Here Are the Pros and Cons

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. Additionally, 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 governing bodies.

This is a list of regulatory bodies that have licensed eToros’ 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 eToro.

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.

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.

eToro also utilizes cold wallet storage which means that when your crypto is in your trading wallet, it is stored offline, which secures your funds even more. But if your crypto is on the eToro money crypto wallet it is stored on a 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 trade. Because of this, the selection of cryptos available for trading 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 keeps all the shitcoins and scamcoins out, which are flooding other exchanges.

Another benefit when it comes to trading crypto on eToro is that it is completely free to copy the trading strategies from well-established traders, as well as to have your own strategy.

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 there are other good cryptocurrencies most of which are established and have high potential.

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 U.S states have different policies when it comes to trading crypto, so if you live in California, your trading experience might 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 non-USD currency. 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 also vary depending on the payment method, the currency used, and the eToro club level.

Spread fees

Spread is the difference between Bid (Sell) and Ask (Buy) prices. 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 prices are also called “ask” and “bid”. 

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 rollover fees. 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 login into your account for more than a year, a fee of $10 will be charged every month from your available balance, but if you have any open positions, those positions won’t be closed to cover these fees. Once you log in to your account, 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 and how busy the network is.

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 your way through. 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 has a great customer support section and FAQ area which 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 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.

eToro has one good feature that might compensate for the lack of futures and it is its Converts feature which gives traders a 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. 

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 - where they inform us about everyday news in both crypto and finances. 

eToro Academy - 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

The eToro mobile app is easy to navigate, it has a user-friendly interface and you can find anything you are looking for in a really short time. It also offers a virtual portfolio where you can trade with virtual money and hone your trading skills.

The eToro app is available for both Android & IOS. But unlike some other crypto exchange mobile apps, it does not offer pro and basic versions of the app. But it has eToro money, which is designed to better manage and hold your cryptos.

It is a simple process when it comes to creating your account on eToro but take into consideration that eToro does not allow users from certain countries, so before getting started, check if your country falls under the list of countries that eToro does not support.

Step 1: Creating an account

When it comes to creating an eToro account you have a few options to choose from as to how you are signing up. Email, Apple, Facebook, or Google. 

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 and 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, preferred trading timeframes, 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.

If your home address is not shown on the ID you provide then you will have to also provide proof of residence in the form of a bank statement, utility bill, etc.

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 with stocks and other types of assets. If you are a crypto trader who is also interested in stocks eToro is the place for you, as well as for those who only want to trade crypto.

Their educational section is one of the best on the market as they have articles, guides, reviews, and videos on both crypto and finances. You are able to gather huge amounts of information from their 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 option.