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eToro Review 2022

What Is eToro?

eToro is a social trading platform that allows users to trade stocks and cryptocurrencies, as well as keep up with the investing strategies and patterns of other eToro users.

The company is based in Tel-Aviv, Israel, and its CEO is Yoni Assia. Originally, eToro was crypto-only but now offers multiple other equities to trade.  

The eToro platform has over 25 million registered users in over 140 countries and 45 states.

In 2021, eToro went public via a $10.4 billion reverse merger with FinTech Acquisition Corp V.

eToro is officially organized as eToro USA LLC.

How Does eToro Work?

eToro has several different sides to its business.

This includes the ability to trade different asset classes, copy top traders’ portfolios, and trade virtual currency for practice. They were one of the early adapters

eToro’s goal is to make trading more accessible. It is a good option for beginning investors. The platform is very well laid out with easy access to its tools and features.

eToro operates through a web and mobile platform and both are very functional. Both are available in 21 languages.

Let’s talk about the different features available on eToro.

eToro Offerings

Stocks on eToro

eToro lets you trade stocks commission-free.

eToro offers around 2,800 stocks so you will be able to find your favorite companies and easily invest in them or learn how others are investing in them.

ETFs on eToro

Investors can also choose over 200 ETFs to trade.

CFDs on eToro

eToro allows you to trade CFDs. They offer CFDs for stock, commodities, and Crypto. CFD, Contract for Difference, is a contract with a broker that allows you to invest in an asset without actually owning it. They are very high risk, high reward.

Cryptocurrency on eToro

Crypto is where eToro got its start.

eToro was one of the early adopters of cryptocurrency trading and it functions as a full crypto exchange.

You can trade over 60 cryptos on eToro, such as Bitcoin, Ethereum, and Dogecoin.

The cryptocurrency trading experience on eToro is quick and easy, with a solid user interface.

If you’re looking for an introduction to cryptocurrency and crypto trading, check out our crypto article here.

Features

Watchlist

You can create a watchlist by adding stocks and cryptos that you’re interested in.

Any securities that you add will populate your Watchlist page, where you can see them all in one place.

The watchlist shows you the price, gain or loss percentage, and chart for each security.

You can also see the 52-week price range for each security as well as analyst sentiment.

The sentiment will tell you whether most analysts are rating security as buy, hold, or sell.

You can easily trade your favorite securities from the Watchlist view.

Wallet

eToro has a mobile wallet app where investors can safely secure multiple crypto assets. Trades can use the wallet to buy, receive, and store their cryptocurrencies.

 eToro allows investors to transfer their crypto from their trading accounts to their wallets. eToro charges a small fee for all transfers.

 It also features a built-in exchange to convert cryptos into other currencies. The wallet uses a private key feature to recover your wallet.

Social Investing

One of the features that makes eToro so unique is its social aspect.

The eToro trading platform is essentially bridging investing and social media!

Copy Trading

The “copy trading” feature lets you automatically replicate another investor’s strategy or portfolio at the click of a button.

You can look at how top investors are trading, and what securities they’re fans of right now.

These top investors get paid when you copy their trading strategies through eToro’s Popular Investor Program.

Smart Portfolios

Smart Portfolios allow you to invest in an array of assets and traders with a specific theme or strategy. There are three types of Smart Portfolios: Top Trader Portfolios, Thematic Market Portfolios, and Partner Portfolios. 

Virtual Portfolio

eToro also has a Virtual Portfolio feature. 

The Virtual Portfolio allows you to paper trade, or trade virtual money as practice for real investing!

You get $100,000 of virtual money which helps you learn from your successes and mistakes.

The Virtual Portfolio allows you to trade any security you can trade-in your real portfolio. A great way for beginners to get a feel for trading and the platform.

eToro Fees

So, now that we know what eToro is and how it works, how much does eToro cost?

eToro is a commission-free investing platform for stocks; you won’t have to pay any fees when you trade equities.

Investors based in the U.S. won’t have to pay too many fees to trade on eToro from their retail investor accounts.

For example, the company charges a 1% fee any time you buy or sell cryptocurrency on their trading platform.

If you’re using the eToro Money Wallet for your crypto, you’ll also pay a 0.1% conversion fee to convert one coin to another.

There’s also a 0.5% transfer fee (minimum of $1, maximum of $50) when you transfer funds from your eToro brokerage account to the Money wallet.

eToro also charges miscellaneous fees for certain optional services.

For example, if you decide to transfer your eToro account to another brokerage, you’ll pay a $75 ACATS fee. 

You’ll also pay different fees for paper services, wire transfers, and other services.

eToro does not charge based on what payment method is used to fund your account.

eToro has a minimum deposit of $10. For wire transfers, the minimum is $500.

If you are an inactive eToro user for more than 12 months, they will charge you a $10 monthly fee. International users pay $5 to withdraw funds.

These fees are typical among most brokerages and are easily avoidable depending on how you use the platform.

You will have to withdraw a minimum of $30 any time you want to withdraw money from your account.

Education

Compared to some other crypto brokerages, eToro’s educational tools lack quality. To practice trading, they do have demo accounts. They also offer a tutorial to understand their trading platform.

eToro Academy has videos, written guides, podcasts, and online training courses. They are sorted by category and experience level.

The latest crypto news is available to read on their blog.

Check out how eToro educational tools compare to Coinbase here.

Customer Service

eToro provides customer support through live chat and an online ticket system. You must be login in to access the live chat, but anyone can use the support ticket system.

eToro users have reviewed that the representatives on the live chat are hard to reach. The support tickets are your most effective way to get help. You will receive a response in your email within 24 to 48 hours.

There is a help center that answers frequently asked questions; as well as articles that address how to open an account, how to transfer assets, or how to use the trading interface. These articles provide users with a step-by-step guide and are fairly easy to understand.

For eToro loyal customers with more than $5,000 in equity, they hire account managers to look after active traders.

Is eToro Safe?

As you’re doing your due diligence while evaluating eToro, you’re probably asking: is eToro reliable?

Well, we think that eToro’s years of business in the investing world and millions of users speak for themselves.

But on top of that, eToro is a member of both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

eToro is also regulated by the United Kingdom’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investment Commission (ASIC).

This means that eToro is heavily regulated by the government, just like many other big investing platforms.

eToro is also a member of the Securities Investor Protection Corporation (SIPC)

This means that your stocks and deposited cash are protected in the event that eToro goes out of business and you’re unable to liquidate the assets in your account.

Funds are held in secure tier 1 banks and your personal information is kept private under the SSL encryption.

eToro offers users a Two Factor Authentication (2FA) to protect their account further.

Etoro networks are monitored by cybersecurity professionals all day every night. They make sure to prevent attacks on Etoro’s firewall and actually hire ethical hackers to find holes in the system.

Keep in mind that cryptocurrencies are not insured.

Final Thoughts

If you’re looking for a modern investing platform that can connect you with other investors, eToro might be the right choice for you.

You can learn new investing strategies, practice stock trading risk-free, and duplicate successful investors’ portfolios!

eToro is safe and legit. It is simple to use, and the mobile trading app is top-notch. It is commission-free and offers a quality selection of US stocks, ETFs, and cryptocurrencies.

In terms of analysis, charting tools include many technical indicators to help you invest wisely.

It is a great place to start trading, gain experience, and connect with other investors.

eToro Disclosure

Stock Trak is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.

eToro is a game-changing social investing platform that lets you duplicate the portfolios of successful investors. SIGN UP NOW TO GET A $10 BONUS!

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