eToro Exchange Review
eToro Cryptocurrency Review (THEY DONT TAKE USA USERS)
Trust Score: 7/10
eToro is something a bit different to your standard cryptocurrency exchange and in fact, it likes to be called a social trading platform instead. They themselves call it the Facebook of trading as it includes a bunch of social aspects that cannot be found on any other exchange.
Founded back in 2007, this Cyprus based broker now has more than 5 million active traders, is regulated by the FCA, CySIC, MiFID and ASIC and has earned an excellent reputation since its launch.
Primarily launched to provide financial tools such as forex, stocks and commodities, this multi-language platform now accommodates traders that want to trade, buy or sell cryptocurrencies or bet on the future movements of cryptocurrencies through CFD’s.
With a big focus on educating its users, eToro also allows its users to see the trades of others with that trader also earning a ‘second income’ of other traders copy the trade. As well as that, the social aspect of the exchange allows users to communicate and share tips, advice and essentially educate each other as they go along.
Anyway, let’s get on with the more specific aspects of eToro by taking you through our complete review of their exchange.
The fact that eToro has been around so long is a very good sign, it shows that they are not your run of the mil exchange that will either disappear after a few years or scam its customers. Instead, with more than a decade in the industry, they really have developed in each and every area of their exchange.
One such example is that of the app that it provides for both Android and iOS mobile users. This app makes it so much easier for mobile users to trade, buy and sell on eToro. The web browser is fine as it is but the app is far more efficient and easy-to-use.
As of the time of writing this review, only Bitcoin, Ethereum, Ethereum Classic, Dash, and Litecoin can be traded on eToro. We are not sure if they will ever expand the number of cryptocurrency coins that they allow to be traded on their exchange but we are sure they will if they feel there is a need for more.
Cryptocurrency cannot be deposited or withdrawn from eToro, so in effect, you never actually own the coins. The idea is that you trade with these currencies before turning your profits into USD and withdrawing.
Registering an Account at eToro
One of the easiest trades you will ever do is the trading of a few small details of yours for that of an account at eToro. Signing up will literally take a couple of minutes tops as you can either provide an email address that you then verify through an email they send you or you can just use tour Facebook or Google+ account to make things even easier.
Once you have done either of the above you are instantly given access to the trading platform and can go about making changes to your profile, settings and anything else you want to change up.
You will then be sent a welcome/introduction email that will tell you about what you will need to next if you want to start trading on eToro.
To cut this short, you will need to verify your account if you want to be able to fund it with more than $2,250 and then start trading. More on that in the following section.
- Quick and Simple Account Creation
- Email or Social Media Account All That is Needed
Verifying Your Account
You cannot trade without funds in your eToro account, so the next step will be using a payment method to transfer some money across. The only problem you are going to have is that you will not be able to deposit more than $2,250 into your account or make any withdrawals at all until you have verified your account.
So basically, you are going to have to verify your account at some point anyway so you might as well do this straight away. The process can sometimes take some time, so the quicker you get it underway the better. You can always trade within $2,250 while you’re waiting.
Verifying your account will require copies/pictures of your:
- Passport or other official government ID
- A Bank statement or utility bill to authorize your address
Etoro does not actually trade in stocks but in the CFD’s of those stocks. Nobody actually owns anything and instead ‘gambles’ if you like on the future of that stock, commodity, indices etc on one of the major exchanges.
Thes CFD’s that eToro offers include the likes of:
This is the key selling point of this platform and something that is rarely seen anywhere else. This feature allows you to literally follow professional traders around, look at their trades and even copy them if you like. The trader you copy is rewarded for being copied so earns an extra income for sharing his secrets.
Traders can opt out of this if they so wish but they will be throwing away that second income in return for their best-kept trading secrets.
Accepted Payment Methods
Deposits and withdrawals on eToro can only be completed using USD which can be put onto the platform using a number of different payment methods. The country you are located in will determine the kind of payments methods you have and it should be remembered that if your account is not in USD, there will be a conversion charge added.
Credit/debit cards and eWallets such as PayPal, Neteller, Skrill and WebMoney will be the quickest methods of getting money into your account on eTorro. However, probably the most common payment option and the one that users from all countries can use is that of wire transfer. This will take 2-3 business days for each transaction but you will find that the fees are much lower than any other form of payment method.
If you want to find out more detailed information regarding the different payment methods at eToro, you can do so by checking out this link.
- Credit/Debit Cards
- Wire transfers
Now for the section that most of you have been waiting for, the fees that you will have to pay out at eToro.
There are no fees for depositing USD into your eToro account. This is to be expected as many exchanges offer the same free deposits.
The minimum amount you can withdraw is $50 and your account has to be verified before you are able to do so. The fee for withdrawing USD from eToro is $25 on top of any fees that your payment method may charge.
This might seem quite a lot but you have to remember that this is a platform that is designed for the more serious investor. A minimum deposit of $1,000 will go a long way to showing that. So the withdrawals you make are not going to be for a few dollars here and there but more than likely for some rather big sums of money.
- Trading Fees
eToro could be classed as being around the average mark when it comes to trading fees as they are not the cheapest but are certainly not the most expensive exchange out there. The fees are a little bit difficult to break down, so we suggest looking at their fees page here.
When it comes to depositing and withdrawing at eToro, there will be certain limits that you will have to adhere to and these are:
Minimum limits for depositing on eTorro are quite high it has to be said and it would seem that they are interested in serious traders only. Depending on your country of origin, the minimum deposit onto their platform will range between $1,000 and $10,000.
As for the maximum amount you can deposit, this will depend on various factors. If your account is not verified you will only be able to deposit a maximum of €2,000. Once verified, however, depending on your payment method, you could have an unlimited deposit limit. More can be found out here.
We cannot find any information on the eToro website regarding there being any maximum withdrawal limit but we do know that you have to withdraw a minimum of $50 USD.
eToro allows its platform to be used on a global scale and there really are only a handful of countries where their residents are not permitted to open an account. Those are people that are from:
- North Korea
- The USA
The biggest surprise here is that eToro does not accept US users and while many get around this through using VPNs and the like, we would definitely not recommend it.
Users from all other countries should be able to enjoy the eToro without any problems as long as they are able to deposit and withdraw from the exchange.
At eToro, you can expect to find telephone support and email support but we have to warn you that they are very busy and either method will have you waiting a few hours at least. We suggest using the email method unless you want to be holding a phone for a few hours.
This is basically down to how many users they now have and despite their attempts to scale up their customer service, it seems it might take them a little while to get on top of things.
They do have a massive knowledge base and an excellent F.A.Q page which might be of help and actually solve your issues for you.
- Email & Telephone Support
We feel that eToro is lacking in this respect which is hugely surprising considering the number of active users that they have. There is nothing other than a username and password required to log into your account.
There is no 2-factor authentication, no digital tokens, no SMS alerts or any kind of security feature. This just means that it is going to be quite a breeze to have your account hacked if you are not careful. It would be a good idea to not leave too many finds in your account for too long and just send them in whenever you are going to trade.
It can be a little difficult to work out their target audience at eToro as on one hand, you have a minimum deposit of $1,000 required and some of the more advanced forms of CFD trading while on the other, they focus a lot on education through features such as CopyTrades.
Does this mean they are targeting beginners that have a good amount of spare cash lying around? Who knows but unless you do have some spare cash, you are not going to be able to trade on eToro.
That being said, however, the platform itself and the features that it provides are all of a very good quality. It has millions of active users plenty of trade options and a social feel that cannot be matched anywhere else.
If you like what you have learned about eToro so far, you really should give it a try – even if it is just through using the demo account. There you get a virtual fund of $100,000 to play with and to learn the many features at the leading social trading site on the internet.