Exchanges / eToro

eToro Exchange Review

eToro accepts users from United States

Quick Summary

This content is not intended for US users. eToro USA LLC does not offer CFDs, only real Crypto assets available

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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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Overview and Reputation

eToro was founded in the year 2007 in Israel by brothers Yoni and Ronen Assia, along with David Ring. It started with an objective to build an online trading platform that could help anybody 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. It has had contracts with Crystal Palace, Leicester City, Southampton, Tottenham, Aston Villa, Everton, and other clubs.

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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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

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 & ETFs, Crypto, CFDs, etc

Crypto Fees

A registered user on eToro is required to pay trading fees in the form of spreads. 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 a percentage metric. The spread structure for all of 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. In eToro, the spread fee for the same coin is 0.75% .

Stocks & ETF

When a registered user purchases a stock or ETF via the platform, he or she pays no commission or management fee whatsoever. 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 and gain more flexibility, CFD trading may be an optimal choice. CFDs or "Contracts for Difference" are contracts that pay out the difference between the purchase price of an underlying asset at the time the contract is entered into vs the price at the time the contract ends. The allows the user to employ leverage to increase both profit and risk. It also allows a user to go short instead of long if desired.

Overnight Fees: CFD positions that remain open overnight have to bear a small fee which is relative to the value of the position. CFDs can be thought of as a kind of "interest payment" that covers the overnight cost of leverage.

You can trade CFDs for Currencies, Commodities, Indices 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 user that does not log into 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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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Available Coins

The eToro trading platform offers over 30 different cryptocurrencies, including these coins:

Bitcoin
Ethereum
Bitcoin Cash
Litecoin
Chainlink
EOS
Tezos
Stellar
Neo
Ethereum Classic
IOTA
Dash
ZCash
Dogecoin
Uniswap

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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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Permitted Countries

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

United States
United Kingdom
Australia
Ireland
Germany
Italy
Denmark
Switzerland
Spain
Poland
Croatia
Bulgaria
Romania
Hungary
Norway
Monaco
Czech Republic
United Arab Emirates
Uruguay
Argentina
Brazil
Chile
+ 24 more

Legal regulations and security matters have thus far prevented eToros' from expanding to every country. 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, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

If your state is not on this list, you can still sign up for a free account so that you'll be ready when trading becomes available. In this case, eToro will notify you when trading is enabled on your account.

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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

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 for deposits, but it does charge a currency conversion fee for both deposits and withdrawals.

Our Rating: 8/10
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

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.

You'll also need to pay a conversion fee if the withdrawal (or deposit) is made in a currency other than USD.

Our Rating: 7/10
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Verification

The account opening and verification process to get started on eToro is 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 begin using the service. 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 need to be uploaded for verification. The submission of these documents will help to verify your personal identity and residency. Once the account has been verified, you'll 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, government-issued IDs are required for name/age and proof of residence
Personal IdentificationPassport, Driving License, National ID Card.
Proof of AddressEither a bank reference letter, Bank statement, Credit card statement, Council tax bill, Tax letter, Electricity Bill, Gas Bill, or Water bill.
Our Rating: 8/10
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

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 will be sent to your mobile device whenever an attempt to sign into your account is made. This should prevent unauthorized access as long as no one has your phone but you.

The funds of clients on eToro are kept in Tier-1 banks to make certain that they are insured against loss. 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 insurance they can have.

Trader’s CountryInsurance 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.

This insurance only applies to fiat balances. Crypto balances are not insured.

Hacks

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

Our Rating: 8/10
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

User Interface

The design and overall feel of the eToro platform is highly intuitive and provides great ease of use. The platform has been designed to keep the interest of both beginners and experienced traders in mind. If a user is new to eToro, then he or she is likely to find few difficulties while navigating and exploring features.

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

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

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

Clicking on the chart icon allows you to view recent price movements of the asset you are viewing. This feature is really helpful for traders who want to get into deep analysis or study behavior and performance metrics closely. You can also change the time frame, chart types, make comparisons, and even add tools from the comprehensive list by selecting options in the upper-right corner of the screen.

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. A new window will then update at the right-hand side as shown below.

Our Rating: 8/10
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Customer Support

You can contact support through email, social media, or live chat and 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 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 reviews, we found that 47% of clients have had a poor experience with eToro. Most complaints relate to problems while depositing or withdrawing funds. Some users stated that 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 improving things.

Our Rating: 6/10
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Other Features

Social Trading

eToro offers a feature of Social Trading. Using the CopyTrader function, users can replicate the trading behavior of 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 more than just day traders. It extends its services to others as well who are more into managed portfolio options. For example, the CopyPortfolios program of the platform provides managed portfolios on various themes or risk levels.

Tipranks Research Tab

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

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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Mobile App

eToro is not only available for the web but also for mobile devices. The mobile app 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 version is that it allows traders to monitor and 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 clients are mostly positive. Typically, for any broker, it is very hard to get this kind of rating because of various reasons such as the 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 have to do with poor/slow customer service and little access to human help.

Our Rating: 8/10
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Conclusion

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

However, for users outside of the U.S. who prefer to deposit their local currency, the conversion cost of depositing in USD is a drawback to eToro. Live chat function also may not satisfactory if a user encounters problems with the software. And spreads are higher than average.

Still, eToro does offer a wide range of financial assets to trade, which is a huge benefit to users who want a more diversified portfolio with both crypto and mainstream assets.

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

eToro has also implemented some of the best cyber protection standards and protocols. The funds of clients are 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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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

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. Users can find these resources and material on the training academy known as "Learning Lab." 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 cloud wallet application separate from the eToro platform. It is intended to be used for payments instead of trading. In most cases, coins can be moved between the eToro platform and wallet at will. However, it does not generate private keys on the user's device. So ultimately, funds in eToro wallet are not in the physical possession of the user. For this reason, most experienced crypto users will want to avoid using this app.

Are profits made from eToro taxable?

The profits made on eToro are subject to capital gains tax in most countries. The particular tax 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 trading profits.

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

The eToro platform is available in most states within the United States, and it can be used to trade stocks and cryptocurrencies. However, the U.S. Security and Exchange Commission does not allow the sale of CFDs instruments to American citizens. So eToro’s CFD services will never be available to Americans unless changes are made to these laws in the future.

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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

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