eToro Review

Donny Gamble
March 8, 2022
4.0
Personalincome rating

eToro isn’t the best for cryptocurrency, especially since they started out as a stock trading platform. They expect you to know what you’re doing from the minute you get on the platform, and the trading requirements can be very discouraging for beginners. It can make investing hard.

etoro logo
on eToro's website
eToro
FEES
depends on the crypto
trading fees
Minimum DEPOSIT
$200
PROMOTION

$10 new user bonus

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Key Takeaways

  • Established: eToro knows what they’re doing and how to make their business work, even if it does come with higher fees for the user.
  • Varied Assets: BTC, ETH, and tons of other crypto assets are available to you.
  • Complex UI: While the UI can direct beginners at where they want to go, as we mention later in the review, it gets complex in certain areas that can make you feel a bit displaced.

Pros & Cons

Pros
  • Buy and sell crypto or use crypto CFDs
  • Leader in digital investment security
  • Legitimate and seasoned business
Cons
  • High minimums
  • Complicated fee structure

People don’t think of crypto exchange when you bring up eToro, but that’s about to change. eToro has become a cryptocurrency marketplace that other long-standing platforms can envy, because they’ve really done a lot in a short amount of time.

But is it enough? Are we just excited about eToro because they’ve made their platform more accessible, or have they really found something amazing with the way they’ve shaped their cryptocurrency products?

You can choose from a lot of cryptocurrencies, but there’s a lot that you still can’t do that we want to tell you all about. We funded an account, traded crypto, and messed around with every feature we could feasibly find on eToro so you wouldn’t have to—this is what happened.

About eToro

eToro is an online trading platform designed for stock trading that’s been around since 2007, and then added crypto support in 2017. They’ve expanded their operations since, but aren’t leading their platform with crypto, it's more of an add-on to grow with the way investments change over time.

While eToro is a beginner-friendly platform for many, it does lack informational content to help teach the user base how to invest and about what investments are. They are better for stocks than crypto.

Product Offerings

  • Crypto Staking: Stake your own crypto to earn an income from your owned cryptocurrency.
  • Investment Insurance: Not applicable to all crypto trades, but works for some.
  • Investment Portfolios: Include your cryptocurrency in a larger pool of investments and leverage your capital.
  • Exchange: Trade coins with other users and buy or sell your own crypto coins to start earning a profit.

eToro Fees

  • Zero Commissions: Free trading on crypto, however there is still a spread, which still makes it cheaper than just about any other platform.
  • Withdrawal Fees: You will pay $5.00 on withdrawals, as well as $10 monthly fee if you haven’t been active on the platform for a year.
  • Conversion Fees: This mostly applies to their stock side of the business, but converting currencies does cost a little bit of money.

Who is eToro Best for?

eToro is a hybrid platform, and as we’ve said all throughout this review, they began with stocks. In fact, they had a solid decade of online stocks being the only thing they offered until they made the jump to cryptocurrency in 2017 (2018 for US).

With that in mind, we think eToro is the perfect platform for someone who’s looking to focus on diversifying their portfolio above all else. If you’re able to buy crypto, stocks, and invest in index funds all in the same place, that sounds like a pretty intuitive platform to us.

However, with all that on the forefront, it’s important to know that the broad scope of financial services that eToro offers are targeted to savvy investors.

That doesn’t mean that beginners can’t get started with eToro, but it is definitely a harder process if you don’t know what you’re doing just yet.

While it’s nothing worthy of note just yet, eToro is launching an academy to help teach individuals about investing, but at this time it doesn’t count as a benefit t o the platform until it’s been developed.

eToro FAQ's

Is eToro safe and legit?

eToro uses tier 1 banks to secure all of your funding, so you won’t have to worry about your money or coins going missing at any point.

As one of the longest-standing online marketplaces for asset investments, they take security more seriously than many other exchanges do.

Should you use eToro to buy crypto?

With the simple fee structure and the access to multiple coins, you can absolutely use eToro to buy cryptocurrency and fund your wallet.

Their platform has been around since 2007, and while obviously not all of that has been in cryptocurrency, they’re a reputable and secure company that knows what they’re doing in the investment space.

Is eToro good for beginners?

Yes, eToro has designed its site and app to be excellent for beginners. Everything is intuitive and brings you exactly where you want to go.

While some of the app features can get in-depth and complex, that is something you have to seek out if you’re a more savvy investor, but the initial experience is friendly for beginners and seasoned traders alike, making it one of the most friendly apps on the market.

The fees, however, are not so beginner friendly.

How does eToro make money?

Remember that eToro is also a stock broker and not just selling crypto coins. The main way that eToro makes money from crypto is through spread fees.

If you put in a buy order for a coin at $1.00, and the coin drops to $0.99 since you placed that order, eToro will buy the coins at the original price you set and keep the difference.

This means they don’t make money on every transaction, but they can also avoid charging you fees, and you spend the same amount of money on the coin that you would have anyway.

They also make money through currency conversion fees, inactive account fees, and other marginal fees, though spreads appear to be their main source of revenue.

Keep in mind that spreads change depending on which specific cryptocurrency you’re trading and may be up to 2.9%.

Does eToro sell any of my personal information?

In their 9-page PDF detailing their sparsely-updated privacy policy, eToro never uses the phrase “We do not sell your information” at all.

They specify that they only hold onto your information while you hold an account with them, and beyond that point, your information will only be retained by whatever local laws mandate.

Remember that eToro is also a stock trading service, so they’re under harsh guidelines by the SEC and may be subject to sharing your information with them if the situation arises.

Compare to Other Exchanges

Coinbase logo
TRADING FEES
1.49%
MINIMUM DEPOSIT
$0
PROMOTION
Offers $5 free bitcoin to new users
Binance logo
TRADING FEES
.1%
MINIMUM DEPOSIT
$0
PROMOTION
$100 bonus on qualifying deposit
FTX logo
TRADING FEES
 0%-0.4%
MINIMUM DEPOSIT
$0
PROMOTION
5% off trading fees

eToro

eToro is an Israeli social trading and multi-asset brokerage company that focuses on providing financial and copy trading services such as forex and crypto.

  • eToro
  • Rating: 4
  • Reviewed by:
  • On March 8, 2022
  • Last modified:March 8, 2022

Review Summary:

eToro is an Israeli social trading and multi-asset brokerage company that focuses on providing financial and copy trading services such as forex and crypto.

Review of: eToro

Reviewed by:
Rating:
4
On March 8, 2022
Last modified:March 8, 2022

Summary:

eToro is an Israeli social trading and multi-asset brokerage company that focuses on providing financial and copy trading services such as forex and crypto.

About the author 

Donny Gamble

I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.

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