eToro Review – Is it Safe to trade?
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eToro is a leading CFD and Forex trading platform provider. The broker jumped in the crypto bandwagon, and today it offers cryptocurrency-related contracts for difference (CFDs) as well. The company is confident in the future of digital assets, as it has developed several crypto-oriented products and features that are unique among CFD brokers.
Prior to discussing eToro’s crypto products, let us briefly introduce the company. eToro Group Limited is a company founded in 2006 and headquartered in Tel Aviv, Israel. The firm operates under its subsidiaries in the UK, Cyprus, Australia, and the US, thus being regulated by the FCA, CySEC, and the ASIC. eToro has become popular thanks to its revolutionary trading approach called social trading, in which beginners have been allowed to mirror strategies of advanced traders. Basically, it has been like the “Facebook” of CFD trading.
From a social trading platform, eToro quickly turned into a crypto-oriented broker that allows users to trade Bitcoin and altcoins without actually owning them, which is achievable through CFDs.
eToro analyst Mati Greenspan has been often cited by major financial media portals like Bloomberg and CNBC as a cryptocurrency expert.
eToro offers a wide and diversified range of tradable assets, including cryptocurrencies, fiat pairs, company shares, commodities, stock indices, and even exchange-traded funds (ETFs).
With eToro, traders can open long or short positions on the following cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Binance Coin, Cardano, Dash, EOS, Ethereum Classic, Litecoin, Miota, NEO, Tron, Stellar Lumens, Ripple, and ZCash.
Besides cryptocurrencies, the platform also lists six commodities, over 50 forex pairs, 145 ETFs, 14 indices, 600 NYSE-traded stocks, and hundreds of shares traded on other exchanges.
Unlike other CFD brokers, eToro doesn’t offer micro, mini or VIP accounts. Basically, there is only one account type whose minimum deposit is $200.
Nevertheless, traders can also benefit from the demo account version that has virtual money for training purposes only.
Institutional traders can open a corporate account, which comes with more sophisticated features. The minimum deposit with this account is $10,000.
Besides, Muslims can open an Islamic account, which doesn’t include interest on leverage and contracts lasting more than 24 hours. It’s worth mentioning that users who want to trade from an Islam account have to deposit no less than $1,000.
eToro doesn’t let users trade via traditional terminals like MT4, MT5 or cTrader. Instead, it has a proprietary trading platform that can be accessed in 13 languages, including via mobile devices (both iOS and Android).
The web-based platform is quite intuitive, though first-timers, especially those who are accustomed to MT4, might find it challenging for a while. The interface has an extensive menu on the left side and a dashboard screen that can display the watchlist of selected assets.
When approaching an instrument from the watchlist, it has several options: to sell or buy it, to check the candlestick chart, to look into historical price data, to analyze the sentiment and research data on the asset, and to browse through a feed with comments and reactions from traders. Cryptocurrency traders will find these options quite useful.
An interesting option from the left menu is “Copy People,” which allows you to mirror profitable traders. However, you should do your homework when using this option and pick the most successful ones.
The trading fees are generally higher than average. For example, there is a 0.75% spread for Bitcoin trading, and the fee goes as high as 2.9% for some altcoins. The full list of fees can be found here.
eToro provides a unique cryptocurrency trading product called CryptoPortfolio. As the name suggests, it allows traders to get exposure to a basket of cryptocurrencies, thus distributing the risks among more assets. This is a great diversification method that is imperative for such volatile instruments.
The CryptoPortfolio includes Bitcoin, Ethereum, Litecoin, Dash, Ripple, Ethereum Classic, Bitcoin Cash, EOS, NEO, and Stellar. The share of each digital coin in the portfolio is based on the market capitalization. The minimum investment with the portfolio is $5,000, which is quite a lot for retail traders.
Besides the CryptoPortfolio, eToro offers so-called CopyPortfolios related to other assets, such as stocks and ETFs. Bitcoin is included in several other portfolios as well, like FuturePayments and CryptoTakeover.
eToro offers convenient banking methods, though you should pass an ID verification procedure first. This requirement is typical for any broker nowadays. You are free to select one of the following payment methods:
- Credit/Debit card, including Visa, MasterCard, and Maestro;
- Bank Wire Transfer.
- E-wallets services, such as PayPal, UnionPay, Skrill, WebMoney, Yandex, and Neteller.
Most of the deposit/withdrawal operations are carried out in USD, though euro, British pound, and Australian dollar are also supported. There is a withdrawal fee of $25. Also, there is a minimum withdrawal limit of $50, which might be annoying for beginners.
eToro has a relatively responsive customer support team. You can access the customer service page on this link. This is the only option to get in touch with their assistants, as there is no email, phone, skype, or fax contact for client support.
The good news is that the broker ensured to include any potential issues in the Help, FAQ and Trading Academy sections.
Crypto-oriented traders will find that eToro can be praised for its social trading concept, unique trading academy, a wide range of assets, carefully selected portfolios, and mobile-friendly platform. We definitely recommend trading with this broker.
- 15 tradable cryptocurrencies and a huge list of other assets;
- CryptoPortfolio that diversifies risks;
- The broker operates one of the best social trading platforms;
- Licensed by the FCA, CySEC, and ASIC;
- The trading platform is flexible, unique, and intuitive.
- Higher-than-average fees with altcoins.