What is eToro?
Founded in 2007 under the name “RetailFX”, eToro is an online currency trading platform that’s offered around the world. Offerings vary from region to region, with eToro USA LLC being known for not offering CFDs and fewer cryptocurrencies overall than found on the platform in other markets.
Originally only offering crypto to US citizens, the platform has since expanded its operations beyond trading cryptocurrencies to include zero-commission stock trading, options trading, and ETF trading as well.
This was a welcomed change as it expanded the platform’s scope beyond solely crypto traders, making it a suitable platform for a wide variety of trading strategies and techniques.
International users, however, have—and continue to enjoy—access to a wider selection of supported asset classes.
Since its creation, eToro has managed to uphold a decent track record with its customers. Currently, the platform has a 4.3 out of 5-star rating on TrustPilot, with the score being based on 19,062 reviews from around the globe.
Available Asset Classes
Here is a brief list of the various asset classes offered by eToro. Please bear in mind that the availability varies from region to region in compliance with local laws.
- Currencies (forex)
Now that we’ve gone over what the platform is & the available asset types, let’s dive right into the features! Fortunately, this platform has many, which is why many traders have chosen eToro as their go-to trading app.
eToro itself can be accessed via the web platform or via a dedicated mobile app (available for iOS and Android). The app features two-factor authentication so users don’t have to worry about any unauthorized users accessing their accounts.
Once they’ve created an account and logged in, users will have instant access to all of the features available on eToro. The most basic features include crypto, stock, ETF, and options trading.
Also offered is the eToro Money crypto wallet, which can be used to withdraw funds from the eToro crypto exchange directly to the wallet.
However, for those who don’t feel like actively managing assets, eToro also offers smart portfolios, which is a portfolio management service that invests according to one of eToro’s crypto portfolios.
eToro is known for its Popular Investor program. This program allows users to follow and automatically mimic the portfolio changes in their own portfolios. Users can choose to follow just one investor or up to 100 at the same time.
Lastly, eToro also offers demo accounts, which can be used by traders who want to give trading a try but aren’t yet confident enough to risk real money.
Pricing & Plans
It’s easy to be fooled by “0% commissions”, thinking this is a blanket statement for all tradable assets. Let’s look at what the actual costs are.
eToro itself is free to use. It doesn’t charge any inactivity or account management fees, making it appropriate for less active investment strategies.
Although stock and ETF trades are commission-free, crypto trading is subject to a 1% commission. This applies whether you’re buying or selling crypto assets on the crypto exchange.
Options contracts are also free but may incur regulatory fees. Other asset classes may also incur fees.
Potential fees include currency conversion fees, deposit fees, and withdrawal fees (depending on the withdrawal methods you use), among others.
Fortunately, eToro has very few limitations. Still, they are there. Here’s what you’ll want to take away.
- Customer support is limited – Standard customers only have access to email and support tickets. You must be an eToro Club member if you want access to live chat and phone assistance.
- Tools are limited – Although eToro has expanded its offerings to include charting tools and a few other helpful functions, retail traders who are used to a dedicated analytical platform will find eToro to be quite lacking.
- Withdrawals cost extra – You can expect to pay $5 for withdrawal fees, with a minimum withdrawal amount of $30.
- Copy trading has a minimum – There is a $200 minimum deposit to use a smart portfolio for copy trading.
Is eToro Right for You?
Whether you want your portfolio to be a crypto wallet full of crypto assets or have a healthy number of stocks, ETFs, and other assets in the mix, the eToro social trading platform can help.
Its retail investor accounts make it easy to trade various assets on a single platform, automate your trades using smart portfolios, and even mimic the market moves of more experienced investors.
Reputable, easy to use, and perfect for the casual trader, eToro has a lot to offer to the average investor. If you’re ready to join the thousands of successful traders who have already given this platform a try, click here!