Want to trade commission-free? If so, eToro could be a strong choice of trading platform. This eToro review will help you decide if it’s right for you.
Traders on eToro can start trading cryptocurrencies or other financial instruments with as little as £50. It is an intuitive platform that lets users follow specific traders with highly successful track records.
In this review…
The company made its name through an innovative tool that lets investors copy the same positions as other traders. It was founded in 2007, and there are more than 21 million users in 141 countries worldwide; the United States is now on that list.
However, eToro runs a multiple instrument brokerage, such as forex trading, commodities, and stocks in other countries. Still, so far, only United States clients can hedge cryptocurrencies with the company; there are plans for the platform to expand its offerings to more regions worldwide.
eToro Pros and Cons
What’s fantastic about eToro is that the minimum deposit amount is £50 if done by bank account or debit/credit card, and the least amount you can trade with is £20. That makes it great for new investors looking to test out their skills or develop a trading plan.
The CopyTrader included on the eToro platform is what made this application such a hit with investors worldwide. It allows investors to choose a successful trader and automatically open the same position as them. With the click of a button, you can select an investor you want to copy and instantly, their speculation is mirrored to your account. The maximum to trade as a copy user is £500,000, and the lowest funds they can load is £200. Up to 100 trades can be copied simultaneously if you have enough equity to handle the drawdown.
What’s excellent about eToro is that investors can view millions of other traders’ risk scores, stats, and portfolios. This transparency shows that you can trust this company when it comes to being honest and trustworthy.
The eToro mobile application is available for Android and iOS and has received many positive reviews online. It is not as complex as other trading applications, such as MT4/MT5, but its well-designed interface gets the job done perfectly.
The download size is minuscule, so it only takes a few minutes to download and install, making it excellent for people who want to avoid a complicated signup process.
Unfortunately, eToro’s customer service is limited as it only offers support ticket options and email contact. At an additional fee, club members are provided customer support via a live chat, which we think is a little unfair because other brokers like XM offer live support at no charge.
If you are new to trading, this can be a big downside for you as you might need assistance with your account. Please be aware of this before signing up with eToro, as it can hinder your relationship with the platform.
Security and Digital Wallet Options
A fund holding service known as the eToro Wallet is available on Android and iOS, and helps keep your crypto safe. The platform provides a free crypto wallet that can be used to store various digital coins in a protected environment. If you want to convert crypto into fiat currency (say the Pound), the amount is around 5%; some traders might find this expense costly because it can take away some potential profits.
The maximum transaction is £10,000, and the minimum is £125, so imagine removing 5% from a significant withdrawal only to have £500 deducted from the pay-out. That is also something investors should consider when looking to trade cryptocurrency with eToro.
It’s imperative to note that eToro’s coin transfers are a one-way system, meaning any digital assets sent out of the platform cannot be transferred back to the wallet.
17 cryptocurrencies are available to speculate on when using the eToro application. You can find digital coins, such as Ethereum, Bitcoin, Bitcoin Cash, XLM, XRP, and much more.
If you are someone who likes to diversify their portfolio, you are going to love all the options available.
Unfortunately, crypto to crypto trading is not available in the United States, but as mentioned, there are plans to make it available in the US. However, Litecoin, Stellar, Bitcoin, and Ethereum can be stored through a similar conversion option as the Coinbase exchange.
This availability and the complicated system can be a pain in the butt for users who want to speculate on crypto price swings. Keep this in mind when investing in digital assets while using eToro if you are in the States.
Registration and Sign Up
An eToro account can be opened within one day, and all you need to do is register with Facebook, Google, or your email address. That gives you access to demo funds so you can test the markets and build your investment strategy.
When you are ready to go live, you need to confirm your details by uploading proof of identity like a personal ID or copy of your passport. Proof of residency is also required, and you can use either a bank statement or a copy of a utility bill, such as water, electricity, or internet.
Deposit Options and Fees
There are multiple deposit options available; however, it’s good to note that some are not available in specific countries. Below are the available payment gateways which can be used when loading funds on eToro:
- China UnionPay
- Klarna / Sofort banking
- Credit/Debit card
- Bank transfer
eToro limits some countries’ first deposit by making people pay with a credit/debit card or bank transfer. Once users have loaded their accounts with funds, they can make deposits using a digital wallet.
Bank transfers can take anywhere between three to seven business days, and there is no maximum limit on the deposit. However, while electronic wallet and credit/debit card deposits are instant, there are limits per transaction, either £10,000 or £30,000 with most electronic wallets, and £40,000 in the case of credit/debit cards.
Please remember that you can only deposit from a payment gateway in your name, as it prevents fraud and is required by the laundering legislation.
It’s important to know that eToro holds funds in USD, so when looking at Pounds, be aware of any conversion ratio fees that might appear. You might need to use a deposit currency converter to determine the approximate pip values for a particular fiat.
eToro Prices and Plans
First off, eToro has a withdrawal fee of $5, which is excessive compared to other brokers online. In addition to that, eToro has a minimum amount limit on its withdrawals too, and currently, it stands at $30. However, if you deposit and trade higher sums, you’ll be eligible for free withdrawals.
Like other CFD brokers, you can withdraw money using electronic wallets, credit/debit cards, or bank transfers. It all depends on which one you use when funding your equity balance on the eToro platform.
Another thing to be aware of is that eToro charges an inactivity fee per year when you don’t use the platform. This fee is only $10, but other brokers do not set this, so why should you pay it when using eToro.
Currently, the minimum deposit for bank transfers is $500, which is relatively high compared to competing brokers online. There are some countries where the deposit requirements are different, so have a look at the list below to find out more:
- A minimum deposit of $10,000 for Israeli nationals
- Residents living in the US or Australia only have the first-time funding of $50
- There is a long list of countries where a $1000 minimum deposit applies.
The countries that require a deposit of $1000 are listed here for your convenience:
- French Polynesia
- New Zealand
- South Korea
- Costa Rice
- Cayman Islands
These are just a few countries on the extensive list for a minimum deposit of $1000, so if you want to know which other regions require this, you should check out the eToro website.
eToro Review Summary
Overall, eToro is a trusted and reliable broker that investors use worldwide to trade various financial assets, CFDs, and cryptocurrencies. People like the platform because it is easy to use on mobile or through a website browser.
However, users should be aware of some downsides before using eToro as their preferred broker. One of the leading causes for concern is additional expenses, such as withdrawal fees, deposit charges on bank transfers, and the annual inactivity expense. In our opinion, these added costs can affect your potential profits and margin percentage requirements.
If you’re looking to trade on a crypto exchange, you may find a specialist platform such as Coinbase or Binance a more suitable option, but you’ll struggle to find a better usr experience the eToro. Especially when it comes to stocks.
If this eToro review has helped you, please recommend DigitalSupermarket.
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