eToro Review for 2023

Last Updated: January 28, 2023

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eToro is a low-risk and easy-to-use copy trading platform that empowers investors and enables them to share their trading strategies. This multi-asset broker has more than 3,000 tradable symbols, including exchange-traded securities, Forex, and CFDs. eToro is a social investing pioneer that offers access to EFTs (Exchange Traded Funds), stocks, and cryptocurrency.

With an array of options available, finding the right broker to meet your needs and aspirations often becomes challenging. In online trading, it is vital to have a capable and reliable broker. Relying on an unreliable trading platform can result in an investment loss.

If you’re a beginner to online trading, you may have difficulty understanding the fee structure and investment terminology of eToro. To help you find a reliable online financial trading platform, here, we will review eToro in-depth. Our impartial eToro review will cover this platform’s pros and cons and what it offers.

Before diving into the details of eToro, here is a quick snapshot of its advantages and disadvantages.

Pros and Cons of eToro

Pros

• A low-risk global multiple financial asset trading platform for CFDs and Forex trading
• An excellent choice for cryptocurrency trading and social copy trading
• Enables clients to buy fractional shares
• A well-reputed multiple-asset broker with more than 3,000 tradable symbols
• 0% commission fee on stocks for U.K. and Europe traders
• A minimum deposit trade on stocks
• An indemnity insurance package of up to EUR 1 million per client in the U.K., E.U., and Australia
• A regulated trading platform in numerous jurisdictions
• Exclusive perks for famous investors and club members
• Fantastic social trading capabilities that help users match the moves of famous traders
• Responsive mobile app with advanced trading features
• Enables users to copy trading done by others
• Allows traders to invest in crypto, EFTs, and stocks
• A demo account to help users determine the reliability and functionality of the platform
• Free debit card deposits

Cons

• Trading central research tools are only accessible to Club members
• Lack of algorithmic (automated) trading strategies
• Crypto, EFTs, and stock trading options are available only in 44 states of the U.S.
• Limited selection for cryptocurrencies
• Limited range of traditional research tools and materials compared to other online trading platforms
• CFDs and Forex trading options at eToro are slightly costlier compared to their peers

eToro Review

What is eToro: An Overview

eToro is a Tel Aviv-based online brokerage founded by Yoni Assia, David Ring, and Ronen Assia in 2007. Initially, the platform was operated under RetailFX as a Forex online trader, but later, it was changed into eToro.

eToro started its journey by offering stocks, indices, and commodities. But in 2010, the platform launched its fantastic social media trading feature. This feature enables users to copy the trades of other successful traders on the forum. Since its launch, eToro has established itself as the world’s fastest-growing and leading social trading network. eToro is among the first online trading companies to support digital currency trading. It supports Ripple (XRP), Ethereum (ETH), and Bitcoin (BTC).

Being one of the leading online brokerages, eToro features an enterprise-level crypto exchange for professional traders, supports more than 40 cryptocurrencies, and provides a multi-currency crypto wallet. The company continuously improves its cryptocurrency trading services to establish itself as a leading trading network in the highly competitive exchange market.

With an overall 93 Trust Score, eToro is considered one of the safest online trading companies. It does not operate a bank because it is not publicly traded. eToro is authorized by three zero-tier regulators, one tier-two regulator, and two tier-1 regulators, including:

• Financial Conduct Authority (FCA)
• Australian Securities and Investment Commission (ASIC)
• Markets in Financial Instruments Directive (MiFID)
• Cyprus Securities and Exchange Commission (CySEC)

eToro Cryptocurrencies

As mentioned earlier, eToro supports more than 40 cryptocurrencies. Some of the popular eToro cryptocurrencies include:

• Stellar Lumens (XLM)
• Bitcoin (BTC)
• Solana (SOL)
• Polygon (MATIC)
• Cardano (ADA)
• Polkadot (DOT)
• Dash (DASH)
• Litecoin (LTC)
• Ethereum (ETH)
• Dogecoin (DOGE)

Is eToro a Safe Online Trading Company?

Before creating an account, most traders ask, is my money safe with eToro? eToro is a low-risk online trading company that uses tier-1 banks for added security. Tier 1 banks are considered the most reliable and secure for client capital. They have solid core capital reserves and can withstand unexpected losses.

When you deposit your money with eToro, it is kept in a bank with enough capital to accommodate your withdrawal wishes. You can withdraw money from a tier 1 bank, even if eToro goes out of service for any reason.

It is common to lose money while trading in financial investments. You may lose money due to EFTs, Index Based Funds, Cryptocurrency, Forex, CFDs, and Trading Stocks. eToro clearly states that more than 79% of retail CFD accounts lose money. The only way to avoid losing money is to take the risk of trading when you find that your invested capital is at risk due to market volatility.

Some Notable eToro Features

eToro has an array of exclusive features; some of the palpable ones are:

• A demo account or virtual portfolio
• Copy trading
• Social trading
• API trading
• Offline trading
• StopLoss
• TakeProfit orders
• Trailing stops

Usability of eToro

eToro is a global multi-asset broker that goes above and beyond to give traders a convenient and smooth trading experience. Users can select between CFDs trading and underlying assets from the trade-ticket window. The company also features cryptocurrency trading through underlying assets and CFDs.

It is worth mentioning that eToro does not provide cryptocurrency trading options in Russia. Whereas the crypto CFDs of eToro are not available to the retail traders of the U.K. and the Netherlands.

How to Buy Bitcoin on eToro: Things You Need to Know

eToro is one of the highly recommended online brokers and crypto exchanges. It enables professional traders to buy and sell Bitcoin. Below we have broken down the process of buying Bitcoin on eToro.

Step 1: Create a new trading account

• Visit the official website of the eToro and click on “Join Now.”
• Choose a username, and enter your email and a strong password.
• Provide additional information, such as your zip code, phone number, date of birth, and name.
• Upload a picture of your passport or driving license to verify your identity

Step 2: Deposit Money

Once your account is created, eToro requires you to deposit a minimum of $10. You can use Skrill, Neteller, PayPal, Mastercard, or a credit card to deposit money.

Step 3: Create a Crypto Wallet

When buying Bitcoin with eToro, you can store your coins in your crypto wallets. These wallets are highly secured and enable you to use your cash for several applications.

Step 4: Search for Bitcoin

Go to the search bar and search for Bitcoin. Click on “Trade” when Bitcoins appear to open to a new order form.

Step 5: Buy Bitcoin

Buying Bitcoin with eToro is a straightforward process. You can also buy BTC (Bitcoins) with a bank account. You need to enter the number of Bitcoins you want to purchase. Once you’ve entered the number and selected a stop loss or take profit level, you can click “Open Trade to Buy Bitcoin with eToro.”

eToro’s Fees & Commissions

The commissions and fees of eToro are slightly costlier than the industry average, but it offers excellent social trading capabilities. You can choose from the following options to start your trading journey with eToro:

• Exchange-Traded Securities

To support fractional shares, eToro offers a $0 commission for U.S. stock trading, but this option is not available for U.S. investors.

• Cryptocurrency Trading

For cryptocurrency trading, eToro requires its users to pay a fixed fee of 1%, which is close to the industry average. If you want to convert crypto to crypto on eToro, it will cost only 0.1%, along with prevailing spreads.

• Popular Investor Program

The famous investor program of eToro has four levels ranging from Elite to Cadet. This program lets traders enjoy exclusive perks of the company, such as monthly payments and spread rebates. You need to attract $500 in customer assets and have more than $1,000 in your account equity to qualify for eToro’s Cadet program.

• VIP Accounts

The VIP Club (aka eToro Club) is ideal for traders who want to maintain balances between $5,000 and $250,000. The eToro club has five tiers of membership ranging from Silver to Diamond. VIP club members can enjoy several perks, such as discounted withdrawals, a trading center, and a dedicated account manager.

Final Verdict

eToro is a competitive online trading company that is striving hard to improve its services day by day. It is an excellent crypto exchange for retail traders who want to crowdsource trading ideas using the power of social copy trading.

eToro is a legit company trusted by more than 13 million traders worldwide. It is also authorized by 1-tier and 2-tier jurisdictions, making it a low-risk brokerage for CFDs, Stocks, and Forex trading. Overall, eToro has proven itself capable of earning clients’ trust in every aspect of online trading.