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.
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.
CFD-trading is however not available in USA.
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
The withdrawal fee for fiat currency is USD 5 per withdrawal. On the date of last updating this review (31 March 2021), that corresponded to 0.00008382 BTC.
According to the latest empirical study that we have performed on Cryptowisser.com, the global industry BTC-withdrawal fee is 0.000643 BTC per withdrawal. Accordingly, the withdrawal fees charged by eToro are very competitive compared to the average among centralized cryptocurrency exchanges.
At eToro, if you're from the US, you can deposit through both wire transfer and debit cards. This can be helpful especially for newer crypto investors.
Outside of USA, there is an even larger number of available deposit methods. For instance, you can deposit fiat currency via PayPal.
LEGAL DISCLAIMER FROM ETORO USA LLC
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.