eToro Review
Are you getting ready to move into the world of cryptocurrency trading? If so, one of the very first things to do is choose an exchange so you’ll be able to buy and sell the various alt-coins that appeal to you. Some new traders try to specialize in just one or two coins, like bitcoin or ethereum, while others like the play the entire field and trade dozens of different ones.
Regardless, there are a few common criteria people use to select an exchange that suits their needs. Many select based on things like the number of coins they can trade, whether the site offers charts and graphs, the fee structure, and the overall security of the exchange. Still others are concerned about features like online wallets, and how well a particular exchange fares when compared to its main competitors. In a way, choosing a cryptocurrency exchange is a lot like buying a car. There are plenty of excellent and not-so-good candidates out there, but not everyone is happy with the exact same thing.
Our Research
When we set our research team on the task of doing a comprehensive review, we had them dig in and examine points like the eToro wallet, eToro fees, compare eToro vs Coinbase (one of its main competitors), and answer the common question, “Is eToro safe?” Whether you are brand new to crypto trading or are an old hand at the practice, read through our entire eToro review so that you’ll have a full understanding of our final opinion about how the exchange stacks up against its primary competitors.
eToro Overview
The eToro exchange has been around longer than most, for 14 years in fact, and now counts more than 140 nations among its markets, with a user base in excess of 13 million account holders. The company got its start in a unique way, unlike any of its competitors. In the beginning, eToro focused on offering copy-trading services to its clients. Copy-trading is a form of social trading where newcomers can simply “follow the leader” and make purchases and sales just as the professional traders do. Right now, U.S. clients know eToro only as a crypto exchange, but in other countries the company allows users to trade forex, commodities, and shares of corporate stock. Even though eToro is not licensed by the SEC (Securities and Exchange Commission) in the U.S., its Cyprus-based operation is fully recognized by U.K. authorities and most European nations. The company works hard to secure its assets in registered, widely recognized international banks. They work with all the European and many other global security entities within the financial community to maintain a secure, safe trading environment for its millions of customers. Long before entering the U.S. market, eToro had already established itself as a major, trusted player in the crypto, stock, and forex sectors.
Key eToro Facts
Here’s the short-hand version of the key facts, including basic data about eToro fees and the eToro wallet
The minimum trade is only $25, but customers must maintain a $50 account balance as a minimum. To use the Copy Trader feature, users must spend at least $200 per trade. There is no crypto-to crypto trading for U.S. residents, but anyone can buy or sell the 18 alt-coins that are offered on the very transparent eToro site.
If you wish, you can use your own wallet, but be warned that once you use it to remove cryptocurrency from the eToro exchange, you will not be able to reverse that transaction. There are two very user-friendly mobile apps for account holders who like to trade on-the-go.
Customer service is quick and responsive in most cases, but is not phone-based. Users can take advantage of chat sessions or email correspondence if they wish to interact with a customer service rep.
Should You Use eToro?
The eToro exchange is well-suited for new and advanced traders, anyone who wants to take part in copy-trading, and casual traders who only want to do a few transactions per month. One of the nice things about eToro is that the company has been in business for longer than nearly all its competitors, so it’s always improving and learning as the years pass.
eToro Pros and Cons
Like all crypto exchanges, eToro has its ups and downs. Here’s the summary of what every prospective customer should know:
Pros
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There are zero fees when depositing funds in the form of U.S. dollars
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Users can deposit money into their accounts in a number of different ways
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When making purchases with cash (not leverage), there are no commissions
Cons
- Some fees are based on the buy-sell spread, so it’s hard to figure out the cost of a given trade.
- You can’t call customer support, and there are mixed reviews from account holders about response times. Our team found eToro to be responsive to inquiries in a timely fashion.
- Copy trading at the exchange has a rather high minimum, considering that many brokerage platforms offer the same kind of trading in very low amounts.
What About the Safety Factor?
Is eToro safe? In this eToro review, we discovered several key points that set eToro apart from the pack, especially in terms of safety and security. Though not under the control of the SEC, eToro does abide by U.S.-based FinCEN (the Financial Crimes Enforcement Network) and only stores its assets in top-tier financial institutions. Users have 100 percent control over all their assets and account settings. Additionally, the company never sends unsolicited email to customers nor does it ever share personal information unless an account holder gives specific permission to do so.
Compared To Coinbase
No eToro review is complete without a comparison to its main competitor, Coinbase. Here’s the summary: Coinbase has an advantage of being set up with new users in mind. Plus, whenever a customer wishes, they can take funds out of their Coinbase account and send the money directly to PayPal. Finally, Coinbase offers a much larger number of alt-coins than eToro does.
In eToro’s favor, their fee structure is less complex, and much lower overall, than Coinbase’s. Plus, eToro offers social trading, in this case copy-trading, which is not available on Coinbase.
Is the eToro Wallet Secure?
What about the eToro wallet? It’s free, first of all, and you can store all your crypto assets in it, whether you set it up on Android or iOS. There’s a minimum and maximum wallet transaction, namely $125 and $10,000, as well as a five percent fee when you want to exchange any alt-currency into regular money (like dollars or yen).
It’s simple enough to send your crypto assets from the eToro platform directly into your wallet, but keep in mind that this kind of movement is a “one-way-street,” and you will not be allowed to send the crypto from the digital wallet back to the eToro exchange.
How eToro Stacks Up
You have to give eToro credit for being around so long and making copy trading (and other forms of social trading) popular among non-professional investors and traders. Note that in nations other than the U.S., eToro offers numerous other kinds of services, like banking and stock brokerage accounts.
However, so far anyway, U.S. customers can only use eToro to buy and sell cryptocurrency, and take part in copy trading of crypto. For new traders, especially those getting into the volatile world of cryptocurrency, having the ability to follow trades of professionals, via copy-trading, is a unique and attractive benefit of the exchange.
Overall, the exchange is user-friendly, secure, and features an accessible minimum trade amount. It’s difficult, and a bit unfair, to compare eToro and exchanges like Coinbase that do not offer copy-trading. Likewise, eToro’s fee structure is competitive, it can be confusing for newcomers.
With only 18 coins available for buying and selling, anyone but a beginner might find eToro limited in function, but U.S. account holders will likely continue to receive added benefits, features, and functions as the company expands its operations outside Europe and other non-U.S. markets.
Our verdict on eToro is that it is one of the top-tier crypto exchanges for U.S. users who want the basics, desire security, and appreciate a user-friendly exchange that offers all-around functionality. eToro has secured its place among the leading competitors within its niche. As it adds features to its U.S. exchange, the company will almost certainly attract many more customers.