Join the world’s most popular social investing network with eToro. This eToro review is an up-to-date, detailed analysis of eToro exchange, containing everything you need to know about eToro and whether it’s the right exchange for you.
Let’s find out!
eToro was founded in 2007, and its headquarters are in Israel. The platform began with a focus on forex trading but quickly gained traction, allowing it to expand its product lineup and become a global service.
Since its inception, the platform has innovated by expanding its services to include stock trading, ETFs, automated portfolios, cryptocurrency, and cash management features. eToro is available in more than 140 countries and has over 25 million users.
CopyTrader, the company’s flagship offering, is a social investing feature. Based on investor star ratings, coin interests, and performance metrics, users can quickly find investors to follow and copy trades. Traders can copy up to 100 investors simultaneously with a minimum investment of $200 for this dynamic.
In January 2022, eToro announced expanded offerings in the United States, including support for stock and ETF trading. In addition, the company will begin trading options in November 2022. The platform’s US version now includes these assets and crypto, as well as the social trading experience.
eToro Money, a cash management service, and Smart Portfolios, an automated portfolio management service, are also available in the United States. While the platform is available in over 40 states, not everyone in the country has access to it.
eToro review: What is eToro?
eToro is the world’s leading social trading platform, providing a comprehensive set of tools for investing in the capital markets. It is a well-known online brokerage that provides cryptocurrency and stock trading. It was one of the first online trading platforms to offer digital currency trading.
eToro review: eToro Pros and Cons
- Ability to Copy Trade: eToro is a fantastic platform for engaging, connecting, and sharing strategies with others. Its award-winning CopyTrader technology for trading cryptocurrencies allows you to automatically replicate the portfolios of top-performing investors. When they trade, you trade with CopyTrader.
- Invest with 0% commission: Start investing in the most well-known US stocks and ETFs today by opening an account and taking advantage of zero commissions. Unlike other apps, eToro makes it simple to build a diversified portfolio without any additional fees.
- Demo Funds: For your virtual portfolio, every new account created on eToro is credited with $100,000 in virtual funds for your virtual portfolio, allowing you to test out all of the features on eToro for free.
- Regulated and Secure: eToro is trusted by millions of users worldwide and is regulated by the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), and the Financial Crimes Enforcement Network (FinCEN) in the United States.
- No Deposit Fees: Many cryptocurrency platforms charge a fee for deposits, but eToro does not. You can purchase bitcoin, ether, litecoin, and other popular cryptocurrencies with no deposit required.
- Not accessible in all states in the United States: Although all U.S. residents can sign up for a virtual trading account, the company aims to have 50-state availability eventually. For a complete list, click here.
- A limited selection of cryptocurrencies: eToro does not have the largest selection of cryptocurrencies when compared to other exchanges such as Coinbase or Binance. It has over 60 different cryptos.
eToro review: How eToro Works
Along with cryptocurrencies, eToro provides other investment products. Over 2,500 stocks, including international equities and ETFs, are available to investors. It also enables users to purchase fractional shares rather than whole shares. Non-US investors can take advantage of advanced trading features like margin and leverage, as well as commodities like gold and silver.
Users deposit fiat currency, such as US dollars, into their accounts to use on the platform (or transfer other cryptocurrencies into their accounts). Users can link their bank account for seamless transfers or deposit funds via wire transfer instead. US dollars can be withdrawn directly from the user’s bank account.
After creating an account, investors can buy and sell assets on eToro’s web-based platform or mobile app. If you’re not sure what to buy, you could use eToro’s “CopyTrader” feature to replicate the trades of one of the traders in eToro’s Popular Investor program.
If you don’t want to risk your money right away, trading with eToro can be a great place to start because it offers a demo account with $100,000 invested in a “virtual portfolio.” This allows you to learn about and practice cryptocurrency investing and other types of trading without putting your money at risk.
eToro Sign up
Signing up on eToro gives you access to the eToro sign-up bonus. You can get $50 when you deposit $100 into your eToro account.
Now we will need to verify our email address. So head to your email address, open the message received by eToro, and click on “Verify my email.”
Note: You’ll be redirected to the eToro page and have your email verified. Now you’ll be required to verify your account before you can deposit funds.
Without KYC, your account is restricted on eToro. Besides that, KYC verification on eToro is a mandatory part of the process of registering for the eToro platform.
On your account home page, click on “Verify” or, on a pop-up, click on “Complete profile.” Then, on the next pop-up, fill in your name, gender, and DOB, then click on “>.”
On the more details pop fill in your address, city, state, and country, and tick the box if the condition applies to you. Enter your SSN and click on “>” to continue.
Now select your trading experience, or if you are new to investing, then tick the box and click on “>.”
On the next page, you’ll be required to describe your primary purpose for trading with eToro. Choose the option that applies to you.
Now select how long you wish to invest for and press “>” to proceed.
On the risk tolerance page, you’ll need to select a specific amount range that you’ll deposit during the course of the year and choose a scenario that aligns with your risk tolerance.
Note: This is to help eToro understand your expectations for your investments and help you with your trading strategies.
In the additional information section, please check the box next to the required field that applies to you, then continue.
You will be asked to provide financial information here. Then, on the next pop-up, you’ll need to verify your phone number. Input it and click “Verify.”
Now re-enter your SSN.
Now you’ll need to verify your account. You are required to upload both proof of identity (POI) and proof of address (POA).
Note: Follow the on-screen instructions to do this correctly.
Finally, you’ll need to enter your tax identification number for your country of residence.
Note: If everything is in order, your account will be verified in 5 business days, and you’ll be notified via email once it’s complete. If your documents are not approved for any reason, you’ll also be notified by email, which will tell you exactly what you need to provide.
eToro review: What crypto can you buy on eToro?
eToro’s selection of cryptocurrencies is quite small compared to other exchanges. eToro offers over 60 cryptocurrencies. Here are some of the top crypto assets you can buy on eToro:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Dash (DASH)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Litecoin (LTC)
- Polkadot (DOT)
- Polygon (MATIC)
- Solana (SOL)
- Stellar Lumens (XLM)
The eToro mobile app is easy to use and has a clean, uncluttered design. The simple design combined with the feel of a social media app results in an innovative and creative user experience.
The eToro app includes interactive features that allow you to interact with other traders and navigate to popular investor profiles. Because eToro is not modeled after other traditional brokerage offerings, new investors may feel more at ease with the app’s familiar feel.
Experienced traders looking to execute orders without the social feel may find eToro challenging, but the mobile app is very user-friendly. On the Google Play Store, the app has received over 10,000,000 downloads. It is also designed to work with Android and iOS devices.
eToro’s APIS consists of four categories:
- Discovery: The discovery API allows you to discover customers in the eToro network. It’s important to remember that this API will only display customers who have chosen to be discovered.
- Metadata: The metadata API provides basic metadata for the eToro system. Reference tables for all the other endpoints in this API are included in the metadata.
- System: The System API offers broad information about the entire eToro System.
- User: The User API gives information about a user, such as trading statistics.
The eToro crypto wallet is a simple and secure way to store, receive, and transfer cryptocurrency. It is a simple, multi-crypto, secure digital crypto wallet. On the eToro Money crypto wallet, you can easily buy, store, receive, and transfer crypto from an ever-expanding list of assets. Its features include:
- Unlosable Private Key: Use your eToro Money crypto wallet private key (security key) service to help you recover access to your crypto wallet when necessary.
- On-chain address: Store, receive, and transfer your cryptocurrency anywhere on the blockchain with your personal, unique, and completely private on-chain address.
- Simple, secure, and online: Free to download, you can easily access the eToro Money crypto wallet using your eToro credentials. One of the safest crypto wallets available, the wallet has several high-level security features and standardization protocols.
eToro does not charge trading fees for stocks and ETFs, but the eToro crypto fee is a 1% fee to buy or sell cryptocurrencies. You’ll also need to pay a variable spread on every trade. A “spread” is the difference between the offer price and the asking price on the platform. For example, to buy $100 worth of bitcoin on eToro, you’d pay $1 in fees plus the spread. These fees are higher than some cryptocurrency platforms but are by no means the highest on the market.
eToro Withdrawal Fee
eToro has a $5 withdrawal fee, which is high compared to other CFD brokers. In addition, eToro has a $30 minimum withdrawal limit. Withdrawal options are the same as the funding options: you can withdraw money using a bank transfer, credit or debit card, or electronic wallet.
eToro staking is a means of investing with eToro. Staking with eToro is a process that allows users who own and hold supported crypto assets to earn rewards just for holding them. eToro executes the staking process on behalf of its users. Staking with eToro is simple, secure, and hassle-free.
Staking rewards are paid out to users in the supported crypto asset every month, with no action required on their part. The staked crypto assets remain the property of eToro users; in turn, eToro users entrust eToro to securely and effectively carry out the entire staking procedure for them.
eToro takes great care to protect our users’ crypto assets from additional risks, saving them the time and effort of staking on their own. As a result, eToro keeps a small percentage of the yield as a fee, in addition to covering the various operational, technical, and legal costs. Some of the supported crypto assets and staking rewards include:
eToro Copy Trading
eToro Copy Trading enables you to automatically copy traders of your choosing, replicating what they do in your own accounts. Simply put, it’s trading in financial markets by having other people from around the world do the trading on your behalf.
LEARN MORE: What is Copy Trading in Crypto?
eToro review: How eToro Copy Trade Works
First and foremost, we recommend that you sign up for eToro, where you can practice copy trading for free with a $100,000 virtual trading account.
Begin by looking through the Editor’s Choice section for popular investors. Traders who have a low-risk score and have shown gains in recent months are displayed there.
You can also use the people discovery tool to discover more traders to follow. If you decide to copy a specific trader, all you have to do is click ‘Copy’ and enter the amount you want to allocate from your account’s total equity.
All trades are executed in proportion, which means that if you allocate $1,000 to copy a trader with a $10,000 trading account when they open a $1,000 position, a $100 copied position will be created in your account. This allows you to replicate not only the position’s direction but also the trader’s investment strategy.
eToro Deposit with Credit Card
- Click on the blue Deposit Funds button at the bottom left of your screen.
- Choose the currency and the amount.
- Select a credit or debit card as the payment method.
Enter the following details:
- Your card number
- Your card’s expiry date
- The CVV code (3 digits on the back of your credit or debit card)
- The name on the card, and then finally click ‘Deposit’.
Your eToro account should be credited with the funds within minutes. If your deposit is not approved for any reason, you will be notified via email.
eToro Customer Service
eToro has a help center with a large number of FAQ articles that address a variety of potential questions. More traditional customer support options are limited outside of this self-service option. Phone and email support are available, but the contact information is not easily accessible. Chat functionality is available through the help center, allowing you to communicate directly with an agent.
Is eToro Safe?
This eToro review displays its security features. The majority of cryptocurrencies stored on eToro’s platform, like those on most major exchanges, are kept in “cold storage,” which means they are kept on servers that are not connected to the internet. The company keeps some cryptocurrency in “hot wallets” for liquidity purposes. eToro also has a number of user-level safeguards in place, such as two-factor authentication (2FA) and account encryption.
LEARN MORE: Crypto Cold Storage Explained
The Financial Industry Regulatory Authority (FINRA) and the Financial Crimes Enforcement Network (FinCEN) in the United States, as well as the Financial Conduct Authority (FCA) in the United Kingdom, regulate eToro. Cash funds deposited by US investors are insured by the FDIC for up to $250,000 against platform failure.
eToro, unlike some of the most popular cryptocurrency exchanges, does not offer third-party insurance for crypto assets on its platform. Users in Europe and a few other countries benefit from free insurance from Lloyd’s of London on non-crypto assets, but this should be extended to crypto assets for all users worldwide.
However, not everyone should use a non-custodial crypto wallet. Depending on the cryptocurrency, there are fees associated with moving it. The wallet does not support all of the same cryptocurrencies that the exchange does. It’s also worth noting that once your funds are transferred to the eToro wallet, they cannot be transferred back to the main trading platform.
eToro review: Conclusion
According to this eToro review, the social trading experience is the most notable aspect of eToro’s trading platform. The CopyTrader dynamic, combined with the popular investor program, lends an engaging, collaborative feel to the platform.
The addition of stock and ETF trading, along with eToro Money cash management and Smart Portfolios, broadens the range of users who can benefit from the platform’s services. Innovative approaches to ESG screens and filters are also attracting investors who value these factors.
Caleb is a technical writer at AlteBlock with over 2 years of experience in covering DeFi-related content such as crypto news, exchange reviews, and guides. He is also a Civil engineering graduate who can be found on-site when not writing an article.