eToro Review: Pros & Cons, Fees & More

This content is not intended for US users. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Frequently touted as the world’s leading social trading platform, eToro brings a lot to the table. However, there are some cons that potential customers should be aware of before investing their money.

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Quick Verdict

eToro has CopyTrader and SmartPortfolio capabilities which certainly impress, not just for their quality but also for ease of use. These world-class features are designed on a unique interface that fosters a social environment where investors can connect with like-minded investors. 

The platform's cons include currency conversion fees and fees to withdraw fiat. However, given the immense value that CopyTrader and SmartPortfolio bring, you might be able to see through these.

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Pros

• USD only, meaning currency conversion fees will apply.
• World-class copy trading capabilities.
• Straightforward platform to use.

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Cons

• Fees to withdraw fiat currency.
• It lacks the sophisticated analytical tools some traders might prefer.

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Get started and create an account with eToro.

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The eToro Features We Liked

CopyTrader

eToro is one of the premier social trading platforms, largely due to its CopyTrader feature. The feature is complemented by a global community of asset investors who want to see how more experienced and successful investors do it. 

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eToro investors can browse many successful investors and copy their trading moves. Each subsequent trade a trader makes is automatically executed using the available trading account amount. And with a $200 minimum deposit, it has a low barrier to entry, and the feature is accessible to the general public. 

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eToro provides a complete view of the trader's data, portfolio, and equity curve for their previous performance. Potential investors might study each trader to ensure their trading technique and risk exposure are consistent with their risk tolerance and profit expectations. 

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The take profit and stop loss inputs of the investor being copied are displayed for transparency. The risk rating, number of copy-traders, and assets under management are common variables to evaluate. 

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Crypto trading

We found eToro’s crypto trading hub rather simplistic compared to the sophisticated and feature-rich interfaces of Bybit and Binance, which we reviewed recently. 

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eToro users can trade over 240 cryptocurrencies on its TradingView-powered interface. Although overlays are retained if the user switches tabs or the chart is closed, there is a limited selection of analytical tools and indicators.

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As a testament to the interface's simplicity and clutter-free nature, there are no order books to assess various assets' trading volume or liquidity. Further, order types comprise limit and market, and no additional risk management tools are available. 

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Smart Portfolios

Smart Portfolios are pre-built investing portfolios made up primarily of stocks and ETF investments, which users can set up to automatically invest in. Each portfolio has a distinct investing strategy, and while some are developed by other eToro users, many are pre-built by eToro or its partners. 

Smart Portfolios are split into different categories to assist users in choosing the ones that suit their strategy. Categories include software, technology, financial services, crypto, ETFs, retail, medicinal technology, manufacturing, energy, processing, and consumable and durable goods.

The minimum investment amount is $10, meaning that the barrier to entry is low.

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

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Demo trading 

Registering an account on eToro is free, and new users can start with a $100,000 cryptocurrency trial trading account to get to know the platform's products, features, and user interface. The practice mode looks identical to a real account, and users can easily switch between the genuine and demo modes.

The sample account lets users access all of the normal platform's capabilities, including CopyTrader, CopyPortfolio, and placing orders on cryptocurrencies. Users can use the demo funds to trade equities, cryptocurrencies, CFDs, and even Forex. This is a fantastic feature since it lets users explore the platform, practice copy-trading, and buy crypto without risking their own funds.

Note: eToro USA LCC does not offer CFDs, only real crypto assets are available.

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Storage wallet

Purchased cryptocurrencies and assets are near-instantly transferred to a simple wallet. 

From this location, cryptocurrencies can be transferred to an external wallet. The crypto wallet is integrated into the eToro mobile app and is the sole option for withdrawing cryptocurrency from the platform.

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Fiat Currencies and Deposit Methods

One of eToro's cons is that it only uses US dollars. This means that people who live in other jurisdictions or choose to deposit in fiat currencies other than USD will be charged a conversion fee. The conversion cost is calculated using percentage points (pips). Having said that, eToro supports the depositing of numerous fiat currencies, including AUD, EUR, GBP, and CAD.  

Deposit methods include credit and debit cards, Neteller, and Skrill to send money to an eToro account. Each method has its limits, jurisdictional restrictions, and deposit times. 

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eToro Fees

Fiat deposit fees

eToro does not charge any fees for customers who deposit fiat currencies. However, given that non-USD fiat will automatically be converted to USD when deposited in eToro, a currency conversion fee will apply.

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Crypto trading fees

eToro trading costs for cryptocurrency currencies are computed using a flat rate of 1% per order plus a trading spread that varies based on the asset purchased and sold on the platform. That is, since Bitcoin will have a larger trading volume, lesser-known altcoins will have a larger spread.

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Withdrawal fees

For Silver and Gold eToro members, withdrawing cash from the platform will cost a $5 fee in addition to the currency conversion fee. However, Platinum, Platinum+, and Diamond members will not be charged withdrawal fees for non-USD currencies.

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Using eToro

The eToro interface has a simple and unique layout and navigational experience compared to traditional crypto exchanges. The interface is separated into broad categories that aren’t necessarily intuitive to follow. Despite the relatively short learning curve, it can take a while to remember where things are. This is where the free demo mode comes in.

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That said, depositing funds, copying traders, buying crypto, and switching to demo mode is very straightforward and it's hard to see many users having any difficulties.

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As previously highlighted, eToro provides TradingView charting but lacks order books and other features such as long and short panels and numerous order types to confuse the everyday person. While traders have access to all they tools they need to analyse the price action of crypto, there isn’t too much clutter that might pose as distracting. The con is that some traders might prefer a more in-depth and feature-rich interface.

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Final Verdict

eToro is one of the most popular and heavily used multi-investment asset platforms. Famed due to its copy trading and social community, the platform has caved itself into a niche that is not only accessible to the general public but delivers on it extremely well. 

Prospective customers who want more features and markets could look elsewhere, but they are not likely to find an alternative with a social community and following as strong as etoro.

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We aim to publish factual and accurate information as of the publication date. For specific information about a cryptocurrency exchange or trading platform please visit that provider's website. This information is general in nature and is for educational purposes only. We do not provide financial advice, nor does it take into account your personal financial situation. We encourage you to seek financial advice from an independent financial advisor where appropriate and make your own inquiries.

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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice.  The value of your investments may go up or down.  Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more. 

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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