- Ability to copy the trading strategies of pro traders
- Small minimum deposit to start
- Excellent educational resources
- Available in numerous countries
- A small selection of cryptos
- Not available in several U.S states.
- Limited transfers between trading wallet and eToro wallet for external use
eToro was founded in 2007 by three entrepreneurs with the goal to disrupt the world of trading. To do so, they set themselves a goal to make trading accessible anywhere, to anyone, and reduce dependence on financial institutions.
Today eToro is a social investment network, which added crypto trading in 2017, along with many other forms of investing. It currently has 71 cryptos available for trading, with plans to add even more. One of the biggest advantages eToro has over other crypto exchanges is that it also supports other forms of trading. This review will only go over the crypto side of eToro.
eToro Overview
| Regulations | USA, UK, Netherlands, Cyprus, Seychelles, Australia |
| Fees on deposits | 0 USD |
| Fees on withdrawal | 5 USD + additional conversion rates if withdrawal is not in USD |
| Inactivity fees | 10 USD |
| Minimum deposit | No limit |
| Minimum account activation | 50 USD |
| Number of available assets | 70 |
| Leverage up to | 1:- |
| Available trading markets | – |
| Account currencies | – |
| Demo account | Yes |
| Live account types | – |
| Islamic account | Yes |
| Security | |
| Negative balance protection | Yes |
| Part of compensation fund | Yes |
| Keeps funds on segregated bank account | Yes |
| Assets | |
| Forex | |
| Shares | |
| Cryptocurrencies | |
| Indices | |
| Commodities | |
| Total | – |
| Fees & spread | |
| Forex | – |
| Shares | – |
| Cryptocurrencies | – |
| Indices | – |
| Commodities | – |
| Software | |
| Platforms | – |
| Mobile trading support | Yes |
| Mac device support | Yes |
| Commodities | Yes |
| Payment systems | |
| Payment methods | Bank Transfer, Credit/Debit Card, PayPal, Skrill |
| Minimum deposit | Bank Transfer, Credit/Debit Card, PayPal, Skrill |
| Minimum withdrawal | Bank Transfer, Credit/Debit Card, PayPal, Skrill |
| Withdrawal processing time | – |
| Time to open an account | – |
eToro Security
Security is one of the biggest priorities eToro has. They have standard FDIC and SIPC insurance, as well as additional insurance policies. Additionally, it comes with a great two-factor authentication system and crypto is stored on cold storage when it is on the eToro trading wallet.
eToro is really well regulated, as they offer services other than cryptos, which a lot of governments see as a good sign. Because of this, we see way fewer disputes between them and governing bodies.
This is a list of regulatory bodies that have licensed eToros’ operations
- Financial Conduct Authority (FCA) of the UK, eToro UK
- Cyprus Securities and Exchange Commission (CySEC), eToro Eu
- De Nederlandsche Bank N.V (DNB) of the Netherlands, eToro Eu
- FinCEN, eToro U.S
- Australian Securities & Investments Commission (ASIC), eToro AUS
- Seychelles Financial Services Authority (FSA), eToro Eu
With these many licenses, we can say that eToro is a safe place to do business, and gives investors a sense of security when investing using eToro.
Security measures of eToroAs we mentioned, eToro has really good security. It implements different protocols to protect traders’ funds. From crime insurance to cold wallet utilization.
All USD is insured by FDIC and SIPC, alongside other insurance companies, depending on your country of residence.
eToro has a great two-factor authentication mechanism in place, which protects users’ accounts and wallets. The only way someone accesses your account is through your verification alone.
eToro also utilizes cold wallet storage which means that when your crypto is in your trading wallet, it is stored offline, which secures your funds even more. But if your crypto is on the eToro money crypto wallet it is stored on a hot wallet. If you are worried about your funds being stolen, we suggest not keeping them in your money crypto wallet.
Fees and Commissions
While conducting research for this review, we found five different fees and commissions which eToro has.
Conversion fees
Conversion fees come in when trade is being done in non-USD currency. If we deposit or withdraw using a currency other than USD we will be charged conversion fees. But who charges those fees depends on what currency we deposit. eToro supports EUR, GBP, AUD, IDR, MYR, DKK, NOK, PLN, VND, PHP, SEK, RMB, THB, and CZK and they are the ones charging conversion fees when using these currencies. But if we use other currencies from the mentioned ones, transaction fees are calculated and charged by the payment provider.
These conversion fees also vary depending on the payment method, the currency used, and the eToro club level.
Spread fees
Spread is the difference between Bid (Sell) and Ask (Buy) prices. This commission is charged by the broker on every transaction.
eToro offers us two-way buy and sell prices. The higher of the two prices is the buy price the customer pays. The price the customer sells at is the lower price. These buy and sell prices are also called “ask” and “bid”.
Let’s say the bid is 2.347 and the sell is 2.341, then the spread is the difference between these two prices, in this case, 6 pips.
Overnight fees
If you hold a CFD position overnight you are charged rollover fees. These fees are not unique to eToro. They are used to cover the costs of your position.
Overnight fees are not fixed and it depends on the value and the direction (Buy or Sell) of your position.
Withdrawal fees
Withdrawal fees are fixed at $5 when the transaction is made in USD. If the withdrawal is done in any other currency the aforementioned conversion fees are also applied.
Inactivity fee
If you don’t login into your account for more than a year, a fee of $10 will be charged every month from your available balance, but if you have any open positions, those positions won’t be closed to cover these fees. Once you log in to your account, the charging of fees will be stopped.
Crypto transaction fee
Crypto transaction fees are 0.5% of the transaction size. The minimum fee is $1 while the maximum is $50. Also, these fees are deducted in units.
There are also blockchain-associated fees, which are not controlled by eToro as blockchains are external and fees depend on which blockchain is used to complete transactions and how busy the network is.
Research and Education
Research and education are also one of the strong sides of eToro. They categorize their Academy into four categories.
News and analysis – where they inform us about everyday news in both crypto and finances.
eToro Academy – where they upload different guides and videos about investing, trading, and crypto for both beginners and advanced traders.
eToro Plus – is aimed at more experienced traders and investors with in-depth information about global news in finances, crypto, and other relevant topics.
