Established in 2007, the eToro platform has emerged as the go-to destination for investors at every stage of their journey. After this detailed eToro review, we can say that it is a dynamic platform that combines a diverse selection of top-tier assets, advanced trading tools, and social investing features, all within an easy-to-navigate interface.
What attracts many to eToro is its lively investing community, where over 30 million users from around the globe gather to connect and trade. Here, you’ll encounter a wide array of investors, regardless of their experience level, who share insights, debate strategies, and learn from one another.
Users can analyze other investors’ portfolios and even opt to automatically replicate their trades, potentially earning income by becoming Popular Investors.
eToro is an outstanding option for traders who appreciate a social and accessible trading environment. It is especially ideal for those seeking an intuitive platform that allows for the effortless management of a wide range of assets within a single portfolio.
eToro Review
eToro was established in 2007 in Tel Aviv by brothers Ronen and Yoni Assia, along with co-founder David Ring, initially focusing on forex trading.
In 2010, the platform introduced its signature social trading feature, enabling users to replicate the trades of top-performing traders. By 2013, eToro expanded its offerings to include stock trading alongside forex and commodities, becoming one of the early brokers to support Bitcoin (BTC). In 2017, the eToro platform broadened its cryptocurrency trading options and entered the U.S. market with its crypto services the following year.
Currently, eToro serves over 25 million users across 140 countries, allowing them to trade a diverse range of assets, including cryptocurrencies, stocks, ETFs, and more, solidifying its position as one of the leading online trading platforms globally.
For seasoned investors looking for sophisticated tools, eToro provides advanced analytical charts, an integrated economic calendar, and one-click trading features. While the broker’s spreads may be on the higher side, they remain competitive given the platform’s extensive features. Users can explore eToro risk-free with a demo trading account.
eToro Pros and Cons
eToro Pros
eToro is a widely used platform worldwide, even though the U.S. version offers fewer features compared to others. Despite this, eToro provides products that people from diverse backgrounds find appealing and useful.
One of the key features of eToro is its straightforward social trading option. With the CopyTrader tool, you can automatically mirror the trades of successful crypto traders on the site.
This means you can leverage established strategies instead of creating your own from the ground up. By checking trader performance and user feedback, you can select a trader whose strategies match your objectives.
eToro Cons
While reviewing the eToro platform, we found that it is accessible in 47 U.S. states: The platform is available to U.S. citizens residing in 47 states. However, individuals living in American Samoa, Guam, Hawaii, Nevada, New York, Puerto Rico, and the U.S. Virgin Islands are unable to access it.
No margin trading options in the U.S.: Traders seeking to engage in margin trading for cryptocurrencies or other assets will not find this capability on eToro.
Limited advanced trading tools and features: eToro prioritizes simplicity and user experience, catering mainly to a wide range of investors. Consequently, it lacks the sophisticated trading tools that seasoned traders often seek.
eToro’s Usability
eToro platform offers a clean and user-friendly interface that helps traders easily navigate and find what they need. Whether you’re using the mobile app or the web version, both provide similar features, allowing for a smooth switch between the two.
One of the standout features of eToro is CopyTrader, which lets you quickly search for and replicate the crypto trades of top traders on the platform, making it super simple to dive in.
The platform also has a News Feed that showcases its social trading aspect, giving it a social media vibe where users can share their market insights. This helps users understand the strategies of successful traders, making it easier to decide who to follow and copy.
Trading Experience with eToro
eToro makes it super easy to get started with a simple onboarding process. You fill out a quick questionnaire with some personal info to set up your account. The platform lets you connect with a bunch of financial institutions for easy deposits, so you can dive into trading in no time. Plus, setting up an eToro Options account is a breeze, letting you trade options right from the eToro Options app.
On eToro, there’s a “Trading” tab where you can check out real-time prices and buy, sell, or convert cryptocurrencies, ETFs, and stocks. They offer 3 cryptocurrencies, over 3,500 stocks, and more than 290 ETFs, covering a lot of key assets.
However, their selection isn’t as extensive as some other platforms. Also, the order types are pretty basic, mainly just market and limit orders, which might not satisfy more advanced traders.
One of the standout features of eToro is the CopyTrader and Popular Investor Program. These allow users to mimic the trades of top traders, while those successful traders earn rewards when others copy them.
This, along with the platform’s interactive vibe, makes it feel more like a social media site than a typical brokerage.
You can also create custom watchlists that sync between mobile and the web, so you can keep an eye on your favourite assets no matter how you access eToro. Plus, you can set up volatility alerts to get notifications straight to your phone.
Mobile Trade Experience
eToro’s mobile app is super easy to use, featuring a clean and straightforward design. Its user-friendly interface, reminiscent of social media platforms, creates a fresh and engaging experience. You can easily connect with other traders and check out popular investor profiles thanks to its interactive features.
For newbies, the app’s familiar vibe can make things less intimidating since it doesn’t follow the usual brokerage style. On the flip side, seasoned traders who prefer a more traditional approach might need some time to get used to it, but overall, the app is quite intuitive.
eToro’s Range of Offerings
eToro has a lot more to offer on its international platforms compared to the U.S. version, which is pretty limited when stacked against other options out there. The U.S. platform doesn’t have mutual funds, futures contracts, or forex trading, and you can only take long positions—short selling isn’t an option.
On eToro U.S., you can trade:
- 3 cryptocurrencies
- 3,250+ stocks
- 270+ ETFs
- Crypto copy trading with CopyTrader
- Options trading
- Cash management via eToro Money
- Portfolio automation with Smart Portfolios
- Fractional share investing
eToro Fees
eToro’s fees are pretty much on par with what you’d find at other online brokerages and crypto trading platforms.
When you trade crypto, there’s a 1% fee on the amount you buy or sell, which gets added to the bid-ask spread.
If you decide to move your crypto from your eToro trading account to your eToro Money crypto wallet, there’s a fee for that too.
For ETFs and stocks, there are no fees or commissions, although ETFs might have their internal costs.
When it comes to withdrawals, there’s a $5 fee and a minimum withdrawal amount of $30. But if you’re a Platinum, Platinum+, or Diamond Club member, you won’t have to worry about that fee.
All withdrawals and deposits are done in USD, and if you’re dealing with a currency other than USD, you’ll face a conversion fee that can range from 1.5% to 3.0%, depending on the currency and payment method.
Also, if you haven’t been active for over a year, there’s a $10 monthly inactivity fee.
Portfolio Analysis
eToro’s portfolio analysis lacks depth compared to other platforms. You can easily view your balances and positions, but analysis options are limited to basic charts.
These tools are useful for viewing how your investments are doing, but they don’t assist in spotting where you might need to adjust your portfolio.
eToro Platform Education
You can check out eToro Academy for an online learning hub. It has a bunch of articles about cryptocurrencies, but you’ll also find info on things like the Smart Portfolio and trading strategies, including technical indicators.
There’s a handy filter that lets you switch between beginner and advanced content, so you can tailor your learning to your skill level. Plus, you can choose from different formats, like in-depth articles or videos.
eToro Customer Service
eToro customer service review shows that eToro has a help centre packed with a ton of FAQ articles that cover a variety of questions you might have. However, if you’re looking for more traditional customer support, your options are a bit limited.
You can reach out via phone or email, but good luck finding the contact info easily. They do offer a chat feature in the help centre, so you can talk to an agent directly. Plus, you can submit a support ticket online if you need to.
eToro Security and Reliability
Two-factor authentication (2FA) and fingerprint scanning are in place for added security.
When it comes to equity assets like stocks and ETFs, they’re protected by the Securities Investor Protection Corporation (SIPC), which covers securities customers of its members up to $500,000, including $250,000 for cash claims.
On top of that, eToro’s clearing partner, Apex, offers extra insurance, giving eToro users protection of up to $37.5 million in securities and $900,000 in cash for each individual.
eToro also provides a digital wallet, called the eToro Wallet, for storing cryptocurrency. Users can move their crypto from eToro’s platform to this wallet, but keep in mind that transfers are one-way—once you send coins to the wallet, you can’t send them back to the eToro trading platform.
Transparency
eToro usually offers a pretty clear pricing structure, but it falls short of providing execution stats. For crypto trades, they clearly state a 1% fee. When it comes to stocks and ETFs, there are no trading fees, though some ETFs might have their extra costs.
They do provide info on spread pricing and payment for order flow (PFOF). However, it might not be obvious to users that they can’t transfer coins from their wallet back to the eToro trading platform.
eToro Platform Available Account Types
In the U.S., the eToro platform lets you open only individual brokerage and options accounts. They don’t have joint, retirement, trust, or custodial accounts available.
Also, eToro doesn’t offer margin accounts, which can be a big limitation for anyone wanting accounts that meet different financial goals.
Conclusion
eToro stands out as a well-established online brokerage platform that provides cryptocurrency trading services in the United States. Its intuitive interface, along with features like CopyTrader and SmartPortfolios, enhances its appeal to beginners, making it easier for newcomers to navigate the crypto asset market.
Beyond cryptocurrency, eToro allows users to invest in stocks, ETFs, and options, offering a diverse range of investment products. However, the selection of tradable assets across all categories is not as extensive as that of some of its competitors.
Additionally, the platform lacks advanced trading tools, comprehensive research options, and margin trading, which may deter seasoned traders who prefer to implement sophisticated trading strategies.
Overall, eToro is ideal for novice and less experienced traders interested in trading popular cryptocurrencies and utilizing the platform’s signature copy trading feature. Conversely, more advanced traders seeking to engage in cryptocurrency trading might consider exploring well-known crypto exchanges to meet their trading requirements.