An Honest eToro Review in 2023.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
With more than 28 million members across 140 countries, eToro platform has a lot to offer its users. eToro Users can copy the trades of experienced investors or choose to receive exciting benefits by sharing their own trading strategies on the easy-to-use platform. In this review of eToro trading platform, we cover the fees, how to get started, the advantages, disadvantages, and more!
5/5 Star rating.
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities.
Buy crypto, or copycat crypto trading trade cryptocurrencies via CFDs.
Introduction.
eToro is one of the largest social trading communities in the world. It is a well-liked and dependable option for millions of investors worldwide.
The trading platform has a lot to offer its users. For example, eToro users can copy the trades of experienced investors or choose to receive exciting benefits by sharing their own trading strategies on the easy-to-use trading platform. Although eToro is a bit expensive, it offers a comprehensive trading experience.
The ability to monitor trends, analyze markets and comprehend a variety of technical indicators are all necessary for crypto trading in the financial markets, whether you are investing in stocks or cryptocurrencies. It may take some time to learn, but they are necessary skills to become a great trader.
However, the eToro platform has made learning these skills and gathering essential information more accessible than ever.
When eToro launched in 2007, it completely changed the crypto trading landscape in the financial markets.
It is one of the world's best social trading and copy-trading sites. To make important crypto trading decisions, you do not have to be an experienced technical analyst or keep up with the news. Instead, all you need to do is "copy" the trades and tactics already used by some successful traders and investors on the trading platform.
Minimum Deposit.
Exclusive Promotion.
User Score.
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities.
Buy crypto, or trade cryptocurrencies via CFDs.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
Main Features and Highlights.
Almost anyone can access short-, medium- and long-term investment options thanks to eToro's platform, which gives traders and investors access to more than 2,000 different financial assets, including stocks, cryptocurrencies, ETFs, indices, currencies, and commodities. Moreover, users can invest in these assets with or without leverage.
The below details eToro's main features.
_ Provider Type: Broker _ Minimum Deposit: $50 _ Trading Fees: 1% _ Deposit Fees: $0 _ Withdrawal Fees: $5 _ Management Fees: $0 _ Inactivity Fee $10 after a year _Minimum withdrawal $30 _ Minimum trade order $10 _ Withdrawal Timeframe: Up to 2 business days #__ Number of Cryptocurrencies Supported: 75 #__ Number of Crypto Pairs Supported: 16 _ Top supported Cryptocurrencies: BTC, ADA, ETH, BNB, IOTA _ Leverage: 30:1 _ Native Mobile App: Yes __ Free Demo Account: Yes _ Customer Support: Email, Live Chat, Support Portal, Phone, Forum __ Metatrader N/A _ Verification required: Yes _ CFD Available Yes _ Software: Website, web app, mobile app _ Social Trading: Yes __ Copy Trading: Yes ____ Regulators Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC)
Table of Contents.
Pros and Cons of Using eToro.
Pros.
eToro allows users to begin trading cryptocurrency, stocks, and ETFs for as little as $10.
It supports several currencies and is regulated by top authorities.
Excellent customer service.
Cons.
Some customers are limited to trading cryptocurrencies.
The service is only available in select states in the US.
There are high non-trading fees.
Minimum Deposit.
Exclusive Promotion.
User Score.
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities.
Buy crypto, or trade cryptocurrencies via CFDs.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
What Can I Do on eToro?
With more than 28 million members across 140 countries, eToro offers a cryptocurrency exchange that facilitates crypto trading. It also acts as an online brokerage platform for a limited number of stocks and exchange-traded funds (ETFs). In addition, individuals who desire a more collaborative trading experience may consider this platform due to its social features and vibrant community.
However, eToro's high crypto trading costs may be a bit excessive if you are looking for a cheap cryptocurrency exchange.
At eToro, you can trade stocks in two different ways:
1. Stocks can be bought and sold directly.
2. You can use Contracts for Difference (CFDs) to trade changes in stock prices. You can trade up and down with CFDs while leveraging your exposure.
In addition, copy trading cryptocurrency eToro's CopyTrader allows you to replicate the actions of other traders and trade automatically. With just the press of a button, you can start replicating the positions of your chosen investor automatically (with the option of a stop-loss level to limit potential losses). The service is offered exclusively for cryptocurrencies.
A user can be copied for as little as $200. Users have the ability to imitate up to 100 traders at a time. Users can view millions of other traders' portfolios, statistics, and risk ratings, even without using CopyTrader. (US customers can only duplicate other US users but also have full access to all publicly available profiles from around the world).
eToro is best for cryptocurrency, stock, and ETF traders. It is also a great choice for social or copy-trading investors.
eToro Trading Products and Options.
Pros.
eToro is a great choice for social trading and copy trading. It is also great for trading crypto.
Exciting perks are available for eToro club members who reach a higher status on the platform.
eToro is always expanding its selection of markets.
Cons.
Algorithm trading strategies are not available on eToro.
Compulsary stop-loss and take-profit may disrupt some trading strategies.
eToro has limited trading tools in comparison to some of its competitors.
Cryptocurrency Selection.
Initially, the list of financial instruments to be included in the eToro copy trading platform did not include cryptocurrencies. However, eToro later added cryptocurrencies to its holdings to promote financial inclusion.
In 2017, the company deepened its integration with the blockchain community and added cryptocurrencies to its selection of financial investment instruments. It did so by enabling crypto trading in a number of digital currencies, including Litecoin, Ethereum, and Ripple's XRP.
For US investors in 2022, eToro offers more than 25 different cryptocurrencies. This selection of cryptocurrencies is substantial compared to cryptocurrency brokers that also offer stocks and other assets but are less extensive than certain exchanges that only trade cryptocurrencies.
For investors outside the US, eToro offers about 75 cryptocurrencies. Even though some cryptocurrency exchanges have 200 or more different currencies and tokens available, eToro still offers a good selection. Investors have access to DeFi tokens, gaming, metaverse, and copy trades crypto smart contract cryptocurrencies.
eToro core cryptocurrency pairs.
Like fiat currencies, cryptocurrencies are exchanged in pairs. This rule is followed by eToro, which has included various trading pairs for its cryptocurrency coins.
Most of these digital assets can be easily traded against Bitcoin (BTC), the most valuable cryptocurrency in terms of market capitalization. Moreover, you can exchange the coins for alternatives or cryptocurrencies.
Some of the most traded cryptocurrency pairs are:
BTC/EOS ZEC/LTC XRP/DASH ETH/EOS EOS/XLM ZEC/ETH ETH/XLM BCH/LTC ETH/BTC ZEC/XRP.
Different Trading Options Offered by eToro.
eToro Cryptocurrency CFDs.
Most of the time, cryptocurrencies follow the best standards for traditional financial investments, which include hedging risks. Traders can participate in the market while exercising caution by using CFDs. One of the main brokers offering CFD trading in cryptocurrencies is eToro.
So what are CFDs? CFDs allow you to trade various financial asset classes without owning the underlying assets. You have to make predictions or speculative bets regarding the next price movement of these assets. If your prediction comes true, you are successful and receive a payout. However, if it does not come true, you lose your money.
You need to open a CFD account with the broker, in this case, eToro, to trade using a CFD. The goal is for you to open a position that may be long or short. After that, you decide on your leverage to reduce the risk or increase the profit, determine the amount you trade, and make other decisions that will facilitate the trade.
Bitcoin CFDs, introduced in 2014, are one of the various crypto assets available in eToro's cryptocurrency CFDs. Today, there is a wide range of cryptocurrencies available for CFDs.
These crypto coins include:
Other eToro Trading Options.
As mentioned, the copy trading feature of eToro is great because it offers both experienced and amateur traders the chance to trade a wide range of financial assets with ease.
Below are some additional trading options worth considering when using eToro:
Multi-asset.
eToro is a multi-asset brokerage company that offers a wide selection of financial asset classes to choose from. You can trade a selection of cryptocurrencies and other assets of your choice.
eToro has over 2,000 financial asset classes cutting across cryptocurrencies, commodities, fiat currencies, indices, and ETFs. These assets are also available in a variety of options, including leverage trading.
CopyPortfolios.
This is a long-term investment product. It was formerly called CopyFunds before it was renamed CopyPortfolios in 2016.
The concept here is to take advantage of eToro's machine-learning tools to dive deeper into the trading strategies developed by its users. This goes a long way to help traders brainstorm ideas that can help them come up with better strategies. Over time, these traders will be positioned to receive maximum returns on their investments.
Leverage trading is available on eToro. This is possible because the broker offers CFDs. With eToro's CFDs, you can enjoy up to 30x the amount you borrowed from the broker to trade.
But keep in mind that as much as leverage allows for flexible trading, it can be risky as well. Leverage trading is calculated in both profits and losses. Depending on the leverage you used, you could pay back as much as 10x the amount you borrowed if the trading strategy you used didn't pan out as expected.
This is why you should consider familiarizing yourself with how eToro's leverage trading and take note of the risks and benefits. This will help you decide whether you can afford to risk losing your borrowed capital if the trade goes south.
You can also use x2 leverage to trade specific crypto CFDs, such as XLM, BTC, EOS, and ETH.
eToro applies spreads to both its CFDs and crypto assets. In the case of eToro's CFDs, the traders do not own the assets. They only pay the overnight fees and spreads.
The spreads on currencies are as low as 1 Pip and can be as high as 3 Pips, depending on the currency pairs.
It is important to note that the spreads are only calculated to be paid once you close the position you have been holding. Additionally, the adjustments will be made at that time with reference to the closing price of the asset you have been holding.
What is a Pip? According to the eToro website, one pip is the smallest price change that a given exchange rate can make, and so refers to the very last digit of a price. For instance, if the EUR/USD moves from 1.1190 to 1.1191, this would be a movement of 1 pip in the exchange rate.**
Below we have created a table that compares eToro to three of its main competitors.
Features eToro Robinhood Fidelity Webull Cryptocurrency Available Yes Yes Yes Yes copy trading for cryptocurrency (http://____.info-forex.de/) Trading Yes No No Yes Leverage Available Yes Yes Yes Yes Price Alerts Yes Yes Yes Yes Candlestick Charts Yes Yes Yes Yes Minimum Deposit $10 ($500 for bank transfers) None None None CFD Trading Yes No Yes No.
eToro Review of Fees.
Are you trying to make a deposit or withdrawal on eToro? Even though the process is straightforward, you should first check what the eToro fees are. According to the website, eToro does not usually charge any fees.
There are no fees for setting up an account. You will not be charged any additional brokerage fees or rollover fees. There are no commissions, shares, or ticket fees to pay. In addition, eToro has announced that there are no eToro fees for consumers to deposit funds into their eToro accounts.
However, you will be charged a withdrawal fee. A $5 fee is charged for each withdrawal from the eToro website. This fee is used to pay or settle some of the costs that are often incurred when sending money abroad.
There are numerous ways to deposit money into your eToro account. Debit and credit cards, digital wallets, PayPal, and bank transfer are just a few of them.
Pros.
The forex and CFD fees are relatively low.
There are no deposit fees.