Founded in 2007, eToro has 13 million users in 140 countries around the globe. Offering investors and traders access to purchasing stocks, cryptocurrencies and CFDs (or contracts of companies as opposed to assets) this platform is growing in its popularity with investors.
eToro also offers social trading options, which will be discussed in more depth later in this eToro review. As a company whose underlying motto was to make the world of trading more accessible when it launched over a decade ago, has it helped to make the world of investments easier for those new to trading?
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At a cursory glance, it is straightforward; its white background and logos across the page make it very engaging and easy to use, and it feels more like a regular webpage than a trading platform due to this. The mobile app is much the same, with a fast loading time and a simple interface; there is also the option to login using Facebook or Google.
The site’s trading volume was revealed to have hit $1.5 trillion at the end of 2020, with a gross revenue to the site of $600 million.
There is an entire subsection of the site dedicated to education, helping newer investors to develop their confidence, which even includes a Podcast, video tutorials and sections on social trading.
Is the page safe to make payments/trades on? All services, from eToro crypto to the buying of regular stocks are protected by SSL encryption, to keep all your personal information safe, alongside HTTPS.
The accounts are easy to access and the digital wallets for cryptocurrencies are clearly displayed on the ‘cryptocurrency’ section of the homepage.
Here, we shall show you how to purchase and trade both stocks and cryptocurrencies on eToro; we will also discuss how to social trade.
Now, onto purchasing regular stocks on this platform.
When you are looking to begin trading on Etoro, the platform seems to support numerous options for making deposits and withdrawals. For instance, it supports PayPal for both deposits and withdrawals, alongside regular debit and bank cards, all of which are recommended by the site itself. You can also deposit and withdraw with other e-wallets besides the site’s own eToro wallet.
Depending on your location, the minimum amount for a deposit is $200. For purchasing stocks, there is no commission fee, and as mentioned before, for cryptocurrencies there is a variable fee. There is an inactivity fee of $10 per month, so this site likes its investors to be active.
For withdrawing funds, there is an average wait of 3-5 business days and if you are looking to make a small withdrawal, the lowest amount is $30, which carries the standard $5 fee.
As is the way with eToro generally, the customer service seems on-point. There is a help centre which addresses commonly asked questions about everything from trading to your account and, should you need to, you can talk with a representative 24 hours per day, Monday to Friday, making the website feel more accessible.
Should you need to talk in a bit more depth, the site offers a support ticket and there is an accessible complaints procedure if you are unhappy. You can download the site in multiple languages and yes, it seems that support is available in all of these languages too, helping it feel more like a global platform.
It seems the support section does have a hotline based across the different countries that the platform operates in, but we needed to perform a Google search to find these numbers, which is quite odd.
While we have discussed the safety features of this platform earlier, you will probably want to know about the licences that this exchange had alongside the security features; does it have similar issues discussed in our recent Forex.com review or XM.com.review?
In relation to protecting the investors, as soon as you sign up for an eToro account, you are given free investment insurance worth up to 1 million Euros/ GBP or AUD. There is no need to register for this which is a real bonus and once again, highlights that this platform takes the safety of its investors seriously.
Global licensing to trade is covered too, with everything from FCA to the ASIC and as the platform itself is based in Cyprus, the company itself is regulated by the Cyprus Authorities and Exchange Commission (CySEC).
To protect against underage trading, when you sign up for your eToro account, you must have a valid passport or government-issued ID card as identification.
As stated earlier, it seems that on average, eToro has a good reputation with traders, regardless of their level of expertise.
However, there have been past incidents of issues in relation to withdrawing funds and customer feedback, similar to issues raised in our recent Prime XBT review or those discussed in the SwissQuote review. But, it seems the site has learned from these errors and now offers a consistent level of support to its users, via FAQs sections or chatting with representatives.
It is also easy to find the complaints section, so the platform is clearly working on improving its overall customer service and reputation with traders.
It is a question asked by many who are new to the world of online trading- what exactly are cryptocurrencies? During this eToro review, we will try to answer this without becoming too technical!
In short, a cryptocurrency is a type of digital money that can be purchased and traded on platforms like eToro and is stored securely online in a digital wallet. Each crypto coin that you purchase is heavily encrypted, which reduces the risk of your wallet being hacked and your cryptocurrency being stolen. Technically, you can create new cryptocurrencies, but this is difficult and so, many investors trade and purchase ones already in existence.
eToro’s crypto trading involves more popular cryptocurrencies, such as Bitcoin, Ethereum, Ethereum classic and newer currencies such as Dash or Cardano. To purchase an eToro cryptocurrency, you can use a regular debit or bank card, or you can do so using another e-wallet like Paypal or Skrill. If you make a profit on your investment or trading, you are now able to transfer these earnings and use the eToro debit card, which went into circulation in 2020. Very handy for real-world purchases and transfers!
When you open an eToro account, it is free to sign up and there are no fees for some of the site’s more unique features.
Even if you start using your account to mirror other investors, the site charges no management fees and 0% commission on stocks with no additional fees for brokers.
When buying eToro cryptocurrency, the site has a similar system in place as many other trading sites; the fee you pay depends on the cryptocurrency and its spread (its buy and sell prices); eToro Bitcoin, for instance, has a 0.75% spread, whereas another eToro crypto like Ethereum has a spread of 1.90%.
Luckily, the site’s fee section is crystal clear for crypto brokers, and can be found under the ‘Trading’ section on the main homepage! Regardless of the withdrawal amount, there is a standard fee of $5.
When it comes to eToro crypto trading or the purchasing of regular stocks, it is important to know about the platforms global limitations and regulations. Is your money safe when you trade crypto on eToro?
It seems that it is; as eToro trades from Cyprus, it retains its cross border license to trade in other European countries and it serves its UK traders through the Financial Conduct Authority or FCA. If you are trading from Australia, it offers the same protections through the Australian Securities and Investment Commission or ASIC.
If you trade from any state in the US, Hawaii or the Virgin Islands, in 2020, eToro launched a rollout to offer this option and can protect your trades with Real Trading. However, Etoro’s Crypto India trading platform at present does not exist, with no future launches planned.
As mentioned earlier, you can also trade regular stocks on eToro, ranging from NASDAQ to penny stocks. There is also the choice to invest and trade in CFDs (Contracts For Differences), a derivative product that traders and investors use to speculate on the direction of a company’s future price. For example, one of the most popular CFDs traded on eToro is Google which, based on its stock value, a CFD may or may not make a profit.
If you are new to the world of trading, eToro can offer you an interesting insight into how to trade.
There is the option to ‘copy’ other traders; this enables you to automatically trade based on the moves of selected traders that you want to ‘shadow.’ You simply choose an investor you want to emulate, and just by clicking a button, your trading, selling and purchasing will mirror theirs! This allows you to learn from more experienced investors, without the tedium of constant messaging or asking questions. To copy another user, the minimum amount to deposit is $200 and the maximum is $50,000 but you can mirror up to 100 other traders simultaneously. Very useful!
So, what are the conclusions of our eToro crypto review and the site’s general feel?
The platform is straightforward to use and with this ease of use, it has become popular with investors and traders globally; it is almost a household name in the cryptocurrency market. Like many other platforms, its emphasis is on making trading easier to grasp for many, so it lives up to its original motto.
There is some general confusion surrounding a lack of an eToro crypto review India, or even the sites presence in this country; apparently, if you attempt to set up an account from this country, it will be blocked, which excludes a large chunk of the global market.
However, the platform is sound, has a high trading volume, its customer support is second to none, and its minimal fees make it perfect for those dubious about investing.