eToro Cryptocurrency Exchange Review 2023

Founded in 2007, eToro has grown into a leading social trading platform that blends investing in stocks, ETFs, options, and cryptocurrencies with a social media experience. eToro allows users to interact with other investors, discuss trading ideas, and even automatically copy the trades of top performers.

With commission-free stock and ETF trading alongside access to major cryptocurrencies, eToro provides a unique hybrid trading experience. But is eToro the right platform for your investing needs?

This in-depth eToro review will cover everything you need to know about the brokerage, including its fee structure, unique social trading features, account options, mobile apps, security practices, and more. We’ll also provide a step-by-step guide to getting started with cryptocurrency and stock trading on eToro.

What is eToro?

eToro is an online brokerage firm founded in 2007 that offers various trading and investment services:

• Commission-free trading of stocks, ETFs, options, and cryptocurrencies
• Social trading platform to interact with other investors
• CopyTrader feature to automatically mimic top traders
• Cryptocurrency wallet to store, send, and receive crypto 
• eToro debit card for spending account balance
• Additional research tools, charts, educational resources

Some key things to know about eToro:

• Over 27 million registered users worldwide
• Headquartered in Cyprus with multiple international offices
• Regulated in several jurisdictions including the UK and Australia
• Primarily aimed at retail investors and social trading
• Not available for users in the United States (only eToro USA)
• Received a B rating from Better Business Bureau

While eToro is best known for crypto and social trading, its expansion into traditional securities like stocks and options makes it a more well-rounded investment platform.

How Does eToro Work?

At a high level, here is how eToro functions:

1. Account Creation: Users sign up with email and password. Limited identity verification required initially.  
2. Funding Account: Deposit money via bank transfer, e-wallet, or crypto deposit. Many options available.
3. Access Platform: Browse stocks, ETFs, options, and 50+ cryptocurrencies available to trade or invest in.
4. Social Features: Interact with other users, discuss trades, share investment ideas and copy others.
5. Trading: Invest in stocks and crypto or trade CFDs and derivatives. Leverage available. 
6. Portfolio and Wallet: Assets held in eToro account portfolio and integrated crypto wallet.
7. Withdraw Funds: Withdraw to external bank account, e-wallet or crypto wallet. Subject to verification levels.

eToro combines investments, social media, education, and payments together into a unified platform. But the heart of eToro is still commission-free trading across traditional securities and cryptocurrencies.

eToro Supported Assets 

eToro supports trading in the following asset classes:

Stocks

• Over 3,000 US stocks from major exchanges NYSE and NASDAQ.
• International stocks are available from exchanges like the LSE.  
• Fractional stock investing is available with a minimum $10 opening deposit.

Exchange Traded Funds (ETFs)

• Access to hundreds of ETFs spanning various underlying assets and sectors.
• Includes popular ETFs like SPY, QQQ, ARKK, and VOO.
• Ability to buy fractional ETF shares.

Options 

• Support for trading options on dozens of underlying US stocks. 
• No base or contract fees; just a low $0.65 per contract minimum opening fee.
• Sell naked puts and covered calls; no spreads.

Cryptocurrencies

• 50+ major cryptocurrencies including Bitcoin, Ethereum, Dogecoin, Solana, and more.
• Built-in crypto wallet to store coins or easily withdraw to external wallets.
• Staking available on select coins with annual yields up to ~7%.

In total, eToro provides retail investors access to trade thousands of different securities and assets, making it quite comprehensive for a social trading platform.

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Opening an eToro Account

Opening an eToro account only takes a few minutes. Follow these steps:

1. Go to www.etoro.com and click “Join Now” to begin creating your account.
2. Enter your name, email address, and phone number. Choose a secure password. Agree to terms of service.
3. Verify your email address by clicking the confirmation link sent to your inbox.
4. Optionally enable two-factor authentication for enhanced security.
5. Fund your account with an initial deposit to start trading.

Be sure to fully verify your identity by uploading a government-issued ID before depositing and withdrawing substantial funds from your account.

Funding Your eToro Account

You’ll need to deposit money in order to trade on eToro. Here are the main funding options available:

Bank Transfer: Link your bank account to transfer USD/EUR; takes 1-2 days.

Debit/Credit Card: Instantly fund your account via Visa, MasterCard, or American Express cards. 

PayPal: Deposit or withdraw instantly using your PayPal account.

Skrill: Finance account using the Skrill digital wallet. 

Neteller: Deposit cash into your trading balance via Neteller.

Crypto: Deposit any supported cryptocurrency directly from an external wallet. 

Bank transfers have the lowest fees but take time to clear. Debit cards are instant but have higher fees. Each option has pros and cons.

Trading on eToro

Once funded, you can start investing in stocks and trading cryptocurrencies and other assets on the eToro platform. Here are some key trading features:

Social Trading

• Follow and interact with other eToro traders.
• Share trading ideas and strategies in news feeds.
• Automatically copy trades of top “Popular Investors”. 

Trading Interface

• Simple buy/sell interface with integrated charts.
• Search for assets or browse categories to find investments.
• Order ticket to preview buy/sell details before submitting.

Investment Products

• Commission-free trading for stocks, ETFs, options
• Crypto trading with 1% spread markup; No commissions
• CFD trading on forex, commodities, indices 
• Multi-asset copy trading portfolios

Leverage

Leveraged trading available on certain assets. Up to x30 leverage on cryptos.  

Increased gains and risks from using leverage.

Margin requirements apply; positions can be liquidated if margin too low.

The social trading features make eToro stand out from traditional brokerages. But they also offer all the standard investment products and trading capabilities.

eToro Fees and Commissions

As a commission-free brokerage, eToro has a simple fee structure overall. Here is a breakdown of the key fees:

Stock, ETF, and Options Trading

• $0 commission per trade on stocks, ETFs, and options.
• No penny per share fees, contract fees, or base commissions.
• Minimum $10 opening deposit required to start trading.

Cryptocurrency Trading

• No commissions but a 1% spread added to crypto buy/sell transactions. 
• Lower spreads available at higher account tiers.
• Additional spread when trading crypto CFDs with leverage.

Currency Conversion

0.5% to 2% currency conversion fee when trading in non-account currency or deposit/withdrawal.

Other Fees

• $10 monthly inactivity fee after 12 months of no logins.
• Withdrawal fees vary based on amount and method.
• Additional charges if account becomes margin negative. 

The zero commission stock and ETF trading along with competitive options pricing makes eToro very affordable for traditional investments. However, crypto spreads are higher versus some other platforms.

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eToro Social Trading Features

eToro differentiates itself from standard brokerages with its social trading and copy trading capabilities:

Social Feed 

• Interact with fellow eToro users in a Twitter-like newsfeed.
• Share trading strategies, market opinions, and investment ideas.
• Follow specific users, assets, or topics to curate your feed.

People Search  

• Browse eToro traders and investors and view their profiles.
• Analyze performance stats including risk scores.
• Follow successful top traders.

Copy Trading

• Automatically replicate trades from successful “Popular Investors”.
• Copy traders with just a click; no additional fees.
• Optionally customize copy trading size and amount.

Virtual Portfolio

• Build a virtual portfolio to test strategies risk-free.
• Practice trading stocks and crypto with $100,000 virtual money.

These social features let you learn from the eToro community, collaborate on ideas, and get trade ideas. The copy trading functionality is also very innovative.

eToro Trading Platform and Tools

For traders, the quality of the trading platform itself is very important. Here is an overview of eToro’s trading functionality:

Desktop and Mobile App

• Full-featured web platform accessible on desktop and mobile.
• iOS and Android eToro mobile trading app.
• Real-time streaming quotes and account data.

Charting 

• Price charts with multiple technical indicators available.
• Draw tools for trendlines, shapes, and annotations.
• Compare assets and benchmarks side-by-side.

Watchlists

• Customizable watchlists to track favorite securities.
• Monitor performance and data of watched assets.

Research

• Fundamental financial data and news feed integration.
• Analyst ratings and price target data.
• Commentary and opinions from eToro community.

Trading Interface

• Simple buy/sell ticket for executing trades quickly. 
• Order entry form to set price, size, order type, etc.
• Open positions module to manage current trades.

The charting and research tools may not be as advanced as traditional brokerages optimized for active trading. But eToro provides more than enough capabilities for most buy-and-hold investors.

eToro Account Security

When your hard-earned money is on the line, the security of your investment accounts is crucial. Here are some of eToro’s main security practices and policies:

• SSL encryption and bank-grade security to protect data.
• $1 million cyber security insurance policy.
• Segregated client funds separate from company funds.
• Mandatory SMS or app-based two-factor authentication.
• Device confirmation required for new logins.
• Email confirmation for account changes.
• Dedicated security team monitoring 24/7.

While no online brokerage is completely failsafe, eToro employs stringent safeguards to keep your account and data secure. Be sure to take advantage of all available security options like 2FA when setting up your account.

eToro Cryptocurrency Wallet 

A key feature of eToro is its integrated multi-currency crypto wallet that allows you to:

• Deposit supported cryptocurrencies from external wallets.
• Withdraw crypto to external wallets or send to other eToro users. 
• Securely store all your coins bought on eToro.
• Stake select coins like Ethereum to earn rewards.
• Access your wallet directly on mobile or web.

The eToro crypto wallet provides easy asset management alongside social trading under one platform. However, funds are still custodied by eToro versus a private wallet where you control the keys.

eToro Customer Support

eToro aims to provide multilingual customer support during business hours for most users globally. Contact options include:

Help Center – Searchable knowledge base and FAQ section.

Customer Service Tickets – Submit support requests via online form.

Email – Contact email for general inquiries that aren’t urgent.

Social Media – Interact with the eToro Facebook and Twitter accounts.

Live Chat – Chat live directly with customer support agents. 

Response times can vary from a few hours for general queries to 1-2 days for more in-depth issues. Overall, eToro offers decent customer support with email, phone, ticketing, and chat available.

eToro Mobile App

eToro offers mobile apps for Android and iOS to access your account on the go:

• Monitor your portfolio and account balances.
• Get real-time pricing data and charts.
• Execute trades and manage orders.
• Access social community feeds and profiles.
• Use copy trading and make deposits.
• Enable touch/face ID login and other security options.

The eToro mobile app provides full functionality letting you invest anywhere conveniently. Charts and trading capabilities are optimized for mobile screens.

Is eToro Safe and Regulated?

eToro holds legal registration and regulatory licenses to operate in several major jurisdictions globally, including:

• Licensed as a securities broker by the Cyprus Securities and Exchange Commission. 
• Authorized as an electronic money institution by the UK Financial Conduct Authority.
• Holds an Australian Financial Services License issued by ASIC.
• Complies with SEC and FinCEN regulations for eToro USA.
• Implements strong KYC, anti-money laundering procedures.
• Segregates all client assets from company funds.

While eToro is regulated, it does not offer the same level of investor protections or balance sheet transparency as publicly traded brokerages. Use appropriate caution when investing substantial sums.

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eToro Pros and Cons

Here is a quick rundown of some of the key advantages and disadvantages of using eToro:

Pros

• Commission-free trading on stocks, ETFs, options, and crypto.
• Innovative social and copy trading features.
• User-friendly interface ideal for beginners.
• Good educational resources for new investors.
• Strong security infrastructure with 2FA.
• Availability on desktop, mobile web, and apps.

Cons

• Higher crypto spreads versus dedicated crypto exchanges. 
• Limited to only trading financial securities (no banking).
• Spread-based pricing less transparent than commissions.
• More limited stock selection compared to full-service brokerages.  
• Does not accept users from the United States (except eToro USA).

When weighing the pros and cons, eToro is best suited for beginner investors who value social engagement and education alongside basic securities trading capabilities.

Getting Started on eToro

Ready to give eToro a try? Here is a simple step-by-step guide to start trading:

Step 1: Create an eToro Account

Visit www.etoro.com and click Join Now to create your free account with your email and password.

Step 2: Complete Identity Verification

Upload a valid government ID and proof of address to complete account verification.

Step 3: Fund Your Account

Deposit USD via bank transfer or card. Or directly fund with crypto from an external wallet. 

Step 4: Explore the Platform 

Use the search bar to find crypto, stocks, ETFs, or other assets to invest in or trade.

Step 5: Make Your First Trade

Click “Trade” on an asset page, enter your order details, review, and submit to execute your first trade.

And that’s it! You can now explore all of eToro’s social features, research tools, and continue trading commission-free. Only invest what you can afford to lose and educate yourself on responsible trading practices.

To Recap

eToro stands out as a well-rounded investment platform that combines the best aspects of a brokerage with a social media network. By integrating commission-free trading across stocks, ETFs, options, and crypto assets with innovative copy trading and community engagement tools, eToro caters to both beginner investors and more seasoned traders.

The user-friendly interface, virtual portfolio practice, and range of educational resources also make eToro ideal for new investors who want an easy way to dip their toes into trading markets. More advanced traders may find the technical analysis tools limited, but the platform offers enough functionality for basic investment research and long-term holds. 

When weighing eToro versus other brokers, the social trading experience really sets it apart. Being able to discuss market moves with other investors, follow top performers, and even automatically copy their portfolio in real-time is extremely powerful. However, it is important to carefully vet any trader before copying their investments.

Overall, eToro delivers a solid online trading platform for both stocks and cryptocurrencies anchored by its innovative social features. The fractional share investing and commission-free pricing also make it very affordable to start investing on eToro. Just be sure to take security precautions and do your due diligence when funding accounts and managing holdings.

Frequently Asked Questions

Is eToro really commission free?

Yes, eToro does not charge trading commissions on stocks, ETFs, and options. However, they charge a spread mark-up on crypto trades instead of commissions.

Is eToro available in the United States? 

eToro does not directly service retail investors in the United States. U.S. residents can access eToro USA which has a different product offering optimized for U.S. regulations.

Does eToro have a mobile app?

Yes, eToro offers free iOS and Android mobile apps. The eToro mobile app allows you to securely trade, invest, copy trade, and manage your account on the go.

What cryptocurrencies does eToro support?

eToro supports trading and investing in over 50 top cryptocurrencies. This includes major coins like Bitcoin, Ethereum, Litecoin, Dogecoin, XRP, ADA, SOL and more.

Is eToro beginner friendly?

Yes, eToro is very beginner-friendly. The platform is specifically designed for simplicity and educational resources are provided for new investors. The copy trading feature also lets beginners learn from more experienced traders.

How do I withdraw money from eToro?

To withdraw funds, go to the withdrawal page, select your withdrawal method, enter the amount, provide any required information, and submit the request. Withdrawals are processed within 1-3 days. 

Is eToro a wallet? 

No, eToro is not a crypto wallet. However, eToro accounts provide you with a hosted digital multi-currency wallet to easily deposit, store, and withdraw cryptocurrencies. You do not have access to your private keys.

Is eToro FDIC insured?

No, eToro accounts and crypto assets are not FDIC-insured. eToro is not a bank. However, they do maintain separate insured client funds and employ strong security measures to protect accounts.

Can eToro be trusted? Is eToro legit?

Yes, eToro is generally considered trustworthy and legitimate. eToro is properly regulated in several major jurisdictions and employs strong security and compliance practices to protect clients.

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