For U.S. customers, stock and ETF trading is offered via eToro USA Securities, which is a member of the Securities Investor Protection Corporation (SIPC). However, trading of cryptocurrencies is offered by eToro USA, which is not FDIC or SIPC insured. Because cryptocurrency assets are commingled on a custodial cryptocurrency exchange, in the event of insolvency, customers could become unsecured creditors and potentially lose their funds.
Contracts for Differences (CFDs) are not available in the United States. While eToro offers CFD trading in Australia, France, Germany, Italy, Spain, the UK, and other countries, U.S. users will not be able to trade CFDs.
This review promotes virtual cryptocurrency investing within the EU (byeToroEurope Ltd.), UK (eToroUK Ltd.) & USA (byeToroUSA LLC); which is highly volatile, unregulated in some EU countries and the UK, no EU or UK consumer protections & not supervised by the EU or UK regulatory framework. Investments are subject to market risk, including the loss of principal.
Introduction
eToro is a leading online brokerage that offers cryptocurrency trading and stock trading.It was among the first online trading companies to support digital currency trading when it added support for Bitcoin (BTC) in 2013.
Today, eToro supports 8 cryptocurrencies on its popular online trading platform and offers a multicurrency crypto wallet.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.Take 2 mins to learn more.
This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Company Overview
Brothers Ronen Assia and Yoni Assia founded the company in Tel Aviv in 2007, along with a third founder, David Ring. Yoni leads eToro as its CEO and Ronen serves as executive director.
The company launched its visual FX trading platform in September of that year. In 2010, it launched its innovative social trading feature that allows users to automatically copy the trades of successful traders on the platform.
In 2013, eToro expanded to stock trading and, in addition to commodities and currency trading, expanded access to European, Asian and Australian markets. Also that year, eToro began offering Bitcoin trading.
In 2017, it expanded its digital asset offering to include XRP, Litecoin and a host of other cryptocurrencies. Its U.S. crypto platform was launched the following year, and in 2022 eToro introduced stock and ETF trading for U.S. investors.
Today, eToro is looking to establish itself in the highly competitive crypto exchange market by continuously improving its crypto trading services.
Cryptocurrencies Available on eToro
eToro supports trading of 8 cryptocurrencies. Here’s a look at what you can trade on eToro: Bitcoin, Bitcoin Cash, Cardano, Ethereum, Litecoin, Stellar, Tron, and XRP.
For a limited time, you can earn a bonus of $10 when you deposit at least $100 in your eToro account. This promotion is in select U.S. states. Terms & conditions apply.
Trading Experience
Through eToro's simple web-based platform and well-designed mobile app, customers can deposit fiat currency from a debit card or bank account to begin trading.
The intuitive “Trading” tab allows users to view current prices, and buy, sell, or convert crypto. Perhaps eToro is best known for its social trading functionality, which allows users to copy the portfolio holdings and trades of top traders.
Although eToro offers basic market and limit orders, as well as the ability for non-U.S. users to invest on margin, it does not have some of the more advanced conditional orders, advanced charting capabilities, and cryptocurrency pairs that other competitors offer.
eToro
eToro’s platform allows eligible users in certain jurisdictions to trade digital currencies ranging from Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).Leveraged trading is also available to eligible users.
Arguably the most exciting feature of eToro’s trading app is the ability to automatically copy successful traders’ trades using the platform’s social trading feature.
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Fees
eToro's crypto trading fees are relatively low compared to competitors’ fees, but users need to watch out for currency conversion and withdrawal fees.It's also important to note that fees may differ depending on your location.
- For cryptocurrency trading, a 1% fee is applied when buying or selling assets. This 1% fee is added to the bid-ask spread.
- eToro does not charge a fee for sending or withdrawing cryptocurrency to and from eToro. However, normal blockchain fees will still apply.
- For cash withdrawals, there is a $5 fee and a $30 withdrawal minimum. However, this withdrawal fee does not apply to Platinum, Platinum+ and Diamond Club members.
- Withdrawals and deposits are conducted in USD and any non-USD transaction fee incurs a conversion fee, which is the prevailing spot rate plus 50 basis points.
- eToro also charges a $10 inactivity fee per month for accounts that have been inactive for over one year.
One basis point (bps) refers to 0.01%. A fee of 50 bps, for example, means that you will be charged 0.50% of the amount you are buying or selling. In the forex markets, one basis point is sometimes also referred to as a pip.
Security
eToro is an established online trading company, offering a secure, regulated platform for crypto trading with a track record of storing investor funds for well over a decade.
Crypto assets held in the eToro Money crypto wallet are stored on the blockchain, while assets on the company’s crypto trading platform are mostly held in cold storage to reduce the chance of lost funds due to a hack or operational error.
In addition to user funds being held in cold storage, eToro also encourages account holders to set up two-factor authentication (2FA) as an added layer of protection. Customers are required to enable two-factor authentication after making their first deposit.
Opening an eToro Account
Opening an account on eToro only takes a few minutes. First, you'll need to provide a username, password, and email address. Once you've verified your email address, eToro will require that you answer several questions to determine your risk tolerance and trading experience.
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eToro users are also required to verify their accounts. As part of this process, you'll also have to provide personal information, proof of address, and share a valid, government-issued ID.Identity verification can take a few days, and eToro notifies new users once verification is complete.
Customer Service
eToro offers customer support via help centers and assistance via support tickets. But like many other crypto exchanges, phone support is limited. The phone number for eToro USA is 888-271-8365. However, users are generally encouraged to file support tickets or use the company’s live chat feature.
The company also employs account managers who look after the most active traders (those with $5,000 or above in equity on the platform) to enhance the experience of eToro’s most loyal customers.
Customer Satisfaction
As a global leader in online trading with over 20 million users, eToro receives positive customer feedback overall from online reviewers at multiple sites.
However, the platform also receives some negative feedback from current and former users. The inability to withdraw funds and slow withdrawal times are among the top complaints. Other users report hidden and higher-than-expected fees.
How eToro Compares to Other Cryptocurrency Companies
eToro offers a professional cryptocurrency exchange, enabling users to execute a range of advanced trading strategies.
As one of the world’s leading social trading networks, eToro was one of the first fintechs to support cryptocurrencies before moving forward with building a crypto exchange and dedicated crypto wallet for its users.
Given the company’s size, 15 years of market experience, and sizable user base, eToro is on the way to becoming a crypto powerhouse. These features and its copy trading tool make it uniquely positioned among other crypto exchanges available today. Here's a look at how eToro compares to another popular crypto exchange, Coinbase:
eToro vs. Coinbase
- eToro supports social trading, letting users interact with others on its platform. Coinbase does not offer a social trading feature.
- There are over 240 supported cryptocurrencies on Coinbase, and there are only 8 cryptocurrencies supported on eToro.
- Coinbase is strictly for cryptocurrency trading and investing. In addition to crypto, eToro also allows users to invest in stocks and ETFs.
Read our full Coinbase review.
Final Verdict
Crypto traders will appreciate eToro's reasonable fees and fiat-to-crypto on- and off-ramp, while beginners will appreciate the unique ability to copy the trades of popular traders.
Methodology
Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.
Exchanges were reviewed on points including security, fees, number of cryptocurrencies available, and more. We also considered if the exchange is regulated by a proper agency or entirely decentralized. Our full cryptocurrency exchange methodology, including the review process and weighted data points, is available for review.
