April 30, 2021

eToro Review

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eToro is a cryptocurrency trading platform known for its popular CopyTrading feature. Find out if it's worth the fees and how it compares to other platforms.

Interested in crypto trading, but too busy to do the research?

With eToro's popular CopyTrading feature, you can mimic the moves of other successful traders.

But why do so many people lose money on eToro? And is it really a smart choice for your investments? In this review, find out how it works, the fees they charge, and how it compares to Coinbase and Robinhood.

Read our detailed review to find out for sure.

What is eToro?

eToro is a user-friendly brokerage platform for buying and selling cryptocurrencies in the U.S., with a wider range of assets available to non-U.S. residents.

The platform was founded in Israel in 2007 with the goal of making trading more accessible. Since then, they've become the world's leading social trading platform and have made plans to go public.

What makes eToro stand out is their popular CopyTrading feature, which they introduced in 2010. It allows users to automatically mimic the trades of top-performing traders.

You can also chat with the traders you copy and learn from their strategy, which makes eToro a great platform for education.

However, it's worth noting that these stand-out features come at a price. Below, find out how much eToro costs and what you get for your money.

Is eToro trustworthy?
Yes. eToro operates within the regulations of FINCEN in the U.S. and FCA, CySEC, and ASIC internationally. As of March 2021, eToro had over 20 million registered users worldwide.

How eToro Works

eToro makes buying and selling cryptocurrency easy via their mobile app or desktop site. After signing up, you'll fund your account (minimum deposit is $200) and can start trading.

For U.S. residents, eToro currently offers cryptocurrency trading only. Non-U.S. residents can trade cryptocurrencies, as well as forex, CFDs, stocks and more. (This review focuses on eToro's U.S. offerings.)

Their CopyTrader feature is where eToro really shines. Instead of paying for an expensive fund manager or advisor, eToro's top-performing traders are available to follow absolutely free.

They're just everyday people who've been successful and are willing to be transparent about their trades. They do, however, have to apply to be in eToro's Popular Investor program, so not just anybody can be copied.

Popular Investors are given a Risk Score out of 10 to help you gauge how risky their strategy is (most top traders score 7 or 8). You can also see their trade frequency, average holding time, portfolio composition, and historical performance.

And because eToro is a social platform, Popular Investors can also post comments and interact with their "copiers".

The minimum for copy trading is $200, and the max is $500,000. You can follow up to 10 traders at a time. In order to mitigate risk, you can stop copying any trader if the value drops below a certain percent.

A Note About CopyTrading: eToro's CopyTrading feature is a huge perk for inexperienced traders, but it's not without risk. In fact, no Popular Investor will ever ONLY profit, and you'd be wise not to over-trade for fear of missing out on the "next big thing". Always be careful when choosing a Popular Investor to copy, and aim for long-term returns over short-term spikes.

Pros and Cons: What's the Catch?

As with any investing platform, eToro has its own set of unique upsides and downsides. Let's take a look at what they are.

Pros

  • Easy to get started, sign up in minutes, and get to trading.
  • Mobile and desktop platforms are very user-friendly.
  • CopyTrading allows inexperienced or busy users to trust their investments to experienced traders.
  • The social platform encourages discussion and learning.

Cons

  • High fees compared to more expert-level platforms.
  • Can't withdraw your cryptocurrency directly—only exchange it for fiat currency or transfer supported coins to the eToro Wallet. Once there, they cannot be transferred back.

App Download: Apple, Google Play

Why can't I withdraw my crypto from eToro?
eToro is primarily designed for trading, and while you can buy and sell cryptocurrency, it can be difficult or impossible to access it directly. In the case of supported coins (currently Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Stellar), it's possible to transfer them to the eToro Wallet, a separate feature, and from there into a personal hardware or software wallet. If you're interested in using cryptocurrency for financial transactions, eToro may not be your best bet.

Features

Review some of eToro's stand-out features below to decide if its worth signing up.

CopyPortfolios
This feature is a step up from eToro's CopyTrading. With a higher minimum investment of $5,000, it allows you to minimize risk by investing in a portfolio of cryptocurrencies, rather than following a single trader.

In the U.S., there are currently three to choose from:

  • Crypto-Currency: Made up of Bitcoin and Ethereum
  • CryptoPortfolio: Made up of cryptocurrencies with a market cap of $1 billion or more
  • CryptoEqual: made up of equal amounts of a number of large cap cryptocurrencies

Practice Account
If you'd like to experiment with investing in cryptocurrency without the risk, eToro will give you $100k in a practice account. Obviously, you won't be able to earn anything this way, but it's a useful way for beginners to get a feel for the platform.

Educational Resources
eToro's blog publishes Weekly Crypto Roundups to keep you updated on the latest in crypto news. They also offer in-depth financial guides and video tutorials to help new traders understand the ins and outs of cryptocurrency and how to trade on the platform.

Can you make money with eToro?
It's definitely possible to make money with eToro, but when it comes to investing, there are no guarantees. Cryptocurrency is a very volatile investment option, with big changes often occurring over very short periods. As a general rule, never invest money you aren't willing to lose.

Fees to Look Out For

eToro accounts are free to open and they charge no commissions or management fees. However, they do charge "spread fees" when you trade cryptocurrencies.

The spread is the difference in buying and selling prices for assets available on a platform.

Essentially, eToro and other platforms like it make their money by including their fee in the price of the currency. The percentages depend on the cryptocurrency in question, ranging from .75% (BTC), or 1.90% (ETH), to as high as 5%.

  • Cryptocurrency transactions, including transferring funds, will also incur a fee. Fees vary, depending on each blockchain provider.

  • There are no withdrawal fees in the U.S., but a $5 withdrawal fee in other countries.

  • eToro charges a $10 inactivity per year if your account has no activity for 12 months.

  • eToro charges an overnight fee for leveraged positions held overnight, per night.

  • The minimum investment on eToro is $50.

  • The minimum withdrawal is $30.

Is eToro really free?
eToro may appear to be free, but they charge a spread fee that appears as a small loss immediately after you buy a cryptocurrency on the platform. The fee depends on the asset.

How to Get started on eToro

Opening an account with eToro is very easy, and should only take a couple of minutes.

  1. First, visit their website or download the app, pick a username, and set a password.

  2. After your account is created, they recommend filling out your profile. This helps eToro tailor your News Feed to you.

    You'll also need to verify your identity with one of the following:

    • Valid U.S. passport
    • Valid driver's license
    • Valid state ID

  3. Then you will fund your account. The minimum deposit is currently $200.

  4. After that, you're ready to start trading. Be sure to explore the 'Watchlist', which features other traders and markets that might interest you.

Contact Customer Service

To contact eToro customer service, visit their Customer Service page, where you can open a ticket as a new or existing user or access live chat.

Due to a high volume of requests, they recommend checking their Help Center for answers to your questions, as responses to support tickets can take up to 14 days.

Is my money safe on eToro? Yes, your money is safe with eToro. According to their site, clients' funds are secured in tier 1 banks, and in the U.S., cash funds are FDIC insured. However, cryptocurrency is not FDIC insured. Transactions and personal information are protected with Secure Socket Layer (SSL) encryption.

Compare Similar Apps

When it comes to buying and selling cryptocurrencies, there are a number of popular platforms to choose from. See how eToro compares.

Coinbase vs eToro

 

eToro

Coinbase

SPECIAL OFFER
100% Stocks, 0% Commission - Learn More

SPECIAL OFFER
Learn Crypto, Earn Crypto - Learn More

 

Benefits and Features

Stock Trading
$0
 
Cryptocurrencies Supported
14
50
Countries Supported
Over 100
Over 100
Fiat Currencies SupportedUSD, EUR, GBP, JPY, AUD, CAD, CHF, NZD, ZAR, RUB, CNH, NOK, SEK, TRY, MXN, SGD, PLN, HUF, CZK, RON
USD, GBP, EUR
Digital Wallet
Yes
Yes
Transaction Fee
Free
Greater of Minimum Flat Fees or Variable Fees (1.49%+) by Location and Payment Method:
Minimum Flat Fees
  • < $10: $0.99
  • $10.01 - $25: $1.49
  • $25.01 - $50: $1.99
  • $50.01 - $200: $2.99
Copy Trading
Yes
No
Limit Orders
Yes
No
Margin Trading
Yes
No
Spread
0.75% - 5%
0.50%
Interest Accounts
Up to 90% for ADA and TRX
USDC only, 1.25% APY
Crypto Loans
No
Invitation only
Bank Account Purchase Fee
Free
1.49%
Debit Card Purchase Fee
Free
3.99%
Wallet Purchase Fee
Free
1.49%
Mobile App
Yes
Yes
ACH Transfer Fee
Free
Free
Wire Transfer Fee
Free
$10 ($25 outgoing)
Crypto Conversion Fee
0.10%
up to 2%
Other FeesCrypto transfer fee: 0.0005 units - .25 units; $10 monthly fee after 12 months inactivityInstant Card Withdrawal: up to 1.5% + minimum fee of $0.55
Address Allowlisting
No
Yes
Anonymity
No
No
Biometric Login
No
Yes
Cold Storage
Yes
Yes
Insured$1m investment insurance for clients of eToro Europe, UK, and Australia; USD balances FDIC insured up to $250kUSD balances FDIC insured up to $250k
Two-Factor Authentication
SMS
SMS or Google Authenticator
Withdrawal Limit
$30 minimum
$50,000 / day

100% Stocks, 0% Commission

Learn Crypto, Earn Crypto

Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details.

Coinbase: Pricing information from published website as of 04/13/2021.

Coinbase is arguably the best-known cryptocurrency exchange platform working today, currently offering 50 unique cryptocurrencies for trade, compared to the 15 on eToro.

Coinbase fees are around 1.49% for bank transfer purchases, but eToro's fees are variable, so which are better depends to some extent on the currency you're buying.

If you're looking for more options, Coinbase may be your best bet, but eToro will offer more opportunities for new buyers looking to learn.

Robinhood vs eToro

 Robinhood
 Learn MoreVisit Site
 

eToro

Robinhood

SPECIAL OFFER
100% Stocks, 0% Commission - Learn More

OFFER
Get a Free Stock (worth between $2.50 and $200) - Learn More

 

Benefits and Features

Stock Trading
$0
$0
Options Trading 
$0
Mutual Fund Trading 
No
Cryptocurrencies Supported
14
ETC, ETH, BSV, BCH, BTC, DOGE, LTC
Fiat Currencies SupportedUSD, EUR, GBP, JPY, AUD, CAD, CHF, NZD, ZAR, RUB, CNH, NOK, SEK, TRY, MXN, SGD, PLN, HUF, CZK, RON
USD
Digital Wallet
Yes
No
Transaction Fee
Free
No
Copy Trading
Yes
No
Limit Orders
Yes
Yes
Interest Accounts
Up to 90% for ADA and TRX
Up to 0.30%
Crypto Loans
No
No
Bank Account Purchase Fee
Free
No
Debit Card Purchase Fee
Free
No
Banking No service fees for Robinhood Cash Management account. Free debit card with no in-network ATM fees or foreign transaction fees
Mobile App
Yes
Yes
ACH Transfer Fee
Free
No
Wire Transfer Fee
Free
No
Crypto Conversion Fee
0.10%
No
Anonymity
No
No
Biometric Login
No
TouchID or FaceID
Cold Storage
Yes
Yes
Two-Factor Authentication
SMS
Yes
Withdrawal Limit
$30 minimum
$50,000 per business day
 Learn MoreVisit Site

100% Stocks, 0% Commission

Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details.

Robinhood: Pricing information from published websites as of 04/18/2020.

Robinhood is an investment platform offering commission-free trades. Users can purchase stocks, options, ETFs, and cryptocurrency, which means it has more options than eToro, which only offers crypto to U.S. customers.

Robinhood does not offer pre-made portfolios like eToro's CopyTrading platform, but instead has a wealth of educational resources for new investors.

Investors looking to be more hands-on, who want to buy stocks and crypto on the same platform, may prefer Robinhood. While investors looking to mimic successful CopyTraders, who are only interested in cryptocurrencies, will probably prefer eToro.

Bottom Line

For those who are confident in their ability to read the market, who want to take a hands-on approach to investing, eToro's relatively high fees may not make it the first choice.

And if you are interested in using cryptocurrency for something other than an investment vehicle, then you ought to consider exchanges that make it easier to transfer to and from your personal crypto wallet.

Regardless of your level, eToro's user-friendly platform and wealth of experienced and successful traders to learn from make it a great place to dive deeper into the world of crypto.

And if you're interested in taking your hands off the wheel and letting someone else drive, CopyTrading may just be right for you. Remember, no investment is risk-free, but sometimes it's wiser to go it together.

Jeremy Harshman is a protector of art and writing at CreditDonkey, a personal finance comparison and reviews website. Write to Jeremy Harshman at jeremy.harshman@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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