DollarBreak is reader-supported, when you sign up through links on this post, we may receive compensation. Disclosure.
The content is for informational purposes only. Conduct your own research and seek advice of a licensed financial advisor. Terms.
eToro is one of the top trading platforms in the world. The platform only opened its services to the US market recently in 2018, and US investors can only trade cryptocurrency on the platform. In addition to it trading services, the plaform also enables investors to connect with each other and discuss trades and trade ideas on the social network that they have built into their trading platform.
Pros
Many cryptocurrency options – the platform offers over 25 cryptocurrencies that users can trade, such as Bitcoin, Ether, Litecoin and many more.Low conversion fees – the platform only charges a relatively low 0.1% fee for any conversions of your funds from one cryptocurrency to another.You can trade cryptocurrencies 24/7 – unlike the stock market, cryptocurrency markets do not close so you can make trades at any time of day.Low minimum withdrawal amount – the platform charges $5 in fees for withdrawaing your fiat currency as long as you are withdrawing at least $30.
Cons
High transaction fees – the platform charges spread fees that start from just 0.75% but can go up to 4.9% whenever you buy or sell a cryptocurrency.Long deposit clearing time – if you choose to deposit funds by wire transfer, you will have to wait up to 7 days before you can start using the funds. *Cryptoasse investing is unregulated in some EU countries. No consumer protection. Your capital is at risk.
Jump to: Full Review
Compare to Other Investment Apps
Fundrise
Invest in real estate properties with a $10 minimum initial investment
Historical annual return varies from 8.8% to 12.4% (2019 – 9.47%)
Low annual fees: advisory – 0.15%; management fee – 0.85%
Public App
Manage your portfolio of stocks, ETFs, and crypto investments – all in one place
Over 5000 stocks and ETFs to choose from (dividend stocks available)
Follow other investors, see their portfolios, and exchange ideas
Acorns
Invest your spare change in a diversified portfolio built by experts
Expect up to 7.5% annually returns with plans starting from $3 a month
Earn bonus investments from 350+ Acorns Earn partners
How Does eToro Work?
eToro allows you to trade and invest in a variety of financial markets. You can buy and sell over 2981 different stocks on your eToro account. There are no commission fees to make a trade on eToro, and you can trade stocks from leading exchanges.
70 cryptocurrencies
32 commodities
49 currencies
15 indices
264 ETFs
You can use eToro for fractional investing, a feature that allows you to buy a part of a share instead of the whole share. Moreover, the platform allows you to manage all your different investments on a single dashboard. Thus, you can use eToro to get an overview of all your financial account and the state of your finances.
eToro also has a unique feature that allows you to view the investments of other users. You can use this feature to view the investment strategies of other investors. This knowledge can help you become a better investor and identify investment opportunities.
How Much Can You Earn With eToro?
eToro Risks: is eToro Safe to Invest With?
How Does eToro Protect Your Money?
eToro protects your funds by storing client funds in segregated FDIC-insured accounts. Your funds have insurance for up to $250,000. Thus, your funds will not be mixed with the company’s funds. Even if the company shuts down, you will still get your funds back.
The company only operates with reputable payment institutions and payment providers.
eToro Reviews: is eToro Legit?
eToro is a legitimate brokerage platform that you can use to invest in different financial assets. The platform has received many positive reviews from its users.
Many users praise eToro for offering a user-friendly and intuitive platform that members can use to invest their funds. The platform has also received positive feedback for its CopyTrader feature which allowed many users to maximize their earnings by copying the investments of other experienced traders.
However, some users have complained that the verification process takes a long time, and they were unable to get their accounts verified. Some reviewers also stated that the spread rates that eToro charges are high, and cause them to make a loss on their cryptocurrency trades.
Who is eToro Best for?
eToro is ideal for individuals who want to trade or invest in different financial assets. Even beginner investors can benefit from using eToro because the app provides many educational resources they can use to learn more about investing.
Advanced investors who want to diversify their investments into different financial assets can also use eToro. The platform has one of the widest selections of investment options compared to other brokerage platforms.
eToro Fees: How Much Does it Cost to Invest With eToro?
Some examples of eToro’s spread rates include:
CryptocurrencySpreadsBitcoin (BTC)0.75%Bitcoin Cash (BCH)1.90%Ethereum (ETHEREUM)1.90%Ripple (XRP)2.45%Dash (DASH)2.90%
The spread rates that eToro charges may change depending on market conditions. You will receive a notification whenever the spread rates change.
eToro Features: What Does eToro Offer?
CopyTrader
Popular Investor Program
The Popular Investor Program is a feature that eToro uses to reward its popular investors. If you have a good track record with many successful trades, you can get a commission whenever other investors copy your trades.
eToro provides a community-based feature that allows you to communicate with other investors. You can view the portfolios, statistics, and risk scores of other investors.
You can also chat with other investors to discuss trading strategies and improve your trades.
eToro Mobile App
eToro also has an app for iOS and Android devices with the same features as the web-based platform.
However, to access the platform’s analytical features, you need to use the web-based platform.
Education
For you to upgrade your skills and make better investment decisions, eToro also provides educational materials for investors to learn about trading.
Apart from financial analysis, eToro also allows users to access the latest news about the cryptocurrencies and stocks that interest them.
eToro Club
eToro Club offers members exclusive perks, including:
Dedicated account manager
Market newsletter
Quarterly market analyst report
Live streaming webinars
Trading signals platform
Priority customer service
The Wall Street Journal subscription
eToro Partner Program
You can join the eToro Partner Program to earn money by promoting the platform’s investment services.
Once you sign up as an eToro Partner, the eToro affiliate manager will contact you to provide information about the program.
24/7 Cryptocurrency Trading
On eToro, you can trade cryptocurrencies 24/7. This allows you to take advantage of any changes in the prices of the cryptocurrencies you want to buy or sell.
Some of the different cryptocurrencies you can trade on eToro include:
Bitcoin (BTC)
Ethereum (ETHEREUM)
Litecoin (LTC)
Ripple (XRP)
And many more
Virtual Portfolio
eToro provides users with a virtual portfolio containing $100,000 worth of simulated funds. You can use these funds to practice investing in different financial assets on the platform. You can learn how to invest by analyzing any losses or profits you made, helping you maximize your future earning potential.
eToro Requirements
To create an eToro account, you will need:
A document such as a utility bill from within the last three months confirming your United States residence
Proof of your identity, such as a valid passport or other officially issued ID
When depositing funds into your account, there is a minimum amount of $50.
eToro Payout Terms and Options?
What Are the eToro Pros & Cons?
eToro Pros
You can trade over 3000 different financial assets
The CopyTrader feature allows you to make the same trades as experienced investors
You can use the community-based features to chat with other investors and discuss investment strategies
The cryptocurrency market is open 24/7 and you can make trades at any time of the day
eToro Cons
There is a high spread rate for cryptocurrency trades of up to 2.9%
You will need to pay a $5 fee to withdraw funds from your eToro account
How Good is eToro Support and Knowledge Base?
eToro has educational resources on its website that you can access to learn more about investing. These resources include financial news, articles, trading courses, and even interviews with business leaders.
If you encounter any issues when using eToro to trade, you can also visit the help center on the company’s website. From here, you can create a customer support ticket to get help with your issue.
eToro Review Verdict: is eToro Worth It?
eToro is one of the most reliable and trustworthy brokerage platforms you can use to invest your funds. The platform features a selection of over 3000 financial assets including CFDs, stocks, ETFs, commodities, and more. Compared to other brokerage platforms, you will have more freedom when you invest with eToro.
Moreover, the platform also has a unique CopyTrader feature that allows you to monitor the trades other users make. You can use this feature to mimic the trades of other more experienced traders, enabling you to earn the same returns as them.
If you value community-based features, you can also use eToro to communicate with other investors. You can discuss trading strategies and even learn more about investing, allowing you to maximize your investment returns.
How to Sign Up With eToro?
Step 1: Create an Account
You can verify your identity using:
A US passport
Driver’s license
State ID
Valid proof of your United States residency
Step 2: Practice Trading
Once you create an account and it is approved, you will get access to a $100,000 virtual account. You can use this virtual account to practice making trades.
The platform allows you to keep track of your performance in your virtual account so you can learn from your virtual trades.
Step 3: Deposit Funds
Once you have practiced enough and are ready to start making real trades, you can deposit funds into your account by connecting a bank account of your choice. Once you have deposited funds into your account, you can place trade orders.
Check carefully before making a trade to ensure that you are putting the order into your real account and not your virtual account.
Sites Like eToro
eToro vs. Acorns
Acorns Summary
Low account fees from just $3 per monthGet $5 in your account for referralsLow minimum starting investment amountHigh average return on investments of 7.5%
Acorns is an alternative investment platform that specializes in helping members invest their loose change in ETFs. The platform is popular among beginner investors for its Round-Up investing feature. You can connect a credit or debit card to the app. The app will round up your spending to the nearest dollar and save the difference.
Acorns also has five pre-selected ETFs in which you can invest your savings. These pre-selected ETFs save you the trouble of researching and finding investment opportunities. However, note that, unlike eToro, Acorns charges a fee that starts from $3 per month.
eToro vs. Fundrise
Fundrise Summary
Low minimum starting investment of $10High historical returns of 8.8% to 12.4%1% of management feesDiverse portfolios of up to 16 investments
Fundrise is a real estate investment platform that you can use to invest in rental property. The platform uses crowdfunding and pools together investments from all its users. It then uses the funds to create a real estate investment trust (REIT).
Fundrise does not directly charge users any fees. However, there is a 1% management fee that the REIT charges annually. There is also a minimum investment amount of $10, although this is lower than eToro which has a $50 minimum deposit.
eToro vs. Public
Public App Summary
Invest in stocks, ETFs, and crypto$0 commission fees for any stock tradesOver 100 articles to learn about investingLow 1-2% commission for crypto trades
Public is an online brokerage platform that offers very similar services to eToro. Both platforms allow you to trade stocks, ETFs, and cryptocurrencies. The minimum investment amount for Public is just $1, which is lower than eToro’s minimum investment of $50.
Both platforms also do not charge commission fees and allow you to invest in fractional shares. Thus, if you are interested in trading, you can consider using Public instead of eToro as well.
Other Sites Like eToro
eToro FAQs
What is eToro?
Is eToro good for beginners?
eToro offers several features that make it one of the best brokerage platforms for beginners. Beginner investors can benefit from the educational resources that eToro provides and the CopyTrading feature.
Can you earn with eToro CopyTrading?
Yes, it is possible to profit with eToro CopyTrading. However, to ensure that you earn a profit, you must do your due diligence to ensure that the investor you are copying is legitimate and has a reliable history of profitable trades.
Do you pay tax on eToro?
Any earnings that you make from your eToro account are considered to be income. Thus, you will need to calculate and report all such earnings.
You can use information from your account statement to calculate the taxable income that you may need to include in your tax return.
Which US states is eToro available in?
Hawaii
Minnesota
Nevada
New York
Tennessee
Nonetheless, even if eToro is not available in your state yet, ensure that you check the platform regularly since the company regularly expands its service coverage.
Why can’t I withdraw my money from eToro?
To withdraw money from your eToro account, you must make a withdrawal of at least $30. If you have done so and still encounter an issue when withdrawing funds, you can contact eToro customer support for assistance.