eToro Review 2023: Social Cryptocurrency Trading Platform

Combining a social network with a cryptocurrency exchange, eToro is an innovative fintech company that strives to make crypto investing accessible to all. More recently, eToro also introduced non-crypto investments to American clients, including stocks, ETFs, and options. Given all of eToro’s features, it has attracted millions of global investors interested in building diversified portfolios.

But, is eToro all that it’s cracked up to be?

In this eToro review, we’ll take a closer look at the ins and outs of this popular social crypto trading platform. We’ll investigate the platform’s various features, its fees, and its pros and cons so you can decide whether it’s the right place to kick-start your investment journey.

What Is eToro?

eToro is a multi-asset trading platform best known for its “social trading” functions. The brothers, Yoni and Ronen Assia, were the driving forces behind eToro and still serve as the company’s CEO and executive director, respectively. eToro has been in operation since 2007 and has offices throughout the world, however, its main headquarters are in Tel Aviv. 

Although eToro is best known for its cryptocurrency offerings in the USA, it now allows Americans to take advantage of stock and ETF trading. eToro also offers access to commodities and derivatives trading in select regions. 

From the start, eToro distinguished itself from other brokerage sites by integrating features commonly found on social media sites. In addition to news feeds and chat rooms, people on eToro could easily copy other users’ portfolios. eToro also places a special emphasis on teaching new investors how to diversify their holdings and manage their funds. In addition to offering free educational resources, eToro has many risk-free “Demo Accounts” where users can test their trading strategies. 

How Does eToro Work?

eToro works similarly to other mainstream brokerage trading platforms like Charles Schwab or E*TRADE. After you set up an account, you can link your bank account and deposit funds with bank transfers. eToro also accepts deposits from a debit card or PayPal account. 

Once you see your funds in the eToro platform, you can buy any assets allowed in your region. While many US investors associate eToro with cryptocurrencies, it’s now possible for Americans to buy stocks, ETFs, and options with an eToro account. eToro offers commission-free trading on stocks and options, but it charges a 1% fee for all crypto trades.

Account Minimum 

eToro has different minimum requirements depending on where you’re living. Anyone in the USA or UK only needs $10 to start trading on eToro. However, most people in Europe, Asia, and the Middle East need to send at least $50 to their eToro account. One notable exception is eToro’s home country Israel. Anyone living in Israel with an eToro account must transfer at least $10,000 onto the platform to start trading.

eToro reserves the right to change these account minimums at any time. Be sure to check the latest details on eToro’s website related to your country.

Getting Started

First off, you must be 18 to open an eToro account. You also need to be in a state and country where eToro can legally offer its trading services. Currently, eToro doesn’t operate in the following US states:

• Hawaii
• Minnesota
• Nevada
• New York

People in US-owned territories like Puerto Rico, American Samoa, Guam, and the Northern Marianas can’t apply for eToro. Also, US citizens outside the USA can’t use eToro. 

Once you’ve established that you can set up an eToro account, you should grab a government-issued ID and proof of residence. Your proof of residence needs to have the following information:

• Your name
• The home address associated with your eToro account
• A recent date
• The company or government agency that issued this paperwork  
• A reference phone number or email address 

A few accepted examples of proof of residence include a utilities bill, a bank statement, or a driver’s license. You will need to send these documents soon after opening your eToro account.

Opening an Account

When you’re ready to join eToro, you can click the “Sign Up” button on the top right-hand corner of the site’s homepage. Here, you will need to submit an email address and create a username and password. eToro also lets new users link their Google or Facebook accounts for convenience. After sending this data, you should receive an email from eToro in your inbox. Verify your email address by clicking the link. 

Next, eToro will ask you to send KYC info like a government-issued ID and proof of residence paperwork to prove your identity. You will also have to enter personal information such as your birthday, home address, and nationality. eToro also asks basic finance questions to gauge your knowledge of investing.  

Lastly, you will have to share a phone number with eToro to complete the verification process. Once you submit your phone data, eToro will send a text message to your device with a unique passcode. Type the numbers on your phone into your eToro account to complete this verification process.

Funding Options

eToro has four primary ways to deposit funds, but most American users choose to link a bank account and send an ACH or wire transfer. The minimum deposit for an ACH transfer is $10, but you need to send at least $500 for a wire transfer. 

If you don’t want to link your bank to eToro, you could deposit money with a debit card or the fintech app PayPal. Both of these methods have a minimum $10 deposit. You can choose any of these funding methods by clicking the “Deposit Funds” button on the bottom left of your home screen.

Cryptocurrencies Available on eToro

As of the time of writing, eToro supports 20+ cryptocurrencies for US residents, such as:

• Bitcoin (BTC)
• Ethereum (ETH)
• Bitcoin Cash (BCH)
• Litecoin (LTC)
• Stellar Lumens (XLM)
• Chainlink (LINK)

While eToro does support many popular cryptocurrencies, its current lineup is much more limited than you might find elsewhere. For example, Binance.US offers more than 100 cryptocurrencies to US investors.

eToro Features

A crypto exchange is only as good as its features. With that in mind, these are some of the best features you can access with an eToro account:

Trade Cryptocurrencies 

When eToro entered the US market in 2018, it only offered crypto trading to its American clients. To this day, eToro is closely associated with its cryptocurrency portal in the USA, even though it’s not strictly a crypto exchange. In recent years, eToro has expanded its crypto offerings from the initial ten coins on its platform. In addition to established cryptos like Bitcoin and Ethereum, eToro offers access to over 20 altcoins, such as:

• Dogecoin (DOGE)
• Shiba Inu (SHIB)
• Uniswap (UNI)
• Tezos (XTZ)
• Chainlink (LINK)

Currently, eToro charges a flat 1% fee for all crypto trades. Once you purchase crypto on eToro’s platform, you can choose to withdraw it to the eToro Money crypto wallet. At this time, eToro doesn’t allow you to transfer crypto from the central trading platform anywhere else. 

Please remember that eToro keeps a copy of the private keys associated with your eToro Money crypto wallet. While this may be an attractive security feature for those who fear losing their seed phrase, it also means you don’t have 100% control over your digital assets. 

Stock & ETF Investing 

At the start of 2022, eToro announced it would bring stock and ETF investing to its US trading platform. With a minimum of $10, you could buy many popular equities on the New York Stock Exchange (NYSE) and the Nasdaq. You could also monitor what other traders are saying about stocks and ETFs on eToro and copy their moves. eToro charges zero commission fees for all stock and ETF trades. 

Options Trading

Later in 2022, eToro put out a press release announcing it would allow US clients to start trading options on its platform. Similar to its stock and ETF offerings, American users don’t have to pay commissions to trade options. Anyone new to options could create a “Draft Trading” to experiment with derivatives without putting real money at risk. eToro also offers rewards to incentivize people to keep using its options trading portal. 

Demo Account 

To help new users get a feel for investing, eToro offers a free “Demo Account” where you can test trading strategies. In this no-risk account, you can invest an imaginary $100,000 across various assets. Not only does this teach you how to use eToro’s platform, it also allows you to monitor your trading strategy’s performance. 

Smart Portfolios 

Smart Portfolios refer to groups of assets put together by the eToro team. Similar to managed ETFs, these portfolios give investors greater diversification, which may decrease overall volatility. Today, eToro’s Smart Portfolios focus on various aspects of the crypto economy, including decentralized finance (DeFi) and coins with the highest market caps. Owning a portion of these portfolios gives you more access to the crypto economy. eToro’s team will actively trade in and out of these accounts as they see fit.

eToro Club

If you want to take your eToro experience to the next level, consider applying for the eToro Club. Once you gain access to this private group, you can take advantage of many perks like live webinars, VIP event tickets, and priority customer service. Some eToro Club members also get trading rebates, early access to new features, and subscriptions to news sites like the Wall Street Journal. 

Currently, there are five levels in the eToro club, each of which offers access to different features. To enter any of these tiers, you must meet a minimum threshold for funds in your eToro account. eToro calculates your “realized equity” by adding the cash value of your portfolio to the initial money you spent on investments. At the low end, you need $5,000 to enter the silver tier. Those who want the ultimate eToro Club experience need at least $250,000 on the platform to apply for the Diamond level.

Trading Platform

eToro’s US-based trading platform is streamlined and user-friendly. On the platform, investors can quickly buy and sell crypto either online or on the firm’s mobile app.

All trades on this platform are market orders. To place one, you’ll navigate to the trading dashboard, select a cryptocurrency, and input the amount that you want to buy. Your transaction is processed immediately and your crypto is then credited to your account.

However, eToro doesn’t provide an advanced trading platform option with other order types and charting features. This can be a disappointment for experienced traders, but it makes the trading process easy for new crypto investors.

Social Trading

One of eToro’s most important features is its Social Trading platform. With Social Trading, every account holder gets an eToro profile, which is like a crypto social media profile. 

This feature gives you access to an activity feed where you can see real-time social posts and activity on eToro. You can also check out other investors’ trading histories so you can learn from others’ experiences.

Note that eToro does let you set your profile to private if you don’t want to share your trading information. But, if you want to take full advantage of the eToro platform, the firm recommends keeping your profile public.

Digital Wallet (eToro Money Wallet)

If you’re interested in controlling your private keys and on-chain addresses, eToro lets you do so with a free hot wallet called the eToro Wallet.

This wallet is accessible via an app on the Apple App Store and Google Play Store and it offers an additional set of features for crypto investors and traders. With the eToro Wallet app, you can store, buy, transfer, exchange, and receive hundreds of cryptocurrencies.

But keep in mind that while you can transfer coins to your wallet from your eToro investing portfolio, you cannot send crypto to your portfolio. That means that once you remove crypto from your portfolio, it can’t be sent back and then sold on the exchange.

Also, eToro will keep a copy of your private keys in case you need to recover your secret passcode. The company claims this is a positive since you can contact eToro to recover access to your wallet should you break your phone or misplace your password. While this is great news if you’re afraid of losing access to your wallet, it also means you won’t enjoy 100% control or anonymity over your digital assets.

CopyPortfolio

eToro’s CopyPortfolio feature is similar to their CopyTrader feature, but with a twist. While CopyTrader lets you select a trader to copy, CopyPortfolio lets you select between different pre-established portfolios. This is sort of like investing with a robo-advisor, but for crypto.

When you use CopyPortfolio, you can choose between one of three portfolio types, each of which follows a unique investing strategy or theme.

To invest in CopyPortfolios, you’ll need to have a starting balance of at least $5,000, though there is no portfolio management fee. Furthermore, while you can close your investment at any time with CopyPortfolios, you aren’t able to withdraw funds while your portfolio is active.

CopyTrader

eToro’s CopyTrader is a simple way to mimic the pros with your trades. With CopyTrader, you can search for top-performing eToro investors and direct your portfolio to copy all of their trades.

To do so, you’ll fund your account with at least $500 and the platform will automatically start copying your selected trader’s every move for no additional fee. You can use the feature to simultaneously copy up to 100 other traders. You can stop copying trades at any time.

But remember that copying someone else’s trades does have its risks. Thankfully, the firm lets you also set a stop loss to limit any potential losses that you may incur from using CopyTrader.

Virtual Portfolio

To help you become a more confident crypto investor, eToro provides all account holders with a Virtual Portfolio. This Virtual Portfolio is a practice trading account where you get $100,000 in virtual money to experiment with on the crypto exchange.

Although you can’t make any money using Virtual Portfolio, you can’t lose any either. The platform is completely free to use, so it’s a great way to test out various trading strategies before investing. 

Offline Trading

Crypto exchanges, like eToro, can run into technical difficulties during periods of high market volatility. When these technical difficulties happen, investors can get locked out of their accounts, leaving them unable to place trades or close open positions. 

However, unlike many exchanges, eToro offers a potential solution to these technical woes: offline trading.

When eToro has technical difficulties or planned maintenance, the firm can deploy its Offline Trader Tool. This tool lets investors view their open positions and submit requests to close open trade orders. These requests bypass the main platform and are handled by investment specialists at eToro. 

The tool can provide traders with some peace of mind during times of high market and platform volatility.

eToro Education & Research

To give you more insight into the world of crypto, eToro provides an extensive set of educational tools and research information. 

In particular, you can access the latest crypto news in eToro’s app or on the firm’s website. The company also offers video tutorials in the eToro Trading Academy. These videos help you navigate the eToro platform and provide a fun way to learn more about investing.

Mobile App

Although you can access eToro online, most account holders use the firm’s mobile app. The highly-rated eToro app is found both in the Google Play and Apple App Store, so you can download it for nearly any device.

With the app, you can check your portfolio, place trades, and use the social trading platform. Additionally, the app provides access to eToro’s ProCharts feature, which is a set of customizable charting tools for market analysis.

eToro Pricing & Fees

Cryptocurrency exchanges are known for having complex pricing structures and eToro is no exception. In this section, we’ll look at the fees that the firm charges for each of its services.

Trading Fees

eToro has a flat 1% fee for trading cryptocurrencies. However, there’s zero commission fee for trading stocks, ETFs, or options. Instead, eToro will charge a spread fee depending on which assets you’re purchasing. Also, eToro charges withdrawal and deposit fees for different payment methods and assets. While ACH transfers are free, you will have to spend extra to use services like wire, PayPal, or crypto transfers.

Other Fees & Account Minimums

eToro is fairly unique in that it doesn’t charge many fees on its exchange beyond what you pay for trading. There are no monthly fees, no withdrawal fees, and no deposit fees on the platform.

However, do note that you must deposit at least $50 to open your account and all subsequent deposits by debit card or bank transfer must be at least $50. Meanwhile, wire transfer deposits must be a minimum of $500. 

Finally, while there is no fee to withdraw money from eToro, there is a withdrawal minimum of $30.

eToro Wallet Fees

If you use the separate eToro Wallet, you will be liable for some fees. In particular, if you want to convert crypto, you will pay a 0.1% conversion fee. 

There is also a 0.5% fee when you send funds from the eToro investment app to the eToro wallet. Additionally, the wallet doesn’t charge fees for sending or receiving crypto, but you will have to pay any blockchain fees for any transaction you make.

eToro Security & Insurance

To protect your assets, eToro employs a host of security tools. The firm uses advanced encryption techniques and two-factor authentication to help shield your crypto from hackers.

Furthermore, although eToro does not offer insurance on crypto assets in the United States, all-cash holdings on the platform are held in FDIC-insured accounts. This means that your USD funds are insured up to $250,000.

eToro Customer Support

If you have an issue with your eToro account, you can find answers to most common questions on the eToro help pages.

Additionally, eToro offers email and live chat-based support. The live chat feature is designed solely for urgent queries, however, and not for general questions. Furthermore, the firm states that it can take up to 14 days to get a response to a support ticket, which is a long waiting time for the industry.

eToro Ease of Use

eToro was a pioneer in the “social trading” category, and it draws inspiration from popular social media platforms in its layout. People already familiar with sites like Facebook and Twitter won’t have difficulty navigating eToro’s UI/UX. It’s easy to monitor your portfolio, make trades, and see what others are doing on eToro’s screens. Also, eToro’s app gets high reviews on both the App Store and Google Play. Thousands of reviewers give eToro’s mobile app an average score of 4 out of 5 stars.

Interestingly, there’s a discrepancy in how customers feel about eToro’s service on Trustpilot vs. the Better Business Bureau (BBB). According to over 17,000 reviews on Trustpilot, eToro has an “excellent” score. However, the few people who left comments on eToro’s BBB page have complaints, most of which are related to the delisting of the crypto XRP. Although eToro’s BBB page has a 1-star rating, it’s more likely the overwhelmingly positive reviews on Trustpilot, the App Store, and Google Play hold greater merit.

eToro Pros Explained

• Multi-asset platform for US residents: People interested in building a diversified portfolio of stocks, ETFs, and crypto can achieve this goal with eToro. There’s no need to set up accounts on multiple platforms to get access to all of these assets. Plus, with the introduction of eToro Options, clients have access to derivatives products. 
• No commission fees on stocks or ETFs & low crypto trading fees: Similar to apps like Robinhood, eToro doesn’t charge commission fees for stock or ETF trading. While crypto trading isn’t free, eToro’s 1% flat rate is lower than many competing exchanges. 
• Option to open a separate free hot wallet: If you’d like to take your crypto off of eToro, you could download the company’s custodial eToro Wallet app. Unlike full self-custodial wallets like Trust Wallet, eToro holds a copy of every client’s private keys. Therefore, if you need to recover your crypto account for whatever reason, eToro can supply you with your seed phrase. 
• Ability to copy others’ trades and portfolios: “Copy Trade” is one of the distinguishing features of eToro’s trading platform. People who’d prefer following other crypto or stock traders can easily mimic their market moves. eToro also offers managed “Smart Portfolios” that provide access to multiple digital assets. 
• Great research and educational resources: eToro is committed to providing high-quality guidance to new investors. Even if you don’t have an eToro account, you’ll find a wealth of educational resources in the site’s “Trading & Investing Academy.”  
• Integrated access to a social trading platform: eToro is ideal for people who want to join an online community. If you love bouncing stock or crypto ideas off of other traders, then you’ll find plenty of places to share your thoughts and read from others. 
• US dollar holdings in accounts are FDIC-insured: US customers will enjoy FDIC protection of up to $250,000 for every US dollar in their account. Remember that these protections don’t extend to investments like crypto.   
• Includes access to a virtual trading platform: Whether you’re new to trading or just testing out a new strategy, eToro makes it easy to “invest” an imaginary $100,000. In eToro’s Demo Account, you can figure out what trading strategies work best for you without spending your hard-earned money. 

eToro Cons Explained

• Only allows market orders for crypto trades: eToro only allows users to buy crypto assets at the market price. Anyone who prefers using advanced technical trading strategies or alternative order types probably won’t enjoy this feature. 
• Customer support is sometimes very slow: The primary ways to get in touch with eToro is via ticketed support or live chat. According to the company’s website, it often takes 48 hours to get a response from an eToro team member. The only way to expedite these issues is to invest in an eToro Club membership.
• Not available in all US states and territories: eToro continues to expand its operations, but it’s still not as accessible as other crypto exchanges or stock brokerage sites. There are still many US states and territories that aren’t on eToro’s allowlist.  
• A limited number of supported cryptocurrencies: While eToro has grown its crypto offerings recently, it’s not the premier site for altcoin dabblers. Sites like Binance and KuCoin still have the widest selection of small & speculative cryptocurrencies. 
• No insurance offered for crypto assets: This con isn’t specific to eToro, but every investor should remember that crypto doesn’t have FDIC protections. If you’re investing in any cryptocurrency on eToro, you won’t enjoy insurance in the case of a hack or bankruptcy. 
• eToro Wallet knows your private keys: The eToro Wallet isn’t a full self-custodial crypto wallet. eToro will always have access to every user’s private keys, which means they technically still control the crypto you store in this wallet. Users have to trust eToro will secure their digital assets if they want to use the eToro Wallet.

eToro Alternatives

Not sure that eToro is right for you? Here are some eToro alternatives to consider:

eToro vs. Coinbase

Coinbase is one of the world’s largest crypto exchanges. The company offers both basic and advanced trading platforms, which makes it suitable for crypto traders of all experience levels.

With Coinbase, you can trade more than 50 cryptocurrencies. You also get access to an online wallet, staking opportunities, and a Visa debit card for crypto purchases. The firm also offers educational videos that let you earn free crypto rewards.

The downside? Coinbase charges more in fees than eToro. But if you’re looking for more crypto trading and investing power, Coinbase is a solid choice. Check out our full Coinbase review to learn more.

eToro vs. Kraken

Designed primarily for advanced investors, Kraken is a powerful exchange that offers a range of crypto trading features that are hard to find elsewhere.

Kraken allows account holders to buy and sell more than 50 cryptocurrencies on one of two advanced trading platforms, both of which have custom charting features and multiple order types. Meanwhile, Kraken also offers crypto futures and margin trading for experienced investors.

Nevertheless, while Kraken’s fees are generally lower than those at Coinbase and eToro, many of the firm’s advanced features aren’t available in the US. However, if added functionality and low costs are what you seek, Kraken might be the exchange for you. Read our full Kraken review to learn more.

Who is eToro Best For?

Due to the platform’s social media-like structure and interactive nature, eToro is a good choice for traders that are looking to join a cryptocurrency investing community. Furthermore, the platform’s relatively low fees and CopyTrader feature make it a nice option for newer investors that want to keep costs low and learn from other successful traders.

However, if you’re looking to take a more independent approach to trading crypto, you might find better trading functionality on other exchanges. Of course, fees at firms like Coinbase can be higher than those at eToro, but these other platforms usually offer more tools and features for experienced traders.

Notable eToro Updates And News 

• eToro introduces “Recurring Deposits:” In a 2022 blog post, eToro announced it would allow investors to fund their accounts on a set schedule. This “Recurring Deposits” feature allows people to add as little as $10 to their account at preset intervals. Using this strategy could help people consistently set money aside for investing in their favorite companies or cryptos. 
• eToro unveils stock & ETF trading for US residents: Early in 2022, eToro opened up stock and ETF trading for American users. People with an eToro account in the USA now have access to dozens of NYSE and Nasdaq stocks with zero commission fees. 
• eToro announces options trading portal: In November of 2022, eToro announced it had purchased the platform Gatsby to offer clients access to options trading. Now, anyone with an eToro account could trade derivative products like calls and puts to further diversify their holdings. 

eToro FAQ

Here are our answers to some of your most commonly asked questions about eToro:

Final Thoughts

eToro is a popular crypto exchange due to its innovative social trading features. The platform lets new crypto investors copy the market moves of more experienced traders and it boasts a slew of superb educational resources.

However, the firm’s spread pricing structure isn’t always transparent and it lacks some more advanced features that you can find elsewhere. But if you’re looking for a simplified crypto platform that’s designed for US residents, eToro is worth considering.