PREVIOUS: How Does War Affect the Stock Market?
NEXT: Is eToro Safe?

eToro Review 2022: What You Need to Know

What Is eToro?

eToro is a social trading platform that allows users to trade stocks, cryptocurrencies, and forex 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.

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

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.

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

eToro Features

Stocks on eToro

eToro lets you trade stocks commission-free.

You’ll be able to find your favorite companies and easily invest in them or learn how others are investing in them.

ETFs on eToro

eToro is currently beta testing ETFs for U.S.-based customers.

ETFs are currently only available for retail investor accounts in 44 states.

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 40 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.

eToro also lets you use their very own crypto wallet.

You can transfer Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Stellar, Tron and XRP to your eToro Money crypto wallet.

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 a security as buy, hold, or sell.

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

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!

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.

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!

The Virtual Portfolio allows you to trade any security you can trade in your real portfolio.

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.

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.

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).

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.

Keep in mind that cryptocurrencies are not insured.

Note for International Investors

If you are not based in the U.S., you can trade CFDs on eToro.

A CFD, or contract for differences, is a derivative contract that lets you bet on the future price of a security without actually buying it.

Trading CFDs is like trading options, in that you can trade these contracts without having to buy the underlying security.

The buyer (you) and seller (eToro) of the contract make bets on whether the price will go up or down, and the loser has to pay the winner the difference between the original price of the security and the price at the end of the contract.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.

Trading CFDs can be a very risky move, so make sure to do your research before you start.

So if you're planning on investing on eToro Europe or from somewhere else in the world, you can trade CFDs!

If you're located outside of the U.S. and want to get started on eToro, create an account here!

68% of retail investor accounts lose money when trading CFD’s with this provider. You should consider whether you can afford to take the high risk of losing your money.

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 Discolsure 

eToro is a multi-asset platform which offers both investing in stocks 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. 68% 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.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

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.

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!