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eToro.com Bitcoin Review 2021 – Pros and Cons of eToro
Withdrawal Fees: $5 (0 in the USA)
- Social trading seamlessly integrated
- World-class customer support
- Relatively low fees
- Wide range of markets
- Real cryptocurrency purchase
- Many altcoins available
- Demo trading (virtual portfolio)
- Anonymity not possible
- No leverage in USA
- Minimum deposit $50 to $1000
About the Company
Is eToro legit?
eToro Bitcoin Trading
Using the Platform
Security: Funds Protection, Leverage
*eToro is now finally also available in the United States. But the services for US citizens and residents are limited to spot market trades when it comes to cryptocurrency, meaning purchases of the real underlying assets. CFD trading on margin is not available in the USA. Also, XRP (Ripple) is not available for investors and traders from the USA.
About the Trading Company
eToro is a social trading platform that has been in the market for more than 10 years. It was founded in 2006 by Ronnen Assia and David Ring, initially registered in Cyprus from where it still conducts its operations, under license # 109/10 granted by the Cyprus Securities Exchange Commission (CySEC). The British branch of eToro, eToro Ltd UK, is also regulated by the British FCA. Both European regulations can be considered trustworthy, providing, among other things, customer money protection in separate accounts and deposit protection of up to EUR 20,000 at eToro Europe and up to GBP 50,000 at the UK branch.
The Australian eToro AUS Capital Pty Ltd, is regulated by the Australian ASIC, while eToro USA LLC is registered as a financial services provider with FinCEN.
In 2019 eToro finally opened its doors in the USA. The eToro USA LLC based there is allowed to offer its services in the following states due to government regulations:
Texas, Florida, South Dakota, North Carolina, Rhode Island, Vermont, California, Arkansas, Mississippi, New Mexico, Michigan, Maine, Arizona, Alaska, Indiana, Utah, West Virginia, Massachusetts, Colorado, Connecticut, Iowa, Maryland, Ohio, Alabama, Pennsylvania, New Jersey, Missouri, Wyoming, Washington D.C, Washington, North Dakota, Montana, Idaho, Georgia, Virginia, Kansas, Oklahoma, Wisconsin, Kentucky, South Carolina, Oregon.
The company does not disclose any information about daily trading volume, but according to a Spanish newspaper 300 billion USD were traded during 2016. eToro operates worldwide, but it is not permitted to serve American customers.
Is eToro Legitimate?
The provider eToro is a pioneer in social trading, but that alone is not a recommendation for a broker. When choosing a provider, several factors are crucial, including regulation, security of customer funds, good support and of course the costs and conditions for trading. Therefore the eToro test should also look at what spreads, commissions and management fees are charged to customers by this broker and how transparently the costs are reported.
With its well sorted trading offer eToro allows its users to trade forex on the major and minor and some exotic currencies, but also CFDs on stocks, indices, ETFs, commodities, even some crypto currencies. Here traders can bet on rising or falling prices. Initially there are no fees for setting up and managing the trading account, as is the rule with social trading. The minimum deposit is also quite low at 200 USD or EUR.
eToro makes its profits with spreads which, while still quite cheap, are slightly above the market average and vary greatly depending on the underlying assets. The spreads for CFDs on stocks and ETFs are all at 0.09%. In the case of indices, for example, spreads of 200 pips apply to the GER30. The broker charges a fee if you want to hold positions overnight. In addition, a fee is charged if traders hold positions overnight.
eToro Bitcoin Trading
The easiest or fastest way to buy Bitcoin is to use PayPal. eToro is one of the few Bitcoin exchanges that allow the use of PayPal. After that you’ll immediately have your credit on eToro and can start trading Bitcoin.
Alternatively you can also buy Bitcoin with a credit card (or debit card). For this you usually have to go through the 3D Secure procedure from your bank. That’s why it takes a bit longer.
Finally, it is also possible to buy Bitcoin by bank transfer. Simply select the option bank transfer and fill in the corresponding data. Then you have to give your bank the transfer order. It takes a while for the money to arrive at eToro. If you’re not in a hurry and can wait a few days, this is the cheapest method.
Formerly eToro only offered CFD trading, so traders were never really buying the underlying asset. Since 2018 and the introduction of an own eToro Wallet traders can actually buy real Bitcoin.
Now traders can either still trade Bitcoin CFDs (with up to 1:2 leverage), or they can actually buy Bitcoin (without leverage). Only the latter can be withdrawn to the eToro wallet.
Cryptocurrency can now be withdrawn!
Formerly users weren’t able to withdraw real Bitcoin to external wallets after “purchase”. But fortunately this has changed in 2019. Since last year buying Bitcoin really means that you’re getting the underlying asset at your free disposal. Users can send their BTC (or other coins) away from eToro to their home wallets.
The eToro Wallet
The eToro Wallet is an app-based digital wallet. You already need to have a eToro platform account to be able to register with the Wallet. Once you have the eToro online wallet, you can also trade cryptocurrencies directly from your account.
The eToro wallet can be accessed from the eToro website as well as from the wallet’s mobile app. Registration with another exchange is not necessary.
With the digital wallet the trading platform founded in 2007 has created a real home for crypto currencies. After the social broker gained more and more ground in the crypto market, eToro finally released its own crypto wallet at the end of 2018. This is operated by the subsidiary company eToro X Limited. The eToro wallet test will show whether the eToro wallet securely stores coins and currencies and whether the eToro wallet generates transaction fees.
“Wallet and Exchange services provided by eToro X Limited (‘eToro X’), a limited liability company incorporated in Gibraltar with company number 116348 and with its registered office at 57/63 Line Wall Road, Gibraltar. eToro X is a regulated DLT provider licensed by the Gibraltar Financial Services Commission under the Investments and Financial Fiduciary Services Act with licence number FSC1333B.”
eToro Wallet Advantages & Disadvantages
The biggest advantage of the offer is probably the strong usability of the user interface. The app allows the user to intuitively buy and sell cryptocurrencies with the eToro Wallet. Especially the ability to use Fiat currencies such as US dollars, Euros, British pounds, Japanese yen, Australian dollars and Canadian dollars via credit card to buy cryptocurrencies with the eToro Wallet makes it easy for users to get started in cryptocurrency trading.
- Very user friendly
- Mobile Wallet for Android & iOS
- Direct purchase and sale of crypto currencies in the wallet
- Easy to set up
- Free to eToro account
- Regulated Offer
- Only a few coins supported
- Limited support options
An important advantage of the eToro wallet is that it is one of the few regulated crypto wallets on the market. Another important advantage is the quick and easy way to set up an eToro wallet in a very short time. Especially in comparison to other providers the digital wallet stands out.
Another practical feature is that you only need to enter your eToro user data to be able to buy different crypto currencies with the eToro wallet. You can also use the login data from Google or Facebook for this. This means that you can’t use the wallet without having an eToro account. So this is something to criticize in the eToro test.
The currently accepted currencies are Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Stellar and Ripple (as of 05.04.2019). No question, other vendors sometimes have significantly more cryptos managed. But if you have coins of this type in your eToro wallet, you can easily transfer them to or from your trading account with the broker or exchange them for Fiat currencies. According to eToro, more currencies will be added to the eToro wallet in the course of the year.
Indeed, the successful combination of crypto trading and digital coin management is unique. This unique selling point cannot be denied to the provider in the Wallet Review. For example, you can easily invest in Litecoin and receive the LTC tokens in the wallet the next moment. But if you want to buy IOTA online, you can do so on the trading platform, but MIOTA cannot yet be managed in the Wallet App. Fortunately, investors can switch to the IOTA Wallet Comparison.
eToro Wallet Fees
eToro does not charge any fees for depositing. However, various other fees are charged when using the app. On the one hand crypto owners have to reckon with the fees incurred on the block chain (e.g. miners fee), on the other hand the broker himself charges fees for trading with the eToro wallet.
Crypto To Crypto
eToroX charges a conversion fee of 0.1% for exchanging from one cryptocurrency to another. The rate is based on the rate available on eToro’s trading platform.
- Crypto/Crypto costs
- Conversion fee 0.1%
Fiat To Crypto
However, eToro Wallet transaction fees for Fiat to cryptocurrencies are structured differently. Here the majority of eToro Wallet transaction fees consist of the fees of the third-party provider Simplex, which account for 4%. The eToro wallet fees are rather low at 1% of the transaction amount, which must be added.
Overall, the eToro Wallet transaction fees from Fiat to cryptocurrencies amount to 5%.
- Simplex fee 4%
- eToro fee 1%
- Total 5% of
Different payout fees depending on coin/currency:
- Bitcoin (BTC): 0.001
- Litecoin (LTC): 0.01
- Bitcoin Cash (BCH): 0,02
- Dash (DASH): 0.04
- Ethereum (ETH): 0.025
In addition, there are special eToro fees to be paid for transactions.
Fee Type Costs
- Maker fee 0,005%
- Taker fee 0.05%
The Maker Fee is due if a buyer is only willing to buy at a lower price than the current best offer (ASK) or only willing to sell above the existing best offer (BID). The Taker is exactly the opposite of the Maker. It accepts an order already placed on the stock exchange. The taker therefore accepts an offer from the maker. The eToro website provides a detailed list of all fees.
Currently there are additional fees for Stellar XLM. More precisely, for XLM there is no fee per se for creating an account, but a minimum deposit of 2.5 XLM is required. However, you cannot take the amount of Stellar Coins from the account without closing it first. Once the 2.5 XLM is credited to the account, the eToro wallet for XLM is activated and you can see it in the Stellar Blockchain.
eToro Wallet Features & Extras
The digital wallet has a whole range of functions to offer. Basically, the eToro wallet also allows you to send coins from one wallet to other crypto wallets, including crypto wallets, ethereum wallets, stellar wallets or even hardware wallets. But there are several other ways to do this. For example, Fiat Money can be used directly for crypto purchases and the eToro coin assets can be quickly and easily transferred from the main broker platform to the wallet. In addition, “crypto-to to crypto” conversion can be done directly and a regular in-store payment function is planned.
All these functions (including the planned features) make the Wallet App much more than just a wallet for crypto currencies. The ability to convert different coins into others could even replace the use of crypto wallets completely for some users. Ultimately, however, this will probably also depend on the conversion costs.
If a payment function is actually integrated at a later stage of development, the app could make a significant contribution to improving the usability of crypto currencies in general.
Set Up eToro Wallet – How It Works
Before you can actually use the wallet, you need an account with the broker himself. The following step-by-step instructions will help you to register with the popular trading provider.
Step 1: Registering with eToro is quick and easy. Either you use your Facebook or Google account or you register with your name and some initial information. A status display shows you how far you’ve come with the complete registration.
In the course of the use you will also be asked for some data about your financial situation. Finally, all information has to be confirmed and verified. Before this is done, the trading is limited to an amount of 2000 €.
Step 2: After you’ve completed the registration you can download the eToro app from Apple’s App Store or the Google Playstore. There you use the login information you’ve entered, such as username and password, to log in to your account.
Where To Download The eToro Wallet?
The wallet is free to download from the Google Play-Store and Apple App-Store. There is also a free desktop version available.
Step 3: Once the registration and verification process is complete, you will immediately see the available crypto credits and can view your own crypto trades.
Is The eToro Wallet Secure?
Security is especially important when trading crypto currencies. Here you should pay close attention to the quality points of the respective wallets. In this sense, the reputation of the provider also carries a lot of weight when it comes to the security of the wallet. For example, it may be important for the user that a 2-factor authentication is offered. Regular backups are also relevant in this respect.
eToro’s Attitude And Measures
“eToro secures your private key with market leading security technologies. According to eToro’s security protocols we do not give out our wallet addresses as this may expose our customers’ funds to potential attacks”.
As far as reliability is concerned, eToro can only say that this is perfectly given, the company has a very good reputation and will want to defend it.
Furthermore the wallet provided by eToroX Limited (“eToroX”), a regulated DLT provider licensed by the Gibraltar Financial Services Commission under the Investments and Financial Fiduciary Services Act with license number FSC1333B, is one of the few regulated DLT providers on the market.
To Secure The Coins Please Read The Official eToro Page:
“The eToro wallet is secured by multi-signature and machine learning in the field of analytical behavior. This is done to provide the best possible security for our customers and to identify and prevent potential threats from malicious third parties”.
eToro Wallet experience
eToro Wallet Reviews are not too many yet. This is mainly due to the still young age of the offer. And so you can only rely on individual eToro experiences from the Google Play Store or Apple’s App Store. It remains to be seen how meaningful these are.
The fact that the forwarded blockchain costs, which are included in the eToro wallet transaction fees, are criticized is unjustified, for example. The main concern of the negative eToro wallet experience is to be taken more seriously. Various users note that they expect better access to customer support. On the broker’s side it says that they are working on increasing customer service. Apparently the company has recognized the importance of support, which hopefully will be noted positively in future reviews.
Using The Site: Signing Up
As already mentioned above, eToro is finally allowed to serve traders from the USA. Here is the page where US traders are welcome to sign up:
Creating a new account is fairly easy, it takes no more than a minute filling some personal information (name, last name, email and phone number, along with a user and password combination) in a form and clicking an email confirmation.
The site strictly enforces its AML/KYC policies, making it nearly impossible to register an anonymous account. Withdrawing requires identity verification. However, this applies to all brokers where you can make fiat money deposits and withdrawals. Companies that offer financial services (with fiat money) in any form cannot avoid a strict KYC policy.
On the other hand, there is a virtual portfolio (demo mode) which allows newcomers to get familiar with the site and the trading process without risking a dime. No separate account is required, the feature is integrated with the site and activating it is as simple as giving a few clicks.
Switching to virtual portfolio: the process could have not been easier
Using The Site: Funding Your Account
The site offers a good variety of deposit options (credit cards, Paypal, Skrill, Neteller, WebMoney, Yandex, UnionPay, wire transfers and promotional codes), cryptocurrency deposits are also supported via the eToro walllet. Deposits are possible without confirming one’s identity, but the trading will be capped at 2000 USD. eToro requires deposits to come from accounts belonging to the user, returning anything coming from third parties (the only valid exceptions are family accounts).
Minimum deposit ranges between $50 and $1000, depending on the country.
eToro prompting me to verify my identity: if I plan to trade with them, sooner or later I will have to do it.
Limits depend on each particular deposit method and on the credit history of the user. The platform works using USD as currency, but deposits are also accepted in EUR, GBP, JPY, CAD and AUD, with a minimum of 50 USD or equivalent (after the first deposit, whose minimum ranges between 50 and 1000 USD, depending on the country). A conversion fee will be deducted both when depositing and withdrawing with currencies different to the USD, the conversion will be carried out applying updated exchange rates.
Additional fees are applied when trading and withdrawing. Placing orders does not incur in any fee, but overnight commissions are charged (described in detail here). Withdrawing comes with a fixed-fee of 5 USD. There are no fees for the account itself, but believe it or not, there is a 10-USD monthly fee for inactivity, independent from the remaining user account balance.
Withdrawal and conversion fees: not exactly encouraging for the small investor
In order to remove the 2000-USD trading restriction, identity must be certified in 5 manners: personal details, experiences and objectives survey, proof of address, proof of identity and phone verification.
Using The Platform: Trading
Etoro broker offers many different investing options, including currencies, commodities, indices and stocks. Two cryptocurrencies are available to speculate: Bitcoin and Ethereum, with no actual purchasing taking place (so, eToro does not own any cold or hot wallets).
Supported orders include limit (specifying the maximum / minimum willing to pay / receive), market (immediate orders, executed at current market prices), stop loss (defining a level at which the order will become a market order and filled) and trailing stop (a stop-loss whose limit increases relative to the maximum price an asset has had since it was acquired).
To place an order, first go to the market section and search for the asset you want to trade. Select one to watch its behavior or directly click buy or sell to negotiate it.
Trade markets: almost everything here can be traded.
A nice feature to observe for an asset are the charts, which are highly customizable and interactive. Candlesticks are shown by default, but more options are available through the configurations.
Watching Bitcoin’s behavior.
Once you have chosen one to trade, a popup will appear asking to configure some parameters before opening the order: the amount to invest and any constraints on it, the leverage to use and, the stop loss and take profits. (In case of BTC leverage right now is only 2x).
Placing my first order: Twitter
Orders can be edited or closed at any time, from the portfolio tab. This is accessible clicking on the dented wheel icon to the left of every market for which personal open orders exist.
Showing off my “skills” for investing
Updating one of my “star” orders
Margin trading is generally available for all assets, however, unfortunately for BTC and ETH it is as low as can be: 1:2. The leverage for the other assets depends on each particular asset with a minimum transaction after leverage of 1000 USD. The supported leverages are 1:2, 1:5, 1:10 and 1:25 constrained as follows:
- currencies: 1:2
- commodities: 1:2
- indices: 1:2
- stocks: 1:1 / 1:2 to 1:5
- cryptocurrencies 1:2
Using The Site: The App
eToro’s website is responsive by itself, but the company has built a convenient app with Android and iOS versions. It enables most of the features of the website to mobile users; a detailed explanation is found here.
Page within eToro’s website describing the features of the app: see how it is perfectly responsive by itself
Users should make sure to get an insight into the conditions and costs before placing their first orders. However, the broker does not exactly make this easy, as the presentation of the costs on the website is not very clear. Especially beginners will have difficulties to classify the listed information.
In addition, there are some costs that may not appear obvious at first glance, including conversion fees if you capitalize your trading account in foreign currencies – for deposits in currencies other than USD there is a deposit fee in the form of a base point surcharge on the conversion into the trading currency, the dollar. However, this fee does not apply to bank transfers. There is no indication of these special fees and exceptions during the deposit process.
Also, there is an inactivity fee of $10 per month if you don’t log in to your trading account for 12 months, and an eToro withdrawal fee of $25 per transaction, which is relatively high compared to other brokers. You couldn’t say that eToro is frivolous, but a little more transparency would be desirable.
eToro Fees To Be Aware Of:
- currency conversion fees for deposits other than USD (doesn’t occur with bank transfers)
- $10/month after 12 months of not logging in
- $5 withdrawal fee
Security On eToro
eToro partnered with Incapsula to secure its website against DDoS attacks. The traffic directed to eToro is filtered by Incapsula which forwards valid requests and takes out spam, the headers are left unaltered in order to ensure source IP address visibility.
Of course, 2-factor-authentication is used to protect accounts from unauthorized access, scrupulous withdrawal procedures give users additional calm.
HTTPS and other encryption protocols were activated on the site a long time ago, but emails coming from eToro are still plain text/html. Email alerts are available for withdrawals, market monitoring and social interactions.
The platform has consistently been attacked (DDoS); the last incident took place in April 2016 with no major consequences. During the early days of the website an information leak was discovered through an easily accessible old database, the company did nothing until the information was publicly released, regardless of the people who found the vulnerability having reached them first in private. eToro has not been hacked to the date.
One of the advantages of the Cypriot social trading provider is the possibility to start trading with a small minimum deposit of $200 or €200 and benefit from the experience of active, successful traders in the community. But does this inevitably make trading safer? Here a more differentiated view is necessary. Trading with financial instruments such as Forex and contracts for difference, which are volatile in themselves, carries a certain risk. In addition, there is the possibility of using leverage to increase one’s own profits – although this also applies in the event of losses.
Customer Funds Protection
First of all, the question of safeguarding customer funds: these are kept in segregated accounts, separate from company assets, as is customary with European regulated financial service providers. At eToro Europe, this is covered by the Cyprus Deposit Protection Fund, which safeguards customer assets up to €20,000.
Brokers such as eToro do not have a banking license and do not hold client funds in custody themselves. Instead, the funds are held in accounts at banks. A broker’s failure should therefore not result in losses of funds which are not being used as margin in CFD trades. In this case, only a bankruptcy of the account-holding bank could pose a risk. Then, however, a deposit insurance should take effect. Responsible would be the national deposit insurance of the country in which the account-holding bank is located.
However, the information on the website does not include more detailed information about the banks where the accounts with the customers’ money are held.
As required by law, the broker separates customer funds from his own assets. Customer funds can be invested at banks or other companies authorized to do so. According to the terms and conditions these can be companies explicitly affiliated with eToro. In addition, the broker can also invest the client funds with banks outside the European Economic Area (EEA). In this case it is theoretically conceivable that a bank is not linked to a deposit guarantee scheme.
Such passages can be found in the small print of many brokers. As a rule, the ICF’s liability commitment should be sufficient up to EUR 20,000 per person: a broker bankruptcy in connection with cryptocurrencies seems unlikely after the implementation of the ESMA guidelines, because it is no longer permitted to work with large levers. For traders who want to deposit larger sums, the small print is nevertheless a weak point for the eToro rating.
- Securing customer deposits on segregated accounts
- Limited leverage
- Risk information
- copy stop loss function
- Improved encryption
Risk Indications And Leverage
As far as the risks associated with trading are concerned, the broker often points out the risk potential that can result from trading in financial products per se as well as from the unreflected consequences in social trading.
The leverage that can be used are MiFID compliant and limited to 1:30 for Forex Majors such as EUR/USD, 1:20 for Forex Minors such as EUR/NZD, Gold and major indices, 1:10 for commodities, 1:5 for equity CFDs and only 1:2 for cryptocurrency.
- Forex: 1:30
- Forex Minors, Gold, Major Indices: 1:20
- Commodities: 1:10
- Equity CFDs: 1:5
- cryptocurrency: 1:2
User Experience With eToro – User-Friendliness
Not only the costs, conditions and security are important. The question of user-friendliness should also be answered here. After all, it’s all about how the user gets on with the website and with the handling of the trading platform and mobile app.
The website is modern and has a clear design. The mobile site also works well. The browser-based trading platform and the integrated social trading functionalities are designed for intuitive usability.
For users who are already familiar with the handling of social networks, the operation is particularly easy. The broker has already received awards for their platform and the innovation in social trading.
It takes some time to get used to the platform, but once familiarized with it, is easy to navigate. The social experience is well integrated, with interactions and social trading being a seamless part of the website. eToro features top traders whom can be copied with just a click, there is also a CopyPortfolio included which is carefully formed to make trading easier.
The site also shows that it cares about its customers with tutorials, live training (phone), economic tools and a comprehensive FAQ.
The eToro Apps For iPhone And Android
eToro also supports mobile trading with 2 eToro apps available for Andorid and iPhone. The apps focus is also on the social component of the OpenBook and the actual trading platform. Both eToro apps are free of charge and available in the well-known download centers Google Play and iTunes. We have tested the eToro app in detail here.
Temporally Unlimited Demo Account
One reason for our positive eToro rating is the demo account, which is provided with the actual prices of the trading platform for an unlimited period of time. Many brokers only set up demo accounts for a limited period of time or use “fancy” quotes to persuade interested parties to open an account.
Good customer support is a must for many customers – while newcomers value quick answers to basic questions, experienced traders want to have an accessible contact person at hand, especially when technical problems arise. In any case, support should be friendly, fast and competent in their own language to ensure that a broker gets the best possible rating.
Reaching out customer support at eToro is relatively easy and the agents are very professional and friendly. We tried the live chat offered through Zendesk. Response times in chat are unmatchable, having to wait less than a few seconds to get an answer (even for the first message).
Customer support at eToro is generally available Monday to Friday 24 hours, but only by mail, fax or email, live chat and possibly via social media. You won’t find telephone support, the broker relies too much on customers being able to get their questions answered in the admittedly large community. Live chat is only available to registered trader. For this purpose there is a comprehensive help area and a FAQ area with search function on the website.
But we also found user reports regarding eToro’s customer service that answers are not very quick and are often standardized.
At least the ease with which contact information can be found on the website is an indication that eToro is serious. Our conclusion for eToro’s customer service isn’t outstanding due to the lack of phone support.
eToro offers a wide range of training courses. With the educational resources and information that the broker makes available to its clients, eToro can really convince. First of all you have the opportunity to test all features of the eToro platform and social trading functionality free of charge and unlimited with the demo account.
- Trading tips and video tutorials
- Economic calendar, market reports and blog
- eLearning courses on securities trading and live webinars with registration
Moreover, according to the eToro experience of the editorial staff, in addition to an economic calendar and daily market reports, the educational resources offer the possibility to use the courses and webinars of the so-called eToro Trading Academy. Here beginners can find information on securities and foreign exchange trading, but also on social trading, but advanced users will also find relevant material. Trading tips provide a quick overview, plus video tutorials and digital quotes. The trader can use the eLearning according to his previous knowledge. The live webinars offered are also very good, but you need to register for them in good time. The range of further training courses is overall very extensive and differentiated, which is why the broker deserves the sub-rating “good” in the category “Knowledge transfer”.
Social Trading At eToro: The Exchange Between Trader Followers
The question of the composition of the customer segment is particularly important for a provider of social trading. After all, the number and quality of trades in a community with several million members influences the markets to a certain extent. The rating of eToro’s top traders, who act as signal generators and influence the behavior of their followers, is particularly important here.
The evaluation should take into account how many particularly active traders eToro has, what preferences there are in terms of investment strategies and how the exchange, but also the evaluation in social trading proceeds.
In total, the company has more than 8 million users worldwide, who exchange information very intensively via the community. The shared content includes not only trading signals, but also relevant market information, and followers can also approach their role models directly with questions.
The signal generators are also evaluated, based on the number of followers as well as on the basis of the trades (number and share of success) and risk assessment.
The social component of eToro is well thought out and is continuously developed. In addition, the broker has already received awards, especially in this area.
- Social trading seamlessly integrated
- World-class customer support
- Relatively low fees
- Wide range of markets
- Real Bitcoin purchase
- Many Altcoins available
- Demo trading (virtual portfolio)
- Anonymity not possible
- No leverage in USA
- Minimum deposit $50 to $1000
eToro is considered the pioneer in social trading – a concept where traders can view and copy the content, activities and strategies of successful traders. The eToro platform and CopyTrader functions are specifically designed for this purpose. This way eToro succeeds in combining online trading with forex and CFDs with the idea of social networks. This way users can interact within a truly multi-million dollar community worldwide.
The community provides its wealth of experience and allows especially beginners to trade successfully faster, building on the role models of the signal givers. eToro has not only been a leader in this field for years, but is constantly developing its offer further. Other advantages of the broker are the European regulations, the extremely comprehensive educational offer and the fast, automated order execution on the trading platform without re-quotes or re-confirmations thanks to the non-dealing desk technology.
Less good, however, are the absence of telephone support, the high payout fees of 25 USD per transaction and the not generally favourable spreads. Also some security aspects and the legal documents available only in English leave a less good impression.
This site is great for those looking to profit from the market without the additional hassle of hiring a broker.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.