eToro cryptocurrency trading and CFDs – May 2021 review
Learn how to buy and trade cryptocurrency CFDs on this popular social trading platform.
- Great for its wide range of markets and features
- Not so great for its complex fee structures
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Fiat currencies
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Cryptocurrencies
Details
| Product Name | eToro Cryptocurrency Trading & CFDs |
|---|---|
| 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 & 5+ 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) |
- Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
- CFD disclaimer: 75% 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 aims to cater for everyone from beginners to more advanced traders. It provides access to a wide range of capital markets, including stocks, commodities and foreign currency.
eToro actively encourages traders to interact with and seek advice from one another through its platform. This is best reflected in the CopyTrader service, where users can copy all the trades of leading investors.
With headquarters in Tel Aviv, Israel, eToro also has offices in Cyprus and the United Kingdom. In addition to its social trading services, it introduced bitcoin CFD trading in 2013, and now offers the option to trade a total of 11 leading cryptocurrencies.
eToro’s trading products and services are provided by eToro Europe, a registered Cypriot investment firm.
Trading features
eToro users can access the following features through the platform:
- 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 11 cryptocurrencies, eToro provides access to stocks, commodities, foreign exchange, exchange-traded funds (ETFs) and indices.
- 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.
Supported currencies
eToro users can trade the following currency pairs:
- BTC/USD
- ETH/USD
- BCH/USD
- XRP/USD
- DASH/USD
- LTC/USD
- ETC/USD
- ADA/USD
- XLM/USD
- EOS/USD
- NEO/USD
- BTC/EUR
- ETH/EUR
Which countries can I use eToro from?
eToro is available in many countries around the world, including Ireland. However, it is not available to residents from the following countries:
- United States
- North Korea
- Syria
- Iran
- Canada
- Turkey
- Serbia
- Myanmar
- Cuba
- Sudan
- Japan
- Albania
- North Korea
How do I make deposits onto eToro?
eToro accepts the following payment methods:
- Credit card
- Debit card
- Bank transfer
- PayPal
- Neteller
- Skrill
- WebMoney
- China Union Pay
- Giropay
- Yandex
- Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
- CFD disclaimer: 75% 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.
How much does it cost to use eToro?
All withdrawals from eToro are subject to a US$25 fee. Any withdrawals sent in currencies that are not US dollars are also subject to conversion fees.
Accounts that are inactive for 12 months or more are also subject to a monthly fee of $5.
Like other exchanges, eToro charges spreads on financial instruments. A full list of average spreads is available on the eToro website.
How do I create an eToro login?
To register for an account with eToro, follow these simple steps:
- Visit the eToro website.
- Click the “Sign up” link at the top right of the screen.
- Create a username and password, enter your email address and phone number, and read and agree to the relevant terms and conditions.
- Complete a trading knowledge assessment from ASIC to activate your account.
- To increase your account deposit limits you’ll also need to complete your profile. You’ll have to provide your full name, date of birth, gender, address and passport details.
How do I trade cryptocurrency with eToro?
If you want to trade cryptocurrencies with eToro, follow these steps:
- Sign up, complete a trading knowledge assessment and verify your account.
- Click the “Trade Markets” link on the left of the screen and select “Crypto”.
- Choose your currency pair, such as BTC/USD, and click on it.
- Choose either an “Order” or a “Trade”, and select either the “Buy” or “Sell” tab.
- Enter the details of your transaction and click “Open Trade” or “Set Order”.
Please note that buying cryptocurrencies on eToro means you are acquiring the underlying asset, and the crypto is purchased and held by eToro on your behalf. These long (buy) positions are unregulated products and eToro warns that they do not come with any investor protection.
However, short (sell) positions opened for cryptocurrencies on eToro are executed using CFDs, and are issued under the regulations of the Cyprus Securities & Exchange Commission (CySEC).
- Cryptocurrency disclaimer: Highly volatile investment product. Your capital is at risk.
- CFD disclaimer: 75% 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 transfers and limits are there?
The minimum deposit limit could be anywhere from $200 to $500 for most users. To find out what limit applies to your account, log in and click on the “Deposit Funds” link.
eToro has a minimum withdrawal limit of US$50, and withdrawal requests are processed within one business day.
Is eToro safe to use?
eToro employs a number of measures to help ensure the security of your account, including:
- A stringent verification process
- Client funds are not used for margining or hedging purposes
- Client funds are kept in a segregated account
- Deposits communicated using Secure Socket Layer (SSL) technology
eToro Europe is regulated by CySec.
Customer support
eToro offers an online Customer Service Centre where you can submit a support ticket if you have a problem with your account. Customer support is available 24/7, while there’s also an online help centre with answers to a wide range of frequently asked questions.
Pros and cons
Pros
- Trade CFDs on a host of popular cryptocurrencies
- Easy-to-use interface
- Trading Academy provides webinars, online courses and trading videos
- Also provides social trading services and access to a wide range of other markets
- Mobile trading apps available
Cons
- Crypto CFDs are an extremely high-risk investment
- High withdrawal fees
- Not suitable for novice traders
- Need to convert your cryptocurrencies into fiat to withdraw them from the platform – crypto withdrawals not scheduled to be offered until later in 2018
Alternatives to eToro cryptocurrency trading
Frequently asked questions
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, 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. 75% of retail investor accounts lose money when trading CFDs with this provider. You should 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.
Cryptoassets 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: 75% 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.
