eToro Review 2023 – Pros, Cons and Is eToro Good for Crypto Trading?
eToro exploded onto the trading scene in 2007 as a pioneer of social trading. Its platform enables users to copy the trades of successful investors, chat with other traders, and trade stocks, ETFs, forex, CFDs, and cryptocurrencies. With over 27 million users worldwide, eToro has become a leading online brokerage. But how does it stack up for active trading in 2023? In this comprehensive eToro review, we’ll analyze the platform’s features, fees, pros, cons and more.
Overview of the eToro Trading Platform
eToro operates via a proprietary web-based trading platform:
- Intuitive interface – Easy to use for beginners yet powerful for advanced traders. Translated into 17 languages.
- Social features – See other traders’ strategies, track their performance, and mimic their trades.
- CopyTrader – Automatically copy successful traders with one click.
- Virtual portfolio – Practice trade ideas risk-free with $100,000 virtual money.
- Trading tools – Charting with indicators and drawing tools for technical analysis.
- 17 Platforms in 1 – Supports stocks, crypto, forex, commodities, options, and more from a single interface.
Broker packs an incredible amount of functionality into its social trading platform catering to all skill levels.
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What types of accounts does eToro offer?
eToro offers four account types:
- Personal (retail) account: eToro’s default account type. With this account, you can trade all the assets we offer, copy other traders, and invest in Smart Portfolios. The level of leverage that can be used is limited, but account holders have the highest level of consumer protection.
- Professional account: Professional account holders have the option to use higher leverage when opening trades. Only clients who meet certain criteria can apply for a professional account.
- Corporate account: Corporate accounts are intended for business purposes and used by legal entities. If you want to trade with capital belonging to your business, this is the account type you should open.
- Islamic account: This is a special account type for Muslim clients. eToro Broker don’t charge or credit overnight fees on Islamic accounts, in accordance with Sharia law.
eToro Fees and Commissions
Here are the key points about eToro’s fees and commissions based on the search results:
- For buying and selling cryptocurrencies, eToro charges a flat 1% fee on the transaction amount. This fee applies both when opening and closing a crypto position.
- There are no commissions or fees for buying and selling stocks and ETFs on eToro. The broker absorbs regulatory transaction fees charged by SEC and FINRA.
- For CFD trading, eToro charges a spread that varies based on the underlying asset. There are no commissions, but the spread is higher compared to other brokers.
- Options trading on US equities has no commissions. However, SEC and FINRA regulatory fees apply.
- A $5 fee is charged for withdrawals from the eToro account back to bank account or card. Additional currency conversion fees apply for non-USD withdrawals.
- Other fees include a $10 monthly inactivity fee after 12 months of no login.
- eToro’s crypto wallet charges no fees for deposits, but a minimum fee applies for withdrawals that varies by crypto. For example, 0.0005 BTC for Bitcoin.
In summary, eToro is competitive on stock and ETF trading fees due to zero commissions, but charges higher spreads for CFDs. The 1% crypto fee is straightforward. Withdrawals incur a $5 fee plus currency conversion if applicable. You can find all detailed onfo about fees here.
Overall, eToro’s fee structure is competitive, especially for stock and ETF trading which is commission-free. Active traders may get better forex spreads elsewhere however.
eToro Review 2023 – Pros
Here are some of the key advantages of the eToro platform:
- Social trading – CopyTrader and community features make eToro unique. Follow and mimic successful traders.
- Wide asset selection – Stocks, ETFs, currencies, crypto, commodities, and more all available.
- Mobile apps – Fully-featured iOS and Android trading apps.
- Customer support – 24/7 multilingual live chat and phone support.
- Beginner-friendly – Easy account setup and helpful guides and tutorials.
- Regulation – eToro operates under FCA, CySEC, and ASIC regulation for safety.
- Accepts US – eToro supports customers from 43 US states.
eToro succeeds in catering to all trader types from beginners to advanced, whether on desktop or mobile. The social element also sets them apart.
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eToro Review 2023 – Cons
No platform is perfect though, so be aware of a few potential drawbacks to eToro:
- Limited research – Light proprietary research compared to thinkorswim or tastyworks for example.
- High withdrawal fee – $5 outbound withdrawal fee can add up for active traders.
- Limited customer support – Phone support has limited hours. Higher tiers get priority service.
- Spreads not ideal for active trading – Traders making many intraday trades may prefer a commission structure.
- Copy trading not risk-free – Be selective with who you copy. Past performance does not guarantee future.
- Complex fee structure – Numerous spread types, conversion fees, and rolling costs.
While eToro also excels at social trading and beginner education, frequent traders may desire more advanced research, lower-cost spreads, and better support response times.
eToro Cryptocurrency Offerings
One major focus area for eToro recently is expanding its crypto offering. They now support:
- 70+ coins – Major cryptos like Bitcoin, Ethereum, XRP, Litecoin and more.
- Crypto-to-crypto – Trade between cryptocurrencies directly.
- Leveraged crypto trading – Margin trade crypto assets up to 2x leverage.
- Crypto CopyTrading – Follow traders specialized in cryptocurrency trading strategies.
- Crypto Portfolio – Diversified portfolio product providing broad cryptoasset exposure.
With both crypto assets and social copy trading, eToro has become one of the best platforms for traders focused specifically on the cryptocurrency market.
eToro Mobile App Review
eToro offers mobile apps for both iOS and Android devices with no functional limitations compared to the desktop platform:
- Intuitive mobile interface – Easy to navigate and perform trades on the go.
- Mobile social trading – Follow and copy other traders from your phone.
- Price alerts – Get notified when crypto or stock prices hit certain thresholds.
- Paper trade – Test strategies risk-free on the mobile app.
- 75+ indicators – Perform technical analysis with charts and indicators.
- Video guides – Watch how-to trading tutorials right in the mobile app.
Given its full functionality, eToro’s mobile app provides one of the best trading experiences for on-the-go usability.
How Does eToro Compare Against Other Brokers?
Let’s see how eToro users stacks up against some other popular trading platforms:
Vs. Robinhood – eToro offers wider asset selection including forex and crypto. Its social trading features are superior to Robinhood’s more basic community forum. However, Robinhood comes out ahead for commission-free options trading.
Vs. Webull – eToro has broader asset classes while Webull offers better research and technical analysis tools. Webull also offers commission-free options while eToro lacks US options capability currently.
Vs. Coinbase – For pure crypto trading, Coinbase has far wider coin selection and lower trading costs. But eToro allows trading stocks, ETFs, forex, etc. alongside crypto.
Overall, eToro comes out very competitively in its peer group while differentiating itself through innovative social and copy trading functionality.
eToro Review – Is it Good for Beginners?
With its intuitive interface, virtual money trading, CopyTrader system, extensive educational resources, and 24/7 live support, eToro is excellent for beginners.
Key reasons eToro stands out for new investors and traders:
- Easy account setup – Get approved in minutes and fund your account quickly by card, wire transfer, e-wallet, or bank transfer.
- Virtual portfolio – Practice risk-free before placing real trades. $100,000 virtual money available.
- Guided experience – Interactive tutorials explain how to use the platform and find investment opportunities.
- CopyTrading – New users can replicate successful traders before developing their own strategy.
- Tips from Guru Finder – Seasoned “Guru” traders provide commentary and tips.
- Customer support – Get quick answers to any questions via live chat, email, or phone support.
While advanced traders may desire more powerful tools, eToro delivers an unrivaled experience for beginning retail traders.
eToro Review – Can You Trust?
With any investment platform, security and trust are critical. Here are some of the key assurances with eToro:
- Regulated – eToro operates under regulation in the UK, Europe, and Australia for fund safety.
- SSL encryption – Bank-grade security and data encryption protects user accounts and information.
- Segregated accounts – eToro holds customer deposits separately from company funds per regulations.
- Negative balance protection – Losses on a position cannot exceed the invested capital. No unexpected margin calls.
- Proven track record – eToro has operated successfully since 2007 with steady growth.
- 30M+ users worldwide
- Zero commission stocks and ETFs
- Free demo account upon signup
- 74 Crypto currencies
- Commodities Indices and Forex
- CFDs – up to 1:20 leverage
- Copy traders or follow users’ investment strategies.
- Popular investor program and with up to %2 of the AUM commission
- Club membership from $5k in equity
- User Friendly built for beginners
- Multiple deposit options
- eToro Money wallet
- Discover trends tool
- Economic calendar
Frequently asked questions
Q: eToro Review – Is this broker regulated?
A: Yes, eToro is regulated by several financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC) in Cyprus.
Q: Can I trade cryptocurrencies on eToro?
A: Yes, eToro allows users to trade a wide range of cryptocurrencies, including Bitcoin, Ethereum, Ripple, and more.
Q: How can I use eToro for crypto trading?
A: To use eToro for crypto trading, you will need to sign up for an account, deposit funds, and then you can start trading cryptocurrencies on the eToro platform.
Q: Does eToro charge trading fees?
A: Yes, eToro charges various fees for trading, including spreads, overnight fees, and withdrawal fees. It is important to review the fee structure on the eToro website before trading.
Q: Does eToro offer a mobile trading app?
A: Yes, eToro offers a mobile trading app that allows users to trade and monitor their investments on the go. The app is available for both iOS and Android devices.
Q: Is eToro a good platform for beginners?
A: Yes, eToro is often recommended for beginners due to its user-friendly interface, social trading features, and the option to copy the trades of successful traders.
Q: Can I use eToro for virtual trading?
A: No, eToro does not offer virtual trading. You will need to deposit real funds to start trading on the platform.
Q: Does eToro provide a dedicated account manager?
A: eToro does offer a dedicated account manager for certain account types, such as the eToro Club, which requires a higher minimum deposit.
Q: What are some of the features of eToro?
A: Some of the features of eToro include social trading, the ability to copy the trades of successful traders, a wide range of tradable assets, and a mobile trading app.
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eToro Review – Final Verdict – Is eToro Recommended?
eToro stands out as a highly innovative fintech disruptor shaking up traditional brokerages. Its social and copy trading tools make financial markets accessible to anyone.
Active traders may want more sophisticated desktop and mobile platforms for intensive technical analysis. But for the average buy-and-hold investor plus social-savvy millennial traders, eToro provides the ultimate one-stop-shop trading experience.
In summary:
- eToro is highly recommended for social trading, crypto trading, and copy trading. Their specialty social features have no rival.
- The platform is beginner-friendly but retains enough power for experienced investors and traders.
- Mobile experience is excellent with a fully-functional trading app.
- Range of assets classes keeps expanding, now including stocks, ETFs, options, crypto, forex, and more.
- Commission-free stock trading makes it cost effective for casual buying and selling.
If you value community, copy trading, and one central platform for accessing global markets – give eToro strong consideration in 2023.
Friendly platform, serious investors
74% of retail CFD accounts lose money