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eToro Broker Review | Pros & Cons in 2021

eToro is a social trading platform that has become one of the most popular in the world in recent years. The platform is focused on providing financial and asset trading services, with eToro boasting offices in Cyprus, Israel, the United Kingdom, the United States, and Australia.

As trading via mobile and internet services has become increasingly popular, eToro has rapidly grown in value, and eToro is now a billion-dollar company. Tie-ins with the Atletico Madrid football team has helped raise the prominence of eToro, and there is no doubt that this is a hugely successful social investment network.

So in this guide to eToro, we’re going to tell you everything you need to know. We will cover everything from trading options, customer service, unique selling points and all other functionality of the platform. Please note that the content of this eToro review does not apply to US customers.

eToro Review Overview

eToro has been around since 2007 and has steadily increased its trading options over the years. Back in 2013, eToro introduced the capability to invest in stocks, and this has since expanded massively over the 112 products originally offered.

As cryptocurrency became an increasingly viable trading mechanism, eToro has embraced this revolution as well. The company launched its cryptocurrency wallet for Android and iOS in 2018, and later that year entered the United States market by offering 10 cryptocurrencies - Bitcoin, Ethereum, Litecoin, XRP, Dash, Bitcoin Cash, Stellar, Ethereum Classic, NEO, and EOS.

One of the innovative blockchain projects that eToro has been involved with is GoodDollar. This non-profit, open-source community project is aimed at reducing global wealth inequality via the concept of the Universal Basic Income (UBI).

eToro has also made investments in blockchain companies, having acquired the Danish company Firmo for an undisclosed sum. In November 2019, eToro acquired Delta, a crypto portfolio tracker application company, based in Belgium, and its commitment to a wide variety of trading options has increased eToro’s reach into the digital asset market.

3 Reasons to Use eToro

1

Social Trading

eToro is particularly aimed at social trading, enabling clients on the platform to benefit from the collective wisdom of a skilled network of traders.

2

Secure Broker

eToro is known to be one of the most secure platforms available, with an excellent track record in terms of keeping client information and funds safe and secure.

3

Ideal for new Investors

eToro makes it easy for new investors to get involved with trading, by offering a range of tools and courses intended to serve educational purposes.

What is eToro?

eToro was originally founded as RetailFX in 2007 in Tel Aviv, by brothers Yoni and Ronen Assia together with David Ring. The company has placed a particular emphasis on mobile trading over the years and has become the top platform for this mode of investment. It is also notable for being the pioneer of blockchain-based social trading, which was launched in 2017.

The eToro project has been funded by several seed investors, with the business having attracted investment from all over the world. eToro has gleaned investment from sources such as Spark Capital, SBI Holdings, CommerzVentures, Korea Investment Partners, and China Minsheng Financial Holdings. 

eToro reported having 8 million active accounts on its platform in 2017, but this it has almost certainly exceeded the 10 million mark since this date.

How Does it Work?

eToro makes it as easy as possible to sign up for its social trading platform. You simply need to register and create a profile on eToro firstly, before confirming your identity with the customer service team. eToro establishes your level of investment experience during the registration process, and it customises your experience on the platform in accordance with this, making eToro as accessible as possible for new users, while ensuring that experienced traders don’t have to tolerate hand-holding.

Once you have successfully registered for eToro, all of your trading options are laid out neatly, and it is straightforward to navigate the platform. You can set up your own portfolio, which can be customised as required, while there are several other menu options immediately provided to users, such as a newsfeed, the ability to trade markets, and the Copy Trader™ feature that has proved hugely popular. 

How does eToro Make Money?

There can be some confusion over how eToro makes money from its operation, as it doesn't appear to charge any form of commission. Thankfully, to avoid any undue suspicion, eToro makes its profit-making process completely transparent to all users.

eToro simply earns via the spread that it applies to each trading operation that is opened on every user account. The site also makes money through its copy trading service. When a trader or popular investor opens a new position, a commission is paid automatically via the spread. And then for all accounts that automatically replicate the operations of that trader, another commission will be paid on top.

Essentially, eToro gains both from the spread that it offers, and also the popular investors that generate signals on its platform, along with all those who replicate those signals. This means that the site has several sources of revenue, and has been able to build a highly profitable business model.

Pros & Cons of eToro

Pros

Free stock, ETF and crypto trading.
Highly intuitive platform.
Social trading experience.
Low minimum to fund accounts.
Many copy traders available.
Established cryptocurrency platform.
Strong security features.

Cons

High forex fees.
Slow withdrawals of money.
Service only available in 41 U.S. states.
Trade Crypto Today!

Breaking Down eToro: Our Analysis and Review

So that's all the basic information that you could possibly need about eToro. But how well does it work in reality, and is it the best trading platform for your investment? In this section, we will assess the particular qualities of eToro.

Regulation, Licenses and Security

It should firstly be noted that eToro is fully regulated and licensed, and offers excellent security provisions. Breaking down its registration is quite complex, though, as its arrangements differ depending on the territory in which you access the platform.

eToro’s brokering services are provided by eToro (Europe) Ltd. The company’s registration number is HE20058. eToro Europe is regulated by the Cyprus Securities & Exchange Commission, under license number 109/10.

In the UK, eToro (UK) Ltd. has a company registration number of 7973792, and is authorised and regulated by the Financial Conduct Authority, under firm reference number 583263. eToro Europe and eToro UK both operate under and comply with the Markets in Financial Instruments Directive.

In Australia, services and products are provided by eToro AUS Capital Pty Ltd, ABN 66 612 791 803. The company is the holder of an Australian Financial Services Licence 491139 issued by the Australian Securities and Investments Commission and regulated under the Corporations Act (Commonwealth). eToro Australia arranges for its clients to be provided services by eToro Europe.

Supported Countries on eToro

eToro is available in a vast array of countries, with a full list being as follows:

  • Afghanistan, Aland Islands, Albania, Anguilla, Antarctica, Antigua and Barbuda, Armenia, Aruba, Bahamas, Barbados, Belarus, Benin, Bermuda, Bhutan, Bonaire, Bosnia and Herzegovina, Botswana, Brunei, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, CAR, Chad, Chagos Islands, China, Congo Republic, Cote d'Ivoire, Crimea Region, Cuba, Curacao, The Democratic Republic of the Congo, Djibouti, Dominica, El Salvador, Equatorial Guinea, Ethiopia, Faeroe Islands, Fiji, Gabon, Gambia, Ghana, Greenland, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Iran, Iraq, Jamaica, Japan, Kyrgyzstan, Laos, Lesotho, Liberia, Libya, Malawi, Maldives, Mali, Marshall Islands, Mauritania, Mauritius, Micronesia, Moldova, Mongolia, Montenegro, Mozambique, Myanmar, Namibia, Nepal, Netherlands Antilles, Nicaragua, Niger, Niue, North Korea, North Macedonia, Pakistan, Palau, Papua New Guinea, Paraguay, Pitcairn Islands, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent, Samoa, San Marino, Sao Tome, Serbia, Sierra Leone, Sint Maarten (Dutch Part), Somalia, Sri Lanka, Sudan, Suriname, Svalbard and Jan Mayen, Swaziland, Syria, Tajikistan, Tanzania, Togo, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Turks and Caicos Islands, Uganda, Uzbekistan, Vanuatu, Virgin Islands, Yemen, Zambia, Zimbabwe.

While eToro is available in the United States, it is not permitted by every US state, so it is advisable to confirm this before attempting to utilise the service.

Is eToro Secure?

Security is an important aspect of any trading platform, and this obviously applies to eToro as well. Thus, it is reassuring that the developers of eToro have gone to huge lengths to secure the platform, with world-class encryption and many other security features built-in. eToro has an outstanding reputation in terms of safety and security, and this is fully deserved.

Key Services and Additional Features 

There are a wealth of features included in eToro, and the platform centres around several key services. Firstly, its mobile platform is built on the OpenBook system, which proves to be both intuitive and powerful. The developers of eToro have ensured that it will particularly appeal to new traders, but there's plenty to recommend here for experienced operators as well.

The inclusion of social trading on eToro is particularly welcome and is a standout feature of the platform. eToro has made it straightforward to copy other traders with its software, making it easy to discover other traders, and then equally easy to copy their actions. All users have to do is access the Copy People screen, and all of the required options are easily available.

Customisation and search tools are also provided, and filtering any search results is effective, quick, and easy to perform. There are a variety of parameters provided, such as gain, Risk Score, location and many others. eToro also provides a huge amount of information on each trader, which will help you determine whether you wish to engage in copy trading, and which trader will suit your particular goals.

The fact that you can learn from experts, and even shadow their activity, is a very attractive proposition for beginners to investment. This makes eToro a particularly accessible platform, one that will appeal across broad demographics, and a system that enables you to dive in without becoming an expert first.

Supported Cryptocurrencies on eToro

eToro supports 16 it cryptocurrencies at the time of writing, namely:

The developers of the site also promise that other coins will follow in the future. The provision of cryptocurrency provided by eToro is pretty decent, although there are definitely a few other top altcoins that could have been included. Nonetheless, eToro has supported cryptocurrency for a long time, and we can be assured that their promises to expand their offering are reasonable and accurate. Overall, eToro is definitely a strong platform to trade cryptocurrency.

Trading Platform

While many other brokers in the investment sphere rely on third-party solutions for trading, eToro offers its own proprietary trading platform. For simplicity of use, the eToro trading platform provides immediate access to all of the options on the system. 

Accessibility is a key aspect of the eToro platform, with a variety of menus and options made available to traders. The markets can be filtered by category – Stocks, Commodities, Currencies and indices – and further filters can then also be applied.

There are a wealth of options made available, while the security provisions built into the system have also been praised.

eToro Trading Platform at a Glance

The eToro trading platform provides a pleasing combination of depth, intuitiveness, attractive presentation, and safety. It will appeal to traders at all levels of experience, and it is quite possible for even inexperienced traders to get to grips with the system almost immediately. eToro has established itself as one of the most user-friendly trading platforms in the world, and this has been a big factor in its overwhelming success.

Deposits and Withdrawals on eToro

Depositing and withdrawing funds is obviously extremely important on any trading platform, so in this section, we're going to explain how this works on eToro.

Payment Methods Accepted by eToro

Firstly, the following is a list of payment method accepted by eToro:

  1. Credit/debit cards
  2. PayPal
  3. NETELLER
  4. Skrill
  5. Rapid transfer
  6. iDEAL
  7. Klarna
  8. Wire transfer
  9. Online banking

It should be noted that the payment and withdrawal methods available can vary depending on your country of location.

Minimum Deposit Required by eToro

Three is a minimum deposit required by eToro, and this figure is generally considered to be quite reasonable. Any users in the United States can deposit a minimum of $50, both for first-time deposits and redeposits. For deposits made by wire transfer, the minimum required for first-time deposits and redeposits is $500. And there is also a maximum deposit figure of $10,000 per day, although you can continue to deposit this figure regularly over a significant period of time.

The minimum deposit figure can also vary depending on location, so if you have any uncertainty about this issue it would be advisable to contact eToro customer service.

Minimum Trade Size for Cryptocurrencies on eToro

The minimum trade size for cryptocurrencies on eToro is $25. It is notable that this is smaller than the figure associated with traditional currencies, stocks, ETFs, commodities, and indices. The minimum amount required to copy another trader on the platform is $200.

eToro Fees and Spreads

Fees associated with eToro operate differently from many other trading platforms, as explained previously. This can differ depending on the product in question, but for Bitcoin trading, it is currently set at 0.75%. This figure also applies to the vast majority of cryptocurrencies. Spreads on eToro also vary depending on a variety of different factors, but the 0.75% fee applies as the lowest possible option. Spreads can be as high as nearly 3% on eToro, though.

eToro Registration Process

Registering for eToro is relatively straightforward, and simply requires you as a user to confirm your identity. This is initially achieved via a proof of identity document, which is required to contain your name, date of birth, a clear photograph, and issue date. Documents that have expiry dates should also be presented visibly as well. Passports tend to be the most popular identification document with eToro, and these can be processed more quickly than other forms of identification.

eToro also requires traders to provide a proof of address, and this should also contain your full name, address and issue date, which should be no older than 6 months. Any identifying information must also be clearly visible, and eToro recommends users to scan documents against different-coloured backgrounds so that all four corners are visible.

  • Valid proof of address documents are as follows:
  • Bank statement
  • Credit card statement
  • Electricity, water or gas bill
  • Council Tax bill
  • Tax letter or bill
  • House rental official agreement – issued from a rental agent
  • Letter from employer
  • Letter from your local municipality
  • Phone bill
  • Internet bill

How to Trade Cryptocurrencies on eToro

There are five basic steps required in order to trade cryptocurrencies on eToro:

  • Step 1 – Open an eToro account.
  • Step 2 – Search for the crypto which you would like to buy.
  • Step 3 – Click on “Trade”.
  • Step 4 – Insert your desired investment amount.
  • Step 5 – Click on “Open Trade”.

You also receive a $100,000 demo account when you sign up for eToro, which enables you to experiment with the platform before trading cryptocurrency. This virtual account comes with absolutely no strings attached, and it means that you never have to risk a single penny or cent until you are ready to do so.

Furthermore, it is possible to trade cryptocurrency on eToro by copying others, meaning that whenever a particular trader opens a new trade, the same trade will be made in your particular portfolio, without any input being required. There are several traders on the eToro platform who already specialise in cryptocurrencies, meaning that there are several options available for copy trading.

Our eToro review Conclusion

Undoubtedly, eToro is one of the most established trading platforms in the world, and certainly one of the most successful. It offers a safe and secure environment, with a wealth of different trading options, and is particularly geared to ensuring that beginners can use the platform effectively.

Furthermore, eToro was one of the pioneering platforms to embrace cryptocurrency, and this means that those wishing to try cryptocurrency trading on the platform are served extremely well. Fees are also fair, and overall we can recommend eToro as an ideal solution for traders of every conceivable demographic and experience level.

Disclaimer

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. 67% 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. 

Frequently Asked Questions

  1. Non-leveraged long positions are underlying cryptocurrency transactions.

  2. Trading effectively enables you to take a loan from eToro against your funds, meaning that you can invest more money in cryptocurrencies. It should be noted that this carries an overnight fee, and each of these fees is listed on the eToro website. Cryptocurrency also serves as collateral for the loan from eToro, while the platform also has a hard fork policy, which is outlined on its website. Traders engaging in margin trading will not benefit from any protection available to regular clients, such as the CySec Investor Compensation Fund and the Financial Ombudsman Service.

  3. This will generally take just one business day, although transactions are not processed on weekends or national holidays.

  4. It is only possible to transfer a position in its entirety. Partial positions are not transferable on eToro.

Company Information

Company Name
eToro

Account Information

Minimum Deposit
$50
24/7 Support
Yes
Email Support
Yes
Phone Support
Yes
Mobile Trading
Yes
Live Chat Support
Yes
Free Demo Available
Yes
Payment Options
Wire Transfer, Bank Transfer
Coins
BTC, BCH, XRP, ETH, ETC, DASH, LTC, XLM, NEO, EOS, TRX, ADA, MIOTA, ZEC, XTZ, BNB, DOGE, THETA