Commissions & Fees
eToro basic informations
CySec (Cyprus) and the FCA (UK)
24th floor,One Canada Square, Canary Wharf London, E14 5AB United Kingdom
eToro Group Limited
What is eToro?
eToro is a social trading platform that offers users access to assets, including cryptocurrencies, stocks and commodities.
Launched in 2007, eToro has since proven to be a disruption to the world of trading; by offering accessible trading for all, and reduced reliance on traditional financial institutions.
The platform is a multi-asset trading platform that manages a network for copy-trading, which allows traders to see and copy other traders’ strategies, whether these are shares, indices, or digital currencies.
Which Cryptocurrencies Does eToro Support?
Compared to other platforms, the options for supported cryptocurrencies on eToro are relatively limited.
This is a result of its nature as a general trading platform as opposed to one focused solely on cryptocurrency.
Even so, you can short or own the most popular cryptocurrencies. Supported options include Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, and Ripple.
What can you trade with eToro?
Be aware that Different entities under eToro Brand offer different trading instruments due to regulatory restrictions. Trading instruments offered may differ based on the country of residence of the Client.
You can trade a wide variety of instruments with eToro over 1000 instruments infact. If you are looking at trading currency pairs eToro offer over 50 currency pairs.
Is eToro Safe?
eToro is considered safe and is regulated by the Cyprus Securities and Exchange Commission (CySEC), and complies with the European Securities and Markets Authority (ESMA) rules that ensure thorough risk disclosures.
The broker does state that it may hold client funds in banks outside of the EU economic area, which increases the risk in the case of a bank default, but EU and U.K broker default protection is provided up to $20,000 (£50,000).
A guaranteed stop-loss protection is not provided, nor is additional coverage through private insurers. The order entry interface does not have any risk management features apart from stops and trailing stops.
The platform requires that stop-losses for cryptocurrencies exceed 25% of exposure, which limits customization options and further increases potential risk for traders.
eToro fees and costs
eToro does not work with fees, but with a market spread. This is a small fee that you have to pay when you purchase a cryptocurrency. It’s basically the same but has a different name. The market spread varies per currency and is between 5% for NEO and Stellar, for example, and 1.5% for Bitcoin.
Although eToro advertises with commission free trading, the costs for this platform are very high. For example, if you choose to trade with Bitvavo, you only pay a fee of 0.25% per transaction. On the other hand, you can’t trade with leverage and you can’t copy strategies.
eToro does not work with an overnight premium for cryptocurrency, they do, however, for CFD investments. Also for depositing money, eToro does not charge a fee; for withdrawing money, however, they do. This is $25 per withdrawal and we think that’s quite a lot. The minimum amount you can withdraw is $ 50.
Who Can Use eToro?
eToro can be used by anyone, as long as it is legal to do so in their country. eToro keeps a running list of countries where the platform is blocked due to changes in the regulations that conflict with trading laws.
This means that those in the United States, Canada, Cuba, Japan, North Korea, Iran, Syria, Turkey, Serbia, Albania, and Sudan cannot legally use eToro.
Although eToro focuses on more than just cryptocurrency trading, it is a useful platform for those who invest in cryptocurrency or trade it.
The additional features of eToro are what give it an edge, such as CopyPortfolios and various graphs. The platform is also highly intuitive, something that will appeal to everyone.
While eToro will not be ideal if you want to trade less-popular cryptocurrencies, it is an excellent option for those who only care about the major ones or who want to use the same platform for both fiat and crypto trades.
It’s also a great platform for trading regular stocks and Forex or just invest in pre-built portfolios in different industries.