The online trading platform eToro has been serving customers around the world since 2007. The Israeli startup is very well-known in the financial world and expanded its services to include crypto trading in 2013. This review of eToro crypto trading will highlight all the key points you need to know to make an informed design before signing up with them.
Unlike many other cryptocurrency trading platforms, eToro began as a traditional asset trading platform that specialized in contracts-for-difference (CFD’s). CFD’s are a high-risk and controversial financial instrument that has come under scrutiny lately for the risks associated with them. As a result, from March 13, 2019, eToro was no longer able to offer CFD trading to its U.S. customers.
However, eToro is considered a very secure platform due to it being regulated in the United Kingdom by the Financial Conduct Authority (FCA) and in other countries via a regulatory body in Cyprus. Its strongest benefit is its social trading features that allow users to interact and share trading tips and information.
- Excellent selection of resources available to learn how to trade
- Detailed trading apps and social trading community
- High withdrawal fees
- Limited selection of cryptocurrencies
eToro expanded its list of cryptocurrency CFD’s in February of 2017 and has since begun offering the ability to purchase physical crypto assets directly through its platform. The trading of physical cryptocurrency is available in 39 U.S. states including Washington, Michigan, Ohio, Oklahoma, Iowa, Montana, Wisconsin, Georgia, Indiana, Kentucky, and New Jersey.
In September 2017, eToro launched an entirely new cryptocurrency trading platform and stopped offering leverage on any crypto-related investments.
Customers can purchase a large variety of cryptocurrencies, including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), EOS, Litecoin (LTC), Ripple (XRP), Stellar (XLM), DASH, Ethereum Classic (ETC), Cardano (ADA) and NEO. In addition, the platform offers twelve cryptocurrency trading pairs, including BTC/USD, BTC/USDT, BTC/EUR, and ETH/EUR.
For any long positions, the real coin is used but for short positions on eToro, the trade will be a CFD. Currently, eToro crypto wallets only the sending and receiving of Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Transaction Fees and Charges
The eToro platform has a minimum deposit amount of $200 and charges a negligible fee (<0.01%) for deposits. There is no charge for the purchase of cryptocurrency but there is a high charge of $25 per withdrawal and the minimum withdrawal amount in USD is $50.
eToro’s trading fees vary depending on the cryptocurrency you choose, with Bitcoin and Ethereum being as low as 2 percent and Stellar and NEO as high as 5 percent. For cryptocurrency withdrawals, minimums vary per coin. Bitcoin is 0.008 BTC, Ethereum is 0.26 ETH, Bitcoin Cash is 0.52 BCH and Ripple is 133 XRP.
Instant deposits can be made via a wide range of options, including credit/debit card, Paypal, online banking, Union Pay, Neteller, and WebMoney. For wire transfer, deposits can take up to five business days.
Unlike most cryptocurrency exchanges, eToro doesn’t hold large amounts of physical crypto assets. As a result, it is not a target for common cryptocurrency hackers.
In addition, the regulations that cover its traditional CFD offerings do not cover its crypto assets which are held by third-party providers. This makes it more secure from theft but gives customers less regulatory insurance.
However, it still features strong security and encryption to protect is customers accounts and details. All funds are kept in segregated accounts and transaction information is secured via SSL.
Customers using eToro will benefit from a fast, well-designed and detailed trading platform for both desktop and mobile. The platform is focused around social trading so users can interact with each other, provide tips and offer assistance.
Newbie crypto investors will benefit from being able to copy trades made by more seasoned traders in groups known as Crypto CopyFunds. This greatly reduces the risk for newcomers while giving them the chance to learn about cryptocurrency trading.
The eToro platform offers the ability to create and follow detailed charts within its ProCharts (beta) service. The service comes with 66 technical indicators, a range of drawing tools and a host of extra features that should please even the most advanced of traders.
Some of the features include candlestick charts, line charts, multiple time frames, asset comparisons, watch lists and limit orders. The mobile trading app supports a vast range of the most common desktop features but does not support ProCharts.
eToro uses straight-through processing (STP) and practices ‘no dealing desk’ (NDD) policies to ensure all trades are made in real-time and without interference.
eToro has had some trouble in the past with the quality of its customer service but this seems to be improving. Unfortunately, it doesn’t offer any live chat or phone support, only the usual ticketing service. While most tickets are dealt with in a few hours, some users have reported waiting between 48 hours for a reply. However, they have noted that problems are dealt with in a very professional manner.
In addition to the customer support service, eToro features a Trading Academy where new users can learn to trade via a collection of webinars, online courses, and videos. Its social trading feature also provides users with access to an entire community of seasoned investors ready to offer a wealth of knowledge.
eToro is a very well regulated company with years of experience and a high level of trust, something not so often found within cryptocurrency trading platforms. For this reason, it may be attractive to new crypto traders or traditional investors who are wary of unknown exchange platforms. However, it does have high fees and doesn’t offer the wide range of cryptocurrencies that major crypto trading platforms benefit from.
The real benefits come from its social trading feature which new traders may find very helpful. Additionally, traders who want to trade exclusively in crypto CFD’s may find this feature useful but should be warned that it comes with high risks. Research has found that 76 percent of first-time retail investors lose money when trading CFDs.