eToro Review

eToro is a social trading network that leads the market. It enables traders to mimic the trades of experienced investors and provides them with the opportunity to gain exclusive benefits in exchange for sharing their own trading ideas.

eToro is a huge worldwide cryptocurrency exchange that allows users located outside the United States to trade forex, exchange-traded securities, and cryptocurrencies. The exchange has more than 3,000 symbols that may be traded. In addition to the cryptocurrency services it already provides, eToro now also facilitates trading in stocks and exchange-traded funds (ETFs) for customers located in 44 of the 50 states in the United States.

Pros

• Well-established base of operations

• Subject to regulation in a number of different jurisdictions

• Unparalleled social trading features that enable users to mimic the actions of well-known investors

Cons

• Trading in stocks, ETFs, and cryptocurrencies is only available in 44 of the 50 states in the United States.

• Customers in the United States are unable to engage in margin trading.

Introduction

Trading cryptocurrencies and stocks are both available through the industry-leading online brokerage known as eToro. When it implemented support for Bitcoin (BTC) in 2014, it was one of the first online trading organizations to enable trading in digital currency. Specifically, it was one of the first companies to handle Bitcoin. In a short amount of time following that, it introduced support for Ethereum (ETH) as well as Ripple (XRP).

eToro is a prominent online trading platform that currently supports over 40 different cryptocurrencies, offers a crypto exchange that is enterprise-grade for professional traders, and provides a crypto wallet that can store several cryptocurrencies.

An Overview of the Company

eToro, which has its headquarters in Tel Aviv, was established in 2007 by co-founders Ronen Asia, Yoni Asia, and David Ring. Today, Assia continues to serve in his role as CEO of the company.

eToro was formerly known as RetailFX and served as an online broker for foreign exchange transactions. Subsequently, the company rebranded itself as eToro and expanded its product offerings to include stocks, indices, and commodities. It established itself as the world’s leading social trading network in 2010 when it debuted its revolutionary social trading function, which enables users to automatically imitate the moves of successful traders on the platform.

eToro added support for Bitcoin in 2014, giving users the ability to purchase and sell CFDs (on the leading digital currency in the world) to users outside of the United States. The availability of ETH and XRP on the platform did not occur until after a period of four years, and subsequent years saw the addition of additional digital assets. With the launch of eToroX and a crypto wallet in 2018, eToro pushed headfirst into the cryptocurrency market. eToroX is a cryptocurrency trading platform.

Today, eToro is striving to carve out a niche for itself in the extremely competitive market for cryptocurrency exchanges by consistently enhancing the quality of its cryptocurrency trading services.

eToro Supports a Wide Range of Cryptocurrencies

Trading in more than 40 cryptocurrencies is supported by eToro and eToroX. Take a look at some of the following crypto assets, which are among the most popular on eToro:

• What is Bitcoin? (BTC)

The Bitcoin Cash Symbol (BCH)

• Cardano (ADA)

• Dash (DASH)

• Dogecoin (DOGE)

• Ether (ETH)

• Litecoin (LTC)

• Polkadot (DOT)

• Polygon (MATIC)

• Solana (SOL)

• Stellar Lumens (XLM)

Exchanging One’s Knowledge

Customers of eToro can immediately begin trading after making a deposit of fiat cash using a debit card or bank account thanks to the user-friendly web-based platform and well-designed mobile app offered by the company.

Users are able to monitor current prices, buy, trade, and convert cryptocurrency all inside the user-friendly “Trading” tab of the website. eToro’s social trading tool, which enables users to imitate the portfolio holdings and trades of top traders, is probably the feature that has brought it the most notoriety.

eToro does not offer some of the more advanced features that its competitors do, such as conditional orders, advanced charting capabilities, or cryptocurrency pairs. However, it does offer the standard order types of market and limit, and it enables users who are not located in the United States to invest on margin.

eToro

The eToro platform enables users who meet the requirements in some jurisdictions to trade a wide variety of digital currencies, including Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), as well as 1inch (1INCH), Aave (AAVE), and Compound, among others (COMP). Users that meet the requirements can also participate in leveraged trading.

The capability of the eToro trading app to automatically imitate the trades of successful traders through the use of the social trading function of the platform is, in our opinion, the most intriguing aspect of the app.

eToroX

eToroX includes all of the features that you would expect from an exchange catering to institutional investors, such as the ability to make deposits in U.S. dollars, margin trading, trading APIs, and quick execution. Because of these capabilities, it is a trading platform that is ideal for use by professional and institutional traders.

Fees

The fees associated with crypto trading on eToro are competitively cheap when compared to the fees associated with its competitors; nonetheless, users must be aware of the fees associated with currency conversion and withdrawal. It is essential to take into consideration the possibility that the prices will vary from one region to another.

Customers from the United States do not have to pay any fees associated with withdrawals, although there is a minimum withdrawal amount of $30. eToro levies a $5 fee on withdrawals made from locations other than the United States.

• Customers who are not located in the United States are subject to a currency conversion fee that begins at 50 basis points (bps) whenever they make deposits or withdrawals in a currency other than USD.

• Customers will be required to pay a fee in order to move cryptocurrency from their eToro.com accounts into their eToro Money crypto wallets. The fees charged are different for each cryptocurrency that is being moved.

• eToro accounts that have been dormant for more than a year are subject to a monthly inactivity fee of $10 if they are to remain active.

eToroX Fees

Both price makers and price takers are subject to a transaction fee of 5 bps when using eToroX. In addition, the exchange utilises a maker-taker model with an inverted maker-taker structure, which indicates that price takers are eligible for a rebate or are subject to a reduced fee. Nevertheless, you will need to get in touch with the marketplace for further information.

Security

eToro is a well-established online trading organisation that provides a safe, regulated trading platform for cryptocurrency trading. The company has a proven track record of safely holding investor assets for well over a decade.

The majority of a user’s money are kept in cold storage on the eToroX platform to minimise the risk of those monies being stolen or lost as a result of an operational fault. In collaboration with a market-leading cybersecurity company known as GK8, the exchange has implemented a cold storage Custody as a Service (CaaS) solution.

Account holders of eToro are strongly encouraged to enable two-factor authentication (2FA) as an additional layer of security. This is in addition to the fact that user funds are kept in cold storage by eToro. However, it is not necessary to enable two-factor authentication.

Establishing a Trading Account with eToro

It won’t take you more than a few minutes to set up an account on eToro. To begin, you will be prompted to enter a username, as well as a password and an email address. eToro will require you to answer a series of questions after you have validated your email address in order to establish your level of comfort with risk and your level of trading expertise.

Users of eToro are needed to validate their accounts in order to utilise the platform. You will also be required to supply some personal information, a proof of address, and a legitimate identification card issued by the government as part of this process. The process of verifying a new user’s identity can take a few days, but eToro will notify new users as soon as the verification is complete.

Because your eToro account grants you access to both eToro and eToroX, the process of registering for eToroX is as simple as clicking a button after you have already registered an account on eToro.com.

Assistance to Customers

Both eToro and eToroX have their own dedicated customer support departments at eToro. Both platforms offer support centres and support tickets for users to submit questions and receive assistance. However, phone service is not offered, which is consistent with the majority of other cryptocurrency exchanges.

Account managers are employed by the company to care after the most active traders (those have $5,000 or more in equity on the platform). The goal of these account managers is to improve the experience of eToro’s most loyal users.

Satisfaction of the Customer

eToro, a global leader in online trading with over 23 million users, receives generally excellent customer feedback. This is underscored by the company’s Trustpilot score, which is 4.1 out of five stars across 11,000 or more reviewers.

Both the Google Play Store and the Apple Store have awarded 4.1 stars to the eToro app, making it one of the most highly rated financial trading applications available.

On the other hand, the site does get some bad feedback from both its present users and its previous users. The inability to withdraw funds and the length of time required to do so are two of the most common sources of customer dissatisfaction. Other consumers have reported that there are hidden fees that are significantly greater than intended.

How eToro Stacks Up Against Competitors in the Cryptocurrency Industry

eToro provides its customers with access to a professional cryptocurrency exchange that enables them to carry out a variety of sophisticated trading methods.

eToro, which is one of the top social trading networks in the world, was one of the first fintech companies to support cryptocurrencies before moving further with the construction of a cryptocurrency exchange and a dedicated cryptocurrency wallet for its customers.

eToro is well on its way to being a dominant player in the cryptocurrency market given the scale of the firm, its 15 years of experience in the market, and its large user base. Because of these characteristics and the copy trading tool that it offers, it stands out from the other cryptocurrency exchanges that are now available. Here is a look at how eToro stacks up in comparison to Coinbase, another famous cryptocurrency exchange:

eToro in contrast to Coinbase

• Social trading is supported on the eToro platform, and users are given the ability to communicate with one another. There is no provision for social trading within Coinbase’s interface.

• More than 150 different cryptocurrencies are supported by Coinbase, whereas eToro only supports slightly more than 40 different cryptocurrencies.

• Trading and investing in cryptocurrencies are the only activities supported by Coinbase. eToro users are able to invest in stocks as well as exchange-traded funds (ETFs), in addition to cryptocurrencies.

FINAL VERDICT

The extensive trading tools and fiat-to-crypto on- and off-ramps that eToroX provides will be appreciated by professional cryptocurrency traders, while the platform’s unique ability to imitate the trades of popular cryptocurrency traders will be appreciated by newbies.