When it comes to trading cryptocurrencies, there are a lot of different platforms to choose from. In this Etoro review, we will take a look at one of the most popular “social trading” platforms out there and see what its pros and cons are.
So, what is social trading? Social trading platforms or networks can be considered a subcategory of social networking services. Trading itself is complex, but with social trading, traders can trade online with the help, which can shorten the learning curve for newbies.
eToro allows you to trade cryptocurrencies, stocks, commodities, and more. The platform is registered under the eToro USA LLC. Let’s take a closer look at what this platform has to offer in this eToro review.
eToro trading platform mobile apps
Once you click “JOIN NOW,” you need to provide these details:
Overall, eToro’s mobile app is quite useful no matter the choice of type of investment. The simplicity of use is excellent, and eToro offers nearly all of the same features on its website as it does on its mobile app, which multi-device customers will like.
eToro’s mobile apps are eToro and eToro Money, which allow you to trade bitcoin and other cryptocurrencies. Both applications are available on Google Play for Android mobile phones and the Apple App Store for iOS products.
The eToro mobile app is simple to use, and it has all of the features you’d expect from a top trade platform. It is possible to trade stocks, commodities, and foreign exchange from the app.
eToro’s mobile trading app allows you to monitor your open trades and manage existing positions in addition to opening new ones.
The eToro application also provides a “Watchlist” feature that allows customers to track their favorite assets for future transactions without opening them on the whole trading platform.
eToro platform mobile app is available in over 20 languages, making it an excellent choice for traders worldwide.
The charts are also built on the web platform and, like the rest of the mobile app, are responsive and closely resemble the online platform experience. The app only displays five indicators compared to 67 on the web, which is a shame.
Drawing tools are absent from the product entirely and would be an excellent addition to an otherwise clean, lightweight design.
The eToro wallet is a Bitcoin, Ethereum, and another cryptocurrency wallet. Users may deposit and withdraw money using the eToro Money Wallet, a separate mobile app that supports tangible crypto assets. The eToroX Custody Service serves as the bitcoin private key custodian and keeps them in cold storage.
Is eToro secure?
You should heed this warning when you open the app: You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. When it’s anything you don’t understand, you risk losing your capital.
The social aspect of trading could cover you — considered more intelligent investing — by automatically copying the leading traders in the eToro community or getting copied yourself to earn a second income. eToro is a winner for its easy-to-use copy-trading platform, where traders can copy the trades of experienced investors’ trades or receive exclusive perks for sharing their trading strategies.
eToro has a shallow level of risk, with an overall Trust Score of 91 out of 100. eToro is not publicly traded, does not have its bank, and is licensed by two tier-1 authorities (high trust), one tier-2 authority (average trust), and no tier-3 regulator (low trust).
The Financial Conduct Authority in the United Kingdom regulates eToro. The Australian Securities and Investment Commission (ASIC) and the Financial Conduct Authority (FCA) oversee it both in the United Kingdom.
Benefits of cryptocurrency trading on eToro
eToro boasts a portfolio of over 3,056 tradable products in total.
- Usability: eToro goes above and beyond to make the trading experience pleasant for customers as a multi-asset broker. eToro allows traders to select between trading CFDs and the underlying assets from the trade ticket window, which is a helpful little feature.
- Cryptocurrency Trading: eToro offers cryptocurrency trading on CFDs and the underlying asset (i.e. buying Bitcoin).
- Note: Crypto CFDs are not accessible to retail traders from any broker based in the United Kingdom, nor can they utilize them. In addition, crypto trading at eToro is not available in Russia, The Netherlands, or Turkey.
- eToro also offers a wide variety of cryptocurrencies to trade, including Bitcoin, Ethereum, Litecoin, and more. You can also trade in different fiat currencies (USD, EUR, GBP) which is helpful if you want to stick to trading in your home currency.
eToro platform education
eToro Learning Academy and blog provide many videos, articles, and weekly webinars like those offered on educational leaders like AvaTrade, Saxo Bank, or IG trail.
- Learning center: eToro offers an online trading academy containing dozens of videos and articles that are organized by category and experience level.
- Integrated educational tidbits: eToro provides extra details for beginners next to each symbol available within its platform, such as information about trading instruments (like the EUR/USD currency pair), and general facts to consider before investing.
- Room for improvement: eToro has a decent number of videos on its YouTube channel, including archived webinars and market analysis, but I found it hard to distinguish between research, promotional, and educational videos.
Organizing educational content by playlist and separating platform tutorials from financial market education would help balance eToro’s video content in this category.
Trading strategies
You can choose from three types of investments:
Cryptocurrencies
Buy, sell and store Bitcoin and other leading cryptos with ease
Stocks & ETFs
Invest in stocks with 0% commission. Buy in bulk or just a fraction.
CFD Trading
Go long or short on FX from just 1 pip. Trade commodities and indices with flexible leverage. CFDs are sophisticated instruments with a significant risk of losing money quickly due to leverage. eToro is a multi-asset trading platform that allows you to trade CFD assets and invest in stocks and cryptocurrency.
Please note that CFD trading comes with a high risk of losing money rapidly due to leverage. When trading CFDs, you essentially borrow money from your broker to trade. This means that if the market moves against your position, you could lose more money than you initially deposited.
Fees & commissions
- eToro does not charge a commission on trades. Instead, eToro makes its money through the spread. The spread is the difference between the buy and sells price of an asset. For example, if the buy price of an asset is $100 and the sell price is $101, the spread would be $0.01 or one percent.
- eToro also charges an overnight fee on positions that are open past 00:00 GMT. This fee is charged at a rate of 0.0625% per day and is charged to long positions.
- The fees are higher on eToro than some other brokers, especially if you’re trading with leverage. For example, a trade that is using x20 leverage will cost you 0.05% in fees (0.025% for the spread plus 0.0025% overnight fee).
- This fee can be much higher if the trade is using x200 leverage, which means that you’d pay 0.25% in fees (0.025% for the spread plus 0.0025% overnight fee).
- eToro also charges a “currency conversion fee” when you make deposits and withdrawals with non-USD currencies such as GBP or EUR. This fee is 0.25% for deposits and withdrawals.
- eToro offers a variety of account types, including a demo account, that have different fees associated with them. You can read more about the different account types on eToro’s website.
- eToro is a market-maker broker and lists a typical variable spread of 1 pip on the EUR/USD, which is slightly higher than the industry average. Considering its trading fees, retail traders don’t choose eToro for its spreads, but rather for its social copy trading platform capabilities.
- eToro’s finest-level accounts: eToro has a VIP club (known as eToro Club) with five levels of membership ranging from Silver to Diamond. These tiers are for traders who maintain balances between $5,000 and $250,000 and provide different perks depending on the level of membership. There are various VIP perks available, such as a dedicated account manager, invitations to events and trade shows, and even a yearly $100 credit for trading fees.
- eToro’s popular retail Investor accounts program (for traders who allow other investors to copy their strategy) has four levels – ranging from Cadet to Elite – where traders can become eligible for various perks. To qualify for the Cadet level retail investor accounts, you must have more than $1,000 in account equity, attract $500 in customer assets that copy your strategy, and have at least five copiers in the past month. The program’s perks include free tickets to various events, trading discounts, higher earnings on copied trades, and an increase in the number of traders who can copy your strategy.
- eToro wallet offers a no-fee debit card that allows you to automatically withdraw funds from your account when purchasing goods or services. The card is issued by Payrnet, a MasterCard company. It has no annual fee and gives you access to your money in real-time.
- Overall, eToro account fees for buying and selling real cryptocurrency such as bitcoin are similar to the industry average – 0.75% for buying and selling bitcoin – while its fiat-to-cryptocurrency conversion fee of 5% is excessive (1% eToro fee and 4% Simplex charge). Meanwhile, converting from crypto to crypto (Bitcoin to Ethereum, for example) is free on eToro.
- In addition to trading CFD shares, eToro also provides zero-dollar commissions for stock trading in the United States (not available to U.S. investors) and fractional share support. Visit our UK StockBrokers review of eToro to learn more.
Is eToro good for cryptocurrency trading?
Overall, eToro is an excellent platform for trading. It has a wide variety of assets to trade, the user interface is easy to use, and the commissions and fees are relatively low. That said, be aware that CFD trading comes with a high risk of losing money rapidly due to leverage. Make sure you understand the risks involved before opening an account once you read this etoro review. The platform also has an excellent eToro wallet to ensure the safety of your funds.
Pros of trading with Etoro
- – There is a huge selection of assets to trade.
- – The platform is user-friendly and easy to use.
- – You can copy the trades of other traders.
- – The customer support is excellent.
Cons of trading with Etoro
- – Fees are relatively high.
- – The platform is not available in the USA and some other countries.
- – There are no margin trading options or futures contracts available on etoro yet.
Is eToro a safe site to use?
eToro is a global investment platform that enables investors to connect and utilize market analysis tools. Over 13 million traders worldwide trust eToro, and it is licensed to safeguard client money and provide brokerage services in several nations.
In Q3 2021, eToro was listed on the NASDAQ following a $10.4 billion merger with blank. So you can rest assured that your money will be secure when you trade on the site. The company also maintains high transparency standards – all fees are disclosed upfront, and the site has a no-hidden fees policy.
How to use eToro
Once you are done reading this Etoro review, sign up on eToro, you need to create an account using one of these two methods:
Create an Account Using Email Address or Mobile Number: Visit the registration page of eToro, enter your full name and email address or mobile number. You can also choose to sign up with a Facebook or Google account by clicking on the corresponding button below.
Create an Account Using Email Address: Visit the registration page of eToro, enter your full name, email address, and password. After that, you will receive a verification email to your inbox. Click on the link in the email to verify your account and start trading.
How does eToro work?
Once you have registered for an account, you will be taken to the main dashboard, where you can view all of your active positions, open orders, and transactions. The platform is easy-to-use with a basic and advanced view, so you can toggle between the two as needed.
The left-hand column of the dashboard provides an overview of your account status, including your equity (the total value of all your assets), margin (the funds available to open new positions), and unrestricted funds (the amount of money in your account that is not being used to hold any positions open).
The middle column provides a quick view of your portfolio and allows you to find new investments by searching for stocks or ETFs or selecting from categories such as “Most Popular” and “Top Gainers.”
The right-hand column shows all of the charts related to your selected asset. You can use these charts to study the historical performance of the investment and view technical indicators and order book data.
What assets can I trade on eToro?
eToro offers various assets to trade, including stocks, ETFs, commodities, indices, fiat currencies (such as USD and EUR), and cryptocurrencies (such as Bitcoin and Ethereum).
You can view all available assets in the left-hand column of your dashboard, which is organized by asset category. You may narrow down the results by entering specific criteria into the search bar, such as “Stocks with a market cap greater than $250m” or “ETFs that track an index.” Clicking on one of the assets will take you to a page that displays more detailed information about it.
How do I place a trade on eToro?
To place a trade, first select an asset by clicking on its name in the left-hand column of your dashboard and then choosing “Trade” from the menu at the top right corner of the page. This will open a new window with details about that asset, including its current price, symbol, and daily volatility.
You can then enter your desired trade amount and click on “Buy” or “Sell.” The order ticket will also show you what type of order you are placing (Market Order or Limit Order) and the maximum amount you are willing to risk on the trade.
Once your order is placed, it will be displayed in the “My Orders” tab. You can cancel or modify it at any time before it is executed.
What fees does eToro charge?
- eToro charges a variety of fees for different types of trades. The fee structure is as follows:
- Stocks, ETFs & Commodities (US$): $0 commission per trade
- Cryptocurrencies: No commissions; spreads are 0% on all cryptocurrencies except Ripple (XRP), Bitcoin Cash (BCH) and Dashcoin. These have a spread of 0.75%
- Indices (US$): $0 commission per trade
- Fiat (US$): No commissions; spreads are 0.35% for EUR/USD and USD/JPY, and 0.30% for GBP/USD
- The minimum deposit is US$200 or equivalent in other currencies, while the maximum withdrawal amount is US$20,000 per day.
Is eToro legit?
eToro is a regulated and licensed broker that has been in business since 2006. The company is headquartered in Cyprus and is authorized and regulated by the CySEC (Cyprus Securities and Exchange Commission).
The platform has several safety features, such as two-factor authentication, a secure login process, and encrypted data. eToro is also a member of the Investor Compensation Fund (ICF), which provides up to €20,000 in protection for clients in case of insolvency.
Bottom Line
eToro is a well-rounded platform that offers traders a variety of assets to trade, a user-friendly interface, and a variety of safety features. The company is regulated and licensed, which gives traders peace of mind that their funds are protected.
However, the fees charged by eToro can be high for some types of trades, so it’s essential to do your research before opening an account.
Factors that determine trust in financial services include proper regulatory licensing, operational history, adequate financial capital to ensure solvency, and a track record of excellent customer service. In all of these areas, eToro has proven itself more than capable of earning clients’ trust.
FAQs about eToro
Is eToro really free?
The cost of eToro’s copy-trading service is incorporated into its spreads. So while it may be “free” to use eToro in terms of commissions, you will still incur trading costs – such as the bid/ask spreads.
All online brokers make money by charging commissions, spreads, or a combination of both (and may receive rebates and the like). You don’t pay anything extra beyond spreads and carry costs if you choose to hold positions overnight.
Can you make money with eToro?
Yes, you can make money with eToro, though doing so — as with any broker — is never guaranteed. eToro’s value proposition lies in its social copy trading capabilities, which allow you to select from its vast database of traders and copy trades in real-time. But bear in mind you can also lose money when dealing with investments such as forex, stocks, CFDs, and cryptocurrency, including with eToro.
The key to making money at eToro as a trader is making the right trading choices and risk-management decisions to keep your average losses low relative to your average profits over time (whether you are trading manually or copy trading).
When copy trading at eToro, you still must do enough analysis to sort through the database of investors and decide which, if any, to copy.
You also have to determine how much to allocate to each strategy provider, whether to set any maximum draw-down limits (that is, a value where you automatically stop copying if a particular loss threshold is breached) and if you’ll copy traders that are already open or only new trades.
Is eToro good for beginners?
Yes, eToro is an excellent choice for beginners. Its trading platform is easy to learn and not overly complex. eToro does an excellent job of balancing valuable tools and features in a web platform and user-friendly mobile trading app.
While being suitable for beginners doesn’t mean it is easy to make money, it’s easier to use eToro than some of the more sophisticated trading platforms out there.
One challenge beginners may face with eToro is conducting sufficient analysis when deciding which investors to copy and learning to look at more than just the absolute returns that a given trader has achieved.
For example, you might consider the risk score, the average number of trades placed per week, and the average profit, loss, and holding time for a given investor you consider copying. eToro will serve you well if you fall in any following categories.
- You’re looking for a quality platform that sells a wide range of cryptocurrencies, with an easy-to-understand fee structure.
- You like social trading and want to copy the strategies of successful traders with solid track records of outperformance.
- You reside in one of the 43 states where eToro is accessible.
Is eToro a good platform for trading cryptocurrencies?
It seems like this platform has more pros than cons compared to other trading platforms. The vast selection of assets to trade, the user-friendly interface, and the ability to copy the trades of other traders are all great features that make Etoro stand out from the competition.
However, the high fees may be a turnoff for some people, and there is still room for improvement in margin trading options or futures contracts. If you’re looking for an easy way to start trading cryptocurrencies, then Etoro might be the right choice for you.
