Etoro Review: Should You Continue to Buy and Sell Digital Assets with this Exchange?

Founded in 2007, eToro is a social trading and multi-asset investment company that offers a safe platform to trade cryptocurrencies, equities, forex currencies, CFDs, and stocks. It’s one of the leading brokerage firms and among the first exchanges to offer digital currency trading services in 2014 after listing Bitcoin. BlockChooser has listed eToro as the best broker for cryptos as well as the best broker for social trading. But is that true? Read our eToro review here!

Is eToro Good for Investing?

Based in Tel Aviv, eToro was founded under a brand name, RetailFX, in 2007. It was co-founded by Yoni Assia, his brother Ronen Assia, and David Ring. While eToro started as an online forex broker, it transitioned to offering stocks, indices, and commodities in 2010.   

Given the diversity of markets on eToro, growing your investment portfolio is relatively hassle-free. Moreover, the leading trading platform suits both novice and veteran traders.

Here are some of the benefits you can enjoy on eToro:

Social Trading Tool

eToro’s Unique Selling Point is its premium tool, the CopyTrader. At a click of a button, you can easily copy the trading strategies of your favorite trader or the best performing one.

It’s as straightforward as this:

  1. Select your favorite/popular investor.
  2. Indicate the amount, and hit the copy button.

You’ll get real-time updates on your investor’s trading position. But if you’re in the U.S., you won’t have access to the CopyTrader tool because of regulations.   Also, popular investor portfolios list only crypto assets. Your funds will be allocated in proportion to the amount you will have invested. You can replicate one successful trader or as many as you want simultaneously.

Friendly Fees Compared to Most Platforms

Like other trading platforms, eToro charges different fees. But thankfully, the commissions are on the low. First, there are trading fees. eToro charges a 1% fee when buying and selling crypto. This small fee is included in the bid-ask spread (market price). Also, the eToro platform does not charge a commission for stock and ETF trades.

You can also opt to trade on a margin and hold your trading position for a long. eToro financing costs are just as low. Also, the platform charges a currency conversion fee for all trades for deposits and withdrawals. The fee can range from $50-$2500.

 Another advantage of eToro is that there are no deposit or account fees. 

Internationally Recognized Platform

 Established in 2007, eToro is one of the largest and most popular trading platforms. It has attracted over 20 million users from different parts of the globe. Apart from trading crypto, you can access ETFs and stocks.

Virtual Trading Services

If you’re new to investing, it makes sense to test drive with a virtual trading account. eToro has your back – you will receive up to $100,000 in play money in your eToro account for virtual trading.

Zero-Commission on Stock Trading

Users from around the world can enjoy zero-commission to buy real stock. For example, if you’re in Australia, only U.S. stocks can be traded commission-free. With this option, you can buy fractional shares from various leading exchanges.

Access Diverse Markets

Gain access to an extensive collection of crypto assets and ETFs.eToro market has listed up to 67 Crypto assets and over 200 ETFs. Also, you can access over 3000 instruments.

Start With as Low as $10, $50, or $200

Getting started on this platform is relatively straightforward. Unlike eToroX, a subsidiary of eToro requires a minimum trade of $10,000 – eToro’s minimum trade begins at $10 or $50 for most countries. The minimum deposit required will depend on your residence and ranges between$10 and $10,000. For example, Israeli traders would need $10,000, while for those in the U.K., the first-time deposit is $200. Users in U.S. and U.K. pay a first-time deposit of $10. For most countries, $200 is the standard minimum deposit.

eToro review

eToro’s Crypto Wallet

Once you buy crypto on eToro, please take advantage of its free digital wallet that supports more than 120 cryptocurrencies. Also, the wallet has an in-app conversion feature that can integrate up to 500 various cryptos. There is both an online and cold version of the wallet.

Secure, Trusted, and User-Friendly Platform

Buying and selling crypto or stocks on eToro’s platform is easy. All you have to do is register on the site and make the minimum deposit. The trading company relies on state-of-the-art security to secure customer funds and personal information. They hold cash assets in FDIC-insured bank accounts. It also includes high-level monitoring tools, Two-factor authentication, and a secured digital wallet for crypto assets.

What Are Some Downsides to eToro?

  • Digital wallet transactions can be expensive. However, when it comes to buying and selling Bitcoin, the spread that is charged by eToro is not an intolerable amount. Still, some other cryptocurrencies’ transaction fees can be much more expensive than those for bitcoin. Spreads for other cryptocurrencies, excluding Bitcoin, range from 1.9 percent to 5 percent.
  • User restrictions. Investors in the U.S. are restricted from trading stocks and other commodities. However, if you’re in the U.S., you can still use the platform to trade cryptocurrencies. Also, eToro is not available in some states like New York, among others.
  • Charges non-trading fees. eToro can be an expensive broker when you factor in fees for non-trading activities. You incur charges for non-trading activities like withdrawal and account inactivity. Withdrawal fees are fixed at $5, while the inactivity fee attracts a fine of $10 every month for one-year dormant accounts.
  • Digital wallet limitations. Digital currencies cannot be transferred back to the trading platform once moved.

Final Thoughts

Overall, eToro has received positive ratings on sites like TrustPilot, garnering a 4.1 rating. We are talking of 11,000+ reviews. Most negative feedback regarding the platform highlights issues with withdrawals and high fees for non-trading activities.

Otherwise, if you’re looking for a place to trade crypto, ETFs, commodities, and F.X. at ease – eToro’s web-based platform will not disappoint. You will love its social trading functionality, low trading fees, and hassle-free opportunity to grow your investment portfolio.