Review of eToro

What Is eToro?

eToro was founded in 2007 in Tel Aviv, Israel by brothers Yoni and Ronen Assia and David Ring. Since then, eToro has experienced huge growth worldwide, and today they have over 17 million users in over 200 countries.

eToro USA LLC is a registered money services business with FinCEN.

eToro is seen as a true pioneer in social trading and allows investors to copy the trades of pros. It currently only offers cryptocurrency trading.

eToro is registered in Cyprus, has a license to operate in European countries, and is a regulated Financial Conduct Authority in the U.K. These credentials may be comforting to eToro USA users since eToro is not currently licensed by the U.S. Securities and Exchange Commission.

Keep in mind that cryptocurrency brokerages are not insured by the Securities Investor Protection Corporation (SIPC).

eToro is authorized by the Australian Securities & Exchange Commission (ASIC) and the Financial Conduct Authority (FCA)

Read our full eToro review below.

eToro is available in 43 states and although all U.S. residents can sign up for an account, cryptocurrency trading is unavailable for residents in these states: Delaware, Hawaii, Minnesota, Nevada, New Hampshire, New York, and Tennessee.

The security features of eToro include:

• Biometric access for the eToro app
• No excess SIPC insurance (once eToro stock trading is enabled in the U.S.)
• Registered in Cyprus

Chosen 156 times

• The world’s leading social trading platform
• A fee of 1% is added to the spread when buying or selling crypto assets on eToro. The fee is included in the price shown when users open or close a position.
• eToro takes the spread
• Users can follow the trades of profitable traders

5.0Read 1 reviews

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

You can find the eToro login at https://www.etoro.com/login. You can manage your eToro account, buy bitcoins, follow traders, and more.

You can also download the eToro app from the App Store and Google Play.

How eToro Works

With eToro you can start trading with as little as $10 and eToro fees start at 0.75%. It offers an innovative trading platform where investors can mirror successful traders.

Social Trading

If you want to know how to sell on eToro you’ll enjoy the social trading feature.

With eToro’s CopyTrader you can copy and automatically trade based on the moves of other top traders. Simply choose the investor you want to copy from, and start mimicking their positions with a click of a button.

You have the option of a stop-loss level to reduce possible losses.

You’ll need a minimum of $200 to copy a user and the maximum is $500,000. You have the option to copy up to 100 traders automatically and even without CopyTrader users can still view portfolios and scores of millions of traders.

When copying a trader on eToro, it’s important to look at his/her performance. This includes monthly historical price and drawdown information.

Another component of their trading performance is their risk score. Each trader is assigned a 1-to-10 risk score, with one being the least risky and ten having the potential to blow an account.

eToro’s popular investor program (for traders who let other investors follow their trading strategy) has four levels – ranging from Cadet to Elite – where traders can become eligible to receive various perks.

To qualify for the Cadet tier, you must have more than $1,000 in account equity, attract $500 in customer assets that copy our strategy, and maintain a Risk Score below 7 for at least 2 months.

Benefits available to popular investors include spread rebates, regular monthly payments, and even management fees for those who reach the Elite level.

Cryptocurrencies

Asa multi-asset platform, the eToro exchange currently offers more than 30 cryptocurrencies for customers in the U.S. to trade. Compared to other exchanges such as Coinbase and Binance.US, eToro offers fewer cryptocurrencies – yet more than brokerages such as Robinhood.

eToro clients can currently trade in these cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Dash, Stellar Lumens, NEO, EOS, IOTA, Zcash, Tezos, Dogecoin, Uniswap, and Chainlink.

Smart Portfolios

Smart Portfolios allow experienced traders to invest in a pre-defined collection of assets. These can be industry themes like technology or crypto, or they can be made up of particular investment strategies.

Users can then choose to copy the portfolio of other successful investors on the platform, earning extra income on top of their investments. You can start investing using your own money.

All you need is an account with eToro. To get started, you’ll need to fund your account with at least $500. Once you’re ready to start trading, you can choose from three different investment portfolios. You’ll also be able to copy other traders’ portfolios.

Digital Wallet

eToro offers a free digital crypto wallet to users to store cryptocurrency and it is available for iOS and Android.

To convert eToro crypto into fiat currency and vice versa costs 5% and this may be a bit costly for some users. The minimum and maximum transactions are $125 and $10,000 respectively.

Users can also use their own crypto wallet with eToro.

Most cryptocurrencies stored on eToro’s platform are kept in cold storage, meaning the majority of cryptocurrency is kept on servers not connec­ted to the internet.

Rates & Fees

The minimum trade is $25 and the account minimum is $10. If you want to use eToro CopyTrader the account minimum is $200.

When it comes to eToro fees, they charge round-turn fees, meaning one fee for both buying and selling. Spreads are typically between 1.0% and 2.9% (check eToro’s website for current pricing).

There are no deposit fees for US users to deposit USD into their eToro accounts

In comparison, SoFi charges a markup on crypto transactions of 1.25% and TradeStation charges 1% for balances up to $100,000. Robinhood charges no fees for trades.

eToro fees depend on your location and the type of asset you trade:

• eToro USA users pay 0.75%-5.0% for cryptocurrency trades.
• When buying assets other than their home currency, non-U.S. users pay a currency conversion fee.
• Accounts with no activity for 12 months will incur a $10 inactivity fee.
• There are no fees for withdrawals of funds for users in the U.S. although the minimum withdrawal is $30.
• Users outside of the U.S. pay a $5 withdrawal fee.
• There is a fee for transferring cryptocurrency out of eToro into your own wallet.

eToro’s fees are based entirely on the spread – this refers to the difference between what you pay for the eToro crypto and what it is selling for.

This spread differs depending on the type of coin and may fluctuate based on market conditions. With eToro you’ll only be charged once for each of your assets when you buy.

VIP Accounts

eToro offers a VIP club, also referred to as the eToro Club that offers five tiers of membership that range from Silver to Diamond. These tiers are aimed at traders who have account balances above $5,000 and up to $250,000.

The eToro Club features a range of benefits, depending on your membership level. Some of the perks include lower deposit and withdrawal fees, access to Trading Central, and a dedicated account manager.

Investor Program

eToro’s Popular Investor program comes in four different levels, from Cadet to Elite. These programs allow traders to become eligible for a range of perks. To qualify you to need to have more than $1,000 in account equity, maintain a risk score below seven, and attract $500 in customer assets that copy your strategy.

Other benefits available to Popular Investors include spread rebates, monthly payments, and even a management fee for those who reach elite status.

Mobile Trading App

eToro offers two mobile apps: the free eToro app and the eToro Money app for crypto and money transfers Both apps are available for download on Google Play and Apple’s App Store for iOS devices.

Education

eToro is a global social trading network that gives its members access to financial markets around the globe. Anyone, even those who aren’t users, can visit eToro.com and gain access to lessons about investing terms, interpreting the markets and different types of assets via the eToro Academy.

The academy ranges in complexity from beginner to advanced levels. Once you’ve joined and created an account with eToro, you can start using your practice account to test out the platform before real money gets invested.

You’ll get $100,000 of virtual money to learn the platform until you become familiar with all the ins and outs of trading to start working with real money.

Join the eToro Club

Users who have earned at least £3,834 ($5,000) from selling their assets can join the eToro club, which comes with perks like personalized investment advice, free webinars, and access to subscription services such as The Wall Street Journal.

Security

eToro is a regulated financial services company in the UK. It uses advanced encryption technology to protect user information.

You can also enable two-factor authentication to log in and enable biometric access for the eToro mobile trading app.

How to Open an eToro Account

Our eToro Review

Is eToro safe?

Yes, and we recommend eToro. The easy-to-use eToro crypto trading platform is a great benefit and it is registered in two tier-1 jurisdictions.

eToro is a relatively safe investment option, with an overall Trust Score of 93 out of 99 eToro is a regulated broker, but it is not publicly traded, nor does it operate a bank.

It is authorized by two-tier 1 regulators (high trust) and one tier 2 regulator (average trust). eToro is regulated by the following tier-one regulators: Australian Securities & Investment Commission (ASIC), and the Financial Conduct Authority. Get more info about Trust Score.

It is excellent for social copy trading as well as trading cryptocurrencies and is a favorite in both categories.

Customer Support

eToro has limited standard customer support, offering only email contact or a support ticket option. eToro Club members can also receive customer support via live chat and phone.

Only members at the silver level and above — which requires equity of $5,000 or more — can call to speak to a representative directly.

Read eToro reviews below or add your own. Want to read more on eToro? Visit the eToro website here.

Disclaimer: 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.