Etoro Review

Number one gold medal

5.0

5/5
Min Deposit: €50

Pros & Cons

Pros

Cons

etoro In a Nutshell

eToro is a social trading platform for currencies, cryptocurrencies, stock, commodities and indexes. The platform currently has over 20 million users worldwide. With cryptocurrencies being the focal point in this review, we will take a hands-on look at the eToro platform, compare it to other exchanges and cover its pros and cons.

Users on eToro can start trading cryptocurrency on the platform for as little as $50. eToro also offers an innovative trading platform with its unique feature that lets investors follow selected traders with successful track records, move-by-move. As always, make sure you consider the risks before you start investing.

Read the full in-depth eToro review for more details regarding the platform as a whole.

etoro Overview

Since it started in 2007, eToro’s service has enabled its users to trade almost anything you can imagine on one single platform. Marketed as a social investment platform, it blends a typical modern trading interface with the extra functionality that enables interactions with other users on the platform. Social trading on the eToro platform is a social-media-like atmosphere where users can connect and chat right on the platform. Users can also follow other traders, check their trading performance, copy their investments and see what recent investments they have made.

The CEO, Yoni Assia, has stated that he wants the platform to disrupt the outdated and traditional banking system and help push for a new digital financial era. If you are already investing in cryptocurrencies, then Assias vision probably aligns almost directly with your opinions. eToro currently enables the trading of a select number of cryptocurrencies and has been expanding the selection steadily over time.

The company has undergone several cycles, the most recent one being the introduction of eToroX in 2019, offering a fully regulated cryptocurrency exchange.

etoroX

eToro Crypto Fees

Due to the complex number of trading alternatives on eToro, the fee structure differs from asset to asset. If we look at the fees for cryptocurrency trades, some of you might be shocked.

The eToro trading platform is distinct from most other cryptocurrency exchanges/trading platforms for cryptocurrencies as it does not charge fees in the typical cryptoexchange way. Instead, eToro charges fees under a more “traditional” approach. Specifically, by having a specified spread between the sell price and purchase price for each cryptocurrency. The spread is listed below but for BTC trades, it is 0.75%.

For example, if a trader wants to sell Cryptocurrency X (made up) at eToro for $100, and a buyer wants to buy the same currency, eToro’s price will be somewhat higher. How much higher will depend on the spread. So if the spread is set at 1%, the buyer can purchase the currency on the platform for $101. The difference between the sell price and the buying price being $1, and goes to the eToro trading platform.

Here are the current spread fees for the top 10 cryptocurrencies available on eToro:

  • Bitcoin (BTC): 0.75%
  • Ethereum (ETH): 1.90%
  • Bitcoin Cash (BCH): 1.90%
  • XRP (XRP): 2.45%
  • Dash (DASH): 2.90%
  • Litecoin (LTC): 1.90%
  • Ethereum Classic (ETC): 1.90%
  • Cardano (ADA): 2.90%
  • Iota (MIOTA): 4.5%
  • Stellar (XLM): 2.45%

Deposit Fees

There are currently no deposit fees for U.S. users to deposit U.S. dollars into an eToro account. The eToro platform offers three deposit methods, with varying minimum and maximum deposit amounts:

DEPOSIT TYPEMINIMUM DEPOSITAVAILABILITY
Debit card$50Instant
Bank account$50Instant
Wire transfer$5004-7 business days

Withdrawal Fees

Like many other cryptocurrency exchanges, you can store your crypto directly on the eToro trading platform. It is also possible to withdraw crypto by using your crypto wallet. U.S. users can enjoy no fees on withdrawals from the platform, but there is however a $30 minimum withdraw. For global users, the withdrawal fee is still very competitive at 0.5% per withdrawal, lower than most other leading cryptocurrency exchanges.

Start trading on eToro today!

You can open an account with eToro in just a few minutes. Click on “Open Account” and fill in your information.

Min Deposit: €50

etoro Security

Any funds in U.S. dollars on eToro that haven’t been used for cryptocurrency trading are held in an FDIC-insured custodial account and are protected up to $250,000. For cryptocurrency, eToro relies on a mix of hot and cold wallets to protect crypto assets.

If you store crypto on your eToro trading account, eToro states that they then will be held “mostly in cold storage.” Many cryptocurrency exchanges hold at least a piece of their overall crypto assets out of cold storage for liquidity as these coins help facilitate trading activity on the platform.

All crypto assets stored in an eToro Wallet (eToro’s crypto wallet) are held hot wallets. As for now, there is not a lot of details regarding the hot wallet security, but eToro has said that all wallets are operated according to security best practices and have high-level security features and standardization protocols. All eToro wallets also include the handy “unlosable” private key service, allowing users to regain access if the private key would ever be lost. Bet this guy would have loved this feature.

In the U.S., eToro is also registered with the Financial Crimes Enforcement Network (FinCEN) and with state-level regulators in the states it operates. It does not offer any information about crypto assets being insured in case of a breach, either with a third party policy or eToro’s savings.

etoro Services

The eToro trading platform allows for investments in a long list of different assets such as stocks, conventional currencies, bonds and cryptocurrencies. But, the main feature of the platform is the ability to follow and copy other traders, turning the eToro platform into a social trading platform. Let’s take a closer look into the services available on eToro.

CopyTrader

CopyTrader is one of eToro’s most unique features. It allows users to copy other users trades, and eToro also curates a list of investors from the platform, making it easy for users to find reliable traders. The traders with the most followers also are compensated by eToro for allowing other users to copy their trades. And to reduce risk on its users, eToro also give popular investors a risk evaluation score between 1 – 10 calculated based on certain criteria. If an investor then exceeds a certain risk level, they lose their ability to have other investors copy their trades.

While this feature is unique, investing by copying other users make a speculative investment in cryptocurrency even more of a gamble as you put someone else in control of your trades. Besides, most popular traders are also active in day trading, which often can increase the risk compared to long-term investments. It is also common for popular trades to invest in even riskier altcoins, rather than the more established currencies such as Bitcoin and Ethereum. Before you start copying other traders on the platform, make sure you are aware of the risks and keep a close look at the trades being executed.

etoro CopyTrader

CopyPortfolio

eToro is also unique in its portfolio offerings. Not only can users buy and trade crypto, but users can also invest in four different cryptocurrency funds, managed directly by eToro and rebalanced regularly.

The cryptocurrency portfolios include several cryptocurrencies, including altcoins, allowing users to make more diversified investments. To invest in the funds, you need a minimum of $2,000 – $5,000 to invest, depending on the portfolio that you choose. And, as many experts generally recommend, you should only invest 5% or less of your portfolio in speculative investments such as crypto, making these minimum investments a hurdle for many beginners.

To top it off, the cryptocurrency funds on eToro are always fully allocated and rebalanced regularly for optimal gains and with a 0% annual management fee.

eToro CopyPortfolio​

Virtual Portfolio

As already mentioned, eToro does offer a couple of great features that are great for beginners just getting their toes wet in investing. One of these features being the Virtual Portfolio, a demo mode that lets users trade on the platform without investing any real money. Using the demo mode, users can invest in cryptocurrencies such as Bitcoin, Ethereum and XRP and watch how they perform over time. A perfect training environment for beginners as it lets users experience the real world of trading without the risk of losing actual money.

eToro Virtual Portfolio​

etoro Cryptocurrencies

eToro currently offers a list of around 30 different cryptocurrencies on the platform and is gradually expanding its offering. From our POV, this showcases that eToro ensures that all new cryptocurrencies added to the platform are properly screened to minimise risk on its investors.

Here is a list of the top 15 cryptocurrencies currently on eToro:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Dash (DASH)
  • Ethereum Classic (ETC)
  • Cardano (ADA)
  • IOTA (MIOTA)
  • Stellar (XLM)
  • EOS (EOS)
  • NEO (NEO)
  • Zcash (ZEC)
  • Binance Coin (BNB)
  • Tron (TRX)

etoro Design

The design of the eToro trading platform is both user-friendly and easy to use. Once logged in, users have a simple control panel on the left side of the screen, while all needed for investments such as charts, data, and profiles are on the right side. Similarly, the eToro mobile app offers almost the same features and functionalities as the desktop version on the platform, making it possible for users to manage all their investments from their phones. The app also sends users important notifications, making it possible to stay on top of your investment regardless of where you are in the world. The app is currently available on both Android and IOS devices.

etoro design and mobile app

Who Should Use etoro?

eToro offers unique features suitable for beginners looking to interact and learn from other investors in the space. Users can easily talk with other users, read comments, get opinions, learn about strategies, and even copy other users moves through CopyTrader. Remember that comments from other investors should not be viewed as facts, and there are always risks involved when following other traders investment strategies. Most users are not experts and are not qualified to give any professional investment advice.

The virtual portfolio feature also makes eToro a good choice for beginners as it gives the user a realistic experience and training environment for trading. The starting amount of $100,000 is probably more than what most beginners will invest, but having a large amount of fake money to play with can be a great way to visualize the volatile swings in the crypto market. Even users in areas where eToro is not operating can access this feature to get some trading experience.

It is also good to keep in mind that eToro is not available everywhere, so make sure you can access eToro before signing up for the platform. Another point to keep in mind is the account and trade minimums required on eToro. Compared to other exchanges, eToro charges relatively high minimums for trading on the platform, so ensure you are happy investing in crypto before you start.

eToro Review: Final thoughts

eToro is a unique platform for cryptocurrency trading as it also offers other diverse investment products such as stocks, bonds, currencies and more. However, the platform is not the cheapest option available on the market, but we would say that the unique benefits and services available on the platform outweigh the costs. Overall, eToro is a great trading platform to start with cryptocurrency investments as it offers an abundance of learning material, social interactions and options to diversify your portfolio.

Start trading on eToro today!

You can open an account with eToro in just a few minutes. Click on “Open Account” and fill in your information.

Min Deposit: €50

About the author

Gustav Eriksson

Gustav Eriksson

Gustav Eriksson is a cryptocurrency investor and founder of KrispCrypto. He has been a cryptocurrency investor for over ten years and loves personal finance.

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