eToro Review 2024: Social Trading, Fees, and Security

If you want to trade and invest online, you might have heard of eToro. It’s one of the most popular social trading platforms in the world, where you can join a community of millions of investors and learn from their strategies.

eToro was founded in 2007. You can trade and invest in many different assets on eToro, such as cryptocurrencies, stocks, ETFs, commodities, and currencies.

But how do you know if it is the right platform for you? In this eToro review, we will tell you everything you need to know including its advantages and disadvantages, its features and fees, its security and reputation, and how it compares to other platforms in the market.

Key Takeaways:

1. eToro lets you trade in more than 75 digital assets, as well as stocks, ETFs, commodities and currencies.
2. It is regulated by multiple authorities and keeps your assets safe.
3. It is ideal for beginners or intermediate traders who want to learn from others, diversify their portfolio, or access the crypto market

eToro Overview

Is eToro Legit and Safe to Use?

Yes, eToro is a safe and legit online trading platform that lets you trade various assets, such as cryptocurrencies, stocks, ETFs, and more. 

It follows the rules and regulations of different authorities around the world, such as the FCA, ASIC, CySEC, and FinCEN. 

It also uses high-level security measures to safeguard its clients’ money and data. On Trustpilot, eToro has a good score of 4.4 out of 5 from over 20,000 reviews. 

What is eToro?

eToro is the best social trading platform and crypto exchange that lets you trade stocks, crypto, and more. It started in 2007 and has many regulators around the world. It also has a huge community of over 30 million users.

One of the best features of eToro is that you can connect with other investors, learn from them, and copy their trades. You can also choose from smart portfolios, which are collections of assets that focus on a theme, like green energy, digital assets, or gaming.

eToro has no hidden fees, and you can use different ways to pay, like eToro Money, which is fast and free. It also uses CFDs, which let you trade with leverage and sell assets that you don’t own.

If you only want to trade cryptocurrency and nothing else, you can use the eToroX platform, which has lower fees. But it does not have CFD trading or the variety of markets that eToro has.

Pros of eToro

1. Trade many kinds of assets, like stocks, ETFs, and cryptos
2. Follow and copy other traders and get rewards for it
3. Easily move your crypto holdings to another platform
4. Easy to use and user-friendly interface

Cons of eToro

1. Not all crypto coins are supported
2. Comparatively high trading fees

eToro Key Features Reviewed

Here are some of the key features of eToro:

1. Follow successful traders and replicate their trades
2. Diversify investments with different asset classes
3. Practice with virtual trades up to $100,000 USD
4. Trade fractional shares and leverage trades up to 30x
5. Earn staking rewards
6. Stop-loss and take-profit alerts for maximizing your profits
7. Free investment insurance for hacking or asset losses

Let’s discuss some of the most popular ones in more detail.

CopyTrader Review

With eToro CopyTrader feature, you can trade like a pro. You can follow and copy the trades of other successful investors on eToro. 

You can choose who to copy from thousands of traders based on their performance, risk level, portfolio, and more. You can also control how much you want to invest and stop copying whenever you want. 

CopyTrader is free to use and can help you diversify your portfolio, learn from experienced traders, and potentially increase your profits.

Smart Portfolio Review

It offers a portfolio management service with fully automated trading systems. You have the opportunity to invest in professionally managed portfolios that are focused on specific asset class or strategies. 

These portfolios include a range of assets such as stock trading and other investments. You get to choose from a variety of themes like medical cannabis, crypto, ESG, and more, depending on your interests and preferences.

What’s great is that you can also access people-based portfolio indexes. The aim of eToro Smart Portfolio is to help you reduce long-term risk while optimizing returns. 

It does this by automatically rebalancing your portfolio according to market conditions. This way, you don’t have to constantly monitor and make adjustments yourself. 

Demo Account Review

You can practice trading with a $100K virtual trading portfolio and access all the markets, tools, and features that eToro offers, such as stocks, crypto, commodities, currencies, indices, ETFs, social trading, and more. 

eToro Demo account is an excellent tool for beginners to learn about the markets and hone their trading skills at their own pace. You can also switch to real trading easily when you are ready.

CFD Trading Review

CFDs are derivatives that let you speculate on the price movements of an underlying asset without owning it. 

CFD trading can offer you more flexibility, leverage, and short-selling opportunities than traditional trading. However, trading CFDs also involves higher risk and fees than direct ownership of the assets

Crypto Staking Review

eToro Crypto Staking supports three crypto assets right now: Cardano (ADA), Tron (TRX), and Ethereum 2.0 (ETH2). Each one has different rules, rewards, and availability.

• If you want to stake ADA or TRX, you can do it on the eToro investment platform. It supports the Cardano staking pools. You need to hold the crypto for at least 9 days for ADA and 7 days for TRX before you start getting rewards. The rewards are paid out every month and they depend on how the network is doing and what your membership level is on eToro. The yearly reward rate can be anywhere from 0% to 5% for both ADA and TRX.
• If you want to stake ETH2, you can do it on the eToro Money app. You need to move your ETH from the eToro investment platform to the eToro Money app. You can earn from 0% to 6.25% APY for ETH 2.0.

eToro Supported Assets Review

You can trade and invest in more than 3,000 financial instruments on the eToro platform, including stocks, crypto assets, commodities, currencies, indices, and ETFs. 

Some of these instruments let you own the actual assets, while others let you use features like leverage and short (SELL) orders.

You can trade over 3162 stocks from 17 different markets, including the US, UK, Germany, France, Spain, Italy, Australia, Hong Kong, Japan, and more.

You can also trade over 323 ETFs (exchange-traded funds) from various categories, such as technology, energy, healthcare, commodities, real estate, and more.

Moreover, you can trade over 74 cryptocurrencies on eToro’s cryptocurrency trading platform. You can trade popular coins such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), Cardano (ADA), Stellar (XLM), Dogecoin (DOGE), and more.

It also supports crypto crosses (pairs of cryptocurrencies) such as ETH/BTC or XRP/BTC.

eToro Fees Review

There are five main kinds of fees that you need to know about:

1. Conversion fee: This is for deposits and withdrawals that are not in US dollars. eToro only uses US dollars as the base currency, so if you use any other currency, you will have to pay a conversion fee based on the market rate. The conversion fee changes depending on the currency pair and can be from 0.025% to 1%.
2. Spread: It is the gap between the buy and sell prices of an asset. The spread is how eToro makes money from your trades. The spread changes depending on the asset and market conditions and can be from 0.75% to 5% for crypto.
3. Overnight fee: This is also called a rollover fee and it is for holding a CFD position overnight. A CFD is a contract for difference, which means you are trading the price difference of an asset without owning it. The overnight fee changes depending on the asset and market conditions and can be positive or negative. like, if it is positive, you may earn some extra money for holding your positions.
4. Withdrawal fee: It is a fixed fee of $5 that eToro charges for every withdrawal request. You can withdraw your funds to your bank account, credit card, or e-wallet.
5. Inactivity fee: This is a fee of $10 that eToro charges every month after 12 months of no login activity. You can avoid this fee by logging into your account at least once a year. This is only for users who hold assets on their eToro account.

What is the minimum deposit amount on eToro?

If you live in the US and want to use eToro, you need to deposit at least US $10 for your first transaction. 

This amount may be different for other countries and regions. For example, some places like Israel have a minimum of US $10,000 for the first deposit. 

If you use a wire transfer, the minimum is US $500. After that, you can deposit as low as $50 (or $10 in the UK and USA).

What is the minimum withdrawal amount on eToro?

eToro platform allows you to withdraw a minimum of $30 to your bank account or your eToro mobile wallet app. It doesn’t matter how much money you withdraw, you always have to pay $5. 

eToro Security Review

1. Regulations

eToro is regulated by multiple authorities in different places, such as the FCA in the UK, the CySEC in Cyprus, the ASIC in Australia, and the FINRA in the US. 

This means that eToro has to follow strict rules and standards regarding customer protection, anti-money laundering, data privacy, and more. Hence, we can say that eToro is safe for trading.

2. Segregation

eToro keeps your funds in different bank accounts from its own funds, which means that your funds are not used for any other investments than your trading activities. It works with reputable tier-1 banks, such as Barclays, Coutts, and Natwest.

3. Encryption

eToro uses advanced encryption technology to secure your personal information and transactions on its platform. It uses SSL encryption, which is a standard protocol for online security.

You can choose what information you want to share with other users on the platform, such as your portfolio, trading history, news feed, etc.

What are the risks of using eToro?

1. Market risk: The prices of financial assets can change unpredictably due to various factors such as supply and demand, news events, economic conditions, etc. You may lose money if the market moves against your positions.
2. Leverage risk: eToro offers leverage up to 1:30 for some CFDs, which means you can trade with more money than you have in your account. However, this also increases the potential losses if the trade goes wrong. You may lose more than your initial investment and may be required to deposit additional funds to cover the margin call.
3. Liquidity risk: Some assets may have low liquidity, which means there may not be enough buyers or sellers at a given price. This may result in slippage or delays in executing orders, which may affect the profitability of the trade.
4. Operational risk: eToro may experience technical issues or system failures that may prevent you from accessing or using the platform. This may result in missed opportunities or losses due to inability to open or close positions.
5. Regulatory risk: it is subject to various laws and regulations in different jurisdictions that may change over time. This may affect the availability or functionality of some services or assets on the platform. You should always check the legal status of eToro in your country or region before using it.

eToro Club Review

eToro provides a loyalty program known as eToro Club. It rewards users based on their account balance and trading activity. The program consists of five tiers: Silver, Gold, Platinum, Platinum+, and Diamond.

Each tier offers various advantages and privileges, including reduced fees, higher leverage, exclusive market analysis, personalized account managers, event invitations, access to CopyPortfolios, and more.

Participation in the eToro Club is free, and you can join by maintaining a specific equity amount in your account. The minimum equity requirements for each tier are as follows:

• Silver: $5,000
• Gold: $10,000
• Platinum: $25,000
• Platinum+: $50,000
• Diamond: $250,000

Equity is determined by calculating the market value of your assets at the end of each day. Check your account dashboard for live balance.

eToro Customer Support Review

The main way to get help from eToro is to send them a ticket online. You can fill out a form with your question or problem and wait for an answer. The customer service can speak all 21 languages that the platform offers.

eToro customer service is not very impressive compared to other brokers and platforms. Many users have complained about the response time and the lack of phone or live chat in some regions.

eToro Alternatives and Comparison

How to Use the eToro Trading Platform?

Step 1: Create an account on eToro. You can use your email, Facebook, or Google account to sign up. You will have to verify your identity and fill in some personal details.

Step 2: Find the crypto you want to trade. You can type the name of the crypto in the search bar or go to the crypto category on the left menu. You can also make a watchlist of the cryptos you like.

Step 3: Click on “Trade” on the crypto page. A pop-up window will appear where you can choose to buy or sell, enter the amount, leverage, stop loss, and take profit settings. You can also place a market order or a pending order.

Step 4: Confirm your trade and watch your position. You can see your open trades on the portfolio tab. You can also close your trade manually or set a close at profit or close at loss option.

Final Thoughts: Is eToro Worth it?

In this eToro review, we have learned that it is the best crypto copy trading platform. eToro has many good things, such as a simple and easy platform, a loyalty program called eToro Club, a mobile app called eToro Wallet, and a secure and regulated web platform.

So, eToro is worth it if you want a platform that has social trading and copy trading features, many assets and markets, real assets for stocks and ETFs in most markets, and a licensed platform.

But eToro is not worth it if you want a platform that has low spreads and fees, want to trade low-cap crypto coins, or use a decentralized trading infrastructure.

eToro Review: FAQs

Is eToro a good trading platform for beginners?

eToro trading platform is a suitable choice for beginners who enjoy the social aspect of trading. It has a user-friendly and simple interface that gives you access to more than 3,000 different financial assets. 

It also has unique features such as social trading, copy trading, and smart portfolios that allow you to learn from and follow other traders with successful track records. You can find crypto trading ideas on their social feed.

However, eToro also has a high risk of losing money quickly due to leverage in CFD trading. So, beginners should be cautious and use the demo account to practice before investing real money.

How does eToro make money?

eToro makes money mainly from three sources:

1. Spreads: eToro charges a spread on every trade, which is the difference between the buy and sell prices of an asset.
2. Overnight fees: It charges a fee for holding a CFD position overnight. The fee is calculated based on the leverage and the interest rate of the underlying asset.
3. Withdrawal fees: eToro charges a $5 withdrawal fee for every withdrawal request. This fee covers the international money transfer expenses incurred by eToro.

Is eToro Legal in the USA and Canada?

eToro is available in some states in the USA, but not in Canada. US residents can register and open an eToro account for free, but they can only trade cryptocurrencies on the platform. You can use leverage or CFD trading. 

Canadian residents are also prohibited from using eToro due to regulatory changes. You should always check if eToro is supported in your country or state before signing up.

How long does it take to withdraw money from eToro?

First, eToro needs to approve your withdrawal request. This usually takes one business day or less, if everything is in order with your account. Then, the money will be sent to your bank or payment provider.

The time it takes for the money to reach you varies depending on the method you choose. For example, if you use PayPal, Neteller, Skrill, Trustly, or iDEAL, you can expect to receive your money in two business days or less. 

If you use a bank transfer, it may take up to 10 business days for the money to show up in your account. That’s because different banks have different processing times. If you have an eToro Money account, you can withdraw money instantly.

Is eToro free?

eToro is not a free platform. You have to pay some fees when you use it for trading or investing. There are different kinds of fees, such as: conversion fee, spread, overnight fee, withdrawal fee, and inactivity fee. You need to pay up to a 1% fee per trade and $5 withdrawal fees.

Is eToro good for beginners?

Yes, eToro is good for beginners, who do not have much experience with investing and trading strategies. You can CopyTrade other people who are doing well on the platform, and follow their trades. You can also use Smart Portfolios, which are collections of different assets that are balanced and updated automatically.

eToro is also easy to use, has a lot of traders to chat with, and has some learning materials to help you get started.

Learn more: StormGain Review – Is It Legit and Worth Using?