EToro Review 2024: Pros, Cons and How It Compares
Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal. The short answer is yes, as much as cryptocurrency assets can be safe on any crypto platform. Like most major exchanges, the majority of cryptocurrencies stored on eToro’s platform are kept in cold storage, meaning it is kept on servers not connected to the internet. The company maintains some crypto in “hot wallets” for liquidity purposes. EToro also has several user level protections such as Two-factor authentication (2FA) and account encryption.
- The mobile app holds ratings of 4.1 on the Google Play store and 4.3 on the Apple App Store as of February 2023.
- We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
- Popular indices offered by eToro include GER30, NSDQ100, DJ30, SPX500 & FRA40.
- Our main objective is to help readers make better-informed decisions when choosing online brokers and learn the foundations of trading rather than providing financial advice.
- The broker gives you access to 80 different cryptocurrencies, including some of the most popular, such as Bitcoin, Ethereum, Dogecoin and Chainlink.
Most traders on this platform have complained of a ridiculously slow withdrawal rate. When using eToro, you are only offered US Dollars as a base currency, unlike other trading networks where you choose your trading currency. The eToro apps, website navigation, informational, and assistive systems all deliver information in a clear, concise, and easy to understand manner making online trading an uncomplicated well-informed affaire. Depositing options include Wire Transfer, Credit Cards, Giropay and e-wallets such as Webmoney, Neteller, Skrill and PayPal are accepted.
These banks also offer the best exchange rates and free or low-cost international bank transfers. With your smartphone, you can open an account in a few minutes. If you deposit your money in any other currency, eToro will automatically convert your funds to USD.
How eToro Compares to Other Cryptocurrency Companies
To keep customers safe, eToro carefully abides by the rules set by these oversight authorities. Traders are warned several times about the risks of trading and are asked for a thorough amount of personal information before getting started. This advertisement contains information and materials provided by Robinhood Financial LLC and its affiliates (“Robinhood”) and Publisher, etoro broker review a third party not affiliated with Robinhood. Securities offered through Robinhood Financial LLC and Robinhood Securities LLC, which are members of FINRA and SIPC. Many crypto platforms charge a fee for debit card deposits, but it is free on eToro. Investors can make fee-free deposits of fiat money (traditional currencies like U.S. dollars) via bank transfer or debit card.
Copy-trading with eToro
It’s also rolling out a new feature whereby customers can hold multiple currencies within the account, including US dollars and euros. IG offers an extensive range of investments, including foreign exchange, commodities and cryptocurrencies, but does not offer the option of buying fractional shares. It offers frequent traders one of the lower share trading fees of £3 for UK shares (and no fee for US shares). However, occasional traders will be charged a higher trading fee of £8 and £10 for UK and US shares respectively. It also charges one of the lower foreign exchange fees of 0.5%. It offers a good choice of investments, including foreign exchange, commodities and cryptocurrencies, together with the option of buying fractional shares.
Banking
The wallet links directly to a user’s eToro trading account, enabling them to more easily withdraw coins they have bought on the platform. Users can also use the eToro Money wallet to swap between cryptocurrencies instantly, as well as buy, store, receive, and transfer more than 120 different assets. You should consider the security and the money guarantee provided by your online trading broker since the safety and security of your account are of paramount importance.
Still, advanced users looking for a niche coin may find the list limiting. Like many other crypto exchanges, any U.S. residents can sign up for an eToro account but not all the platform’s features are available in every state. Crypto trading, for instance, is not available in New York, Nevada, Hawaii and Minnesota. These options may appeal to more advanced crypto traders, who can earn annual rewards equal to up to 2% of their average balance for developing followers on the platform. EToro’s standard customer support is limited, offering only email contact or a support ticket option.
Just like the web platform, the login system features a two-factor authentication system. Another cool feature is the biometric authentication system help works perfectly if your phone has a fingerprint reader. However, eToro is one company that does not publish its annual reports, has no parent bank, and is not listed on any country’s stock exchange.
Trading fees
Chinese and Russian investment companies decided to join eToro with an additional $27 million contribution. Personally, eToro Club isn’t the most appealing part of their service to me. To use eToro you will need an internet connection and a browser (e.g. Chrome, Safari or Edge) to access the platform and trade.
Other trading platforms and tools
However, using a non-custodial crypto wallet isn’t for everyone. There are fees involved in moving your crypto around, depending on which crypto you move. The wallet doesn’t support all the same cryptos as the exchange.
This is lower than some of its competitors, but certainly not the most competitive fee on the market. If you’re planning to buy a lot of digital currencies, paying more than 1% in fees every time you buy or sell can eat into your profits. If you’re a buy-and-hold investor who plans to buy crypto and leave it for a long period of time, be aware that eToro charges an inactivity fee for accounts that have not been active for a year.
What did our traders think after reviewing the key criteria?
If you’re not sure where to start or if you don’t have time to consider different options, eToro has a very popular feature called CopyTrader™, which does exactly what the name implies! You can basically view what successful traders do in real time and copy their trading. The broker does a good job clearly laying out its spread pricing, https://broker-review.org/ which is 1 percent for all cryptocurrencies. If you’re new to crypto trading and looking to get your feet wet before you plunge in, eToro will allow you to set up a virtual account and start trading with $100,000 in virtual money. With a quick flip to virtual trading, you’ll be able to transact as if you were doing the real thing.
The lack of a third-party platform is likely due to the need for social trading support, which is still uncommon. This unique feature is something that not many brokers are currently offering, so if you’re an aspiring cryptotrader than eToro could well be the broker for you. Like other trading platforms, eToro charges a spread between the bid and ask price of a cryptocurrency. Our team of researchers gathered 2425 data points and weighted 66 criteria based on data collected during extensive research for each of the 25 companies we reviewed. Every user of eToro is given a $100,000 paper trading account so you can learn more about the market and test different trading strategies before risking your own money. This makes it easier for beginner investors in particular to enter the market.
Since the company is easily accessible, you can open an eToro account from any part of the world. Unlike other social trading platforms, eToro allows almost everyone to open an account. Common complaints about the platform involve slow or difficult withdrawals due to intensive identity verification processes and restrictions. Due to the complex amount of trading options on eToro, the fee structure varies from asset to asset. Looking directly at the cryptocurrency trade fees will be quite a shock for serious investors.