If you would like to get into trading cryptocurrencies, oil, stock, or gold, then eToro is one of the excellent options for you.
The eToro platform is a fully regulated, well-known, and trusted broker having a whopping clientele of more than 10 million globally.
Unlike other cryptocurrency trading services, eToro does not allow you to withdraw your digital assets unless you are using a platform-supplied custodial wallet.
eToro: Key Features
If you are a new investor, eToro would be a great place for you to begin your trading career. Since its inception, eToro has been a pioneering player in online investing and has earned its reputation as a reliable broker.
The platform offers margin trading for professional traders, so people can use their experience to make bigger profits without the risk. On the other hand, the platform also makes it easier for beginners to jump into trading with its social trading tools.
The key features of eToro include:
eToro social trading: The easy-to-use interface of the eToro platform allows users to trade without feeling overwhelmed. Users can follow, copy, interact with their favorite traders. Not just that, they can also create a custom news feed to keep a check on their preferred assets and their news constantly.
A broad variety of assets: eToro allows you to trade in 16 cryptocurrencies as well as a variety of traditional markets like stocks, bonds, forex, ETFs, commodities, and more.
Reliable customer support: The platform offers live chat and phone support for their consumers to reach them whenever in need. One of the other great benefits of this platform is that it has translations into more than 20 languages. However, the customer service is only available during the weekdays (Monday to Friday).
eToro virtual portfolio: The eToro platform also offers a lot of resources for its clients, including a virtual portfolio with interactive charts to guide people through the often-learned process in investing.
eToro Mobile Application: The company also facilitates a mobile application to its clientele, available on both popular OS versions, i.e., Android and iOS.
Detailed trading dashboard: To make it even easier to trade, eToro has created one of the most detailed trading dashboards on the market.
For investors interested in trading globally, the following is the list of instruments they can access on the platform.
- An investor has a large number of currency pairs, 47 to be exact, to choose from for trading, which includes USD, EUR, CAD, AUD, GBP, PLN, SEK, JPY, SGD, and many more.
- On eToro platform, investors can trade on 13 stock indexes for CFDs which include SPX 500, UK100, NSDQ100, AUS200, China50, etc.
- eToro offers a whopping amount(1300) of stock CFDs for trading on the platform.
- It also presents 83 commodity CFDs, including gold, oil, copper, silver, natural gas, and platinum.
- The broker also offers 16 major cryptocurrencies for trading on the platform.
eToro: Company Background
However, cryptocurrency trading made a whopping impact on its boom; eToro’s history stretches further back than the beginning of the cryptocurrency era. It began its life as an online social network for investing, allowing users to discuss the markets and learn about stocks.
It has grown into a global investment platform that facilitates its userbase to trade in Forex, Bitcoin, and more than ten thousand different assets – from shares, commodities such as gold or oil to various blockchain tokens.
eToro is also known for its commitment to innovating and experimenting with new technologies – such as artificial intelligence (AI) – making trading even more accessible.
In 2010, the platform launched its famous copy-trading feature, enabling investors to mirror the activities of others without having to spend time researching themselves.
In January 2014, eToro inducted Bitcoin trading to their platform, which had 3 million users at the time. Still, in the beginning, only CFD trades were allowed to do on Bitcoin. That means a trader could not purchase the cryptocurrency, but they can gain profit or loss depending on whether the price of the pioneer cryptocurrency is going up or down.
In September 2018, eToro finally allowed its community for direct trading in cryptocurrencies. As a result, traders have the opportunity to use their platform’s wallet to buy and sell those cryptocurrencies.
Because of its comprehensive investment tools allowed eToro to grow steadily with an impressive ten million users, on which the crypto boom has its fair share. And, for a platform of its size, eToro’s interface is streamlined and straightforward, while its mobile app enables you to manage your portfolio on the go effortlessly.
eToro is a popular brokerage service that offers simple trading for anyone with an account against prices slightly different than other standard exchanges such as Binance, Kraken, and Coinbase.
eToro charges you a broker’s spread when you are trading, which is the cost for executing your trade. If you trade crypto on eToro, it will not charge you anything other than the spread, an impressive feature that makes it an attractive option to many people who are beginners in trading.
Besides this, the trader will only pay a single percentage spread when buying the asset, which can be adjusted while selling that asset. This means that if you lose a significant amount of money on your trade, then the broker will refund you a percentage of your spread. This feature alone makes it one of the most preferred cryptocurrency brokers in the market.
The percentage of spread is dependent on the cryptocurrency you trade. The fees of each cryptocurrency may change depending on the coins’ latest performance in the market. The platform standard spread rate for each cryptocurrency are as follows:
- Bitcoin (BTC) – 0.75%
- Bitcoin Cash (BCH) – 1.90%
- Ethereum (ETH) – 1.90%
- Ethereum Class (ETC) – 1.90%
- Dash (DASH) – 2.90
- Litecoin (LTC) – 1.90%
- Ripple (XRP) – 2.45%
- Cardano (ADA) – 2.90%
- IOST (MIOTA) – 4.5%
- Stellar (XLM) – 2.45%
Although, the eToro platform does not require you to maintain a minimum account limit. But while depositing into your account, you should transfer at least 50 USD. Similarly, when you want to buy cryptocurrency using the platform, the least amount you need is 20 USD.
If we talk about the eToro platform security, then it would be interesting to note that the platform has not faced any significant leak or scandal in the past. It may be because of the fact that, in the earlier part of its operation, the platform only provided CFDs for the cryptocurrency trades and did not allow direct trading.
In other words, up until the platform started direct trading of cryptocurrencies, it did not hold any of its clients’ digital assets. So, for eToro to employ full-fledged security measurements, other crypto platforms used, such as multi-signature verification and cold wallets, were never needed.
Having said that, as the platform now offers direct cryptocurrency trading, it is imperative to keep the funds in secure storage. The broker now ensures the protection of its clientele’s assets by storing them in its proprietary wallet, dubbed eToro wallet.
It is also worthy of knowing that as the eToro wallet also keeps its customers’ private key with itself; hence you got no other choice but to trust the company with your funds’ safekeeping. But, do not worry; eToro keeps its customer’s assets separately from its regular institutional accounts. For this, the company employs the services of internationally renowned banks such as Coutts and Barclays Banks.
Besides this, the eToro broker service is widely considered among the most guarded forums. It regularly complies with the regulation of the financial regulators such as FinCEN, CySEC, and FCA.
To talk about the eToro trading platform, it is one of the most user-friendly and easy to navigate interfaces you will find on the mania.
Traders of all levels, newbie or experienced, will find its layout quite pleasing. On the left side of their screen, they will find a control panel, while on the right side, various charts, data, and profiles will be at their disposal.
When it comes to trading on the cryptocurrency market, eToro facilitates its clientele with several necessary features that make it impressively suitable for both seasoned and novice traders.
The platform facilitates its community with an exciting trading feature dubbed Virtual Portfolio. Through Virtual Portfolio, traders can execute their tradings without putting their tangible assets.
In this way, one can purchase any amount of digital currency such as bitcoin, XRP, or DASH and track their performance in the market.
Not just that, eToro also employs the CopyTrader system on the platform, which helps boost the morale of novice traders who feel reluctant in their capability to select winners consistently.
With the platform’s CopyTrader tool, traders can mirror the trading methods of top-performing investors in many asset markets, be that commodities, ETFs, stocks, or cryptocurrency.
All you would be required is to opt for the asset you want to invest in; the eToro’s CopyTrader tool will then execute your preferred trader’s trading actions. Upon your experience, you can also make necessary adjustments here and there to your likings.
Similarly, the platform’s mobile app facilitates all kinds of operations and features any trader would want on their mobile devices. For Instance, the option of receiving notifications, regardless of your location, will let you keep track of all your trades. eToro mobile applications are available for both iOS and Android devices.
eToro: Deposit and Withdrawal Methods
At the pressing time, the eToro platform only accepts fiat currency in users’ accounts. Users have various options to deposit funds into their accounts through debit/credit cards, wire transfer, PayPal, Klarna, Skrill & Neteller, iDEAL and more. The platform requires a minimum deposit of USD 50. However, based on your location, this minimum requirement can go up to USD 10,000.
Interestingly, the platform only holds fiat currency in USD, meaning that if you are to deposit GBP or EUR into your account, it will convert it first to USD. eToro charges you for this currency conversion, though.
If you transfer your cryptocurrency from any other wallet, the asset goes directly into the eToro wallet as your stake.
For withdrawing funds from the eToro platform, you will be subject to pay USD 5 for each withdrawal. Besides this fact, funds withdrawals also operate the same way as that of depositing we discussed above. On the other hand, the platform’s proprietary wallet allows its customers to withdraw their digital assets as well.
eToro: Advantages and Disadvantages
- User-friendly interface
- Best starting point for newbie traders
- Provides ‘Virtual Account’ for training purposes
- Impressively social and regulated platform
- Allows to copy other seasoned traders’ methods
- Allows trading for a few cryptocurrencies
- Cryptocurrency trading is supported only in the U.S.
eToro is a revolutionary trading platform that offers an incredible opportunity to start learning about the online investing world, diversify your portfolio and connect with other investors. Unlike regular cryptocurrency services, which are cheaper than eToro but offer fewer benefits, it’s worth paying a little more for this service because of all the advantages you will reap while building up your trading portfolio.