eToro Review 2023: Is It the Right Trading Platform for You?
GOBankingRates Score
eToro
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Ease of Use
4.5
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Availability of Cryptocurrencies
3.8
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Mobile App/Digital Experience
4.5
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Fees
4.0
Pros
- Users can trade crypto assets and stocks in the same place
- Copy trading is available
- Low minimum deposit
- Intuitive interface and app
Cons
- Selection of cryptocurrencies is limited to 24 in the U.S.
- Unavailable in four states
- Can't transfer coins from eToro wallet back to eToro trading platform
- More competitive fees may be found elsewhere
eToro Overview
Founded in 2007, eToro is one of the world’s leading social trading and multi-asset brokerage companies, with 30 million registered users globally. The broker launched in the U.S. in 2018 and is currently available in 46 states and Washington, D.C. It’s unavailable in Hawaii, Minnesota, Nevada and New York.
EToro offers different assets for trading, including stocks, exchange-traded funds and crypto assets.
EToro has registered offices in the U.S., the U.K., Israel, Cyprus and Australia.
How eToro Works
Like any other online broker, eToro allows users to invest in the real-time markets of various cryptocurrencies, including bitcoin, bitcoin cash, ethereum, stellar, chainlink and cardano. While these are more high-profile examples, a selection of other options is available for cryptocurrency trading.
You can even copy the strategies of eToro’s top-performing traders in the hope of having an increased chance of success in the world of cryptocurrency trading. With eToro’s CopyTrader, you can find an investor you might like to copy by looking at their risk score and past performance.
EToro now also allows its U.S. users to trade the most popular U.S. stocks and ETFs; plus, fractional investing is available. Users also have the option to practice investing with a $100,000 virtual eToro account.
eToro Features
EToro has noteworthy features every investor and trader should get familiar with. Here’s a look at what it has to offer.
Copy Trading
Social trading lets you follow the financial trading activity of other users on the platform. With eToro’s CopyTrader, you can replicate everything other traders do in real time. You can choose an investor you’d like to copy based on their past portfolio performance and risk score. To copy a trader, you need at least $200 in your account. You can copy up to 100 traders simultaneously and invest up to $2,000 in each. At this time, the CopyTrader program only features crypto assets. However, eToro is working toward adding ETFs and stocks.
Smart Portfolios
EToro has ready-made portfolios you can copy. These portfolios contain select assets and are often rebalanced to align with a predetermined strategy. You can invest in a portfolio with a wide array of cryptocurrencies. However, the minimum to invest in Smart Portfolios is $500, and the minimum trade size for cryptocurrencies is $10.
Cryptocurrencies Offered
EToro offers a selection of cryptocurrencies you can trade on its platform, including:
Stocks and ETFs Offered
EToro offers over 3,000 stocks from 17 exchanges, plus 251 ETFs.
Trading and Transaction Fees
When you use eToro to trade cryptocurrencies, you will pay a 1% fee each time you buy or sell. EToro charges no commission fees for stock trades. However, the minimum trade size for ETFs and stocks is $10.
Digital Wallet
Apart from keeping your cryptocurrency on the eToro trading platform, you can open a digital crypto wallet called eToro Money. However, you must have a fully verified eToro account to use the wallet service. As of this writing, the eToro wallet supports bitcoin, bitcoin cash, ethereum, litecoin and stellar. Additionally, users in the U.S. can also transfer, send and receive Tron.
There’s a 0.1% crypto-to-crypto conversion fee 一 and a small fee that’s capped also applies when you move your crypto from your eToro account to your wallet. The fee for most cryptos is 2%, with a $1 minimum and $100 maximum.
Who Is eToro Best For?
EToro is best for traders who want to trade stocks and cryptocurrency on the same platform. The platform has an easy-to-understand user interface and allows you to copy other users’ trades if you do not feel like relying solely on your own research. It’s also suitable for traders who want to diversify their investment portfolio because eToro allows you to invest in a variety of different cryptocurrencies, ETFs and stocks.
Is eToro Right for You?
EToro is a good option for those who want to invest in stocks, ETFs and cryptocurrencies, as it allows traders from all backgrounds and experience levels to take part. Users can even test out a $100,000 virtual trading account to practice investing and get the confidence to trade stocks, ETFs and cryptocurrencies for real. Plus, features available on eToro, such as CopyTrader and Smart Portfolios, make it stand out.
GOBankingRates’ Crypto Guides
- What Is Cardano? (ADA)
- What Is Bitcoin Cash? (BCH)
- What Is Chainlink? (LINK)
- What Is Dogecoin? (DOGE)
- What Is Litecoin? (LTC)
- What Is Polkadot? (DOT)
- What Is Ripple? (XRP)
- What Is Stellar? (XLM)
- What Is Tether? (USDT)
Daria Uhlig and Cynthia Measom contributed to the reporting for this article.
Information is accurate as of Feb. 27, 2023.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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