Exchanges / eToro

eToro Exchange Review

eToro accepts users from United States

Quick Summary

eToro is not a crypto exchange.

However the attraction of eToro is that you can trade/invest a a wide mix of assets in one place with a simple interface, as well as some of its social features like being able to automatically copy the trades of other successful traders and investors

  • A great one stop shop for trading multiple different assets
  • A recognised brand with full regulatory approval
  • Unique way to copy other Traders
  • Crypto trading fees are high
  • Can withdraw crypto to a wallet but cant send it back there
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Overview and Reputation

eToro was founded in the year 2007 in Israel by Yoni and Ronen Assia brothers along with David Ring. Started with an objective to build an online trading platform that can help anybody to trade financial assets from anywhere in the world.

eToro today boasts a user base of more than 12 million members with a strong multi-national presence in more than 140 countries. Users of eToro get to trade a wide class of financial assets like world currencies, crypto, commodities, indices, stocks, and much more.

eToro sponsors many football teams. In 19/20 it had contracts with Crystal Palace, Leicester City, Southampton, Tottenham and new partnerships added with Aston Villa and Everton.

The multi-national presence of eToro puts it under the scope of multiple regulatory bodies at the same time. It is currently regulated by CySEC authority in the European Union, FCA in the United Kingdom, FinCEN in the United States of America, and ASIC in Australia.

Our Rating: 8/10
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Trading Fees

eToro charges a variety of different spreads and fees for trades, depending on what sort of asset you are wanting to trade . There is a different fee structure for Stocks & ETF, Crypto, CFDs, etc

Crypto Fees

A registered user on eToro is required to pay the trading fees in the form of spreads. Spreads are the most common way adopted by the trading platforms to charge the fees from the traders. The spread means the difference between the buy and sell prices of an asset.

If a trader wants to sell crypto on eToro, they will have to pay a specific percentage of the sale price, which becomes the fee of that trade.

Example: If you want to sell one unit of Bitcoin (BTC) at the market price of $1000, then you will also be required to pay $7.5 (BTC Spread = 0.75%) to eToro assuming that 1 BTC is equal to $1000.

In the case of cryptocurrencies, the spread is based on percentage metric. The spread structure for all the cryptocurrencies available on the eToro platform has been illustrated in the below table.

CoinSpreads
BTC (Bitcoin)0.75%
ETHEREUM (Ethereum)1.90%
BCH (Bitcoin Cash)1.90%
XRP (Ripple)2.45%
DASH (Dash)2.90%
LTC (Litecoin)1.90%
ETC (Ethereum Classic)1.90%
ADA (Cardano)2.90%
MIOTA (IOTA)4.5%
XLM (Stellar)2.45%
EOS (EOS)2.90%
NEO (NEO)1.90%
TRX (TRON)3.5%
ZEC (ZCASH)3.5%
BNB (Binance Coin)2.45%
XTZ (Tezos)5%

These fees are clearly not competitive with traditional exchanges like Binance and Bitfinex where a trader might pay 0.1% on every trade of BTC they make, whereas in eToro, the spread fee for the same is 0.75% .

Stocks & ETF

When a registered user purchases a stock or ETF via the platform, then he or she shall have the complete ownership of the asset. There are no commission charges, and the user is not required to pay management or other such fees. This free stock trading is what attracts a large base of users to eToro.

CFDs (Contract for Difference)

If a user wants to trade a variety of assets that allows great flexibility, CFD trading would be an optimum choice. There is no acquisition of real assets in case of CFD trading. It is counted as an advanced trading strategy and is mostly traded by experienced traders. So, if a user wants to conduct CFD trading, then they will have to bear both spreads and overnight fees.

Overnight Fees: All those CFD positions that remain open overnight (usually advanced traders) have to bear a small fee which is relative to the value of the position. It is not wrong to call overnight fees as an interest payment that covers up the cost of the leverage that a user used overnight.

You can trade CFDs for Currencies, Commodities, Indicies and Cryptocurrencies on eToro but we will just look at Crypto CFDS

CoinsSpreadOvernight Fees
Sell (Short)Buy (Long)
BTC0.75%$ -3.720367$ -3.720367
ETHEREUM1.90%$ -0.091205$ -0.091205
BCH1.90%$ -0.089653$ -0.089653
XRP2.45%$ -0.000071$ -0.000071
DASH2.90%$ -0.027506$ -0.027506
LTC1.90%$ -0.016639$ -0.016639
ETC1.90%$ -0.002317$ -0.002317
ADA2.90%$ -0.000034$ -0.000034
MIOTA4.5%$ -0.000088$ -0.000088
XLM2.45%$ -0.000027$ -0.000027
EOS2.90%$ -0.000947$ -0.000947
NEO1.90%$ -0.004066$ -0.004066

Other Fees

An inactivity fee of $10 is charged from every such user who has not been active (didn't log in) on the platform for 12 months or more. This fee automatically gets deducted from the balance of the user.

Our Rating: 6/10
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Available Coins

The eToro trading platform lets the traders trade several major cryptocurrencies. eToro has a total of six different classes of financial assets that include commodities, stocks, ETF, currencies, indices, and some of the more reputable cryptos. All of these can be traded as CFDs while there are some that can be traded as underlying assets as well.

Bitcoin
Ethereum
Ripple
Bitcoin Cash
Cardano
Litecoin
Binance Coin
EOS
Tezos
Stellar
Tron
Neo
Ethereum Classic
IOTA
Dash
ZCash

Other Assets

In addition to Crypto you can also trade

CommoditiesOil, Gold, Silver, Copper, Platinum, Palladium, Natural Gas, Sugar, Cocoa, Wheat.
CurrenciesEUR/USD, EUR/JPY, GBP/JPY, EUR/AUD, EUR/CAD, AUD/JPY, CAD/JPY, CHF/JPY, GBP/USD, NZD/USD, USD/HKD, USD/CAD, USD/ZAR, USD/RUB, USD/CNH, AUD/CHF, AUD/CAD.
StocksTesla Motors Inc., Apple, Amazon, Microsoft, Nio Inc., Moderna Inc., Boeing, Facebook.
ETF StickersACWI, AGG, AOA, AOK, AOR, BOND, GDXJ, GLD, IEFA, IEMG, IJH, IJPEL, IPAL, ITOT.
IndicesUS Dollar Index, China A50 Index, SPX500, NASDAQ100, DJ30, UK100, FRA40, GER30, AUS200, ESP35.

You can search or filter to navigate to a particular asset

Our Rating: 7/10
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Permitted Countries

eToro has expanded massively in the past few years. The exclusive features, robust marketing strategies, and future plans have helped the brand to pin its logo on various parts across the globe. Some of the major countries where eToro has expanded its operations are mentioned below:

United States
United Kingdom
Australia
New Zealand
Ireland
South Africa
France
Germany
Italy
Sweden
Denmark
Switzerland
Netherlands
Austria
Spain
Belgium
India
Singapore
China
South Korea
Poland
Portugal
+ 116 more

Legal regulations and security matters have thus far limited eToros expansion to some countries. For example, eToro cannot function in Canada and Japan plus another 10-20 other countries

USA Residents

As of April 2020, Real trading is available to US residents in the following states:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., West Virginia, Wisconsin and Wyoming.

For the moment, not all markets are available to trade and certain features are disabled. This is why you will see certain buttons greyed out (such as the option to open SELL trades) and will not be able to comment on the News Feed.

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Deposit Methods

eToro provides a lot of flexible and easy options for its users to deposit their funds. Note that before making any deposits users must complete the verification procedure. eToro provides multiple payment options including.

PayPalCredit CardsDebit Cards
SkrillNetellerWebMoney
Yandex MoneyGiropayWire Transfer

In some countries the first deposit must be made with either a debit card, credit card, or bank transfer. It usually takes around 4 to 7 business days for the bank transfer to take place, and there is no ceiling for the maximum deposit.

The platform does not charge any fee from the users on making deposits, but they do charge the currency conversion fee. This fee is charged not only for the deposits but for withdrawals as well.

Our Rating: 8/10
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Withdrawals

Withdrawals can be made using the same payment methods as deposits

eToro charges $5. Also, the minimum amount that a trader has to withdraw is $30. It usually takes around two business days for the withdrawn funds to get deposited in your account.

There is another fee that a user will have to pay, i.e. conversion fee if the withdrawals (or deposits) have been made in a currency other than USD. By default, the transactions are made in USD and in order to convert any other currency into USD, eToro would usually charge a fee.

Our Rating: 7/10
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Verification

The account opening and verification process to get started on eToro fast, responsive, and completely digital. It took us only two days to open a verified account, and this is what a typical user generally expects from such platforms. To open the account, you can simply sign up using your email, Facebook, or Google account and simply begin using the services. But this will activate only a demo account where you will be provided with virtual (demo) funds of $100,000.

To trade with real money, the complete verification process needs to be followed. The table below highlights the documents that are needed to be uploaded for the verification. These documents submission will help to verify your personal identification and residency credentials. Once the account has been verified, then we will get access to a plethora of benefits.

Verification RequirementsAction
Form to FillDigital Form in eToro Website
Age21 Years and above
Personal InformationFull Name, Age, Gender, Date of Birth, Verifiable Phone Number
IDs RequiredTwo valid ID's government-issued IDs are required for the name/age p and proof of residence
Personal IdentificationPassport, Driving License, National ID Card.
Proof of AddressA bank reference letter, Bank statement, Credit card statement, Council tax bill, Tax letter, Electricity Bill, Gas Bill, Bill, Water bill.

Verification of the account is necessary because of various legal regulations and provisions that are needed to be complied with.

Our Rating: 8/10
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Security

eToro is under the oversight of multiple regulatory bodies like FCA, ASIC, and CySEC. A user can add an extra layer of security to the account by enabling 2-factor authentication (2FA). Using 2FA means that a security code also that would be sent to the mobile whenever an attempt to sign in into the eToro account will be made.

The funds of the clients on eToro are kept in the Tier-1 banks to make sure that premium safety standards can be established. As already stated before, three regulatory bodies are linked with eToro, and this is important to mention again because the entity to which a trader belongs to, decides the amount of protection that they can have.

Trader’s CountryProtection AmountRegulatorLegal Entity
United Kingdom£85,000Financial Conduct AuthorityeToro (UK) Ltd.
AustraliaNo ProtectionAustralian Securities and Investments CommissioneToro AUS Capital Pty Ltd.
Europe€20,000Cyprus Securities and Exchange CommissioneToro (Europe) Ltd.

For cryptos, there are no arrangements for the investors’ protection.

Hacks

eToro has not been connected with a serious financial crime or hack.

Our Rating: 8/10
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User Interface

The design and overall feel of the eToro platform are easy to use. The platform has been designed by keeping the interest of both beginners as well as experinced traders in mind. If a user is new to eToro, then he or she is less likely to find difficulties while navigating and exploring the features.

The user dashboard provides various easy navigation tools that a user can utilize on the left-hand side of the platform. In the below image, it can be clearly be seen the main categories that are available like Watchlist, Portfolio, News Feed, Trade Markets, Copy People, Invest in Copy Portfolios, and much more.

The dashboard also provides an option for the users to switch between virtual or real portfolios.

The menu allows quick access to you watchlist, portfolio and trading screens.

Clicking on the chart icon allows you yo view the recent price movements of that particular asset. This feature is really helpful for all those traders who want to get into the deep analysis or study the behaviour and performance metrics closely. They can also change the time frame, chart types, make comparisons, and even add some more tools from the comprehensive list by selecting the options appearing at right corner in the above image.

There is no doubt that the User Interface is easy for even novice traders to use. Apart from the web interface, the mobile interface is also easy to understand (see later in this review).

Funding your account can be completed in just a few clicks. Users can click on the "Deposit Fund" button at the left-hand side of the dashboard, and then a new window will update at the right-hand side as shown below.

Our Rating: 8/10
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Customer Support

You can contact support through email, social media, or live chat. can expect a quick and relevant answer from them. Weekend support is limited however.

We found it difficult to use the live chat feature on the website. The communication is difficult as the chat box is offline quite often. eToro has stated that their customer support service is offered in 21 different languages for both mobile and web platforms. However, we have only tested the English language support.

Overall, we were not completely satisfied with the customer support experience. eToros's Trustpilot review score is 2.2, which is below average.

On studying the reviews, we found that 47% of the clients have had a poor experience with eToro. Most complaints related to problems while depositing or withdrawing the funds. Some users stated that the customer support response is way too slow.

eToro did reply to each bad review with a relevant solution to tackle the problem, which shows a commitment to imroving things.

Our Rating: 6/10
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Other Features

Social Trading

eToro offers a feature of Social Trading. Using the CopyTrader function, users can replicate the trading behaviour of the other leading traders on the platform. There is an option on the platform where you can follow them and copy their trading patterns. However, this feature is yet to be available in the United States.

Fully Managed Options

eToro has been designed to serve not just the people who are interested in day trading alone. It extends its services to others as well who are more into managed portfolio options. The CopyFunds program of the platform provides managed portfolios on various themes or risk levels.

Stop Loss and Take Profit Feature

eToro provides its clients with an option to set the orders at predetermined price points so that they can close an open position at a certain level without their intervention. Stop Loss feature helps the traders to manage their positions while protecting their accounts from getting liquidated. Take profit feature also serves the same function by securing profits at a predetermined price point.

Offline Trading

eToro provides its users with an option to perform a few trading activities and even place orders even when the site is down such as for technical issues.

Tipranks Research Tab

This feature helps the traders to collect the information and insights from the top analysts at one place. This tab integrates knowledge and experience of investment experts who can help other traders to make informed decisions and investments.

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Mobile App

eToro is not only available for the web but for mobile devices also. It has the same functions that are available on the web like browsing traders, managing the account, navigating strategies and assets, and much more. The advantage of the mobile application is that the traders can monitor or execute trades on the go. This app is available for both Android and iOS devices.

The following key features are available in the app:

  • My Watchlist
  • Portfolio
  • Trading
  • Deposit & Withdrawal
  • Copy People
  • Writing a Post
  • Asset Analysis

The Android app currently has a rating of 4.1 stars out of 5, and the reviews from the clients are mostly positive. Typically, for any broker, it is very hard to get this kind of rating because of various reasons such as app crashing, trade losses etc. Users are satisfied with the UI and the functionality that the application offers.Most negative comments had the same issue, i.e. lag while using the app.

The iOS version is very similar and has a store rating of 3.5. Most complaints here are to do with poor/slow customer service with little access to human help.

Our Rating: 8/10
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Conclusion

eToro is an efficient and responsive platform that enables zero-commission stock trading. It is very easy to open the account on eToro, and the users can benefit from its exclusive features like social trading, copy trading, etc.

For the currency other than USD, the user will have to bear the conversion costs. Live chat function is also not satisfactory because of delay in response and also it is inactive on most of the weekends. Spreads are also higher than average. However, it does offer a wide range of financial assets to trade.

Overall the strengths outweigh the limitations. It can be used very easily by beginners, yet has considerable depth to it features. eToro always tries to introduce innovative methods of trading like CopyPortfolios, which was introduced in 2016.

eToro has implemented some of the best cyber protection standards and protocols. The funds of the clients are also stored safely in segregated accounts with tier-1 banks to avoid misuse. The entire platform is educational, collaborative, and transparent, which make this broker unique.

Hence, if you are a non-resident of the US, interested in accessing various financial markets and looking for a more conventional brand that is not too complex with additional security, we would definitely recommend eToro for you.

eToro Rating Summary
Overview and Reputation
8/10
Trading Fees
6/10
Available Coins
7/10
Deposit Methods
8/10
Withdrawals
7/10
Verification
8/10
Security
8/10
User Interface
8/10
Customer Support
6/10
Mobile App
8/10
TOTAL
7.4/10
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FAQ

Is eToro good for beginners?

eToro has provided various education materials that have been developed with keeping the beginners’ perspective and interest in mind. The users can find the resources and material on the training academy known as Learning Lab. The beginners can also use the CopyTrader and CopyPortfolio feature to understand and read the strategies adopted by veteran traders. So, eToro is definitely good for beginners.

What is an eToro wallet?

eToro wallet is a separate mobile application with the help of which users can deposit and withdraw cryptocurrencies that are held by eToro X. It acts as a custodian for the private keys and broker for cryptos. There is a very minimal difference between the eToro wallet and eToro mobile application. The support for social trading between the two applications also resembles a lot.

Are profits made from eToro are taxable?

The profits made on eToro are subject to taxation laws and provisions. The taxation depends upon the country of the origin of the trader. You can also connect to your local tax authority to collect more information on taxes that are subject to be levied on eToro profits.

Will eToro be available in the United States in the future?

The Security and Exchange Commission of the United States does not allow the sale of CFDs instruments to American citizens. eToro’s CFD services will not be available to American citizens unless and until the amendments are made to the laws in the future. However, since the cryptocurrency market is decentralized, trading of cryptos can be done on eToro across the world, which means, even in the United States.

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