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- Simple and clean UX for beginners
- Seamless account setup
- Spreads can be high depending on asset
First and foremost:
eToro is a social trading platform.
That is, it allows its users to see which trades other people are opening and closing.
Further, eToro has the unique feature of allowing users to automatically copy the positions of other traders. For better or worse this is not a common feature on other trading platforms.
The platform was founded in Israel in 2007 by the brothers Yoni and Ronen Assia, along with David Ring.
At the time many of the online brokerage firms were difficult to use and had a poor user experience. At the time of its creation the purpose of eToro was to be the trading platform with the best user interface. The founders wanted to create a platform that was easy for anyone to use, not just professional traders.
While other platforms have caught up with and even surpassed eToro, it still remains known for its intuitive trading layout.
Currently eToro claims to have more than 10,000,000 users worldwide although it is unknown what percentage of those are active traders.
Although the company has limited support for United States citizens, it is primarily a European company and offers Europeans one of the easiest ways to gain exposure to the stock market.
eToro was one of the first online brokerages to offer crypto trading to their clients. eToro stores all purchased crypto in its own cold storage wallets and users never have access to their private keys.
As of late eToro has expanded their crypto operation to include currencies like BCH, ZEC, LTC and more. Once purchased a handful of these assets can be sent to the eToro crypto app where they can be easily exchanged for other currencies. The wallet app allows users to purchase crypto directly with their credit card.
It also allows users to send and receive funds from external wallets. However, there are limits. As of publication only Bitcoin, Ethereum and XRP can be transferred to the wallet. Any other assets purchased on eToro must remain on the platform and cannot be sent to an external address. .
eToro has announced plans to increase their support for more coins and they have publicly stated their intent to make more than one-hundred ERC20 tokens available for trade.
eToro is well known to charge fees above the average. For instance, their fees for holding overnight and over the weekend are higher than other platforms. A weekday overnight hold, for instance, come with a price of $0.24 for each $1,000 of leveraged long exposure. No fees are charged for non-leveraged positions, however, fees do triple for leveraged positions held over the weekend.
In addition to charging higher fees for holding leveraged long positions, eToro charges a $25 fee to withdraw funds to a bank or credit card. The minimum withdrawal is $50. There is an inactivity fee which begins accruing after a year and this is set at $10 a month.
Where is eToro Located?
Founded in Israel, eToro has a large office in Tel Aviv. They also have a presence in Limassol (Cyprus), London, Sydney and Hoboken, New Jersey. These international offices widen the reach of users that they’re able to cater to.
Perhaps eToro’s most unique feature is CopyTrading. That is the ability to automatically copy the positions taken by other traders on the platform. A user can, for instance, find a trader who has been making consistent profits and choose to copy their trades. What makes the feature useful is that trades can be copied at any scale. If a user only wants to invest $1,000, for instance, but the trader they want to copy is taking a $100,000 position, the user can copy those trades at one one-hundredth of their original level.
There are, however, a few limitations on CopyTrading. A trader has to invest at least $200, that is the minimum. The maximum a trader can invest in a single trade is $500,000 and the maximum number of traders that can be copied at the same time is 100.
eToroX is a cryptocurrency exchange. Users can trade through an order book, using market orders and limit orders.
eToro offers a number of ways for users to deposit funds. Depending on a customer’s country the following options are available: China Union Pay, credit and debit cards, Giropay, Neteller, PayPal, Skrill Limited UK, WebMoney, Wire Transfer, Wire, Yandex and ACH.
The time necessary for deposits to clear and maximum that can be deposited are different for each method and more information is available on eToro’s deposit page.
Does eToro support the USA?
eToro opened itself up to American citizens for the first time in 2018. This was not a full launch in the United States, however, and trading is still limited in some states.
A recent list of supported states includes Alaska, However, as of April 2020, only residents from the following 40 states can deposit funds and open up real trading accounts:
- District of Columbia
- New Jersey
- New Mexico
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
Even for citizens of those states, however, not every market is available for trade and certain features have been blocked. eToro also unfortunately does not allow registration of American citizens who are residing outside of the United States.
In addressing which countries eToro currently supports it’s simpler to look at the countries they don’t support. While not every country has full access to eToro, certain states are blocked in America for example, provided that a user’s country is not on this list they should have access to trading on eToro.
Countries Not Supported by eToro:
Afghanistan, Albania, Belarus, Bosnia and Herzegovina, Botswana, Brunei, Burundi, Canada, Chad, Congo Republic, Crimea Region, Cuba, Ethiopia, Guyana, Guinea, Guinea-Bissau, Iran, Japan, Laos, Libya, Mali, Myanmar, Namibia, Nicaragua, North Korea, Palau, Samoa, Serbia, Somalia, Sudan, Syria, Turkey, Uganda and Yemen.
eToro vs Coinbase
Coinbase is traditionally seen, at least for Americans and Europeans, as one of the quickest and easiest ways to onboard into crypto. The platform is an easy way to buy and own cryptocurrency via wire transfer or debit card.
In addition, Coinbase does not support the ability to go leveraged short or long. Their primary function is the purchase and sale of crypto, not trading. While they do have their own proprietary exchange, Coinbase Pro, this only has a limited number of assets.
eToro vs Robinhood
Since its inception in 2013, Robinhood has raised $176 million in funding. Unlike eToro, which is an Israeli company, Robinhood is headquartered in Palo Alto in California. While eToro began with a web platform and only later expanded its operation to include mobile trading, Robinhood is known for its mobile app. In fact it wasn’t until 2018 that they first offered a web-based trading experience.
Unlike eToro which focuses primarily on European customers, Robinhood caters to American clientele. While they are considering an overseas expansion, Robinhood has not yet made the move to European markets. Another difference is that eToro allows their customers to invest in commodities while Robinhood does not. Robinhood does however let users invest in cryptocurrencies, namely Bitcoin and Ethereum.
eToro vs Binance
While Binance is taking its first steps towards offering a full suite of cryptocurrency products, including the ability to leverage long or short and trade futures, they are most well known as a cryptocurrency exchange. That is a clearing house with a large number of coins available for trade. So great is their influence, in fact, that coins listed on Binance often show a measurable appreciation in price. This is most often called the Binance effect.
Unlike eToro, users are able to withdraw their cryptocurrencies from Binance to any wallet. Binance is relatively lax about regulation and users have traditionally been able to open an account without any KYC requirements. Binance is exclusively a cryptocurrency platform and they do not allow users to invest in stocks or commodities.
eToro vs Plus 500
Like eToro, Plus 500 was founded in Israel.
Both platforms have an intuitive layout and allow for leveraged trading. While the fees differ on the two platforms, on average they about even out so that users who make multiple trades in different assets can probably expect to pay about the same on both platforms.
There are several differences between the platforms, however. Plus 500 begins to charge a monthly $10 inactivity fee after only three months. They don’t charge any withdrawal fees whereas eToro charges a $25 fee.
They also differ from eToro in that they provide a way to email customer support while eToro makes it difficult to talk to a representative. eToro may be a better fit for people who would like to do CopyTrading while Plus 500 is a better fit for traders who would like access to more markets.
Review By: Jordan Tuwiner
Rating: 4.5Buy Bitcoin at eToro
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