eToro offers a crypto exchange that supports trading in 30+ cryptocurrencies, as well as an online brokerage platform with a limited selection of stocks and exchange-traded funds (ETFs). This platform’s social features and active community make it a good option for people who prefer a more communal trading experience. But if all you want is a reasonably priced crypto exchange, eToro’s high trading fees may seem a bit steep.
Who Is eToro Good For?
Newcomers to cryptocurrency who want to learn by doing so might be most at home on eToro.
The eToro platform offers an active user community and social features like news feeds for specific coins available for trading. Chatting with others and diving into social feeds can provide a great introduction to the crypto world.
What Makes eToro a Good Choice
At eToro, imitation is truly the sincerest form of flattery: The platform offers features that let you emulate the investing strategies of top crypto traders—and be rewarded if others copy your trading strategies.
These options may appeal to more advanced crypto traders, who can earn annual rewards equal to up to 2% of their average balance for developing followers on the platform.
eToro’s Disadvantages
If you’re neither a beginner nor aspiring to become a crypto influencer, but simply want rock-bottom trading fees—or comprehensive access to assets other than crypto—eToro wouldn’t be your first choice.
Users can find lower-cost crypto trading elsewhere—check out your options on Forbes Advisor’s listing of the best crypto exchanges. And if you want a full-featured brokerage account, see our listing of the best online brokers.
eToro Features
eToro was founded in Israel in 2007, and has expanded to a range of international markets in the intervening decade and a half. The platform offers varying features in different countries; the U.S. version does not support all of the options available internationally.
Like many other crypto exchanges, any U.S. residents can sign up for an eToro account but not all the platform’s features are available in every state. Crypto trading, for instance, is not available in New York, Nevada, Hawaii and Minnesota.
Fees
Pricing can be somewhat opaque on crypto exchanges, particularly those that cater to beginners, such as Coinbase and Gemini. So it’s refreshing that eToro clearly lists the fees it charges when you trade crypto.
eToro users pay a flat fee—technically a bid-ask spread—of 1% for each crypto trade.
Despite this clarity on fees, eToro’s pricing model has an unconventional wrinkle. Many exchanges charge a fee each time you buy or sell a crypto asset. But on eToro, you pay for the “round trip” up front—that is, you pay a 1% fee for the eventual sale of the coin in advance, plus a 1% fee on the purchase. According to eToro, this profit/loss “will update in real-time as the market price changes.”
If you plan to keep your crypto purchases on the eToro platform and never move them elsewhere, this difference may be a matter of semantics. But if you transfer your coins to an external crypto wallet, you can no longer move them back onto the eToro trading platform. In this case, you’ve essentially lost the return spread fee.
Security
Cash assets are held in Federal Deposit Insurance Corp. (FDIC)-insured bank accounts for funds up to $250,000.
Security protocols for crypto include offline and online storage of coins, two-factor authentication and state-of-the-art monitoring tools. In addition, no member of the eToro staff can transfer users’ crypto out of storage.
Opening an eToro Account
Opening an eToro account is quite simple. Visit the eToro homepage. Once there, you’ll be prompted to choose a username, enter your email address and set a password.
eToro also offers new members the option to start an account with their Facebook or Google accounts.
You’ll have to accept eToro’s terms and conditions, privacy policy and cookie policy. Finally, you’ll receive an email from eToro, where you’ll verify your email address. There’s no additional authentication required to open an eToro account.