EToro Review 2022: Is It the Right Crypto Trading Platform for You?

GOBankingRates Score

4.2
Our take: EToro is a social trading platform that enables users to trade a wide array of cryptocurrencies. It has a social trading feature that allows users to copy everything other traders do in real time based on their past portfolio performance and risk score. The trading platform has an intuitive interface and mobile app for traders on the go.
  • Ease of Use
    4.5
  • Availability of Cryptocurrencies
    3.8
  • Mobile App/Digital Experience
    4.5
  • Fees
    4.0
How did we calculate this?

Pros

  • Copy trading is available
  • Low minimum deposit
  • Intuitive interface and app

Cons

  • Unavailable in five states
  • Can't transfer coins from eToro wallet back to eToro trading platform

Overview of EToro

Founded in 2007, EToro is one of the world’s leading social trading and multi-asset brokerage companies, with over 20 million registered users globally. The broker launched in the U.S. in 2018 and is currently available in 45 states and Washington, D.C. It’s unavailable in Hawaii, Minnesota, Nevada, New York and Tennessee.

While eToro offers a wide variety of assets, including stocks, exchange-traded funds, commodities and other assets, U.S. users can only trade cryptocurrencies on the platform. However, that’s about to change. EToro announced on Jan. 18 that it is expanding its U.S. offerings to include stocks and ETFs in addition to crypto-assets. Once stock and ETF trading go live, U.S. users will be able to purchase full or fractional shares and trade securities commission-free within the same portfolio as their cryptocurrency. 

EToro has registered offices in the U.S., U.K., 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 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.

CopyPortfolios

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, including altcoins. However, the minimum to invest in Smart Portfolios is $500 to $5,000, depending on your trading status, and the minimum trade size for cryptocurrencies is $10.

Cryptocurrencies Offered

EToro offers a selection of cryptocurrencies you can trade on its platform, including:

  • Bitcoin
  • Ethereum
  • Bitcoin cash
  • Litecoin
  • Dash
  • Chainlink
  • Stellar

Trading and Transaction Fees

When you use eToro to trade cryptocurrencies, you will pay a 1% fee each time you buy or sell. In addition, you’ll pay a conversion fee of 50 to 100 pips if you make deposits in currency other than U.S. dollars and a $10 inactivity fee after 12 months with no login activity.

Digital Wallet

Apart from keeping your cryptocurrency on the eToro trading platform, you can open a digital crypto wallet. 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.

There’s a 0.5% crypto-to-crypto conversion fee 一 this fee applies when you move your crypto from your eToro account to your wallet.

Who Is EToro Best For?

EToro is best for cryptocurrency traders who want to learn more about the world of crypto. 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 and will soon expand the types of assets you can trade.

Is EToro Right for You?

EToro is a good option for those who want to invest in cryptocurrencies, as it allows traders from all backgrounds and experience levels to take part. This includes those who have been involved with cryptocurrency trading for a long time, as well as beginners. Plus, a wide range of features available on eToro, such as CopyTrader and CopyPortfolio, make it stand out. EToro will have even wider appeal once it’s possible for investors located in the U.S. to trade stocks and other traditional assets.

EToro is a great platform for cryptocurrency traders looking for unique investment opportunities. It’s also easy to use and beginner-friendly, so it’s the perfect option if you’re looking for a way to start trading crypto assets.

GOBankingRates’ Crypto Guides

Daria Uhlig contributed to the reporting for this article.

Editorial Note: This content is not provided by eToro. 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 eToro.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Lydia Kibet is a freelance writer specializing in personal finance and investing. She's passionate about explaining complex topics in easy-to-understand language. Her work has appeared on GOBankingRates, Investopedia, Business Insider, The Motley Fool and Investor Junkie. She currently writes about investing, banking, insurance, real estate, mortgages, credit cards, loans and more. Connect with her on Twitter or moneycredible.com.

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