eToro was founded in 2007 and now has over 10 million users in 140 countries worldwide. The broker is registered in Cyprus and is a regulated Financial Conduct Authority in the UK with a cross-border license to operate in other European countries. eToro is also authorised by Australian Securities & Investment Commission and the Cyprus Securities and Exchange Commission.
eToro is great for cryptocurrency investing with over 15 coins available. It also offers social trading which allows you to copy and trade automatically based on the moves of other traders. However, traders are hit with high forex fees and withdrawing money can be a slow, expensive process. Let’s dive into our in-depth eToro review. For an in-depth look into the sector in general, check out our crypto trading review.
eToro: Pros & Cons
- Great social trading experience
- Strong crypto trading offering
- Easy-to-use platform with seamless account creation
- Low minimum funds required to open an account
- Withdrawal fee
- Service isn’t available widely in the US and only crypto trading available in US
When conducting our eToro review, we want to make sure that the general usability of the site is up to scratch. Ease-of-use seems to be at the forefront of eToro’s business model and special additions such as social trading make the website a joy to use.
Appearance and functionality
eToro’s website and trading app are truly a treat for those who like clean, modern design that’s paired with brilliant functionality. The colour scheme is pleasing whilst menus and buttons are clearly labelled and are exactly where you would expect them to be.
Furthermore, the built-in search function is predictive and extremely easy to use. You can also set price alerts and notifications with a click of a button.
eToro also has multiple bonus features like CopyTrader. This is an option that allows you to choose an investor you want to copy, click a button and you can mirror their trading positions automatically. This means that you will buy and sell as and when the trader does. Users can copy up to 100 traders simultaneously or simply track other traders’ portfolios, stats and risk scores.
eToro also offers a comprehensive portfolio and fee reports that allow you to keep on track with your investments. These reports offer a great insight into your performance and risk areas.
eToro hasn’t dropped the ball in the security department either. The broker has embraced cutting edge security protocols which include data encryption by default and a mechanism to prevent cyber-attacks.
User accounts are also secure as eToro customers are required to complete Level 3 Identity Verification, and updating account information requires dual-process verification.
An important aspect of our eToro review is to look at making payments. eToro makes it easy to deposit money with lots of available options to do so. However, withdrawing money will set you back and only USD accounts are available.
One thing to note is that eToro only allows USD accounts. This means that your funds will be automatically converted to USD by eToro. For example, if you deposit EUR, a 0.025% fee will be applied and the same fee will also be charged when you withdraw.
Making deposits on eToro
eToro charges no deposit fees but the minimum deposit is $200. Thankfully, there are a lot of depositing options, making it easy for all. These include:
- Bank transfer
- Credit/Debit card
If you decide to make a bank transfer deposit, it will take 4-7 business days to appear in your account but there is no maximum deposit limit.
However, credit/debit card and electronic wallet deposits are instant but the drawback is maximum deposit limits. Credit/debit cards have a $40,000 limit whilst electronic wallets can be either $10,000 or $20,000.
Making withdrawals on eToro
Unfortunately, eToro does have a $5 withdrawal fee which is high in comparison to other brokers, with many crypto exchanges not charging a fee at all.
eToro also has a $50 minimum amount limit on withdrawals. You can make a withdrawal using any of the above options, the same as making a deposit.
The time it takes to make a withdrawal on eToro depends on the method, please see the list below:
- Bank transfer – 2 business days
- Credit/Debit card – 3-8 business days
- PayPal- 1-2 business days
- Skrill – 1-2 business days
- Neteller – 1-2 business days
- WebMoney – 1-2 business days
eToro has a strong customer support team that you can reach on several different channels and can expect speedy, helpful answers. However, customer service isn’t available 24/7 as you can’t reach them on weekends.
You can contact eToro’s customer service one of two ways, either through live chat or a web-based ticketing system which will trigger a response via email. The customer service is quick and reliable. However, a downside is that you cannot contact them via telephone or on weekends.
eToro’s customer service is available in all of the 21 languages the trading platforms support.
eToro is fully regulated and compliant with top-tier financial authorities which consist of the FCA, ASIC and CySEC. However, some may be put off by the lack of a banking license and the fact that eToro’s financial information isn’t available publically.
eToro operates under three different authorities and each varies depending on where you live. This also means that the level of protection varies.
eToro UK regulation
UK citizens will be protected by the Financial Conduct Authority (FCA). If eToro was to become insolvent, UK users can be compensated by the maximum amount of £85,000 guaranteed by the Financial Services Compensation Scheme (FSCS).
eToro Australian regulation
eToro Australia is regulated by ASIC, the Australian financial authority. However, Australian clients don’t have much protection at all, with no obligatory compensation.
eToro other regulation
Other eToro customers will be regulated by the Cypriot watchdog, CySEC. These users can be compensated by the maximum amount of €20,000.
One thing to note is that there is no investor protection for cryptos as this market is not regulated. Despite this, eToro is always keen to resolve any issues as quickly as possible.
What’s eToro’s track record?
An important thing to consider when deciding whether eToro is safe or not is to take a look at its history. eToro was established in 2007 which means it has already survived one financial crisis, which is a very good sign.
Despite this, eToro is still considered a start-up and is not listed on any stock exchange. On top of this, it doesn’t make its financial statements available to the public. This means that the broker’s financial performance is largely unknown. However, the fact that it is highly regulated makes it trustworthy to many investors.
eToro has an impressive array of cryptocurrencies to be traded, the selection currently stands at 15. This wide variety will win many investors over as other top brokers such as TradeStation Crypto offer only 5 and Robinhood 7.
You can currently trade these cryptocurrencies on eToro:
- Bitcoin Cash
- Ethereum Classic
- Stellar Lumens
You can currently trade cryptocurrency on eToro in 39 US states. At the time of writing, eToro is unlicensed for cryptocurrency trading for residents in these states: Delaware, Hawaii, Illinois, Louisiana, Minnesota, Nebraska, Nevada, New Hampshire, New York, North Carolina and Tennessee.
Other trading options
If you are also interested in trading stocks, eToro has a somewhat limited offering. Currently, you can trade in 16 different stock markets on eToro. These include:
- New York Tech
- Euronext Brussels
- Euronext Lisbon
- Hong Kong
eToro has a minimum deposit fee of $200 which you will need to pay when you sign up. However, eToro does offer zero-commission stock and ETF trading for European clients. For non-EU clients, there is no zero-commission trading but the fees are very low.
On top of this, eToro does charge non-trading fees. You will be charged $10 per month after one year of inactivity.
eToro crypto trading fees
eToro charges its crypto trading fees through spreads that may rise and fall with market conditions which eToro reviews regularly. For example, spreads can range from 0.75% for eToro Bitcoin trades to 5% for trading Tezos.
eToro wallet fees
- Send/receive transaction fees – eToro charges no fees for sending or receiving transactions
- Crypto-to-Crypto conversion fees – eToro charges a conversion fee of 0.1%
- Send transaction limits – there is a maximum spend of $50,000 per cryptocurrency transaction. The maximum spend a day is $200,000.
- Crypto to Crypto conversion limits – the minimum crypto conversion per transaction is $20. The maximum per crypto to crypto conversion is $10,000.
eToro is regulated by the Cyprus Securities and Exchange Commission (CySEC), the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC).
In regards to limitations, US customers can currently only trade cryptocurrency on eToro. On top of this, cryptocurrency trading on eToro is only licensed in 39 US states.
eToro is not currently licensed by the U.S. Securities and Exchange Commission which has placed some limitations on where it can operate.
Step 1: Set up an account
The first step to trading cryptocurrency on eToro is actually setting up your account. Getting started couldn’t be easier as you’ll only need your email and phone number to begin with!
Step 2: Complete your profile
Once you’ve verified your account via email, you’ll be able to log into your eToro account and complete your profile. You will need to confirm your identity and provide further information for eToro to comply with regulations.
All you need to do is click “Complete Profile” under your username and follow the steps.
Step 3: Deposit funds
Now that your profile is completely verified following the eToro review, you’ll be able to deposit funds and begin trading. Depositing funds on eToro is very simple, all you need to do is click “Deposit Funds” under your profile.
You can then fill in the amount (minimum $200) and your payment information.
Step 4: Buy cryptocurrency
Once the funds have been successfully deposited into your account, you’re ready to buy on eToro! Now what you need to do is go to the “Trade Markets” section in the navigation bar and click “Crypto”.
You will then see a list of all the cryptocurrencies available to purchase on eToro. Let’s take a look at how to buy some Bitcoin:
Once you’ve selected your cryptocurrency, a window will pop up where you can put in the details of the trade.
You can now select the amount that you wish to invest. Under “Stop Loss” you can enter the maximum loss you are willing to have in the trade. This means that if the price falls to your stop loss, the Bitcoin will be automatically sold.
Under “Take Profit”, you can set the price at which your Bitcoin will be automatically sold.
You can also disable both “Stop Loss” and “Take Profit”.
Once you’re happy, you can go ahead and click “Open Trade”.
Positive eToro reviews all state that it’s easy-to-use, functional and is easily accessible for beginners. Many also report that customer service quickly resolved their issue and they also found the reports extremely helpful.
The more negative reviews tend to state that the fees are high and that buying trades using CopyTrader didn’t work too well for them. Of course, this isn’t necessarily the fault of eToro as they don’t decide what other traders are going to invest in!
eToro is a brilliant tool for those looking to get into cryptocurrency trading. It offers a wide range of coins to invest in and is now available to trade crypto in the US. On top of this, the website is incredibly user-friendly and is accessible for all traders, whether a beginner or expert. It’s intuitive to use and the helpful reports make it easier than ever to invest.
What really sets eToro apart is the additional features. CopyTrader is a brilliant asset that allows anyone to copy the moves of top traders. This invaluable insight will prove to be a huge selling point for many.
eToro does suffer from some minor drawbacks though. Not only are the fees fairly high but also only USD accounts are allowed. The limitations in the US also don’t make this broker accessible for all. If you are looking to mainly trade in stocks, this might not be the one for you with only 16 markets on offer.
So, what did you think of our eToro review – will you try it out?
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