eToro social cryptocurrency trading - 2019 review | finder.com

Review: eToro cryptocurrency trading and CFDs

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eToro Cryptocurrency Trading
eToro Cryptocurrency Trading
  • Over 5 million users worldwide
  • Open trades in only 3 minutes
  • Copy top-performing traders

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider.
Find out more Go to site

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

Quick verdict

Great for:
  • Wide range of markets and features
  • Social trading
  • Webinars, online courses and other education
Not so great for:
  • High, flat withdrawal fees
  • Inexperienced traders
  • Varying regulatory protection
  • Limited features for US residents
Product Name eToro Cryptocurrency Trading
Fiat Currencies USD
Cryptocurrencies BTC, ETH, ETC, DASH, XRP, LTC, BCH, XLM, NEO, EOS, ADA
Deposit Methods Bank transfer
Trading Fee Fees vary
Deposit Fees None
Withdrawal Fees None

Limited features for US residents

As of March 13 2019, eToro does not offer CFD trading in the US. Cryptocurrency trading is available in the following states:

  • Alaska
  • Arizona
  • Arkansas
  • Colorado
  • Georgia
  • Indiana
  • Iowa
  • Kentucky
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Mississippi
  • Missouri
  • Montana
  • New Jersey
  • New Mexico
  • North Dakota
  • Ohio
  • Oklahoma
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Utah
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming
  • South Carolina

If you live in a state not listed, you can register and verify your account so that when your state is opened for trading, you’ll be able to make your first deposit — but you will not be able to trade at this time.

  • CFD trading is not available to US residents
  • CFD disclaimer: 66% 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.

Learn more about:

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 service in certain countries, which lets users copy the trades of leading investors.

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

Trade cryptocurrency CFDs or buy and sell crypto

In the US, eToro lets you buy cryptocurrencies. In other countries, it also lets users trade contracts for difference (CFDs) but that service isn’t available to US residents.

CFDs

  • You can take a position on cryptocurrency prices without actually owning crypto.
  • You can trade with leverage (eToro Platinum users only), which will magnify your losses and gains.
  • You can short cryptocurrency by betting on a price decrease.
  • You can use advanced trading features such as stop-loss and take-profit.

Buying and selling cryptocurrency

  • You can take a position on cryptocurrency prices by purchasing cryptocurrency.
  • eToro holds the cryptocurrency on your behalf.
  • There are no advanced trading features you simply own your chosen crypto and can sell it whenever you like.

What fiat currencies and cryptocurrencies are supported?

We have more than 10 million users, so each and every coin that we introduce to the platform has very high demand” – Guy Hirsch, eToro US managing director

  • Supported fiat currencies: USD
  • Supported cryptocurrencies: 1 cryptocurrencies
Go to eToro's website
  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: CFD trading is not available to US residents. 66% 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.

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.

Which payment methods are accepted?

US residents can fund an account with a wire transfer. Residents of other countries may be able to fund an account using:

Deposit method How long it takes Limit per transaction
Credit/debit card (Visa, Mastercard, Diner’s Club) Instant $40,000
PayPal Instant $20,000
Wire transfer 3-5 business days Unlimited
Local online banking Instant $10,000
China Union Pay Instant $20,000
Skrill Instant $10,000
NETELLER Instant $10,000
WebMoney Instant $50,000
Yandex Up to 5 business days RUB5,000
Giropay Up to 1 business day $40,000
Go to eToro's website
  • Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
  • CFD disclaimer: 66% 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

There are no trading fees except for the spreads. Fees do not apply to non-leveraged buy positions on individual cryptocurrencies, but they do apply to leveraged buy positions, sell positions and all crypto pair positions.

All fees are current at the time of writing (February 2019), but are subject to change at any time.

Deposit and withdrawal fees

eToro minimum first-time deposits range from $200 to $10,000 depending on your country and its regulations. Your minimum deposit will be visible when you create an account.

The conversion fees incurred will depend on the transfer method and the currency.

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

Go to eToro's website

How much is a pip?

A pip is a forex term that refers to the smallest measurable price change of a foreign currency trade.

The actual value of a pip, in dollar terms, will vary depending on the currencies involved, how prices change and the size of the lot in this case how much you’re depositing or withdrawing.

For example, the US$1,000 AUD/USD pip value on eToro is 10 cents at the time of writing (February 2019).

So, a US$1,000 withdrawal would incur a conversion fee of US$10 (100 pips) for a user based in Australia, or $0 for a user based in the US.

How fast will my funds be available?

Deposits

Clock icon for transfer speed

Instant or up to 5 business days

Wire deposits will take up to five business days, but many other deposit options can instantly put money in your account.

Wallet transfers

Clock icon for transfer speed

Varies

The time taken to transfer cryptocurrency in and out of eToro will vary depending on network activity, the cryptocurrency and other factors. Generally it should be no more than a few minutes though.

Withdrawals

Clock icon for transfer speed

Up to 8 business days

Withdrawal times depend on the method used and will be one to two days at the quickest or up to eight days for wire transfers at the upper end.

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. In the event of eToro not being able 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, 66% 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.

What’s it like to use eToro?

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: 66% 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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What else do I need to know about eToro?

eToro is a major player in the cryptocurrency ecosystem through charitable efforts such as the GoodDollar universal basic income project, which leverages cryptocurrency technology with the goal of helping ease global wealth inequality.

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 in certain countries. At the time of writing, US users are restricted to cryptocurrency trading.
  • 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. In the US, users can only copy the trading moves of other US users.
  • Practice trades. Users can get the benefits of a free demo account to learn the basics and test strategies before risking real money.

In a nutshell

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: 66% 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 Supported Cryptocurrencies
Bank transfer
Credit card
Debit card
Bank transfer (SEPA)
USD, GBP, AUD, EUR, INR, ARS, BRL, CAD, CNY. NZD, DKK, HKD, ILS, JPY, KES, CHF, MXN, NOK, PHP, PLN, SGD, SEK, AED
BTC, LTC, ETH, BCH, BAT, DASH, BTG, XRP, VOX
Refer a friend to earn US$20 — $10 for you and $10 for the person you refer.
Buy, send and convert more than 35 currencies at the touch of a button.
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, & 80+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.
Bank transfer
USD
BTC, ETH, ETC, DASH, XRP, LTC, BCH, XLM, NEO, EOS, ADA
Copy the trades of leading cryptocurrency investors on this unique social investment platform.

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Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. 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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