eToro is a publishing partner of CoinGecko
Since 2007, eToro, an international brokerage platform, has been giving traders from all over the world the ability to trade assets like stocks, ETFs, indices, FX, and commodities. It has also recently introduced cryptocurrencies to its list of tradable assets.
In this review, we’ll be focusing on the crypto trading side of the eToro platform.
Is eToro Regulated?
The main eToro entity is registered in Cyprus and regulated by CySEC, the Cyprus Securities and Exchange Commission. In the US, eToro USA LLC is registered with the Financial Crimes Enforcement Network (“FinCEN”) as a Money Services Business (“MSB”), as well as with applicable state-level regulators
While eToro enables you to trade various types of assets, an important note for US customers is that eToro USA only offers cryptocurrency trading.
First Impressions: A Beginner-Friendly and Easy-to-Use Interface
Once you’ve created your account and logged in, the first thing you’ll notice is how clean the interface is. eToro is obviously a very beginner-friendly platform.
The main interface
Clicking on the “Crypto” tab brings us to the list of tradable cryptocurrencies, of which there are currently 15 to 17 (depending on your region). The account used in this review is US based.
Snapshot of the cryptocurrencies trading interface
Again, the interface is kept simple: recent changes, a 52-week range, and a consensus score. The consensus score is an eToro innovation—it tells you the percent of investors investing in the asset.
Purchasing Crypto on eToro: A Straightforward Process
Simply click the ‘Buy’ button and the following will pop up.
The buy popup
Clicking the “Units” button will allow you to buy amounts quoted in BTC (or whatever crypto) instead of USD. As long as you’ve deposited enough funds in your account, all you need to do is click ‘Open Trade’ to finish.
eToro Prices – How Closely Do They Match the Spot Price?
Unlike more mainstream assets, there is no singular price reference for crypto. Sites like CoinGecko simply aggregate the price on various exchanges to give an approximation of the spot price. So, how far off are eToro’s prices from what’s listed on CoinGecko?
The good news is, differences are slight. Here’s the price for BTC and ETH compared to CoinGecko.
Of course, you should understand that eToro makes it revenue through spreads on each trade, so prices on the platform will always be slightly higher than the spot price. eToro keeps its spreads transparent—you can view all of them on their fees page. At the time of this writing, crypto spreads range from 0.75% (for the larger cryptos) to 3.5%.
eToro’s Advanced Charting Features
Although eToro serves the beginner market well, there’s plenty for the more advanced trader too. If you click on the graph icons for a specific crypto, you’ll be brought to this page, which would look more familiar to experienced traders.
‘Charting’ interface for specific assets
From here, clicking on the various icons at the top will allow you to access advanced charting and technical analysis tools. Here’s a quick sampling of what eToro offers.
Advanced charting tools
eToroX Crypto Exchange*
For the seasoned crypto trader, eToro offers eToroX, a regulated blockchain-based crypto exchange platform to trade and exchange multiple cryptocurrencies, FX stablecoins, and crypto trading pairs.
eToroX is for the crypto non-newbie: professional, corporate, and institutional-level crypto traders. All eToro users can easily and directly sign onto eToroX using their eToro credentials, with no further registration or other administrative hassle. If you have purchased crypto on the eToro trading platform, you’re ready to trade and exchange on eToroX.
Crypto to Crypto
eToroX currently offers 29 digital assets, including standard crypto favourites BTC, ETH, LTC, XRP, BCH, XLM, EOS and BNB, as well as 17 tokenized stablecoins that include USDEX, GBPX, EURX, CNYX, HKDX, CADX, AUDX, CHFX, and SGDX (among many others). More than 100 trading pairs are available, with all of these and more as both base and counter currencies.
Crypto to Fiat to Crypto Service
eToroX also offers a buy or sell crypto service where traders can deposit (buy) traditional fiat currencies for cryptoassets, as well as withdraw (sell) the value of their cryptoassets for fiat. eToroX is one of the few regulated crypto exchanges to enable this for traders.
*Currently eToroX is not available in the US.
eToro’s Unique Strength – Copy and Social Trading
Copy and social trading—which are features allowing you to copy the trades of more successful traders—is nothing new. But it is eToro’s unique strength (they were the world’s first social trading platform) and is probably what they are best known for.
This is where eToro truly shines. Clicking on the ‘Copy Traders’ button on the left sidebar will bring up this interface, showing you the ‘Popular Investors’ that you can copy.
The main Copy Trading interface
Selecting an individual Popular Investor will bring up their profile, from which you can view their trading and portfolio performance as well as some basic information about themselves.
A sampling of a Popular Investor’s performance stats and portfolio details
There’s also a social media-like ‘Feed’ feature, much like Facebook, that Popular Investors can post on to better connect with the other traders. Since Popular Investors do receive incentives the more people that copy their trades, this is one way they can try to build a larger following.
To copy a Popular Investor’s trades, simply click the Copy button on the top of their page. This will bring you to a ‘Buy’ page, which also allows you to set a Stop Loss to limit the downside on your copied trades. There is no additional cost for using eToro’s copy features.
Deposits and Withdrawals – Can You Withdraw Crypto from the Platform?
When you buy crypto on eToro, you are actually buying the underlying asset. eToro has also begun launching its own cryptocurrency wallet—the eToro Wallet—in phases. If you have the eToro wallet, you can send crypto purchased via the platform to the wallet. However, note that this is still a one-way street; at the moment, you cannot send crypto from the wallet to the platform.
Important note: eToro has specified that their wallet is a custodial, hot wallet, meaning you will not have control over your own private keys. However, coins stored on the exchange itself follow accepted cold storage best practices. Read the full FAQ about the wallet here.
Other than that, you can use the eToro wallet as a regular wallet. You can send funds into the wallet from other crypto wallets or send it out from the wallet. Do note that other than fees charged by each respective crypto’s blockchain, eToro also imposes additional fees. Speaking of which…
What are the Applicable Withdrawal Fees?
For fiat withdrawals, the minimum amount is US$50, and each withdrawal incurs a US$25 fee. For crypto-to-crypto conversions, there is a 0.1% fee, while for crypto-to-fiat conversions fees can go up to 5%. You can find the full list of applicable crypto fees here.
Conclusion: eToro is a Great Way for Beginners to Get into Crypto Trading
With its clean and intuitive interface and ability to easily mimic the trades of successful traders, eToro is a great way for beginners to get into crypto trading. Even more advanced traders might learn a few things from the popular investors. However, there is no denying that eToro’s withdrawal fees are on the higher end of the range. That said, if you don’t do frequent withdrawals, this should be more than manageable.
All things considered, especially if you’re new to crypto trading, eToro is definitely worth giving a shot.
eToro is a publishing partner of CoinGecko