Investing

eToro Review: Crypto Trading with Unique Social Trading Features

Overall Ranking

4/5

Overview

Fees

4/5

Features

4.5/5

Ease of Use

4/5

Customer Service

3/5

eToro is a platform for investing in and trading cryptocurrency. eToro’s social elements are a stand-out feature for investors of all levels but can be especially helpful for beginners.

Editor's Note

You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author's alone. This content has not been provided by, reviewed, approved or endorsed by any advertiser, unless otherwise noted below.

eToro Disclosure - eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. This is not meant to be tax advice or financial advice of any kind. The above information we compiled from online tax forums. Please, consult a CPA or lawyer if you have questions about filing your tax return, forms to use, or what is/is not taxable. eToro is not a tax advisor.

eToro offers a unique take on cryptocurrency trading and investing. Its mixture of social media and finance is appealing for many people, and its sleek interface makes it easy to use, even for relative beginners.

The eToro trading platform lets investors buy and sell cryptocurrencies and interact with other crypto traders with a minimum investment of just $50.

Features

These are some of eToro’s top features.

Trade 26 of the Top Cryptocurrencies

Trading cryptocurrency has become incredibly popular in recent years, with some crypto coins reaching market capitalizations in the hundreds of billions, close to trillions of dollars.

eToro USA lets U.S. traders buy and sell 26 of the most popular crypto out there. The website’s interface is easy to use, and you can place trades quickly from your computer or smartphone. That makes it easy for anyone to get involved with crypto trading.

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk."

Virtual Portfolio for Practice

Cryptocurrencies can be complicated, and their prices are highly volatile. It can be intimidating for new investors or investors considering adjusting their strategies.

eToro offers a virtual portfolio or demo account for investors who don’t want to jump directly into the deep end. The virtual portfolio allows an eToro user to practice with $100,000 of virtual money to understand how trading on the platform works and how their trading strategy will perform.

New crypto investors will also want to check out the eToro trading academy, which offers many resources, including video tutorials and guides on trading cryptocurrency.

Social Trading

eToro adds some aspects of social media to the trading experience.

Your account dashboard on the eToro platform will look very similar to a social media dashboard, such as the one you’d see on Facebook or Twitter. You can view your account balance, place trades, and interact with the eToro community all from one place.

You can post your thoughts for other traders to read or view insights and posts from traders that you follow. eToro also has communities across different social media platforms, so you can stay connected even when you aren’t signed in and making trades on eToro.

CopyTrader

eToro goes one step beyond interacting with other traders and reading their insights by offering a unique copy portfolio feature called CopyTrader. With CopyTrader, you can choose specific eToro members, called Popular Investors, to copy. CopyTrader will automatically execute the same trade in your portfolio when they make a trade.

Not only can you view successful trader strategies on eToro’s social trading platform, but you can also read insights to understand how these investing styles mesh with yours.

eToro compensates its Popular Investors based on the number of other eToro users that choose to copy their trades. If you sign up for the Popular Investor program, you can earn as little as $2 for each person copying you or up to 2% of the assets of those copying your trades.

eToro Fees

eToro doesn’t charge any account fees or maintenance fees. You also don’t have to pay management fees if you choose to sign up for CopyTrader.

Instead, eToro makes money through spreads on different cryptocurrencies with a small percentage fee added to your trades.

Spreads range from as small as 1% to as much as 4.50%, though the fees can fluctuate slightly.

Beyond the spread eToro charges, the only fee you’ll have to worry about is a 0.1% fee for converting funds between different cryptocurrencies.

Signing Up

Signing up for an eToro account is simple. You need to create a username and password and provide an email address. You can also sign in with a Facebook or Google account to make things even simpler.

Once you create your account, you’ll have to jump through some hoops before you can start trading. eToro requires that you provide a verified phone number and upload some form of identity verification and proof of address.

The easiest way to fund your account and start trading is to link a bank account. That makes it easy to send money to your eToro account so you can start trading. You can also choose to deposit money from a debit card or wire transfer but not a credit card.

You can make withdrawals to your external bank account or your eToro wallet. However, funds transferred from your eToro account to your eToro wallet cannot be transferred back into your eToro portfolio.

The minimum eToro deposit is $50, and the maximum daily deposit is $10,000. The minimum withdrawal amount is $30.

Mobile Support

eToro offers a sleek and easy-to-use mobile experience with highly rated apps available for both iOS and Android.

The eToro app provides all of the same features as the eToro website, including the ability to place buy and sell orders, post to your social media feed and read posts from other traders, and the ability to deposit or withdraw funds.

Security: Is It a Scam?

Cryptocurrencies are still a relatively new technology, and many are designed with anonymity in mind. This means that the industry is rife with fraud and scammers, so it’s understandable that you’d worry about trusting a cryptocurrency company with your personal and financial information.

The good news is that eToro is not a scam. The company is fully licensed in Europe and the United States to operate in the financial industry. It also uses industry-standard security practices and technology to keep your information and money safe.

One nice perk of eToro is that it holds U.S. dollars in your account in an FDIC-insured savings account. The FDIC offers up to $250,000 in coverage to insured accounts and is backed by the full faith and credit of the United States government. While this protection does not extend to crypto assets at eToro, it adds some additional safety for your eToro money.

Support/Customer Service

eToro offers a few options for people who need assistance.

The two primary methods of getting help are to post on the company’s support forum or to open a live chat. Live chat is best for more urgent matters, as eToro currently states that it may take up to fourteen days to respond to posts on the support forum.

This, combined with the fact that it can take up to a week for withdrawals to reach your bank account, means that customers should make sure that they aren’t relying on the money they keep in their eToro account.

If you run into trouble, help will be available, but it may take some time to resolve your problem.

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk."

Pros and Cons

  • Low trading fees — Low fees for trading most cryptocurrencies.

  • Copy trading feature — Copy top traders without paying management fees.

  • Popular Investor program — Earn additional money if people decide to copy your trades.


  • Limited customer support options — Customer support can take a long time.

  • Not all cryptocurrencies are available — A limited number of cryptocurrencies are available.

Honest Recommendation

If you like the idea of a social platform for cryptocurrency investing and trading, eToro is a solid choice. Few other websites meld social media and investing in the same way.

eToro is also a good choice if you want to get involved with crypto but don’t know where to begin. CopyTrader can help you follow and mirror successful traders.

If you’re less concerned about the social aspect of investing or want a more available customer support team, some other websites and services offer cheap crypto investing that you should consider.

What Others Are Saying

Here are the things that other top review sites are saying about eToro.

Benzinga – “eToro’s main strength is its simple and straightforward platform. Beginners can sign up for an account in as little as 10 minutes with its intuitive verification process… The broker’s one-of-a-kind CopyTrader feature is equally as beneficial to professionals as it is for novice traders.”

Bankrate – “(eToro) melds a social feed to its trading platform and actually allows you to copy trades of some of the most popular traders on the platform. With reasonable spread pricing and a low minimum trade, it all lines up well for traders looking to start trading cryptocurrencies such as Bitcoin.”

Alternatives

Consider these alternatives if you’re not sure that eToro is right for you.

Robinhood

If all you’re looking for is a simple, cheap way to invest in cryptocurrency, Robinhood might be a good fit. The app lets investors buy and sell many of the most popular cryptocurrencies without fees. If you already have a brokerage account with Robinhood, you can start trading crypto in minutes.

Coinbase

Coinbase is for people who want a one-stop-shop for all of their cryptocurrency needs. With a sleek interface, loads of learning and educational materials, and low fees, Coinbase is an excellent choice for beginners who are just getting into cryptocurrencies.

Are Cryptocurrencies Safe?

Cryptocurrency is a relatively new technology. Some people use crypto to buy and sell things online, while others prefer trading or investing in cryptocurrencies.

In part because of their relative newness, cryptocurrencies are highly volatile. In the three months before this writing, Bitcoin’s value ranged from a high of $63,223 to a low of $33,504. You can see Bitcoin’s historical chart here.

If you choose to invest in cryptocurrencies, you must be willing to accept the volatility in its price.

Who Is It For?

eToro checks a few different boxes, so it’s a good choice for different types of traders.

New investors who want to add cryptocurrency to their portfolios but don’t know how to get started will enjoy the copy trader feature.

Experienced traders will like eToro for the option to become a Popular Investor and earn an income for each person that copies their trading strategy.

Those trading for fun will like eToro for its social features and the ability to chat with other, like-minded investors.

This makes eToro a great choice for anyone interested in the world of cryptocurrency.

Bottom Line

eToro is a unique cryptocurrency trading platform that mixes social media with personal finance. It has features that will appeal to active and passive investors and new and experienced investors alike. While there are some alternatives for those who want an easy way to invest in crypto, it’s hard to go wrong with eToro.

eToro Disclosure - eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. This is not meant to be tax advice or financial advice of any kind. The above information we compiled from online tax forums. Please, consult a CPA or lawyer if you have questions about filing your tax return, forms to use, or what is/is not taxable. eToro is not a tax advisor.

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