eToro Review

Here Are the Pros and Cons of eToro

eToro fact sheet

Security is one of the biggest priorities eToro has. They have standard FDIC and SIPC insurance, as well as additional insurance policies. Along with those it comes with a great two-factor authentication system and crypto is stored on cold storage when it is on the eToro trading wallet.

eToro is really well regulated as they offer services other than cryptos, which a lot of governments see as a good sign. Because of this, we see way fewer disputes between them and government bodies, unlike with other big exchanges such as Binance.

This is a list of regulatory bodies that have licensed eToro's operations:

• Financial Conduct Authority (FCA) of the UK, eToro UK
• Cyprus Securities and Exchange Commission (CySEC), eToro Eu
• De Nederlandsche Bank N.V (DNB) of the Netherlands, eToro Eu
• FinCEN, eToro U.S
• Australian Securities & Investments Commission (ASIC), eToro AUS
• Seychelles Financial Services Authority (FSA), eToro Eu

With these many licenses, we can say that eToro is a safe place to do business, and gives investors a sense of security when investing using this platform.

Security measures of eToro

As we mentioned, eToro has really good security. It implements different protocols to protect traders' funds. From crime insurance to cold wallet utilization, they take care of security.

All USD is insured by FDIC and SIPC, alongside other insurance companies, depending on your country of residence.

eToro has a great two-factor authentication mechanism in place, which protects users' accounts and wallets. The only way someone accesses your account is through your verification alone.

If all that wasn't enough, eToro also uses cold wallet crypto storage. When your crypto is in your trading wallet, it is stored in a cold wallet, which secures your funds even more. But if your crypto is on the eToro money crypto wallet it is stored on the blockchain (hot wallet). If you are worried about your funds being stolen, we suggest not keeping them in your money crypto wallet.

eToro is not only a crypto exchange, it has other assets available for exchange. Because of this, the selection of cryptos available for trade on eToro is limited to only 71, but the most famous and traded cryptos are still available for traders to invest in.

You might look at this limited selection of cryptos with a negative eye, and it is understandable, but this limited selection avoids the need of figuring out which are shitcoins and scamcoins, as these are flooding other exchanges, which do not regulate what cryptos are being traded.

Another benefit when it comes to trading crypto on eToro is that it is completely free to copy the trading strategies of well-established traders.

Here is the list of some cryptos you can trade on eToro:

• Bitcoin
• Ethereum
• Bitcoin Cash
• XRP
• DASH
• Cardano
• Stellar
• Tron
• Chainlink
• Dogecoin

This is not a full list of cryptos available on eToro, but you can check the complete list out on their site if looking for a specific one.

When trading on eToro, your trading experience can also be affected by where you reside. With different regulations in different countries, fees and cryptos available for trade can differ slightly. For example, different US states have different policies when it comes to trading crypto. So if you live in California, your trading experience might slightly differ from someone living in Texas.

While conducting research for this review, we found five different fees and commissions which eToro has.

Conversion fees

Conversion fees come in when trade is being done in a non-USD currency. So, if we deposit or withdraw using a currency other than USD we will be charged conversion fees. But who charges those fees depends on what currency we deposit. eToro supports EUR, GBP, AUD, IDR, MYR, DKK, NOK, PLN, VND, PHP, SEK, RMB, THB, and CZK and they are the ones charging conversion fees when using these currencies. But, if we use other currencies from the mentioned ones, transaction fees are calculated and charged by the payment provider.

These conversion fees can vary depending on the payment method, the currency used, and your eToro club level.

Spread fees

Spread is the difference between the bid (Sell) and ask (Buy) price. This commission is charged by the broker on every transaction.

eToro offers us two-way buy and sell prices. The higher of the two prices is the buy price the customer pays. The price the customer sells at is the lower price. These buy and sell levels are also called ask and bid prices. 

Let's say the bid is 2.347 and the sell is 2.341, then the spread is the difference between these two prices; in this case 6 pips.

Overnight fees

If you hold a CFD position overnight you are charged a rollover fee. These fees are not unique to eToro. They are used to cover the costs of your position.

Overnight fees are not fixed and it depends on the value and the direction (Buy or Sell) of your position.

Withdrawal fees

Withdrawal fees are fixed at $5 when the transaction is made in USD. If the withdrawal is done in any other currency the aforementioned conversion fees are also applied.

Inactivity fee

If you don’t log in to your account for more than a year, a fee of $10 will be charged every month from your available balance. If you have any open positions, those positions won’t be closed to cover these fees. Once you log in to your account again, the charging of fees will be stopped. 

Crypto transaction fee

Crypto transaction fees are 0.5% of the transaction size. The minimum fee is $1 while the maximum is $50. Also, these fees are deducted in units. 

There are also blockchain-associated fees, which are not controlled by eToro as blockchains are external and fees depend on which blockchain is used to complete transactions.

When it comes to the eToro website, there are not many exchanges that have a better website than eToro. 

The eToro website is really easy to navigate. Since it is not only a crypto exchange platform, you might think that it will be a cluster, but with a smart navigation menu, and eye-pleasing visuals, you should not have a hard time finding what you are looking for.

The website also has a great customer support and FAQ sections that will help you with almost every problem you could encounter. If you still find it hard to find a solution, there is live customer support available.

When it comes to trading with cryptocurrencies, eToro falls short when compared to some of the other big exchanges. eToro traders have access to spot and leverage trading but when it comes to crypto futures, eToro does not offer this service.

There is one good feature that might compensate for the lack of futures and this is eToro's Converts feature which gives traders the possibility to instantly trade one crypto for another. It also has P2P trading where traders can directly trade with each other and decide the price themselves. 

Along with all this, eToro also offers staking of Cardano, Tron, and Ethereum with relatively high APYs.

Research and education are also one of the strong sides of eToro. They categorize their Academy into four categories. 

News and Analysis is where they inform us about everyday news in both crypto and finances. 

eToro Academy is where they upload different guides and videos about investing, trading, and crypto for both beginners and advanced traders.

eToro Plus is aimed at more experienced traders and investors with in-depth information about global news in finances, crypto, and other relevant topics. 

The Bull Club publishes articles about and from famous and successful investors and financial leaders.

Pros & Cons of eToro Education

Customer support is a department eToro does not lack. You can find almost everything that you are looking for and if you fail to do so, there is a live support team available to help you with your problem.

If you prefer phone communication, there is a support hotline available for questions and complaints: 1-888-271-8365

eToro is easy to navigate your way through. It has a user-friendly interface and you can find anything you are looking for in a really short space of time. It also offers a virtual portfolio (like a demo account) where you can trade with virtual money and hone your trading skills.

eToro's app is available for both Android & IOS. But unlike some other crypto exchange mobile apps, it does not offer pro and basic versions. That being said, it is well-designed and optimized for mobile use. The app also has eToro money, which is designated to better manage and hold your cryptos.

It is a simple process when it comes to creating your account on eToro but you should take into consideration that eToro does not accept users from certain countries. So before getting started, make sure that your country falls under the list of countries that eToro supports.

Step 1: Creating an account

When it comes to creating an eToro account, things are really simple. You have a few options to choose from as to how you are signing up; email, Apple, Facebook, and Google accounts are all accepted. 

When signing up using an email, all you need is an email address, password, and username. Once you enter all of this information you will need to accept their terms and conditions and acknowledge that your information will be used in accordance with their privacy policy. The last step will be to confirm your email via a link that they send to you and after that, you are ready for verification. 

Step 2: Verification

When you create an account, you will need to complete your account and pass the verification process in order to be able to access eToro features and start trading.

Before verification, you will also be asked to provide some basic information about yourself, such as your address, average income, profession, trading budget, trading time frame, and expected returns.

After this, you will be asked to provide a photo of your ID. Then we have to wait up to 3 days for verification to complete and we are ready to start trading.

After conducting research on eToro, we can say that it is one of the best trading platforms if you are interested in trading with well-established cryptos. eToro is not just a crypto exchange as you are also able to trade stocks and other types of assets, which a lot of people might find comfortable. If you are a crypto trader who is also interested in stocks eToro might be the place for you.

Their educational section is one of the best on the market as they have articles, guides, reviews, and videos on both crypto and finance. You are able to gather huge amounts of information from this academy feature that will undoubtedly help your trading career.

Their Help Center is a well-crafted place, where you are able to find almost anything you are looking for, and if not, there is always the live customer support function.