eToro Review 2021

Social Cryptocurrency Trading

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eToroeToro is a cryptocurrency trading and investing brokerage that’s ideal for those looking to learn about digital currencies. The easy-to-use web and mobile brokerage include social features to learn from other crypto enthusiasts. And you get a free paper trading account with $100,000 virtual dollars to trade. eToro supports over 20 cryptocurrencies, including Bitcoin, XRP, Ethereum, and others. This review will help you decide if it’s right for you.

Commissions & Fees - 8
Customer Service - 4
Ease of Use - 9
Tools & Resources - 7
Investment Options - 6
Account Options - 7

7

eToro is a cryptocurrency trading platform that supports 15 currencies, social features, virtual trading accounts and user-friendly mobile and web trading platforms. Fees are built into cryptocurrency prices through spreads of 0.75% to 5% depending on the currency you’re trading. Overall, it’s a good choice for new cryptocurrency traders as well as aficionados looking to improve their market knowledge.

Start Trading with eToro

What Is eToro?

eToro is an international trading platform founded in 2007. It came to the U.S. in 2018 with a cryptocurrency-only offering. The website says it plans to add additional assets in the future. But for now, it offers support for over 20 digital currencies for traders in the U.S.

eToro offers platforms for the web, Android, and Apple iOS devices. Once logged in, you can buy and sell currencies in your own account. Or test and practice strategies in a virtual account where you can trade with no risk. And you can view and copy the trades of other eToro members.

eToro doesn’t charge any commissions. Instead, when you sell, it takes a percentage of your proceeds using a system called “spreads.” Depending on the currency you choose, you can pay up to 4.9% of the value you sell back into dollars. If converting between cryptocurrencies, you pay 0.1% of the transaction total.

The social features, straightforward interface and relatively low fees make eToro best for new crypto traders and traders looking to learn the ropes. On any platform, fees add up quickly for active traders. So keep an eye on costs (and risk) when trading cryptocurrencies.

eToro Features

Trading and transaction fees0.75% to 5% depending on crypto
Supported Countries140+, including U.S.
Minimum PurchaseMinimum of $25 per trade
Payment MethodsCredit/Debit Cards, PAYPAL, NETELLER, SKRILL, RAPID TRANSFER, iDEAL, Klarna / Sofort Banking, BANK TRANSFER, Online Banking – Trustly (EU region)
Mobile appiOS and Android
Customer serviceLive Chat and tickets are available 24 hours a day from Monday to Friday
Supported CurrenciesBTC, BCH, ADA, DASH,
EOS, ETHEREUM, ETC, MIOTA, NEO, XRP, XLM,
XTZ, TRX, ZEC, LTC,
BNB, COMP, LINK,
UNI, YFI, DOGE, AAVE,
MANA, ALGO, BAT, MATIC
  • Buy, sell and hold over 20 cryptocurrencies — Turn your USD into BTC, XRP, ETH, LTC, EOS and other popular cryptocurrencies.
  • Follow other members — If you have a friend on the platform or a favorite trader, you can see their trades and monitor their portfolio and decide if you want to follow their lead.
  • CopyTrader — Turning on CopyTrader allows you to literally copy another eToro member’s trades in real time. Following top traders is an interesting prospect, though the semi-automated trading strategy comes with unique risks.
  • Desktop and mobile trading — Manage your cryptos from your favorite easy chair, your desk or the breakroom. Or literally anywhere you have an internet connection. With both web-based and mobile trading, you can keep tabs on your holdings and enter trades 24/7.
  • Low fees and no commissions — There are no specific per-trade fees and no recurring fees to keep an account at eToro.
  • Spread-based pricing — Pay no more than 4.9% of the currency’s value when selling. Costs start at 0.75% for Bitcoin and go up to 5% for Tezos.
  • Virtual portfolios — When you sign up for a new account, you also get a virtual account with $100,000 paper-money dollars. You can use the virtual account to test a strategy with no risk.
  • Advanced charting — Use advanced charting features to put a technical analysis strategy to work without leaving the platform.

eToro doesn’t have quite as robust an offering as some competing brokerages. But the slim and focused product makes it easy for newbies to get their feet wet with cryptocurrency trades.

International Traders Have More Options

In addition to cryptos, international traders can trade stocks, ETFs, commodities and forex assets. It wouldn’t be surprising if the U.S. options expand in the future to include stocks, ETFs and more.

You can take a peek at the web-based platform here to get an idea of what it’s like to use eToro. But you need to create an account and sign in to access all features.

Is eToro a Scam?

eToro is definitely not a scam. eToro comes from a legitimate international company that supports millions of traders around the world. The U.S. arm is registered under the name eToro USA LLC with the main office in Hoboken, New Jersey, just outside of New York City. Internationally, it is registered in Cyprus and Australia.

But because this isn’t a traditional bank or brokerage, funds are not SIPC or FDIC insured. And keep in mind that trading cryptocurrencies are very risky because it is a highly unstable and volatile market.

How Does eToro Work?

eToro users can manage their accounts and investments using an online interface with their computer or smartphone. Here’s a brief look at the eToro trading interface:

eToro Desktop Platform
eToro Desktop Platform
Bitcoin homepage on eToro desktop platform Bitcoin homepage on eToro desktop platform[/caption]

What Can You Invest in Using eToro?

Here’s a full list of cryptocurrencies available on the eToro platform:

  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Cardano (ADA)
  • Dash (DASH)
  • Eos (EOS)
  • Ethereum (ETHEREUM)
  • Ethereum Classic (ETC)
  • Iota (MIOTA)
  • Neo (NEO)
  • Ripple (XRP)
  • Stellar (XLM)
  • Tezos (XTZ)
  • Tron (TRX)
  • Zcash (ZEC)
  • Litecoin (LTC)
  • Binance Coin (BNB)
  • Compound (COMP)
  • Chainlink (LINK)
  • Uniswap (UNI)
  • Yearn.finance (YFI)
  • Dogecoin (DOGE)
  • Aave (AAVE)
  • Decentraland (MANA)
  • Algorand (ALGO)
  • Basic Attention Token (BAT)
  • Polygon (MATIC)
  • Algorand (ALGO)
  • Basic Attention Token (BAT)
  • Polygon (MATIC)

eToro Fees

The main cost of using eToro is a fee built into the trading price of cryptocurrencies. It uses a pricing model called “spread pricing.” So you pay a percentage fee on the final sale price of your assets.

The math is broken up so you pay a portion of the fee when buying and the remainder when you sell. If your crypto goes way up in value, you’ll pay a higher fee when selling. But if your currency goes way down in value, you could end up getting a refund for a portion of the initial fee.

It all comes down to 0.75% to 5% in fees depending on the currency you trade. Here is a screenshot of the fee list as of October 22, 2020. Spreads can change at any time.

eToro spreads as of October 22, 2020
Spreads on eToro as of October 22, 2020

eToro Alternatives

eToro is just one option in a crowded cryptocurrency marketplace. You may also want to consider one of these alternatives:

HighlightsE*TRADEAlly InvestTD Ameritrade
Rating9.5/109.5/109/10
Min. Investment$0$0$0
Stock Trades$0/trade$0/trade$0/trade
Options Trades$0/trade + $0.65/contract ($0.50/contract for 30+ trades/quarter)$0.50/contract$0.65/contract
Mutual Funds
Virtual Trading

eToro Pros & Cons

Pros



No commission fees
—Trade 15 cryptocurrencies with no per-trade fees or commissions.

Social aspect
—Learn from other traders using multiple social features.

Easy to use
—Simple and easy-to-use web and mobile platforms.









Cons



No stocks, ETFs or other non-cryptocurrency assets
—You can only trade in cryptocurrency in the U.S.

Limited offerings
—List of 15 currencies may not be sufficient for serious crypto traders.

High sell fee
—Fee of up to 5% charged when you sell cryptocurrencies









The Bottom Line on eToro

eToro is a solid choice for new cryptocurrency investors and traders who want to learn how digital currencies work. The platform gives you options to limit your risk and learn from other traders as you develop your own trading strategy. If you’re happy with the platform’s features and trading costs, it could be a great fit for your cryptocurrency trading needs.

Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

Eric Rosenberg

Eric Rosenberg is a finance, travel and technology writer in Ventura, California. He is a former bank manager and corporate finance and accounting professional who left his day job in 2016 to take his online side hustle full time. He has in-depth experience writing about banking, credit cards, investing and other financial topics and is an avid travel hacker. When away from the keyboard, Eric enjoys exploring the world, flying small airplanes, discovering new craft beers and spending time with his wife and little girls.

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3 Comments

  1. I deposited some money in eToro, I am new in this world of trading. I was reading many tutorials to be somehow prepared to begin. When I tried to copy a trader, I couldn’t, it was not permitted for me, the traders I wanted were not available. When I tried to invest directly, I couldn’t, the market was close for me. I do not understand this platform, in my opinion they need a better web site design because it has a big lack of information.

  2. I deposited Php 1million where i was charged about a different of 100usd 3 weeks ago which totalled USD 20, 640.38. Filed 2 complaints re 2 long positions I had which their system did not execute TP because it was “down” and the other where TP was somehow miraculously reactivated when I deleted it already after their system was down again for repairs. Was told to file complaint and would get compensation but up to now almost 2 weeks later no resolution. Closed all positions since they did the false TP and they wont allow me to transfer shares to another brokerage. Withdrawing and was told they do not allow withdrawal to my USD account. Just checked withdrawal process and now they charged me without my approval USD390.96 usd to withdraw 21,114.66usd. Remember they only charged me about $100 usd based on actual exchange rate to put my money in and it was within the same day. Withdrawal on the other hand would take 4 business days or longer!

  3. Don’t use eToro. Showed its true colors today by closing GME buy trades (only sell allowed), like Robinhood. Down for two hours yesterday. Horrible broker

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