Updated August 5, 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.

eToro Promotions
Trade Popular Cryptocurrencies

Overall Score

3.8

Cryptocurrency Trading

3.5

Interest Accounts

3.0

Mobile App

3.5

Commissions and Fees

4.0

Ease of Use

3.5

Research

5.0

Safety

4.0
5-point scale (the higher, the better)

Pros and Cons

  • Copy actions of top traders
  • No commissions (only charges a spread)
  • Virtual practice account
  • Only supports 24 coins in US
  • Slow customer service response time

Bottom Line

Good crypto exchange for learning, socializing and copy-trading

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. eToro keeps clients' funds in tier-1 banks with the capital reserves to fulfill customer withdrawals even in the event that eToro went out of business.

Pros and Cons

Is eToro safe?
47% Yes
53% No
Source: CreditDonkey poll, December 22, 2021 to December 23, 2021

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.

How eToro Works

Overall Score: 3.8

eToro has a lot to offer for cryptocurrency enthusiasts, including their popular social trading feature, the CopyTrading option. In the sections below, we'll break down how they stand up in a range of important aspects including their exchange, commissions and fees, safety, and more.

Cryptocurrency Trading StarStarStarHalf StarEmpty Star

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.

What cryptocurrencies does eToro support?

eToro currently supports 28 different cryptocurrencies and stablecoins:

  • Bitcoin, Ethereum, Bitcoin Cash, Ripple, Dash, Litecoin, Ethereum Classic, Cardano, IOTA, Stellar, EOS, NEO, TRON, ZCASH, Tezos, Maker, Compound, Chainlink, Uniswap, Yearn.finance, Dogecoin, Aave, Algorand, Decentraland, Enjin, Basic Attention Token, Polygon, Shiba

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

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.

Commissions and Fees StarStarStarStarEmpty Star

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 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.

  • eToro charges a $5 withdrawal fee.

  • 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.

eToro Club
eToro users can enjoy a variety of perks if they meet the equity requirements of their tiered VIP accounts.

Base users start at the Bronze level with no requirements. The extra benefits start at Silver, which requires $5,000 in equity, and go up to Diamond, which requires $250,000.

Benefits include bonuses to staking interest rates, dedicated account managers, various newsletters and reports, access to webinars, and customer service benefits, among other things.

Research StarStarStarStarStar

Compared to other top cryptocurrency exchanges, eToro offers an impressive wealth of research tools, though perhaps not quite as extensive as more traditional investors might expect.

Along with the standard features like economic calendars and news, they also incorporate fundamental analysis, sentiment data of top traders, daily market commentary by their own staff, and a social wall section for each currency that lets users see what others are saying about it.

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.

Ease of Use StarStarStarHalf StarEmpty Star

For a platform that is designed to let novice traders benefit from the experience of more established investors, eToro could benefit from putting more effort into designing a user-friendly interface. Because unlike some other trading platforms, eToro takes some getting used to.

Users have access to a wide range of useful information, social media posts, news feeds, watchlists, and more, and for those new to the world of cryptocurrency, all of that can be a little overwhelming at first. Given time, it's likely that almost all users will be able to accustom themselves to the layout of the eToro platform, which does have a lot to offer.

But whether it's better labeling, clearer icons, or a more obvious central menu, there are undoubtedly improvements that could make eToro a lot more user-friendly.

Safety StarStarStarStarEmpty Star

It's important for any crypto investor that your cash and your coins stay safe. In order to ensure that, eToro employs the following security features:

  • Insurance
  • $1m investment insurance for clients of eToro Europe, UK, and Australia
  • USD balances FDIC insured up to $250k
  • Two-Factor Authentication
  • SMS
  • Secure Socket Layer (SSL) Encryption to protect transactions and personal information
  • Cold Storage

Wallet
eToro Money is a separate app that serves as a wallet for your cryptocurrency. Use a single username and password combination instead of keeping track of private keys and track your portfolio through the app.

That said, reviews are mixed, and a hardware, not software wallet is typically considered the safest place to store your crypto.

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.

Mobile App StarStarStarHalf StarEmpty Star

eToro has a useful mobile app that offers all of the same features available on its desktop site. Where some of the top competitors in the crypto space have gone for ease of use, eToro has focused on offering all the bells and whistles that a trader could want.

On the one hand, this is great for experienced traders who know their way around analytical tools, market charts and graphs, and price histories. But for less experienced traders, opening the eToro app for the first time may prove somewhat daunting.

Simply put, there's a lot going on, and it isn't always clear what buttons will take you where, or how to do what you intend to.

eToro's mobile app is by no means impossible to get the hang of, but when competing with beginner-friendly exchanges like Coinbase, there's a lot they could do to make their interface more intuitive.

Customer Service StarStarStarHalf StarEmpty Star

eToro's customer service appears to be on par with a lot of other popular cryptocurrency exchanges, which is to say it leaves something to be desired. While there are multiple ways to get in contact with them, either via live chat or web-based ticketing, they don't offer phone support.

They are not available 24/7, and live chat is, unfortunately, frequently offline. On top of that, you can't get ahold of them on weekends.

When you do get ahold of them, it appears their response time is quite fast, and they provide useful, relevant answers to user questions.

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? eToro client 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

Coinbase is arguably the best-known cryptocurrency exchange platform working today, currently offering 50 unique cryptocurrencies for trade, compared to the 24 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 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.

eToro

Trade Popular Cryptocurrencies

eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.

Coinbase

Earn $5 in bitcoin for getting started on Coinbase

Personalized $5 reward offer is displayed after account creation. Limited time offer and while supplies last. Offer available to new users who have not previously verified their identification. Offer not available to new users who were referred to Coinbase through the Referral Program or who have previously opened an account using different contact information. Coinbase may update the conditions for eligibility at any time, in its sole discretion. See Terms and Conditions.

Webull

Get a Free Stock Valued Between $3 - $300

Expires in 3 days

Open a Webull brokerage account between 07/01/2021 - 1/31/2022 and get a free stock valued between $3-$300

Jeremy Harshman is a protector of art and writing at CreditDonkey, a crypto 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.

eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.

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Compare:

Is eToro safe?
47% Yes
53% No
Source: CreditDonkey
Leave a comment about eToro Review?




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