eToro is a trading platform that allows US and EU investors to trade stocks, cryptocurrency, commodities, and more. Currently, eToro only offers cryptocurrency trading in the United States.
In addition to offering crypto investing, eToro is a "social trading" platform that makes it easy for investors to copy the trades of other top traders on the platform.
Whether you're looking to get involved with Bitcoin investing or you'd like to learn strategies from experienced traders, eToro could be a great way to diversify your investments and expand your knowledge. Learn more about eToro in our full review below!
See how eToro compares to the best cryptocurrency investing platforms here.
Quick Summary
- Cryptocurrency trading platform with 15 coins available to trade.
- Users can copy the trades of top traders or a portfolio of traders.
- Commissions are based on bid-ask spreads.
eToro Details | |
|---|---|
Product Name | eToro |
Min Invesment | $50 |
Trading Fees | 0.75% to 2.90% (Based on each coin's bid-ask spread) |
Account Type | Taxable |
Promotions | None |
Who Is eToro?
eToro (eToro USA Ltd.) is a cryptocurrency, social trading platform. Its co-founder & CEO is Yoni Assia. The company was founded in 2007 and is located in Hoboken, NJ. It has registered offices in Cyprus, Israel, and the United Kingdom. eToro is a private company. It’s last funding round was a $50 million Series E.
What Do They Offer?
Note that we’ll be reviewing eToro for US customers. Non-US customers have more trading instruments available to them, such as stock shares, indices, and CFDs.
US customers are limited to trading cryptocurrencies on eToro. eToro offers a wide range of cryptocurrencies. You can see the full list here, along with currency spreads.
Before you can begin using eToro, you must verify your account. Verification requires uploading proof of identity (POI) and proof of address (POA). You can use the eToro mobile app to upload documents.
CopyTrader
A big attraction of eToro is its ability to copy trades in real-time. CopyTrader allows you to select a specific trader and copy all of their trades. This means the platform will automatically trade the same trades as your copied trader.
You can set the amount of funds to allocate to each CopyTrader. Additionally, you’ll be able to set stop losses so you can control drawdowns. Any positions that are open with the CopyTrader will be immediately opened for you.
CopyPortfolio
CopyPortfolio works just like CopyTrader, except you get to copy an an entire portfolio of traders instead of just one at a time. eToro allows traders to invest in two different types of CopyPortfolios:
- Top Trader Portfolios: Copy the portfolios of the top performing and most sustainable traders
- Market Portfolios: Invest in portfolios that bundle together various CFD stocks, commodities, or ETFs.
These portfolios are managed through regular rebalancing. They can be an efficient way to diversify your cryptocurrency investments.
Risk Scores
When viewing a trader to copy on eToro, you can look at their performance. This includes monthly historical performance and drawdown information.
Another component of their performance is eToro’s risk score. Each traders is assigned a 1-10 risk score -- 1 being the least risky and 10 having the potential to blow up an account.
Depositing And Withdrawing Money
eToro places a 7-day hold on deposits, which means funds can't be used for 7 days. There is a one day hold on withdrawals. After the hold, transfers can take another 3 days.
Oddly, wired-in funds can take up to 7 days to receive, making it far more cost-effective to simply transfer funds via ACH. Withdrawal minimums are $50 and your account must be in good standing (i.e., not in review) to complete any withdrawal.
Are There Any Fees?
Yes. While eToro does not charge flat trading commissions, they take a commission through spreads. The wider the spread between the bid and ask the higher eToro’s fee. You can see spreads per cryptocurrency here.
Customers that need to convert to USD from another currency can expect additional fees than those listed for US customers. This is because eToro’s base currency is USD. Upon deposit, it converts any other currencies into USD.
It must also convert from USD to the target currency for withdrawals. There are fees associated with each conversion transaction. Non-USD withdrawals will incur a $5 fee and there is a minimum withdrawal of $30.
Related: These Are The Best Apps That Let You Invest For Free
How Do I Open An Account?
You can open an account at https://www.etoro.com. Once you've opened your account, you'll be required to verify your identity and proof of address before you can start making trades. eToro accepts the following types of identification:
- Valid (unexpired) US passport
- Valid (unexpired) Driver’s License
- Valid (unexpired) State ID
New account holders can use the eToro app to upload their identity and address verification documents directly to the platform.
Is My Money Safe?
Funds deposited with eToro are not FDIC insured. However, eToro is a secure website and so is their mobile app. They also offer two-factor authentication for users who would like to add an extra layer of security to their accounts.
Is It Worth It?
If you're into cryptocurrency investing, eToro takes a unique approach in what you can do through interactions with others. The ability to follow a top-rated (on the eToro platform) trader and have the platform automatically trade the same trades is an interesting concept.
Just keep in mind that because a trader has done well in the past doesn’t mean they will continue doing so in the future. However, you can set limits on drawdowns and the amount of risk you’re willing to take. And using the CopyPortfolio feature is another way to diversify risk.
If you are unsure about eToro, you can test drive it. Every user gets $100k in virtual currency, which you can put towards trying out CopyTrader. Just be sure to compare eToro's options and fees with other cryptocurrency exchanges like Coinbase, Binance, and Robinhood.
Check out our list of the Top 10 Most Popular Bitcoin And Crypto Investing Sites.
eToro Features
Minimum Initial Deposit | $50 |
Investments | US investors are only able to trade cryptocurrency |
Trading Fees | 0.75% to 2.90% (Based on each coin's bid-ask spread) |
Conversion Fees | Crypto-to-crypto conversion: 0.1% |
Account Type | Taxable |
Coins Available To Trade |
|
Minimum Withdrawal | $30 |
Withdrawal Fee | $0 |
Hold On Deposits | 7 days |
Credit Card Deposits? | Yes |
Mobile Wallet Deposits? | Yes |
Demo Portfolios? | Yes |
Promotions | None |
eToro Review
- Commissions And Fees
- Ease Of Use
- Customer Service
- Investment Options
- Tools And Resources
- Specialty Services
Overall
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
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