A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of eToro consists of four parts: general information, fees, deposit methods and security.
eToro was originally not a cryptocurrency exchange, but rather a general trading platform. It comes from the United Kingdom and launched as early as 2007. Technically, it is not an “exchange” per se. Rather, it is a broker. However, for the purposes of consistency between the reviews on our platform we still refer to eToro as an exchange in this review.
United Kingdom is the country which without a doubt has the most cryptocurrency exchanges in the world. At least that we know of. A non-exhaustive list of exchanges from the UK (in addition to this one) includes Exmo, CEX.io, CoinEgg, Livecoin, DSX, LocalTrade, Bittylicious (funny name by the way), CoinMate, Indacoin, MixCoins, Paybis, Vaultoro and Instant Bitex.
The platform enabled cryptocurrency purchases/sales in January 2017. But even prior to that, since 2013, it had offered CFDs for Bitcoin. Now, it aims to be your number one platform for cryptocurrency trading.
The trading platform is also available in 16 different languages.
eToro has a wide variety of trading options available to its users. One such option is the “Crypto CopyFunds”-option, through which you can copy the moves of other successful traders. With that option, you can copy a cryptocurrency portfolio set up by an elite group of traders. There are an abundance of such options.
For a new investor, the trading platform’s “virtual money accounts” might come in handy. Virtual money accounts are accounts where you get “fake money”, USD 100,000, that you can trade and invest with. In this way, you get a sense of how trading and investing works prior to doing it for real. With the virtual money accounts you will also have access to detailed market analysis and other information that will help you in your investment decision-making.
eToro Trading View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can ascertain that it feels right to you. At this exchange, the trading interface does not look like at most regular cryptocurrency exchanges. It is much more limited here. The purchase interface looks as follows:
According to information to Cryptowisser, US-investors can trade cryptocurrency, but only cryptocurrency, at this platform. Any US-investors interested in trading here should in any event form their own opinion on any issues arising from their citizenship or residency.
eToro Trading fees
This trading platform is different from most other trading platforms for cryptocurrencies in the sense that it doesn’t charge fees like most other. Instead, it charges fees in a more “traditional” way. Namely, through having a specified spread between the sell price and purchase price they offer. The spread is set out below but for BTC-deals, it is 0.75%.
For instance, if a seller wants to sell Cryptocurrency X (made up) at eToro for USD 100, and a buyer wants to buy the same asset, eToro’s price will be slightly higher. How much higher depends on the spread. So if the spread is 1%, the buyer can buy the asset on the trading platform for USD 101. The difference between the sell price and the purchase price (USD 1), goes to the trading platform. The below is a printscreen (from 24 March 2020) of the different spreads for the 10 biggest cryptocurrencies that the platform supports trading in:
As you can see from the above picture, the spreads range from 0.75% to 2.90%. Exactly where on the range depends upon which cryptocurrency you want to trade in.
It is difficult to compare the above fees with the fees of other cryptocurrency trading platforms as the systems are different. Generally speaking though, a spread of 0.75% would roughly correspond to a flat fee of 0.75% (seeing as that is what you need to pay as a trader regardless of whether you buy or sell, or "take" or "make"). A flat fee of 0.75% is very high, and the industry average on a global scale is 0.25%. Accordingly, a spread of 0.75% (which is actually also eToro’s lowest spread) is very high compared to regular centralized cryptocurrency exchanges. As mentioned above though, there are differences between the types of trading platforms that makes this fee comparison somewhat misleading.
eToro Withdrawal fees
According to information from eToro’s customer service, you can’t withdraw cryptocurrency from eToro. In order to withdraw cryptocurrency, you must first convert to fiat. If this is accurate, that is naturally a great disadvantage for this exchange.
The withdrawal fee for fiat currency is USD 25 per withdrawal. The global industry average withdrawal fee is 0.0008 BTC. USD 25 on the date of first writing this review was 0.005 BTC (six times more than the industry average).
All in all, the trading fees and withdrawal fees at eToro are high.
At eToro, you can deposit through both wire transfer and credit cards. This can be helpful especially for newer crypto investors. There is also a very large number of other available deposit methods at this exchange. For instance, you can deposit fiat currency via PayPal.
We run all exchange-websites in Mozilla’s Observatory-test (https://observatory.mozilla.org/). The score in such test is one of many indicators of the exchange’s security. eToro received an F-score in this test. This is below industry average and is thus not a competitive advantage at all for eToro. However, seeing as eToro is a trading platform that has been around (in one shape or another) for 11 years and never been hacked, it might be that the F-score in the Observatory test is not fully indicative of the security at eToro.
As mentioned above, this exchange supports credit card deposits (alone or through the use of any of its associated payment service providers). Other cryptocurrency exchanges that also have this option include:
LEGAL DISCLAIMER FROM ETORO
eToro is a multi-asset platform which offers CFD and non CFD products.
76% 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.
This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. This is not investment advice.
Cryptoassets are unregulated and can fluctuate widely in price and are, therefore, not appropriate for all investors. Trading cryptoassets is not supervised by any EU regulatory framework.