broker established in the UK in 2007, serving over 17 million users in ~100 countries. eToro offers US investors 30 different cryptocurrencies to trade, while non-US users can also access stocks, ETFs and CFDs (forex, commodities, indices, stocks, ETFs and crypto). What sets eToro apart from other brokers is their focus on 'social trading'; there is a social media platform where users can interact with others in the community, and even copy successful traders automatically move for move. This makes eToro a great place for new crypto investors and traders to learn.

  • Web Address: www.etoro.com
  • Minimum Deposit: $50
  • Mobile App: Yes
  • Deposit Methods: PayPal, Online Banking, Debit/Credit Card, Wire Transfer
  • Deposit Fee: Free
  • Withdrawal Fee: Free ($5 for non-US customers)
  • Products Offered: Only cryptocurrencies in the USA. Non-US residents can also access Stocks, ETFs and CFDs.
  • Cryptocurrencies: BTC, ETH, BCH, XRP, LTC, ADA & 24 more
  • Trading Fee: Included in the spreads
  • Demo Account: Yes, with $100,000 virtual money

IInvestments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

My Overall Thoughts on eToro

eToro is one of my top-rated cryptocurrency brokers for USA residents, with its easy-to-use modern interface, social trading, and copy trading functionality. These are the 3 main reasons I like using eToro for cryptocurrency trading:

1) Social trading makes eToro very different to any other crypto brokers. It gives you an instant cryptocurrency community that you can interact with and learn from. You can view, post, and comment on the latest crypto news and speculations with other eToro users. There is also a great feature called CopyTrader, where you can automatically mimic the trades of any successful investor, replicating their trading automatically in your own portfolio. Even if you are just starting out in the crypto market, you can make informed trading decisions based on the expertise and experience of others.

2) eToro's Demo account makes it easy for newcomers to learn completely risk-free. The Demo account comes with $100,000 in virtual money that you can use to practise trading, with no fear of loss from any mistakes you make. Demo accounts are not available on most cryptocurrency exchanges or brokers, making this is a really unique and useful feature.

3) 30 different cryptocurrencies are available to trade on eToro. This may not be a huge range, but it encompasses most of the popular coins that avid investors like to trade. For example, Bitcoin, Ethereum, Bitcoin Cash, Ripple, Cardano and Litecoin are all supported on eToro.

One downside is that eToro's crypto trading fees are not clear. Whereas the fee is provided as a percentage of the transaction on many crypto brokers, on eToro, their fees are included in the spreads. The spreads for each coin are different, making it hard to compare fees to competitors. 

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

Key Features & Advantages of eToro

eToro's popularity can be attributed to the great features offered on their platform. Here are the top features and advantages that users can enjoy when trading with eToro.

Negatives and Disadvantages of eToro

Despite eToro's features, there are some points that eToro does not do so well. To find out more details, click on the following jump links.

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

What Services does eToro offer?

eToro has a number of useful services making it a popular broker around the world. Let's find out what eToro has to offer its users.

User-friendly interface:  eToro has a fresh interface that is easy to use and is particularly aimed at novices. As you can see in the screenshot below, it is easy to see the most popular cryptocurrencies with their current price, a graph of the previous 7 days, and even a signal of whether to buy, sell or hold. The menu is on the left and easy to navigate.

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

Mobile app for iOS and Android:  eToro has an app available for iOS and Android devices that allow you to trade anytime and anywhere. According to Google Play store, over 10 million users have downloaded the eToro app, with a rating of 4.3 stars from 95,000 reviews. The app is user-friendly, you can check your watchlist, portfolio, news feed and view successful traders that you can copy. You can even run the Demo account on the app, and practise trading risk-free with $100,000 virtual money.

Demo account - practise trading with $100,000 free virtual money:  eToro's Demo account is the perfect tool for beginners to learn how to use the platform and practise trading with no risk of losing money. You can access the Demo account easily, switching back and forth with the click of a button. You will be able to trade with $100,000 free virtual money, follow the real-time trends of each cryptocurrency with advanced analysis tools, and connect with top crypto traders from across the globe.

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

30 different cryptocurrencies available:  eToro offers trading of 30 different cryptocurrencies, including some of the most popular coins such as BTC, ETH, XRP, ADA, BNB and DOGE. 

eToro Money crypto wallet to store your coins safely:  eToro has a wallet available on the Google Play store and iOS App Store called the etoro Money crypto wallet. You can use the wallet to transfer crypto from the eToro trading platform, securely store your crypto, send/receive crypto to and from other wallets, and convert one crypto to another. The wallet can store over 120 cryptocurrencies, meaning it can hold more coins than just the 30 available to buy on eToro.

Crypto staking - earn interest on your coins:  Staking is available on eToro, which is a method of earning rewards on the cryptocurrency you are holding, similar to earning interest in a bank. The rewards are automatically paid each month to eligible users - anyone who has their coins held on eToro's trading platform. At the moment you can stake Cardano (ADA), Tron (TRX) and Ethereum (ETH), with plans to support more coins in the future.

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

CopyTrader - automatically copy trades of top-performing investors:  The CopyTrader feature is a really beneficial feature for all users, from crypto newbies, to busy investors, to advanced traders that want to maximise their returns. You can find a top-performing trader based on various selection criteria, and once you have found one you want to copy, eToro will automatically execute the same trades as that person. 

CopyPortfolio - invest in leading, ready-made crypto portfolios:  If you are unsure which cryptocurrencies you should invest in, eToro has provided some balanced, professionally researched cryptocurrency portfolios. There are no management fees or commissions with using CopyPortfolio - it is just a useful service provided to their users. 

Social media platform allowing interaction with other traders:  eToro is the first cryptocurrency broker to place a focus on social trading. Their platform includes a News Feed where users can connect and interact with other crypto traders in the eToro community, seeking advice, providing information, and discussing trends or market sentiment. This feature really makes eToro stand out from their competitors.

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

What I Don't Like About eToro

Unclear trading fees:  With most cryptocurrency brokers, there is a listed trading fee, as a percentage of the transaction amount. However, on eToro, they don't list a fee, instead their fees are incorporated into the spread which makes it difficult to know how much you are paying in fees, and difficult to compare to competitors.

USA residents cannot access stock trading or CFDs:  Residents of the USA can buy crypto on eToro, but they do not have access to the other investment instruments that are available to the rest of the world. For example, US residents cannot trade stocks, forex or CFDs.

Live Chat is only available to eToro Club members:  If you need assistance from eToro, you cannot access Live Chat unless you are an eToro Club member. To access this member loyalty program, you need to have realised equity of at least $5,000. This is unfortunate, because often newer members of the crypto community may need help, and they won't be able to access it if they don't have $5,000 in their account.

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

eToro Fees

eToro Deposit Fees

It is FREE to deposit USD into your eToro account.

For non-US customers, it is free to deposit your local currency, but there will be a currency conversion fee to deposit and withdraw funds.

eToro Trading Fees

The trading fees are not clearly stated by eToro, but instead are included in the spread. Spreads start from 0.75% for Bitcoin. Some other popular coins and their spreads are as follows: Ethereum (1.90%), Ripple (2.45%), Cardano (2.90%) and Tezos (5%). To see the list of spreads for all 30 coins on eToro, click here.

eToro Withdrawal Fees

Withdrawals for US residents are FREE. 

Non-US residents incur a $5 withdrawal fee.

eToro Crypto Transfer Fees

To transfer cryptocurrency from eToro, a fee of 0.5% will be charged, with a minimum fee of $1 and maximum fee of $50.

Other eToro Fees

Inactivity Fee: After 12 months with no login activity, eToro will charge $10 per month as an inactivity fee on any remaining available balance. No open positions will be closed to cover the fee.

CopyTrader Fee: It is FREE to use the CopyTrader feature.

CopyPortfolio: There are no management fees or commissions to use the CopyPortfolio feature. 

Pros and Cons of eToro

Pros
  • Trade 30 different cryptocurrencies
  • Crypto staking available to earn interest on your holdings
  • Mobile app and eToro Money wallet for your convenience
  • Social Trading means you can interact with others and even copy their trades automatically
  • Demo account where you can trade risk-free with $100,000 virtual money
Cons
  • Unclear trading fees
  • USA residents cannot access stock trading or CFDs
  • Live Chat is only available to eToro Club members

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

Can I trade stocks on eToro?

eToro is well-known for stock trading, but unfortunately it is not available for residents of the USA. Non-US residents can trade stocks, ETFs, and CFDs (commodities, indices, forex, crypto and stocks).

Can I use eToro in every state in the USA?

eToro is available to customers in almost every state in the USA. 

As of August 2021, eToro is available to US residents in: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., West Virginia, Wisconsin and Wyoming.

It is also available to residents of the Northern Mariana Islands and the United States Minor Outlying Islands.

What if I am not from the USA?

eToro is available in approximately 100 countries, so you will need to check if it is available for your particular location. In countries outside the USA where eToro is supported, you can gain access to a wide range of trading assets including stocks, ETFs, cryptocurrency and CFDs (forex, indices, commodities, stocks, ETFs & cryptocurrency). You can also margin trade with up to x30 leverage if you are not based in the USA.

Is eToro available in Australia?

Yes, eToro is available in Australia, with full access to eToro's entire range of investment instruments, including stocks, ETFs, crypto and CFDs (forex, indices, commodities, stocks, ETFs and cryptocurrency). You can also margin trade with up to x30 leverage. For more information, read this breakdown of eToro Australia.

Verdict

eToro is an excellent cryptocurrency broker with an easy-to-use platform that is suitable for beginner investors as well as experienced traders. The social trading aspect makes eToro more enjoyable to use, and the CopyTrader and CopyPortfolio features are excellent ways to take advantage of the expertise of successful traders. The unique Demo account is a great way for traders to practise trading risk-free, with $100,000 virtual money to play with. 

Some users find that the selection of 30 cryptocurrencies is not enough for them. If you are looking for a crypto exchange that has a wider range, Kraken and Gemini both offer over 50+ coins, and KuCoin has an impressive 250+ coins. For those that are looking for more options, have a look at this review of the best crypto brokers that many readers find useful.

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

Frequently Asked Questions

Is eToro legitimate?

Yes, eToro is a legitimate broker that has been established since 2007. It is registered with FinCEN as a Money Services Business in the USA, and you can read about eToro’s success in the FinTech industry from top-tier publications, such as CNBC, TechCrunch, and The Telegraph. 

Is eToro safe?

Yes, eToro is a safe broker to use, with clients’ funds kept secured in tier 1 banks, and all of their personal information guarded under SSL encryption.

Can eToro be trusted?

Yes, eToro is a trustworthy broker founded in 2007 and registered with FinCEN as a Money Services Business in the USA.  

Can eToro be hacked?

eToro is a safe broker, but no matter how secure a platform is, there is a possibility that it is hacked. eToro keeps their clients’ funds secured in tier 1 banks, with all personal information guarded under SSL encryption.

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. 67% 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.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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