Etoro Review for Canada 2022
eToro was founded in 2007 and now has over 10 million users in 140 countries worldwide. The broker is registered in Cyprus and is a regulated Financial Conduct Authority in the UK with a cross-border license to operate in other European countries. eToro is also authorised by Australian Securities & Investment Commission and the Cyprus Securities and Exchange Commission.
eToro is great for cryptocurrency investing with over 15 coins available. It also offers social trading which allows you to copy and trade automatically based on the moves of other traders. However, traders are hit with high forex fees and withdrawing money can be a slow, expensive process. Let’s dive into our in-depth eToro review. For an in-depth look into the sector in general, check out our crypto trading review.
eToro: Pros & Cons
- Great social trading experience
- Strong crypto trading offering
- Easy-to-use platform with seamless account creation
- Low minimum funds required to open an account
- Withdrawal fee
- Service isn’t available widely in the US and only crypto trading available in US
When conducting our eToro review, we want to make sure that the general usability of the site is up to scratch. Ease-of-use seems to be at the forefront of eToro’s business model and special additions such as social trading make the website a joy to use.
Appearance and functionality
eToro’s website and trading app are truly a treat for those who like clean, modern design that’s paired with brilliant functionality. The colour scheme is pleasing whilst menus and buttons are clearly labelled and are exactly where you would expect them to be.
Furthermore, the built-in search function is predictive and extremely easy to use. You can also set price alerts and notifications with a click of a button.
eToro also has multiple bonus features like CopyTrader. This is an option that allows you to choose an investor you want to copy, click a button and you can mirror their trading positions automatically. This means that you will buy and sell as and when the trader does. Users can copy up to 100 traders simultaneously or simply track other traders’ portfolios, stats and risk scores.
eToro also offers a comprehensive portfolio and fee reports that allow you to keep on track with your investments. These reports offer a great insight into your performance and risk areas.
eToro hasn’t dropped the ball in the security department either. The broker has embraced cutting edge security protocols which include data encryption by default and a mechanism to prevent cyber-attacks.
User accounts are also secure as eToro customers are required to complete Level 3 Identity Verification, and updating account information requires dual-process verification.
An important aspect of our eToro review is to look at making payments. eToro makes it easy to deposit money with lots of available options to do so. However, withdrawing money will set you back and only USD accounts are available.
One thing to note is that eToro only allows USD accounts. This means that your funds will be automatically converted to USD by eToro. For example, if you deposit EUR, a 0.025% fee will be applied and the same fee will also be charged when you withdraw.
Making deposits on eToro
eToro charges no deposit fees but the minimum deposit is $200. Thankfully, there are a lot of depositing options, making it easy for all. These include:
- Bank transfer
- Credit/Debit card
If you decide to make a bank transfer deposit, it will take 4-7 business days to appear in your account but there is no maximum deposit limit.
However, credit/debit card and electronic wallet deposits are instant but the drawback is maximum deposit limits. Credit/debit cards have a $40,000 limit whilst electronic wallets can be either $10,000 or $20,000.
Making withdrawals on eToro
Unfortunately, eToro does have a $5 withdrawal fee which is high in comparison to other brokers, with many crypto exchanges not charging a fee at all.
eToro also has a $50 minimum amount limit on withdrawals. You can make a withdrawal using any of the above options, the same as making a deposit.
The time it takes to make a withdrawal on eToro depends on the method, please see the list below:
- Bank transfer – 2 business days
- Credit/Debit card – 3-8 business days
- PayPal- 1-2 business days
- Skrill – 1-2 business days
- Neteller – 1-2 business days
- WebMoney – 1-2 business days
eToro has a strong customer support team that you can reach on several different channels and can expect speedy, helpful answers. However, customer service isn’t available 24/7 as you can’t reach them on weekends.
You can contact eToro’s customer service one of two ways, either through live chat or a web-based ticketing system which will trigger a response via email. The customer service is quick and reliable. However, a downside is that you cannot contact them via telephone or on weekends.
eToro’s customer service is available in all of the 21 languages the trading platforms support.
eToro is fully regulated and compliant with top-tier financial authorities which consist of the FCA, ASIC and CySEC. However, some may be put off by the lack of a banking license and the fact that eToro’s financial information isn’t available publically.
eToro operates under three different authorities and each varies depending on where you live. This also means that the level of protection varies.
eToro UK regulation
UK citizens will be protected by the Financial Conduct Authority (FCA). If eToro was to become insolvent, UK users can be compensated by the maximum amount of £85,000 guaranteed by the Financial Services Compensation Scheme (FSCS).
eToro Australian regulation
eToro Australia is regulated by ASIC, the Australian financial authority. However, Australian clients don’t have much protection at all, with no obligatory compensation.
eToro other regulation
Other eToro customers will be regulated by the Cypriot watchdog, CySEC. These users can be compensated by the maximum amount of €20,000.
One thing to note is that there is no investor protection for cryptos as this market is not regulated. Despite this, eToro is always keen to resolve any issues as quickly as possible.
What’s eToro’s track record?
An important thing to consider when deciding whether eToro is safe or not is to take a look at its history. eToro was established in 2007 which means it has already survived one financial crisis, which is a very good sign.
Despite this, eToro is still considered a start-up and is not listed on any stock exchange. On top of this, it doesn’t make its financial statements available to the public. This means that the broker’s financial performance is largely unknown. However, the fact that it is highly regulated makes it trustworthy to many investors.
Positive eToro reviews all state that it’s easy-to-use, functional and is easily accessible for beginners. Many also report that customer service quickly resolved their issue and they also found the reports extremely helpful.
The more negative reviews tend to state that the fees are high and that buying trades using CopyTrader didn’t work too well for them. Of course, this isn’t necessarily the fault of eToro as they don’t decide what other traders are going to invest in!
eToro is a brilliant tool for those looking to get into cryptocurrency trading. It offers a wide range of coins to invest in and is now available to trade crypto in the US. On top of this, the website is incredibly user-friendly and is accessible for all traders, whether a beginner or expert. It’s intuitive to use and the helpful reports make it easier than ever to invest.
What really sets eToro apart is the additional features. CopyTrader is a brilliant asset that allows anyone to copy the moves of top traders. This invaluable insight will prove to be a huge selling point for many.
eToro does suffer from some minor drawbacks though. Not only are the fees fairly high but also only USD accounts are allowed. The limitations in the US also don’t make this broker accessible for all. If you are looking to mainly trade in stocks, this might not be the one for you with only 16 markets on offer.
So, what did you think of our eToro review – will you try it out?