eToro: The Ultimate User's Guide & Review (2023)
Nov 6, 2023
Welcome to our detailed exploration of eToro, the trading platform that seamlessly blends finance and social interaction. Established in 2006, eToro has evolved into the world's largest investment network, boasting nearly 5 million users globally.
Apart from its social edge, one of eToro’s most unique attributes is its ‘Copy Trading’ feature. This feature allows users to sift through other traders’ profiles and view their trading history, including their profits and losses over a specified period of time. If you a specific user’s trend, you can allocate a portion of your funds to copy their trades automatically.
eToro, initially known as RetailFX, was founded in 2006. The company was founded in Tel Aviv, Israel by two brothers, Ronen Assia and Yoni Assia along with their partner David Ring. In 2010, the company launched the eToro social investment platform which came with the CopyTrading feature. Later in 2010, eToro launched its first app for Android devices.
Between its launch in 2006 and 2013, the company was able to raise $31.5 million in just four funding rounds. In 2014, eToro raised a further $27 million from Chinese and Russian investors. Most recently, in 2018, the company raised a whopping $100 million in private funding. A total of close to $170 million has been invested in the company since it was founded.
How to Buy Crypto on eToro
Signing up for eToro is quite easy.
All you have to do is click on the “Sign Up” button, enter your details, and choose a username. eToro will also ask for your phone number at this juncture, but don’t worry, this is only needed for the security of your account. That’s it!
Complete your profile
But before you can begin real-time trading you will be required to complete your profile.
You are required to complete your profile, not simply to begin trading, but also to ensure your account is protected and tailored for your individual needs. The platform will prompt you to key in your Identification Number and afterwards you will be asked a few trading questions to gauge your experience. This is not an examination so do not worry, just answer any questions truthfully.
Fund your account
Once you have completed your profile you can now begin trading and investing. But, of course, before that, you will need to fund your account. Look over to the left panel and click on the “Deposit Funds” button at the bottom of the panel. Note, the minimum you can deposit on the platform is $50, which is just enough to get you started. Although eToro primarily deals in USD, you can also deposit in other currencies, which will automatically be converted to USD.
Once your account is funded, we recommend that you take the time to familiarize yourself with the interface.
eToro uses somewhat special wording for trades on its platform. This is because most it originally was a CFD trading platform. It might be a bit confusing at first. For instance, when you would like to buy crypto on eToro, you need to "open a position" on the cryptocurrency of your choice.
Please note that eToro always indicates if you buy the actual underlying asset (i.e. crypto), or a CFD which is in essence a bet on rising or falling prices. If you want to hold crypto in the long-term, always make sure that you buy the asset itself, because CFDs incur daily fees which will eat into your profits.
If you want to sell your crypto later on, the way to do this is to head over to your open positions and to "close" the respective position. If you go just ahead and open a "sell position", you will actually not sell your crypto, but open a CFD on falling crypto prices.
The eToro app is available for both Android and iOS users. The app gives you access to the eToro community, the cryptocurrency market, updates on the latest developments, and stats. The best thing about the eToro app is that you can link it to all your mobile devices as well as your desktop.
Features of eToro
Available Payment Methods
Depositing funds on eToro is easy & fast and, to do this, there is an almost unmatched amount of payment methods for you to choose from. These include:
- Debit/Credit Card
- Bank Transfer
- E-wallet: PayPal, Skrill, and Neteller
To deposit, follow the following procedure:
- Login onto the platform
- Click on the 'Deposit Funds' button
- Enter your preferred currency and amount
- Select a payment method
- Whichever payment method you have selected will guide you on how to complete the transaction
Note that if you wish to take part in large trades, you would have to verify your account by contacting customer support. Unverified accounts are limited to a maximum deposit of $2,250.
Limits and Fees
eToro has an average spread of 1 percentage point on the USD/EUR, which is just slightly above the industry average.
As pertains to cryptocurrency, eToro offers pricing close to that of the industry average. However, converting crypto to crypto at eToro is only 0.1%. eToro has a large number of crypto assets and CFD shares, which makes this one of best crypto trading brokers of 2021.
Lastly, eToro also offers Exchange-Traded Securities and, in addition to CFD shares, the company also offers zero-dollar commission for all US stock trading for non-US citizens while also offering fractional shares.
Just a heads-up, remember that CFDs are complex instruments that come with a very high risk of losing capital. An average of 75% of investors lose their funds when trading CFDs on eToro. You should therefore take the time to understand how CFDs work and consider whether or not you are willing to take the risk of losing your hard earned money.
Is eToro Trustworthy?
According to eToro, the privacy and security of its users is of the utmost importance. For that reason, the platform has put in place several measures that guarantee the protection of its trading community. Data of the users is protected through the application of information security best practices such as data encryption and firewalls. Additionally, all users are required to pick a unique username and password to access their accounts.
The platform also offers a Two Factor Authentication (2FA) option that requires you to enter a verification code sent to your personal phone line via text message in order to confirm your identity. This additional layer of security guarantees that, even where an individual had your password, they would never be able to access your account without, not just your phone, but your phone password as well.
Also, if you tick the ‘Remember this Device’ checkbox when logging in, your device will be remembered only for 30 days after which you will be automatically logged out and you will receive a new code via email that will be required for you to log you back in. This feature is optional, but we recommend that you use it.
In the UK, eToro serves clients through the Financial Conduct Authority (FCA) and in Australia eToro is regulated by both the Investment Commission (ASIC) and Australian Securities. Clients from other geographical locations are regulated by the Cyprus Securities and Exchange Commission (CySEC).
eToro is a great option for any investors who are interested in social investmenting platforms through the CopyTrading feature; these are mostly beginners. For active and experienced traders, eToro is a great option if you want to be appreciated or compensated for sharing your ideas and trades with other investors. Beginners require some level of handholding and are bound to find numerous people who are willing to do just that on this platform.
In summary, eToro is user-friendly and a great option for both beginners and experts. Although this does not necessarily mean that it’s easy to grow your wealth on the platform, eToro is certainly a better option than some of the more sophisticated trading platforms in the market that have a steep learning curve.
- eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
- 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
- Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
- Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
- Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
- eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
- This content is not intended for US users. eToro USA LLC does not offer CFDs, only real crypto assets are available.