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IN-DEPTH ANALYSIS

eToro Review

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ByG. Dautovic
June 21, 2022
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eToro is one of the world’s leading social trade networks. As a large, established global cryptocurrency exchange and trading platform, it provides users worldwide with exciting trading opportunities. 

In this guide, we’ll provide an in-depth eToro review, which covers the main tools and features, the pros and cons, fees and commissions, and offers recommendations for existing users and people interested in opening an account. 

Account management fee:
0%

Zero commissions on stocks and ETFs

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Fortunly Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Account minimum:
$0 to open an account
Deposit minimum:
$10 (US and UK customers)
Account management fee:
0%
Mobile app:
Yes
BBB rating:
C-
Withdrawal time:
Up to seven business days
pros thumb up Strengths
  • Virtual portfolio available
  • Offers a social trading platform
  • Great educational resources
  • Straightforward pricing structure
  • Zero commissions on stocks and ETFs
pros thumb up Weaknesses
  • The inactivity fee applies after 12 months
  • Conversion fees for non-US traders
  • Withdrawal fees apply

What Is eToro?

Before we dive into the ins and outs of eToro and answer the question, “is eToro safe,” it’s beneficial to get an insight into its history and development. eToro is an Israeli social platform and investment community founded by Yoni and Ronen Assia and David Ying in 2007. 

Since it launched, it has expanded significantly, adding new features and capabilities. Initially, it was a global Forex trading platform operated under the name RetailFX, but it quickly diversified. 

In 2010, it launched social trading with the option for users to copy successful traders, and in 2014, it added support for Bitcoin (BTC), which offered non-US users the opportunity to buy and sell CFDs (Contracts for Difference). 

Today, eToro is available in 140 countries and has approximately 20 million registered users. It offers a broad spectrum of investment options and even has a platform designed to support NFT authors and brands, called eToro.art.

How Does eToro Work?

eToro offers users the option to buy and sell stocks or cryptocurrencies online or via mobile devices, including tablets and smartphones. Outside of the US, members with an eToro account can trade CFDs.

To use eToro, you have to open an account. You then deposit money and use the desktop version or the eToro mobile app to get started. 

It is important to note that there are restrictions in place in certain countries. Your location may restrict access to some services or limit what you can trade. You can read details of country restrictions on the eToro site. 

To optimize the experience and maximize your chances of getting the most out of using eToro, you should take some time to explore the site or mobile app and get an insight into the features and how they work. 

In this review of eToro, we will discuss the key features in detail to help you understand what’s so special about eToro and the benefits it offers those interested in mobile trading or buying and selling cryptocurrency. 

The Main Features and Tools

eToro allows users to trade through its online trading platform or CFD platform (not available in the US). The trading platform is a multi-asset exchange that provides access to more than 2,000 different assets, including:

  • Cryptocurrencies
  • Stocks
  • ETFs
  • Commodities
  • Indices
  • Currencies

The main features that set eToro apart include:

CopyTrader

CopyTrader is one of the most appealing features for new traders and beginners signing up to the platform. The beauty of this tool is that it allows you to mimic the movements of successful traders and capitalize on their knowledge and experience. 

This feature is an integral part of eToro cryptocurrency investing. If you choose to use the CopyTrader tool, you can follow in the footsteps of leading traders, employing their strategies to get results. 

The Popular Investor Program is closely related to CopyTrader. Popular investors receive compensation directly from eToro for their expertise. If you have experience and an excellent track record in investments, you can apply to become a Popular Investor on the platform and make some extra money from your skills. 

Copy Portfolios

Here is another handy option for new traders linked to the CopyTrader feature. With this tool, investors can duplicate crypto portfolios managed by eToro, to access ready-made trading strategies. 

Virtual Portfolios and Dummy Accounts

Investing in cryptocurrency carries certain risks. For those new to this type of trading, it’s wise to set up an eToro demo account. It enables users to learn, hone their skills, and see precisely how the platform works without risking their own funds. With Virtual Portfolios, you can trade up to $100,000 in virtual funds from your free demo account with no risks whatsoever. 

Expert Analysis

Trading can be complex, and it’s natural for both experienced and novice investors to want to maximize their chances of making money. eToro provides expert analysis and insight, giving helpful, up-to-date information about investment strategies, cryptocurrencies, and financial assets. Users can read articles and take advice from experts to help them make well-informed decisions. 

Offline Trading

Technical hitches and glitches often bring online trades to a standstill, but not with eToro, thanks to its offline trading capabilities. If the site is down unexpectedly or because of scheduled maintenance, traders should still be able to buy and sell. 

Social Trading

One of the most unique and distinctive elements of eToro is the social community it boasts. This is not just a trading platform. It’s also an active, inclusive community for people interested in trading where they can talk, share ideas and thoughts, and gain access to insights and research. There is a general feed that eToro account holders can access after logging in and specific threads accessed via coins or investment portfolios. 

eToro VIP Club

If you’re in the eToro VIP Club, you’ll have access to additional perks and features. Membership in this exclusive club is not available to everyone, and you must have purchased at least $5,000 worth of assets to join. Once you become a VIP club member, you’ll be able to enjoy various services and tools, such as expert trading advice and support, early access to new features and products, frequent newsletters and updates, and entry to webinars. 

Investment Insurance

eToro offers free investment insurance to protect members against potential losses if the platform ever becomes insolvent. 

Mobile Trading

eToro has two mobile apps: eToro Money and eToro Cryptocurrency Trading. If you use the eToro wallet app, you can send and receive currency and convert different types of crypto coins easily. 

With the crypto trading app, you can enjoy all the features of the web platform on the go, and the intuitive interface will make using it a breeze even if you’ve never made a crypto investment before.

Fees and Commissions

When investigating and comparing trading platforms, it’s natural to want to know more about fees and commissions. Before you sign up for eToro, it’s beneficial to look at eToro pricing and work out what the fees could mean for you. 

Fees and Commissions Explained

Cryptocurrency exchanges can be confusing regarding fees and charges. Before you buy or sell assets, it’s crucial to understand eToro trading fees. Here is a simple breakdown of charges:

  • It is free to open an eToro account.
  • It is free to use the demo account, with virtual funds up to $100,000 available.
  • eToro charges a 1% fee for buying and selling cryptocurrencies, which is added to the market price in line with the Bid-Ask spread.
  • There is no deposit charge.
  • Withdrawal fees of $5 apply: the minimum amount account holders can withdraw is $30.
  • There are no account management or trading commission fees.
  • Users pay around 0.5% up to a maximum charge of $50 for moving funds from the investment mobile app to the Money wallet app. 
  • Cryptocurrency trading fees vary according to the type of currency and depend on the ‘spread.’ This platform spreads charges when you buy cryptocurrencies. The spread covers buying and selling the asset, differentiating the platform from similar ones with separate spreads for buy and sell transactions.

The value changes according to the type of coin, and fees may also vary according to market movements. For Bitcoin, as an example, spreads are low at around 0.75%. They are much higher for currencies such as Tezos, at around 5%. 

  • There is a $10 monthly charge for inactivity, which will be added once the user has not logged in for 12 months.
  • Conversion fees apply for non-US users.
  • In the US, the minimum deposit amount is $10 for debit cards and online banking and $500 for wire transfers. The maximum deposit is $40,00 per transaction for debit cards, $10,000 per day for online banking, and $1 million per transaction for wire transfers. 

eToro’s Cryptocurrency Selection

If you’re interested in eToro crypto assets, you may be wondering which currencies you can buy and sell. The good news is that eToro offers a wide selection of cryptocurrencies, and new coins are being added regularly. At present, users can trade these cryptocurrencies on the eToro platform:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • XRP by Ripple Labs (XRP)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Ethereum Classic
  • Dash (DASH)
  • NEO (NEO)
  • EOS (EOS)
  • IOTA (MIOTA)
  • Stellar Lumens (XLM)
  • Cardano (ADA)
  • Zcash (ZEC)
  • TRON (TRX)
  • Tezos (XTZ)
  • Binance Coin (BNB)
  • Compound (COMP)
  • Chainlink (LINK)
  • Uniswap (UNI)
  • Dogecoin (DOGE)
  • Aave (AAVE)
  • Algorand (ALGO)
  • Yearn.finance (YFI)
  • Basic Attention Token (BAT)
  • Polygon (MATIC)
  • Decentraland (MANA)
  • Spark (FLR)
  • Maker (MKR)
  • Enjin (ENJ)
  • Shiba (SHIBxM)

Who Is eToro For?

There are several trading platforms available, so why choose eToro? There are multiple benefits of having an eToro account, but it might not be the best option for every investor or cryptocurrency enthusiast. 

This platform is ideally suited to beginners who want to learn about trading and see how it works. It’s also great for investors who enjoy the social side of trading, and experienced traders who like the idea of boosting their income or making a name for themselves through eToro’s Popular Investor feature. 

The best aspects of eToro are the social communities and the opportunity to use CopyTrader to imitate leading traders. The sense of community draws in many who want more than a simple online exchange and investment platform. People interested in becoming influencers may also gravitate towards the eToro platform. 

One of the drawbacks that often appears in reviews and articles that discuss eToro versus other platforms is the fees. Users can trade commission-free, but various additional charges apply, making the platform less appealing to some investors. 

How To Open an Account at eToro

To open an account with eToro, follow these steps:

  1. Visit the eToro website.
  2. Click to Create an Account.
  3. Choose a username and password.
  4. Provide an email address.
  5. Add extra information, including personal details such as your name, address, and date of birth.
  6. Answer a few simple questions about your investing and trading experience.
  7. Provide additional information about how you want to use the platform, how long you want to trade, and your investment goals.
  8. Verify your account: at this point, you will need to prove your identity by providing a photographic ID and proof of your address. The website has details about the documents that are suitable for verification. 
  9. eToro will verify your account and contact you when this process is complete. It can take up to three working days, but users usually receive a notification much sooner. 

If there are any problems during the process of opening your eToro account, you can contact eToro customer service. 

How Does eToro Compare To Other Platforms?

All trading platforms offer pros and cons. Here are some comparisons to help you decide which crypto exchange is best for you:

eToro vs. Coinbase

When it comes to cryptocurrency exchanges, eToro and Coinbase are two of the most popular choices. 

Both platforms offer a variety of features and benefits, but there are also some key differences to be aware of. For example, Coinbase is strictly a cryptocurrency exchange, while eToro also offers traditional stock and forex trading.

eToro offers a more diverse range of trading options, including stocks and ETFs, while Coinbase is more limited in this regard.

On the other hand, Coinbase has a much more extensive range of cryptocurrencies available. There are over 150 on Coinbase compared to around 30-40 on eToro.

Visit Coinbase

eToro vs. Robinhood

Robinhood is another popular choice when it comes to online trading platforms. It allows commission-free cryptocurrency trading and has a user-friendly interface. It has one of the lowest fees on the market, making it an excellent choice for frequent traders and those looking to save on fees.

However, Robinhood does have some drawbacks. For example, it doesn't offer as many features as eToro and is only available in the US.

Another difference is that Robinhood does not have a web platform, so it can only be accessed via the mobile app, which may be inconvenient for some users.

Visit Robinhood

eToro Security

eToro is considered a safe trading platform. Cash assets are held in bank accounts insured by the Federal Deposit Insurance Corporation (FDIC). The platform uses a series of security measures to provide protection for users, including multi-factor authentication and advanced monitoring tools. 

Additional eToro security protocols include online and offline coin storage and cold storage Custody as a Service (CaaS) solutions. All account holders must verify their identity on the platform. 

eToro Customer Service

Cryptocurrency trading platforms can be confusing, especially if you’re a beginner and don’t know how to navigate your way around such websites.

Customer service is an important consideration for many users who want to join trading platforms and exchanges. When it comes to eToro customer service, we have come across some mixed reviews. One of the main problems is that standard account holders only have access to phone lines and email inquiry services. The phone line is a recorded message service that directs users to other services that may be useful. 

Live chat can be incredibly helpful for users who have questions or concerns. One downside of eToro is that live chat support is only accessible to VIP Club members. If you’re not a Club member, you may find the process of seeking advice or getting help long-winded and frustrating.

If you are a Club member, you gain access to dedicated account managers whose job is to enhance the platform’s services. However, as a new investor, you won’t be able to become a VIP overnight, so your customer support options will be limited.

Summary

As a popular cryptocurrency exchange and trading platform, eToro is often recommended for beginners and those looking to enjoy the social side of trading. The apps and website are easy to use, and there is a wide range of cryptocurrencies and assets available to choose from. The only downsides are the fees you may run into and the fact that non-VIP users will have limited customer support options.

FAQ

Is eToro good for beginners?

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eToro is great for beginners, thanks to its user-friendly platform. One of the best features is the CopyTrader tool, which enables beginners to imitate experienced and successful traders. 

This site also has a thriving social community, which is excellent for those who want to learn more about trading and meet new people with similar interests. New users can also try out the free demo account with virtual funds up to $100,000 to hone their skills and learn how the site works.

What is the minimum deposit for eToro?

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The minimum deposit for eToro users in the US is $10 for debit card and online banking payments and $500 for wire transfers. There is no charge for depositing money in your eToro account.

Is eToro really free?

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As you can see in our eToro review, opening an account with this platform is free, and there are no management fees, broker charges, or commission charges on stocks. However, eToro is not entirely free, as there are fees for withdrawing money, having an inactive account, and buying and selling or converting cryptocurrencies. You can find a complete list of charges on the provider’s website.