eToro Review 2023: Can eToro be Trusted?

When it comes to trading stocks and cryptocurrencies online, eToro is unrivaled. In 2014, when it launched Bitcoin (BTC) functionality, it was among the first online trading companies to allow trading in digital currencies. Soon after, it expanded its compatibility to include Ethereum (ETH) and Ripple (XRP).

eToro, a prominent online trading site, now supports forty or more cryptocurrencies, offers a professional crypto exchange, and features a multicurrency crypto wallet.

About eToro

eToro is an online brokerage platform that allows traders to invest in a small number of equities and exchange-traded funds (ETFs), in addition to a cryptocurrency exchange that facilitates trading in 30+ cryptocurrencies.

People who want a more collaborative trading experience will appreciate this platform’s social features and robust user base. However, eToro’s hefty trading costs may appear excessive if all you’re looking for is a cheap cryptocurrency exchange.

How does eToro Work?

eToro is a cryptocurrency broker that also provides access to traditional financial markets. Almost 2,500 stocks, including overseas shares and EFTs, are available to investors. It also supports the purchase of fractional shares, so you can opt to invest $100 in a stock rather than a full share of $100. Commodities like gold and silver are available to non-American traders, and they have access to sophisticated trading tools like margin and leverage.

Users fund their accounts on the platform by depositing fiat currency such as U.S. dollars (or transferring other cryptocurrencies). Users have the option of depositing funds directly from a wire transfer or linking their bank account for speedy withdrawals. Users have the option of having their funds withdrawn immediately into their bank account in U.S. dollars. After signing up for an account, traders can use eToro’s website or intuitive mobile app to make trades in the market. If you’re having trouble deciding what to invest in, eToro’s CopyTrader function allows you to mimic the actions of successful traders from the Popular Investor program.

eToro is a fantastic resource for education if you’re hesitant to invest your own money right away. Users can practice trading on eToro with $100,000 in their “virtual portfolio.” This eliminates the inherent risk associated with learning and practicing trading and investing in cryptocurrencies.

eToro Pros & Cons

Pros

• eToro is a low-risk broker for trading forex and CFDs because it has been around since 2007 and is regulated in two tier-1 and one tier-2 jurisdictions.
• For the 2023 Annual Awards, we chose eToro as the best social copy trading platform and as the best cryptocurrency trading platform.
• eToro’s mobile app and online interface are fantastic for novice and casual traders because of how simple they are to use.

Cons

• Despite recent reductions in spreads and the introduction of zero-dollar commissions for trading U.S. stocks, eToro is still more expensive than other competitors when it comes to trading forex and CFDs.
• When compared to its competitors, eToro’s selection of conventional research tools and resources is inadequate.
• eToro does not permit the use of algorithmic trading tactics, or automated trading.

eToro Ratings

Overall Rating info
Offering of Investments
Commissions & Fees
Platform & Tools
Research
Mobile Trading
Education

The Cryptocurrencies You Can Trade With eToro

You may trade over 40 different cryptocurrencies on eToro and eToroX. Some of the most traded cryptocurrencies on eToro are listed below.

eToroX Fees

As a market-maker broker, eToro advertises a slightly higher-than-average variable spread of 1 pip on the EUR/USD. Retail traders don’t use eToro for its spreads because of its trading fees, but rather because of its social copy trading platform features.

Popular Investor program:

With four tiers, from Cadet to Elite, eToro’s Popular Investor program rewards users who share their trading strategies with other investors. You need over $1,000 in account equity, $500 in client assets that duplicate your approach, and a risk score below 7 for at least two months to advance to the Cadet tier. Spread rebates, regular payments, and even a management fee are all offered to Popular Investors.

VIP accounts:

There are five levels of eToro Club membership, starting with Silver and going all the way up to Diamond. Traders with accounts between $5,000 and $250,000 can join one of these tiers, each of which comes with its own set of perks. Some of the VIP features include lower withdrawal and deposit fees, a personal account manager, and access to Trading Central.

Cryptocurrency trading:

When it comes to buying and selling actual bitcoin, eToro’s prices are about par with the norm. Users pay a flat rate of one percent of the total trade value (in addition to the spread) when entering and closing buy and sell positions.

Although the cost of trading bitcoin has increased (from 0.75% to 1%), eToro has levelled the playing field for trading nearly 200 crypto assets by charging a single, flat 1% commission, which is especially useful for trading newer cryptocurrencies that would have been more expensive under the old fee structure.

Meanwhile, eToro’s 0.1% (plus market spreads) fee for cryptocurrency-to-cryptocurrency conversion is hard to beat. The eToroX platform offers even reduced fees if you’re only interested in trading cryptocurrencies, but it lacks the CFD trading and market depth of the regular eToro platform.

Is eToro Safe?

With a Trust Score of 93 out of a possible 99, eToro is widely believed to be trustworthy. eToro is not publicly listed, does not run a bank, and is only licensed by two tier-1 (high trust) regulators, one tier-2 (medium trust), and none tier-3 (low trust) regulators (low trust). The Financial Conduct Authority (FCA) and the Australian Securities & Investments Commission (ASIC) both recognize eToro as a legitimate financial services provider (FCA). Discover the details about Trust Score.

Can eToro be Trusted?

Yes. Compliance with FCA, CySEC, and ASIC rules ensures that eToro is safe for its users and their money. All of our users’ private information is encrypted and their money is housed in reputable banks while they trade on eToro.

Can One Earn Money Using eToro?

Making money using eToro is possible, but like with any broker, there is no assurance that you will. The unique selling pitch of eToro is its social copy trading features, which let users choose traders from a large pool and automatically copy their trades in real time. However, keep in mind that trading investments like forex, stocks, and CFDs, especially with eToro, carries the risk of loss.

Making money on eToro as a trader requires good trading judgments and risk management such that your average losses are small in comparison to your average earnings over time.

You still need to do your own research while copy trading on eToro to determine which users to follow. You must also choose how much to invest with each provider, whether to implement maximum draw-down limitations (the point at which you will cease copying), and whether to duplicate open trades or only new ones.

Is eToro Suitable for Beginners?

If you’re just starting off, eToro is a fantastic option. It has a trading platform that is simple and straightforward. eToro’s web interface and mobile trading app strike a great balance between ease of use and robust functionality. Easy to use compared to more complex trading platforms, eToro is helpful for beginners but that doesn’t mean making money is easy.

If you’re just starting out with eToro, you might find it difficult to make informed decisions on which investors to copy until you gain experience.

Some metrics to think about when choosing an investor to emulate are their risk score, weekly trading volume, average gain/loss, and time in the market.

Conclusion

Copy trading on eToro is ideal for both inexperienced retail traders and active traders with extensive experience who wish to be compensated for sharing their expertise with the community.

The intuitive interface may be especially helpful for novice traders who still need guidance. Higher spreads and lower maximum trade sizes disqualify eToro as a viable option for active or high-volume traders. Similarly, automated trading of any kind is forbidden.

When it comes to social copy trading and cryptocurrency trading, eToro is your best bet (and earned the top ranking for both categories in our 2023 Annual Awards). eToro also took up our 2023 Industry Award for #1 Trader Community.

Compare to Similar Brokers

BTCC vs eToro

The table below compares BTCC vs eToro with regards to trading costs, withdrawal fees, deposit methods, supported cryptocurrencies, trading kinds, and more.

BTCC, a cryptocurrency exchange situated in Europe, was founded in June 2011 with the goal of making crypto trading reliable and accessible to everyone.  BTCC is a crypto exchange offering users liquid and low-fee futures trading of both cryptocurrencies and tokenized traditional financial instruments like stocks and commodities.

The information is updated once per month.

	BTCC GO TO BTCC	eToro GO TO ETORO
Supported Cryptos	56	20
Exchange Fees
Taker Fee	0.06%	0.75%
Maker Fee	0.06%	0.75%
Withdrawal Fee	0.0004	5 USD
Deposit Methods
Wire	×	√
Credit	√	√
More
US Allowed	√	√
Offers Derivatives	×	√
Active Since	2011	2007
User Score	4.33 from 87 votes	3.33 from 69 votes