Any reliance on the material is at your own risk, and b3i.tech assumes no responsibility for errors, omissions, or financial decisions made based on our content. It’s regulated in multiple regions, but like all platforms, crypto assets aren’t insured. Overall, I’d say eToro is a strong choice for casual and global crypto investors, especially if you’re starting out or prefer a hands-off approach. You can transfer some assets off-platform, but it’s not the same as having full access to your private keys.
EToro is also a great platform if you’re a long-term holder or passive investor. But for casual/ beginner investors or anyone who just wants a simple way to earn without any hassle then it is a genuinely helpful feature. EToro handles the technical side and pays out rewards to your account monthly. There are no lock-up periods, no confusing validator options, and no need to claim rewards manually. I’ve personally staked ETH and ADA on the platform, and the process couldn’t be easier. In short, I feel confident holding crypto on eToro from a security standpoint, but I wouldn’t use it as my main storage solution if I were deeply involved in DeFi.
A true pioneer of copy trading, eToro has stayed committed to social trading innovation. EToro first emerged in 2007, the brainchild of three entrepreneurs who wanted to change the landscape of financial trading. Despite your best trading techniques and risk management strategies, your efforts may not be profitable, and you could suffer losses. As a trader, you could be exposed to excessive leverage, questionable broker tactics, market volatility, and limited regulatory protection. There is a high degree of risk involved in trading securities like FOREX, or CFDs, which are highly complex instruments.
Closure of customer positions in Magnit stock, 2022
In August 2022, eToro signed an agreement to purchase Gatsby, an options trading platform. An early pioneer in social copy trading, eToro was founded in Israel in 2006 as a financial trading technology developer. Trading on eToro can be profitable, but like any investing platform, there’s also significant risk. Last, eToro’s research tools are limited compared to other best-in-class brokers, making it less ideal for investors who rely on deep fundamental analysis and stock screening tools. Once you open and fund an account, you’ll have access to a wide variety of cryptocurrencies, including Bitcoin, Ethereum, and many others. For stocks and ETFs, eToro offers $0 commissions, making it a solid option for those who prefer a simple, streamlined platform.
This practice is a typical way etoro forex broker review for brokers to price trades and collect fees, even if a platform notes fee-free or commission-free trading. The CopyTrader product and social trading element remain the focus of eToro’s trading experience. You can invest in a wide variety of portfolios that focus on everything from private equity and infrastructure to technology and healthcare, while blending the allocation of ETFs, stocks, and cryptocurrencies. Custom watchlists can be synced between the mobile and web platforms, enabling users to track their interests regardless of which platform they use to access eToro. Additionally, users won’t find many order types beyond basic market and limit orders, which prevents more advanced traders from getting the most out of the system. EToro offers 100+ cryptocurrencies, over 5,000 stocks, and more than 730 ETFs, covering the most important assets and securities.
As a fully regulated broker, eToro applies strict leverage limits across all its instruments, ensuring it promotes responsible trading practices. UK clients are protected under the FSCS scheme up to £85,000, and U.S. traders enjoy protection under the SIPC up to $500,000, including a $250,000 cash limit. ● In Germany, eToro offers crypto trading, which is supervised by BaFin. Investors benefit from compensation schemes depending on their region, although U.S. clients and non-CFD crypto holdings are not covered under eToro’s additional private insurance. Since introducing cryptocurrency trading in 2018, eToro has continued to build out its digital asset offering.
Traders can access a wide range of financial instruments through self-directed trading or by engaging in eToro’s signature social copy trading system. EToro offers commission-free trading for stocks and ETFs but charges 1% for each side of a crypto transaction. However, traders are drawn to eToro not for its spreads, but for its industry-leading social copy trading platform. Higher-tier clients, however, enjoy faster response times and more personalized service, including access to dedicated account managers. Retail clients can get access to the full range of trading instruments, including manual trading, copy trading through CopyTrader, and thematic investing via Smart Portfolios.
Mobile Trade Experience
- Social media has pushed the brokerage industry to rethink financial education, making it more engaging, accessible, and discussion-based.
- Users can search for, follow, and copy trades of investors that match their interests and goals.
- This gamified approach encourages higher account funding and deeper platform engagement.
- Users can research and place trades across a wide range of asset classes, including stocks, ETFs, FOREX, commodities, indices, and cryptocurrencies.
- Individual brokerage and options accounts are the only types of accounts that can be opened with eToro in the U.S.
- When it came to macro-level research, I did appreciate eToro’s market commentary newsletter, written by an in-house analyst.
While this won’t matter for long-term investors, active traders may find it restrictive. One key limitation is that you can’t short stocks, you’re limited to buying and selling only. However, eToro’s offerings for U.S. traders differ from those of its international platform. Yes, U.S. citizens can use eToro through its American affiliate, eToro USA, which is a FINRA member and provides SIPC insurance of up to $500,000 per account in case of broker insolvency.
- The company reported 1.2 million funded accounts, managed by a team of 1,100 employees worldwide.
- That kind of oversight isn’t something you get with even some of the best crypto exchanges.
- One feature I particularly liked was the sentiment indicator in the news feed, a smiley face that visually represented whether the news was positive or negative for a stock.
- Yes, eToro is good for beginners as the platform is really simple and they offer access to the most popular and trending investment.
Cryptocurrency CFDs
Client funds are held in segregated accounts, and negative balance protection is offered to retail clients in applicable regions. The seamless integration of CopyTrader and Smart Portfolios gives users powerful tools to mimic top-performing investors, setting eToro apart from more generic rivals. EToro is a long-standing broker with strong regulatory credentials across key financial jurisdictions. There are only a handful of articles that explain how to trade cryptocurrencies, a glaring omission considering how prominent crypto has become on eToro’s platform. However, access to these webinars varies by region, U.S. traders, for example, can only view them on-demand, as they’re not available directly through the American version of the site.
Smart Portfolios
Not all methods are available to all traders, depending on their location. Although eToro advertises account opening as “free,” this refers to the absence of account management or ticketing fees—it does not mean there is no minimum deposit. Clients from countries like New Zealand, Kuwait, and others face a $1,000 minimum deposit, while traders in Israel are required to deposit as much as $10,000. However, U.S. clients benefit from even lower minimums after the first deposit, with subsequent deposits allowed from just $1.
What Fees and Costs can I expect?
EToro is considered a low-risk broker, regulated by top-tier authorities like CySEC, FCA, ASIC, and offers added insurance for eligible clients in Europe and Australia. U.S. clients can trade cryptocurrencies and spot Bitcoin ETFs, although access to other products like CFDs remains restricted. Today, the broker is one of the world’s most recognized broker names and a powerhouse in social trading. But if you’re looking for low-cost, high-frequency trading or complete crypto self-custody, there are better options out there. Still, for most everyday investors, especially those just getting into crypto, the platform covers a lot of ground in a clean, compliant, and beginner-friendly way.
Demo accounts are offered free of charge and simulate live market conditions with real-time quotes. Professional accounts can be held by skilled individuals who know that higher leverage options come with increased risks. EToro organizes its accounts based on the jurisdiction in which the client resides, carefully categorizing users as either Retail or Professional clients. Retail traders enjoy access to all trading instruments, though their leverage is capped by regulation. The broker allows you to invest in stocks from around the globe with fractional shares.
Trading platforms tested in 2025
The company spokesman denied active promotion of its services in the Philippines and highlighted that it has no local presence in the country. The screening test for onboarding clients was so lax that nearly anyone could qualify. On 2 March 2022, eToro liquidated customer positions in Magnit stock (MGNTL.L), compensating customers at $0.01 per share. Critics argue that eToro’s business model inherently conflicts with its customers’ interests, as the company directly profits when customers incur losses.
Through this method, it’s easy to fill your portfolio with a variety of leading stocks from the world’s top exchanges. You can access a wide range of asset classes, either trading them with leverage or buying them outright for short-, medium-, or long-term strategies. The broker covers a wide range of asset classes, including 56 FOREX pairs, major stock CFDs, indices such as the S&P 500, and commodities like gold and oil.
Swap fees and Islamic accounts
To contact Richard, please ask a question in our financial discussion forum. Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. EToro is a multi-asset investment platform. There is no doubt that cryptocurrency has been one of the most popular investments of the last two years.
If you do not want to make your own investment decisions and want to invest in the long term, you are better off buying a fund run by a properly regulated fund manager which you can do so through these fund supermarkets. EToro is a great place to get started, as they make the entire process of opening an account and making an investment easy. Investopedia is not an affiliate and may be compensated if you access certain products or services offered by the MSB.
