eToro is a well-known online brokerage that specializes in cryptocurrency and stock trading. When it implemented support for Bitcoin (BTC) on its CFD trading platform in 2014, it was one of the first online trading organizations to support digital currency trading.
It then added support for Ethereum (ETH) and Ripple (XRP) not long after (XRP). The broker now offers 40+ cryptocurrency CFDs on its popular online trading platform, as well as an enterprise-grade crypto exchange and a multicurrency crypto wallet for professional traders.
Is it Safe to Trade?
The Broker is situated in Tel Aviv, was founded in 2007 by Ronen Assia, David Ring, and Yoni Assia. Assia is still the CEO of the company today. It began as an online forex broker under RetailFX but later changed its name to eToro and began selling commodities, indices, and equities.
It established itself as the world’s leading social trading network in 2010 when it debuted its breakthrough social trading function, which allows users to automatically mimic the moves of successful traders on the site. eToro implemented BTC functionality in 2014, allowing users to purchase and sell CFDs on the world’s most popular digital currency.
ETH and XRP were introduced to the platform four years later, and more digital assets were added in the years after that. Finally, with the launch of eToro and a crypto wallet in 2018, then broker dived heavily into the cryptocurrency sector.
Benefits and Drawbacks of Trading on eToro
There are various different benefits as well as drawbacks of trading with broker site are as follows:
Benefits
- Commission-free trading for stocks and ETFs.
- The account Opening Process is very easy.
- Offers Social Trading
- Trading fees are very low
- Forex and CFDs fees are too low
Drawbacks
- Non-Trading Fees.
- Base Currency Accounts
- Customer Support Needs Improvement
- Inactivity Fees
- Withdrawal Fees are $5
Investment Offerings
There are 3,056 tradeable symbols on brokers’ webpage. The table below outlines the various investment products accessible to eToro customers.
Usability Offerings: As a multi-asset broker, it goes above and beyond to ensure that traders have a pleasant experience.
Cryptocurrencies Offerings: CFDs and underlying asset trading are available at eToro for cryptocurrency trading (e.g., buying Bitcoin).
Crypto Trading Availabilities:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Dash (DASH)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Litecoin (LTC)
- Polkadot (DOT)
- Polygon (MATIC)
- Solana (SOL)
- Stellar Lumens (XLM)
How much Commission and Fees does eToro Charge?
It provides real-time stock trading with no commissions. Since May 2020, this has applied to all nations, although commission-free trading only applies to US stocks for Australian clients.
For crypto CFD and cryptocurrency trading, eToro has a somewhat complicated fee structure. In addition to the comparatively cheap trading fees compared to competitors, users must be aware of currency conversion and withdrawal fees. It’s also worth noting that fees may vary depending on where you are.
- Traders in the United States pay a spread of 0.75 percent to 5.0 percent on cryptocurrencies, depending on the asset. The spread is factored into the price of execution.
- Customers in the United States do not pay withdrawal fees, although there is a $30 withdrawal minimum.
- eToro charges a $5 withdrawal fee for withdrawals outside the United States.
- For funding your account made in currencies other than USD, non-US customers must pay a currency conversion fee starting at 50 basis points (bps).
- Transferring cryptocurrency from eToro.com to the eToro Money crypto wallet will cost money. Fees vary depending on which coin you’re sending.
- For accounts that have been dormant for more than a year, it levies a $10 monthly inactivity fee.
Trading Platforms
- The main novelty of eToro is the combination of self-directed trading and copy trading into a single trading experience. It’s an excellent combo.
- The Brokers web platform experience is built around ease of use and simplicity of design, and performing fundamental tasks is simple.
- When you activate the ProCharts setting on eToro’s charting, the entire functionality of the platform comes to life.
- CopyPortfolios, an eToro feature that organizes traders into single funds for copy trading, is another new tool.
- eToro users may uncover crypto-trading ideas and replicate other traders or groups of traders across the 108 cryptocurrency pairs covered by the platform.
- At eToro, fully automated trading systems (also known as algorithmic trading) such as those offered by MetaTrader are not allowed.
eToro Mobile Trading App
In general, eToro provides a great smartphone experience. The ease of use is excellent, and eToro offers virtually identical capabilities on both its web platform and mobile app, which multi-device users will like.
- For crypto and money transactions, it offers two mobile apps: the eToro app and eToro Money.
- The mobile app keeps the same appearance and feels like the web version, with essential features like dark and light mode themes.
- The charts are responsive and closely resemble the web platform experience, despite the fact that there are only five indicators compared to 67 on the web.
- The wallet, also known as eToro Money, is a standalone mobile app that allows users to deposit and withdraw money as well as genuine cryptocurrencies.
Open a Trading Account with eToro
- It takes minutes to sign up for an eToro account.
- You must first create a username, password, and email address.
- Following the verification of your email address, eToro will ask you to answer a series of questions to establish your risk tolerance and trading experience.
- Users of this broker must additionally authenticate their accounts.
- You’ll also need to give personal information, proof of address, and a valid government-issued ID as part of this process.
- eToro alerts new users once their identity has been verified, which can take a few days.
- Because your eToro account allows you to access both trading platforms, enrolling for eToro is as simple as clicking a button once you’ve registered an account on eToro.com.
Customer Support
eToro’s customer support is divided into two parts: eToro and eToroX. Both systems have help centers and offer support through support tickets. Unfortunately, phone support, like those of many other crypto exchanges, is not provided.
To improve the experience of eToro’s most committed consumers, the business employs account managers who look after the most active traders, those holding $5,000 or more in equity on the site.
Conclusion
Retail traders who wish to crowdsource investment ideas using the power of copy trading, as well as highly-experienced active traders who want to be paid for sharing their ideas with other traders, will find eToro to be a fantastic fit.
The user-friendly platform may be an added benefit for less-experienced traders who require some guidance. However, I do not suggest eToro for aggressive or high-volume traders because of the larger spreads and small maximum trade sizes. Algorithmic trading is also not permitted.
