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eToro Review

eToro review: Is it still the best social trading platform?

Diego Thomazini / Shutterstock

By Tom Blake

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.

eToro is a cryptocurrency trading and investing brokerage that’s ideal if you're looking to learn about digital currencies as well as invest in stocks and ETFs. It also has a unique CopyTrade feature that lets you mimic the top investors on the platform for a more socially-driven experience.

Overall, eToro is flexible, easy-to-use, and competitive with both brokers and crypto exchanges. However, it doesn't support certain asset classes you might expect from an online broker.

Our eToro review is covering everything this platform has to offer, the fees, and how to decide if it's worth using.

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Pros

• Multiple asset types: Trade crypto, stocks, ETFs all from the same place.
• Social aspect: Learn from other traders using eToro's CopyTrader portal.
• Simplicity: eToro provides simple and easy-to-use web and mobile platforms.
• Fractional shares: You can trade fractional shares unlike some brokers.
• Paper trading: Test your trading strategies with a $100,000 virtual portfolio.

Cons

• Cryptocurrency support: eToro has more crypto selection than most brokers that support crypto but fewer coins than major exchanges.
• U.S. availability: Currently, eToro isn't available in several U.S. states like Hawaii and New York.
• Missing some assets: You can't invest in mutual funds or bonds.
• No crypto interest accounts: While it supports staking, eToro doesn't have any crypto interest account.

What is eToro?

eToro is an international trading platform founded in 2007. It came to the U.S. in 2018 with a cryptocurrency-only offering. Since then, eToro has expanded to offer stock and ETF investing as well as support for 40+ currencies. eToro also has platforms for the web, Android, and Apple iOS devices. Once logged in, you can buy and sell currencies in your own account. Alternatively, you can test and practice strategies in a virtual account where you can trade with no risk. And there's even a copy trade feature where you can view the trade of top crypto traders on the platform to learn how they're investing.

eToro features

What makes eToro great?

The fact that eToro functions as an online broker and crypto exchange is its main selling point. Plus, the platform has some unique, socially-driven investing features that make it stand out from the crowd.

Supports numerous assets

One of eToro's main selling points is that it supports a wide variety of financial assets. If you prefer trading under one roof instead of using a crypto exchange and broker, it could be for you.

Currently, assets eToro supports include:

• Cryptocurrencies (75+)
• Currencies (49)
• ETFs (250+)
• Stocks (2,900+)

For crypto, eToro supports major altcoins like Polkadot and Solana. It's not the best broker for ETF investing due to the low number it supports. But you can trade stock and ETFs like other leading brokers offer.

Cryptocurrency trading tools

Another advantage of eToro is that it has two different ways to trade crypto depending on your needs and experience:

• Crypto trading platform: Lets you quickly spot trade 98 crypto pairs with spread fees as low as 1%. You also get some basic research tools and can trade with funds from PayPal, your bank account, or with a credit card.
• eToroX: This is eToro's more professional exchange which supports 100+ crypto pairs. It also allows for crypto-to-crypto trades unlike the basic trading platform. You can also use its API for algorithmic trading if that's up your alley. And trading fees use a maker/taker system, not spreads.

These two platforms are similar to trading with Coinbase or Coinbase Advanced Trading, and the flexibility is nice to have. To top it all off, eToro has its own crypto wallet where you can store your crypto. It lets you swap 500+ cryptocurrencies as well and is completely free.

eToro CopyTrader

One of eToro's more unique features is CopyTrader, which lets you follow and mimic the trades of the platform's top investors. According to its website, the average yearly profit in 2021 for the top 50 traders on the platform was 30.4%.

Granted, much of this performance is the result of a crypto bull run, so take CopyTrader results with a grain of salt.

However, CopyTrader isn't just a leaderboard; you can actually put your money to work to proportionally match different traders. And CopyTrader has traders with various strategies, risk profiles, and asset allocations to choose from. Just note that there's a $200 minimum to place a trade with CopyTrader.

Overall, this social trading system is similar to Public, another stock trading app that also lets you view public profiles of investors on the platform. But the fact that eToro lets you trade to match its top traders is an interesting feature.

Virtual portfolios

You can create a virtual eToro account to practice trading with a $100,000 portfolio. This includes popular cryptocurrencies as well as stocks and ETFs. If you're new to investing or want to test out some strategies, paper trading is an excellent tool, so it's nice that eToro supports this.

eToro Smart Portfolios

If you need a helping hand with building your portfolio, eToro's Smart Portfolios could be of interest. These prebuilt portfolios target different markets and sectors to let you invest in the areas that interest you.

Some popular Smart Portfolios include:

• Automotives
• Battery technology
• Big banks
• Cancer medicine
• Chinese tech companies
• Cloud computing
• Global logistics
• Renewable energy
• Utilities

Overall, eToro's Smart Portfolios are almost a middle-ground between using a robo-advisor and a stock recommendation service like The Motley Fool. The variety is excellent however, and there are some ESG-friendly options as well.

Fractional shares

With eToro, you can trade fractional shares of stock. This is ideal if you're investing a small amount of money but still want to invest in expensive shares like Apple, Amazon, and Tesla. Major brokers like TD Ameritrade and other competitors don't offer fractional share investing, so this isn't a guaranteed feature.

eToro Club

One newer eToro feature is eToro Club, a tier-based membership that grants traders various perks and freebies. There are five different tiers ranging from Silver to Diamond. It takes $5,000 in realized equity to reach Silver tier. This includes your cash balance and the original purchase price of assets in your portfolio.

As you invest more through eToro, your Club perks improve. Notable ones include a dedicated account manager, free subscriptions to various financial magazines, and priority customer support. You can also get a subscription to Delta Pro, which a crypto portfolio tracker eToro owns that's similar to Kubera.

Overall, eToro Club isn't the main reason you should sign up for the broker-exchange. But it's nice that eToro takes some steps to reward its loyal customers.

Availability

A final perk of eToro is that it's available in 140+ countries. Many investing apps are focused on the U.S. market, but with eToro, it's much more internationally friendly.

Disclaimer: Moneywise is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.

Where eToro could improve

Despite its social investing features and ease-of-use, there are a few downsides worth highlighting.

Additional asset classes

As mentioned, eToro doesn't have an extensive list of ETFs you can trade. You can't trade options, mutual funds, or bonds either. This makes it less like investing apps that offer crypto, options, stocks, and more asset classes.

U.S. availability

Despite it's excellent global availability, eToro isn't currently available several U.S. states including Hawaii, New York, Nevada, and Minnesota.

Crypto selection

If you want a hybrid broker and crypto exchange, eToro is one of your best choices. But as a standalone crypto investing platform, it offers less selection than major players like Binance, Coinbase, and Crypto.com. These exchanges also have more crypto-specific features like rewards cards and more comprehensive staking options than eToro.

eToro fees

eToro charges a 1% spread fee for spot trading crypto. For eToroX, it uses an inverted taker-maker fee structure which pays a rebate to takers for placing orders and removing liquidity from the market.

There's a 5 BitcoinPOS fee for both makers and takers. And you can pay various crypto withdrawal fees that depend on the coin and blockchain conditions.

Other potential eToro fees include:

• Withdrawal fees: $5 for cash.
• Inactivity fees: $10 per month after 12 months of no login activity.
• Incoming domestic wire: $8.
• Outgoing domestic wire: $25.
• Incoming foreign wire: $14.
• Outgoing foreign wire: $45.
• Retirement plan termination fee: $60.

An inactivity fee is a downside, although it's very easy to avoid this fee.

Is eToro safe?

eToro is a safe online broker, and U.S. customers get both FDIC and SIPC insurance to protect their cash and securities. According to its website, data is also encrypted and the platform follows the same security measures as other brokers and exchanges.

Note that your cryptocurrency isn't insured, but this isn't uncommon for crypto exchanges. To protect digital assets, eToro relies on both hot and cold wallets, with most assets being held offline in cold storage. However, like any other centralized exchange, you don't own your own private keys and shouldn't store large amounts of crypto on eToro that you're not trading.

How do I contact eToro?

You can reach eToro's customer support team by emailing support@etoro.com or by calling 1-888-271-8365. There's also a useful help center on its website, and eToro has different contact options depending on where you live. Its eToroX exchange also has its own customer service portal you can use when logged in.

The fact you get a dedicated account manager if you have at least $5,000 in investments and cash is also a unique selling point. eToro has a 4.2 star average rating on Trustpilot, and many users enjoy the fact that they have an account manager.

Best eToro alternatives

If you want to invest in major cryptos as well as stocks and ETFs with one platform, eToro is one of your best options. We also like how globally-friendly it is, its members club, and the fact it supports fractional shares.

However, certain eToro competitors are superior if you want more bank-like features or investing options.

Robinhood is one of the closest alternatives, but the main difference is that Robinhood also supports options trading. However, it supports far fewer cryptos than eToro and isn't as transparent about its spread fees. You can read our eToro vs. Robinhood article for a complete comparison.

As for Public, it's your best eToro alternative if you like the idea of social investing that CopyTrader offers. With Public, you can follow your favorite investors to trade like they do. It also supports fractional shares and, more recently, some major cryptos.

Finally, we like Ally Invest if you want to take advantage of its banking features like its high-yield savings account. It also has an automated investing option you can consider if you're on the market for a robo-advisor.

The bottom line on eToro

eToro has long been a solid choice for cryptocurrency investors and traders who wanted access to social features like copy trading. But the platform is even more useful now that it's added U.S. support for stock and ETF trading. And it has some of the best crypto selection out of all the brokers that support digital assets.

For more investing selection like options and mutual funds, consider some alternatives listed above. But for a robust, socially-focused trading experience, try out eToro.

Moneywise is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success

About our author

Tom Blake, Staff Writer

More from this author

Tom Blake is a personal finance blogger. His work has featured in Business Insider, Frugal Rules, MoneyCrashers, and a number of other financial blogs. When he’s not in Canada Tom lives as a digital nomad, writing from locales like Colombia and Dubai. You can connect with Tom at his blog This Online World.

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