eToro Review 2024: Is It the Right Trading Platform for You?
Written by
Jacob Wade
Edited by
Melanie Grafil
Commitment to Our Readers
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GOBankingRates Score
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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
For a quick overview on eToro, take a look at the benefits and drawbacks.
Pros
- Access to crypto, stocks, and ETFs on one platform
- Transparent fee schedule
- No contract fees for options trades
- Copy trading available
- Digital wallet available to take custody of your own crypto
Cons
- High trading fees for crypto--1% for both buy and sell, charged up front
- Limited crypto selection compared to larger exchanges
- Limited selection of ETFs, with less than 400 available
- No mutual funds, bonds, or other fixed-income assets available
- No phone support available
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–with 24 cryptocurrencies currently available.
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.
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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, including any of eToro’s fees.
| Type | Details |
|---|---|
| Minimum Deposit | $10; $200 for CopyTrader |
| Crypto Trading Costs | 1% for buy and sell; 2% total |
| Stock Trading Costs | $0 |
| Options Trading | No contract fees |
| Account Fees | No annual fee |
| ETFs | More than 300 commission-free ETFs |
| Tradable Securities | Trade stocks, ETFs, options and crypto |
| Mobile App | Manage your account and research, trade and track investments from your phone |
| Customer Support | Online help ticket or chat only (no phone) |
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. he CopyTrader program features various assets, including crypto, stocks and ETFs.
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.
Virtual Portfolio
eToro allows you to test trades with a virtual portfolio–giving you up to $100,000 in “paper money” to play with. This is a no-risk way to learn how to trade and test trading strategies without putting your money on the line.
Cryptocurrencies Offered
EToro offers a selection of cryptocurrencies you can trade on its platform, including:
Stocks and ETFs Offered
EToro offers over 3,500 stocks from both the New York Stock Exchange and NASDAQ exchange, plus 389 ETFs.
Trading and Transaction Fees
When you use eToro to trade cryptocurrencies, you will pay a 1% fee each time you buy or sell, making it a 2% charge on the entire purchase. EToro charges no commission fees for stock trades. However, the minimum trade size for ETFs and stocks is $10. There are also no commission fees or contract fees for options trade–though there are standard regulatory fees assessed, required by law.
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 fee that’s capped also applies when you move your crypto from your eToro account to your wallet. The fee for transferring most cryptos is 2%, with a $1 minimum and $100 maximum.
How eToro Stands Out
eToro is one of the few platforms that offers crypto, stocks, and ETFs all within the same app. This allows traders to trade multiple assets without having to manage several accounts.
Plus the CopyTrader feature offers a unique spin on investing. It allows you to choose a trader, review their trade history and performance and link to their account to automatically copy the trades they make. This can help make investing a bit more passive, while taking advantage of trades from popular traders.
Finally, eToro offers low fees for stock, ETF and options trading by charging no commissions or contract fees. While most online brokers offer commission-free stock and ETF trading, very few waive the contract fees for options trades. This makes eToro one of the better, low-cost options trading platforms available.
Comparable Online Trading Platform Options
eToro offers access to a wide range of assets to trade and is very transparent about their fees. But there are some eToro alternative platforms you may want to consider:
Robinhood
Robinhood is a popular stock trading platform that also offers access toa few cryptocurrencies. Robinhood is known for not charging commissions on stocks or ETFs; it also doesn’t charge commissions on crypto trades. This makes them one of the lowest-cost crypto trading platforms around.
The downside is that Robinhood only offers access to three cryptocurrencies: bitcoin, ethereum and dogecoin. Compared with eToro’s 24 cryptocurrencies, Robinhood doesn’t offer much selection.
Overall, both eToro and Robinhood offer a low cost way to trade stocks and ETFs. But if you’re trading bitcoin, ethereum, dogecoin, or another supported crypto, Robinhood offers much lower fees overall.
Webull
Webull is a trading platform that offers far more investment selection and trading tools than eToro, making it ideal for intermediate and advanced traders. You can trade stocks, ETFs, options, futures, over-the-counter and even margin accounts. Webull does not offer crypto trading, however, while eToro does.
Webull doesn’t charge commissions for stock or ETF trades. There are no contract fees for options trading, though index options charge contract fees. There are dozens of advanced charting and trading tools, designed with active traders in mind. Webull is a decent low-cost alternative to eToro for those that take a more “hands-on” approach to trading.
How To Apply
You can apply for an eToro account online, you can quickly sign up with an email address and a password. You can also choose to sign in with your Google or Facebook account.
Similar to other investment or bank accounts, you’ll need to provide personal and financial information, including:
- Legal name
- Current address
- Username
- Password
- Financial information
- Valid photo ID
You’ll also need to undergo a KYC process, which is short for Know Your Customer, for verification. This may include uploading a selfie picture, uploading a photo ID, as well as a a bill showing your address, such as a utility bill.
Once your account is approved, you can connect your bank account and transfer funds to begin trading.
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.
Final Take
eToro is a simple-to-use trading platform that gives users access to both stocks and crypto and keeps the fees low for most trades. Its unique approach to social trading allows you to copy the trades of others. And the crypto selection is better than competing brokers like Robinhood.
eToro does charge high fees for crypto trading compared to using a crypto exchange.. Also, the ETF selection is limited compared to larger discount brokers, such as Schwab. However, if you want to trade stocks, crypto, ETFs and options in one place, eToro is one of the better choices available.
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)
FAQ
- Is eToro safe?
- Toro is a fully-regulated broker and crypto exchange that offers FDIC insurance on cash deposits and SIPC insurance on regulated investments, such as stocks and ETFs. The platform offers security features, including encryption and two-factor authentication. Cryptocurrency is stored in cold storage wallets to prevent theft.
- Is eToro good in the U.S.?
- eToro is a legitimate, international broker that offers stock, ETF and crypto trading in the U.S. Customers based in the U.S. have more limited trading choices and assets compared to some international locations; however, eToro still offers access to 24 crypto assets, over 300 ETFs and thousands of individual stocks for trading. Plus, there are no commissions on stock, ETF and options trading.
- Can you actually make money on eToro?
- eToro is a trading platform that allows you to make trades yourself. Or, you can copy the trades of popular traders on the platform. But making money requires understanding how trading works, how the market works and timing your trades correctly. This is a skill that takes time to develop. You can make money on eToro through trading or simply just investing and holding, but there is a very real risk of loss as well.
Lydia Kibet, Daria Uhlig and Cynthia Measom contributed to the reporting for this article.
Information is accurate as of July 18, 2024.
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.
