eToro Review.
Michael Rosenston is a fact-checker and researcher with expertise in business, finance, and insurance.
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Investopedia’s Rating.
Our Take eToro is a market-leading social trading network, allowing traders to copy the trades of experienced investors, or receive exclusive perks for sharing their own trading strategies. With over 3,000 tradeable symbols, eToro is a large global cryptocurrency exchange that offers non-U.S. customers the ability to trade forex, exchange-traded securities, and crypto. For U.S. citizens, eToro offers stock and exchange-traded fund (ETF) trading for users residing in 44 states, to add to its existing cryptocurrency offering.
Pros & Cons Key Takeaways Specifications.
Pros & Cons.
Established platform Regulated in numerous jurisdictions Unique social trading capabilities that allow users to match moves of popular traders.
Stock, ETF, and cryptocurrency trading only available in 44 U.S. states Margin trading not available to U.S. users.
Key Takeaways.
eToro is a regulated online trading services provider with 15 years of market experience. eToro offers a range of tradable crypto assets, including Bitcoin, Ethereum, and Dogecoin.
Specifications.
Investopedia’s Rating.
Table of Contents.
eToro Review.
Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors.
CFD is not available in the United States. U.S. users cannot trade CFDs.
This review promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd.), UK (eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK, no EU or UK consumer protections & not supervised by the EU or UK regulatory framework. Investments are subject to market risk, including the loss of principal.
Introduction.
eToro is a leading online brokerage that offers cryptocurrency trading and stock trading. It was among the first online trading companies to support digital currency trading when it added support for Bitcoin (BTC) in 2014. Shortly afterward, it added support for Ethereum (ETH) and Ripple (XRP).
Today, eToro supports 40+ cryptocurrencies on its popular online trading platform, provides an enterprise-grade crypto exchange for professional traders, and offers a multicurrency crypto wallet.
Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Company Overview.
Tel Aviv-based eToro was launched in 2007 by co-founders Ronen Assia, David Ring, and Yoni Assia. Assia is still leading the company as CEO today.
Originally operating under the name RetailFX as a forex online broker, the company later changed its name to eToro and started offering commodities, indices, and stocks. In 2010, copy trading for crypto it launched its innovative social trading feature that allows users to automatically copy the trades of successful traders on the platform, establishing itself as the world’s leading social trading network.
In 2014, eToro added support for BTC, enabling users to buy and sell CFDs (to non-U.S. users) on the world’s leading digital currency. Four years later, ETH and XRP also became available on the platform, and more digital assets were added in the years to follow. In 2018, eToro dove headfirst into the cryptocurrency industry with the launch of eToroX and a crypto wallet.
Today, eToro is looking to establish itself in the highly competitive crypto exchange market by continuously improving its crypto trading services.
eToro has announced plans to go public via a SPAC merger with FinTech Acquisition Corp. V (NASDAQ: FTCV). eToro has been valued at around $10.4 billion.
Cryptocurrencies Available on eToro.
eToro and eToroX support trading of 40+ cryptocurrencies. Here’s a look at some of the most popular crypto assets 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)
For a limited time, you can earn a bonus of $10 when you deposit at least $100 in your eToro account. This promotion is in select U.S. states. Terms & conditions apply.
Trading Experience.
Through eToro's simple web-based platform and well-designed mobile app, customers can deposit fiat currency from a debit card or bank account and begin trading immediately.
The intuitive "Trading" tab allows users to view current prices, and buy, sell, or convert crypto. Perhaps eToro is best know for its social trading functionality, which allows users to copy the portfolio holdings and trades of top traders.
Although eToro offers basic market and limit orders, as well as the ability for non-U.S. users to invest on margin, it does not have some of the more advanced conditional orders, advanced charting capabilities, and cryptocurrency pairs that other competitors offer.
eToro.
eToro’s platform allows eligible users in certain jurisdictions to trade digital currencies ranging from Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) to 1inch (1INCH), Aave (AAVE), and Compound (COMP). Leveraged trading is also available to eligible users.
Arguably the most exciting feature of eToro’s trading app is the ability to automatically copy successful traders’ trades using the platform’s social trading feature.
eToroX.
eToroX comes with all the features you’d expect from an institutional-grade exchange, including U.S. dollar deposits, margin trading, trading APIs, and fast execution. These features make it a suitable trading platform for professional and institutional traders.
Fees.
eToro's crypto trading fees are relatively low compared where to copy trade crypto competitors’ fees, but users need to watch out for currency conversion and withdrawal fees. It's also important to note that fees may differ depending on your location.
There are no withdrawal fees for U.S. customers, but there is a $30 withdrawal minimum. Outside the U.S., eToro charges a withdrawal fee of $5. Non-U.S. customers have to pay a currency conversion fee starting at 50 basis points (bps) for deposits and withdrawals made in currencies other than USD. Users will incur a fee for transferring crypto out of eToro.com and into the eToro Money crypto wallet. Fees vary based on the cryptocurrency you’re transferring. eToro also charges a $10 inactivity fee per month for accounts that have been inactive for over one year.
eToroX Fees.
eToroX charges a 5 bps transaction fee for price takers and price makers. Additionally, the exchange operates with an inverted maker-taker model, which means price takers are paid a rebate or charged a lower fee. However, you have to contact the exchange for more details.
One basis point (bps) refers to 0.01%. A fee of 50 bps, for example, means that you will be charged 0.50% of the amount you are buying or selling. In the forex markets, one basis point is sometimes also referred to as a pip.
Security.
eToro is an established online trading company, offering a secure, regulated platform for crypto trading with a track record of storing investor funds for well over a decade.
On eToroX, the majority of user funds are held in cold storage to reduce the chance of lost funds due to a hack or operational error. The exchange deploys a cold storage Custody as a Service (CaaS) solution in partnership with leading cybersecurity firm GK8.
In addition to user funds being held in cold storage, eToro also encourages account holders to set up two-factor authentication (2FA) as an added layer of protection. However, enabling 2FA is not required.
Opening an eToro Account.
Opening an account on eToro only takes a few minutes. First, is copy trading illegal you'll need to provide a username, password, and email address. Once you've verified your email address, eToro will require that you answer several questions to determine your risk tolerance and trading experience.
eToro users are also required to verify their accounts. As part of this process, you'll also have to provide personal information, proof of address, and share a valid, government-issued ID. Identity verification can take a few days, and eToro notifies new users once verification is complete.
Once you’ve created an account on eToro.com, registering for eToroX is only a matter of one click, as your eToro account allows you to access both trading platforms.
Customer Service.
eToro offers separate customer service for eToro and eToroX. Both platforms provide help centers and assistance via support tickets. But like many other crypto exchanges, phone support isn't available.
The company also employs account managers who look after the most active traders (those with $5,000 or above in equity on the platform) to enhance the experience of eToro’s most loyal customers.
Customer Satisfaction.
As a global leader in online trading with over 23 million users, eToro receives positive customer feedback overall, highlighted by the company’s Trustpilot score of 4.1 out of five stars across 11,000+ reviewers. eToro’s app store ratings are equally impressive, with 4.1 stars on the Google Play Store and 3.7 stars on the Apple Store.
However, the platform also receives some negative feedback from current and former users. The inability to withdraw funds and slow withdrawal times are among the top complaints. Other users report hidden and higher-than-expected fees.
How eToro Compares to Other Cryptocurrency Companies.
eToro offers a professional cryptocurrency exchange, enabling users to execute a range of advanced trading strategies.
As one of the world’s leading social trading networks, eToro was one of the first fintechs to support cryptocurrencies before moving forward with building a crypto exchange and dedicated crypto wallet for its users.
Given the company’s size, 15 years of market experience, and sizable user base, eToro is on the way to becoming a crypto powerhouse. These features and its copy trading tool make it uniquely positioned among other crypto exchanges available today. Here's a look at how eToro compares to another popular crypto exchange, Coinbase:
eToro vs. Coinbase.
eToro supports social trading, letting users interact with others on its platform. Coinbase does not offer a social trading feature. There are over 150 supported cryptocurrencies on Coinbase, and there are just over 40 cryptocurrencies supported on eToro. Coinbase is strictly for cryptocurrency trading and investing. In addition to crypto, eToro also allows users to invest in stocks and ETFs.
Final Verdict.
Professional crypto traders will appreciate eToroX’s advanced trading features and fiat-to-crypto on- and off-ramp, while beginners will appreciate the unique ability to copy the trades of popular traders.
Methodology.
Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.
Exchanges were reviewed on points including security, fees, number of cryptocurrencies available, and more. We also considered if the exchange is regulated by a proper agency or entirely decentralized. Our full cryptocurrency exchange methodology, including the review process and weighted data points, is available for review.