Review: eToro cryptocurrency trading and CFDs

Learn how to buy and trade cryptocurrency on this popular social trading platform.

  • Great with flexible trading as you can find a wide range of asset types in one place.
  • Not so great with fees because there are a lot of costs to watch out for.

4.0 ★★★★★ (14 reviews) Write a review

19

Fiat currencies

27

Cryptocurrencies

Details

Product Name eToro Cryptocurrency Trading
Fiat Currencies EUR, GBP, NZD, USD, AUD, CAD, HKD, SGD, CHF, NOK & 5+ more
Cryptocurrencies BTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA, MIOTA, XLM & 15+ more
Deposit Methods Bank transfer
Credit card
Debit card
Neteller
PayPal
Online banking
Skrill
Trading Fee Fees vary. Overnight and weekend fees apply
Deposit Fees Fees vary (conversion fees for non-USD deposits)
(US$200 minimum deposit)
Withdrawal Fees US$5 (minimum withdrawal of US$50)
Disclaimer: This information is not financial advice or an endorsement of cryptocurrency or any specific provider, service or offering. Cryptocurrencies are highly volatile and high risk. Do your own research and seek financial advice before buying. Please check with providers if their services are available in your state.
  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What is eToro?

Launched in 2007, eToro is best known as a social trading platform that caters to traders of all experience levels. It encourages users to seek advice from each other and offers the CopyTrader around the world, which lets users copy the trades of leading investors.

Beyond cryptocurrency, eToro provides access to CFD markets including stocks, commodities and foreign currency.

Buy, sell and trade cryptocurrencies

In the US, eToro lets you trade cryptocurrencies. Depending on where you are located, you will either have access to actual cryptocurrencies which can be bought and sold, or moved to your own personal wallet. In other regions, you will only be able to trade cryptocurrency-CFDs, which track the price of the underlying asset but are not “real crypto”.

Which countries can I use eToro from?

eToro is available in many countries around the world, including the US. However, CFD trading is not available to US residents, and eToro isn’t available to residents in certain regions.

  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What fiat currencies and cryptocurrencies are supported?

  • Supported fiat currencies: EUR, GBP, NZD, USD, AUD, CAD, HKD, SGD, CHF, NOK & 5+ more
  • Supported cryptocurrencies: Approximately 27 cryptocurrencies

Which payments methods are accepted?

eToro supports a wide range of payment methods bank transfer, including credit/debit card, PayPal and wire transfer. Available methods depend on the currency you are transferring and will be shown to you on the deposits page once you select your currency.

  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

eToro fees and limits

eToro fees and limits will depend on where you are located. When you create your account, you will be able to view the fees applicable to you, such as for transferring funds to your account or making cryptocurrency trades.

All fees are current at the time of writing (July, 2021), but are subject to change at any time. Fees are calculated in US dollars regardless of where you are located.

For a full breakdown of fees, please see eToro’s website.

Go to eToro's website
  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Fees for buying US $1000 of Bitcoin

At the time of writing (July 2021), eToro charges a 0.75% spread on Bitcoin (BTC) purchases.

This equates to a fee of US $7.5 for the purchase of US $1000 of Bitcoin.

How do I create an account at eToro?

Go to eToro's website
  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Derivatives

eToro is primarily used for trading Contracts for Difference (CFDs). These are derivative products that track the price of an underlying asset such as stocks, commodities or forex. The advantage of CFDs is they allow you to speculate on the price of assets without needing to own the underlying asset. This allows eToro to offer a wide range of assets.

CFDs also allow you to go long or short on an asset, which means you can bet on the price going up or down, allowing traders to make money when prices go down instead of just up.

eToro does not offer cryptocurrency CFDs. Instead, any cryptocurrency purchased on the platform is backed by the actual coins and tokens, which can be withdrawn to the eToro Money crypto wallet.

  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Margin accounts and leverage trading

eToro offers margin accounts and leverage trading of cryptocurrencies, as well as of CFDs of other assets.

A margin account allows you to borrow money from the broker, which in this case is eToro, to increase your purchasing power through leveraged trading. Leverage is expressed as a ratio, such as 1:10, 1:20, 1:30 which refers to how much borrowing power you have.

For instance, if using leverage of 1:10 (10x leverage) on eToro, you could open a $10,000 long position on Bitcoin with only needing to risk $1000 of your own money. This allows you to make larger profits or losses relative to your capital.

The catch though is that because you are leveraged, changes in market conditions are also amplified by the same ratio. So if the market goes against you, you have to close your position earlier than you would if you had traded without leverage. This increases your potential for losses as well as gains.

Leveraged trading is considered high risk, as it amplifies your losses as well as potential gains.

If you plan on trading with leverage on eToro, make sure to familiarise yourself with the rules around margin calls, maintenance fees and the risks involved. See eToro’s website for more information.

  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

eToro CopyTrading

CopyTrading allows you to copy the trades of other users on the platform.

You are only able to copy traders who have been verified by eToro and given special account status. CopyTrading is automated, which means once you begin copying another trader the system will follow and copy their trades on your behalf until you close the trade.

In addition to CopyTrading, eToro also offers a social media platform that lets you interact with other traders. You can also see what trades other users have made.

For more information on CopyTrading, visit the eToro website.

Go to eToro's website
  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Additional features

It also offers a range of features that go beyond the norm and brings its experience in more traditional markets to the world of cryptocurrency.

  • STP. eToro uses both STP (straight through processing) technologies and NDD (no dealing desk) practices. This ensures that all trades are executed in real time and without any interference.
  • Markets available. As well as a range of cryptocurrencies, eToro provides access to stocks, commodities, foreign exchange, exchange-traded funds (ETFs) and indices.
  • Premium Membership. eToro offers a premium membership service called eToro Club which offers five different tiers. Club members gain access to cryptocurrency staking. It is not a paid service, and instead, eligibility is based on the amount of funds in your account, starting from US $5000.
  • Trading Academy. This online platform provides live webinars, online courses and a range of trading videos to help you gain a deeper understanding of the ins and outs of trading.
  • Social trading features. eToro offers the CopyTrader system, which allows users to copy the trades of other platform users as well as a social newsfeed and a Popular Investor program.
  • Practice trades. Users can get the benefits of a free demo account to learn the basics and test strategies before risking real money.

Customer Support

eToro uses a ticket based customer service. This is essentially like sending an email and waiting for a reply.

Additionally, there is a Help Center that includes frequently asked questions and educational articles on how to use the platform.

eToro Club members have access to a live chat service.

Is eToro safe to use?

  • Regulation
    eToro is regulated and licensed by the relevant financial authorities in Europe, the United Kingdom, Australia and the United States. If eToro is unable to pay back your funds for reasons such as insolvency or theft, your protections under existing laws will vary. As a general rule of thumb, your protections will fall into two categories:
    • There are no investor protections for loss of your cryptocurrency holdings, except as may apply in specific circumstances such as if eToro goes bankrupt and you have a claim. There are no investor protections for cryptocurrency itself.
    • There are investor protections for losses associated with cryptocurrency CFDs in the event of eToro being unable to pay your “winnings.” This is because when you buy a CFD, you’re not actually buying a cryptocurrency you’re entering into a contract. These are provided to non-professional investor customers under the Cypriot Investors Fund, up to a maximum of EUR€20,000.
  • Verification
    Verification is required to trade on eToro, and prospective traders are required to complete a short knowledge test to confirm their suitability for high-risk products such as CFDs before purchasing them.
  • Security
    eToro client funds are not used for margining or hedging purposes, which is in keeping with eToro’s duty to be a responsible guardian of user funds. These funds are kept in segregated accounts, and deposits are communicated using SSL technology.
  • Risks
    Cryptocurrency is a high-risk asset class, and CFDs and margin trading add another layer of exposure. In fact, 67% of retail investor accounts lose money when trading CFDs on eToro. While eToro aims to be an entry point for beginner traders, it can also be a quick way to lose money if you’re not experienced or unaware of the fees that may apply.

Verdict

eToro is a unique platform that is designed to make trading a more social activity, allowing new users to hone their skills by learning from other traders or even copying their exact trades using the CopyTrader feature.

As for cryptocurrency in particular, eToro is not an exchange so prices and fees may be less competitive than specialised cryptocurrency exchanges. Cryptocurrency can only be withdrawn to the eToro Money crypto wallet, which means an extra step (and extra fees) if you want to withdraw your funds to a personal wallet or exchange.

Depending on where you reside, CFDs of other asset types such as stocks and forex may be available. CFDs are a very easy way to trade and invest in these markets, however, they are high-risk products and according to eToro’s own statistics, the majority of users lose money when trading CFDs.

Pros and cons

Pros

  • Flexible trading. Buy and sell crypto, trade CFDs and find a wide range of asset types in one place.
  • Social and educational. Copy individual traders, AI trades and even special portfolio strategies, and learn online at the eToro Trading Academy.
  • Easy interface. Despite the wealth of functions, eToro’s user interface manages to keep things easy.

Cons

  • High and numerous fees. Between the trading fees, deposit fees, withdrawal fees and other fees, there are a lot of costs to watch out for.
  • High risk. Cryptocurrency is always high risk, but margin trading adds further exposure and should only be attempted by experienced traders.
  • USD and crypto only. The conversion fees may take a bite out of your funds.
  • Limited access for US residents. US residents don’t have access to CFD trading, and the number of cryptocurrencies on the platform is limited.
Go to eToro's website
  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
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Alternatives to eToro cryptocurrency trading

Name Product Deposit methods Fiat currencies Cryptocurrencies
eToro USA LLC Cryptocurrency Trading
Wire transfer, Online banking
USD

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cryptocurrencies

Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

Copy the trades of leading cryptocurrency investors on this unique social investment platform. Non-US residents can read our review of eToro's global site here.
Robinhood Cryptocurrency Exchange
Bank transfer, Cash, Debit card
USD

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cryptocurrencies

Trade a handful of leading cryptocurrencies with this easy to use mobile app.
Gate.io Cryptocurrency Exchange
Cryptocurrency
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Finder exclusive: New users get $90 worth of Gate.IO points and an airdrop of $5 in random tokens if trade volume exceeds $100 in their first week. T&Cs apply.
A feature-rich exchange with over 700 tokens including derivatives, yield farming and lending products.
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Frequently asked questions

What are overnight fees?

Overnight fees apply to open, leveraged orders only. It’s a fee charged as interest for the money eToro is lending you for your leveraged position.

The fee is incurred daily when a leveraged position is held open at 5pm New York time (GMT -5). It is tripled for positions carried over Wednesday nights at the same time.

The fees are charged in US dollars according to the amount of cryptocurrency in your open position.

For example, if you buy bitcoin with leverage, and leave that position open overnight (past 5 p.m. ET), you will be charged US$1.39 per bitcoin held in that position.

How does eToro make money?

eToro makes money from a combination of trading fees and the spreads — the difference between buy and sell prices — on some trades.

How can I deposit funds into my eToro account using PayPal?

You won’t be able to deposit funds using PayPal if you’re a US resident. While PayPal is supported in some countries, eToro USA is limited to wire transfers.

How can I deposit funds into my eToro account with my credit card?

US residents aren’t permitted to use their credit cards to deposit funds. While credit cards are supported in some countries, eToro USA is limited to wire transfers.

How can I trade cryptocurrencies with leverage on eToro?

US residents are not able to trade with leverage. But users with a Platinum account can trade with leverage in certain countries.

What kind of customer support does eToro offer?

eToro offers an online customer service center where you can submit a support ticket if you have a problem with your account. Customer support is available 24/7, and there’s also an online help center with answers to a wide range of frequently asked questions.

eToro is a multi-asset platform which offers both investing in stocks and crypto assets, 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. 67% of retail investor accounts lose money when trading CFDs with this provider. 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.
Crypto assets 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.
  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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