eToro Review: What to Know About the Pros, Cons, and Features

eToro is a social investing platform that allows investors to copy the moves of top traders, but is limited in its crypto-specific offerings. Here's what you need to know about eToro and if it's right for you.

July 19, 2022 - 12 Min Read

Our take on eToro

4.0
DeFi Rate Rating

The bottom line:

eToro offers some unique features to crypto traders, including social trading that allows you to mirror the trades made by top investors. But while the platform shines in certain areas, it may not be the best fit for more experienced crypto users.

Best for social investing

eToro
Learn More

On eToro's website

Cryptocurrencies

75

Fees

1%

Yield

None

USA Coverage

Yes, excl. HI, NV, NY, MN

When it comes to trading or purchasing crypto tokens or coins, investors have a ton of different options to choose from. That includes both centralized and decentralized finance platform options, like Compound, Crypto.com, and Aave — among dozens of others.

One of the more well-known options is eToro, a crypto trading platform that has been available to U.S. crypto enthusiasts for the past several years. These days, eToro is widely known as a crypto trading platform and app, but that wasn’t always the case. It was actually founded a year before Bitcoin was created under the name RetailFX, and it has roots in traditional financial assets.

That’s no longer the case, though. eToro has shed its traditional asset origins and now offers a wide swath of crypto tokens — along with its own wallet and a dedicated digital asset exchange called eToroX. But while eToro is now a more crypto-centric platform for users, it may not be the best option for all investors. Here’s what you need to know about the possible benefits and downsides of this platform, along with details about all of the features it can offer to users.

eToro pros and cons

eToro offers some unique features to crypto traders, including social trading that allows you to mirror the trades made by top investors. But while the platform shines in certain areas, it may not be the best fit for more experienced crypto users.

Pros

  • Access to dozens of cryptocurrencies
  • Account funding comes with a low minimum requirement
  • Social investing is unique to the platform and makes it possible to follow the moves of top traders
  • Flat-rate fee on all transactions
  • Offers access to other investments assets outside of crypto

Cons

  • Crypto trading is not available in every state
  • Direct crypto-to-crypto trading is not available
  • Crypto transfers from the eToro wallet are limited

eToro pros

There are quite a few potential benefits that crypto enthusiasts can gain by opening an eToro account. These include:

Social investing is unique to the platform

eToro offers a unique social trading functionality on its platform. Known as CopyTrader, this functionality lets you copy the trades made by other top traders. All you have to do is choose an investor to copy and then click a few buttons to automatically mirror the other trader’s positions — and you can copy up to 100 trades at the same time. However, you’ll need to pony up at least $200 to do so, as that’s the minimum amount required to copy trades.

You don’t have to copy trades or use CopyTrader to see what other traders are doing, however. With the eToro platform, you’ll also get access to millions of other traders’ portfolios, along with their stats and risk scores.

Access to dozens of cryptocurrencies

The eToro platform offers users access to over 30 cryptocurrencies. That may be limited compared to some of the larger crypto-specific exchanges, but it’s still a lot more than many of the other platforms offer to users.

Low minimum funding requirement

eToro only requires a $10 minimum deposit to fund your account, provided it’s done by using a debit card or transfer from a bank account connected to the platform. The minimum trade amount is low as well, with a minimum of just $10 per trade.

Offers access to other types of investments

Prior to 2022, U.S. traders using eToro were limited to trading only crypto on the platform. That was fine for many users, but earlier this year, the platform added access to stocks and ETFs for U.S. traders. While not all users will want or need access to other types of investments, it can still be convenient for traders who are interested in branching out to other types of assets but want to keep all of their investments in one place.

Flat rate on crypto transactions

eToro charges a 1% flat-rate fee on crypto transactions. That isn’t the lowest fee available to crypto traders, but the social trading aspect can be a big draw — and the flat-rate fee makes it easy to calculate what each transaction will cost you before you complete the process.

eToro cons

While there’s plenty to love about eToro, here are a few drawbacks to consider before opting for it as your crypto exchange of choice:

Crypto trading isn’t available in every state

Not all crypto traders can use eToro — even if they’re located within the United States. That’s because eToro does not offer crypto trading to residents of four states: Hawaii, Minnesota, Nevada, and New York. If you’re located in one of these four states, you will need to find another option for crypto trading.

However, all U.S. residents can sign up for an eToro account and play around with the virtual trading features, and the platform gives every person who signs up $100,000 in virtual play money to practice trading. But residents of those four states can’t actually complete the crypto trades they want to make with their own funds; they’ll be limited to the virtual trading functionalities and play money instead.

Direct crypto-to-crypto trading is unavailable

There are no crypto-to-crypto trading pairs available on this platform. If you want to exchange your Bitcoin for Ethereum, for example, you’ll need to sell your Bitcoin and then buy Ethereum instead. That differs from the capabilities offered by most other platforms.

Wallet transfer capabilities are costly

eToro also offers a free standalone digital wallet, called an eToro wallet, to crypto users who want to take advantage of it. Buyer beware, though. While the wallet is free to download and use, the cost to convert crypto into fiat currency is 5%, which is a pretty hefty fee — and there’s a minimum transaction requirement of $125.

Coin transfers are limited to one-way transactions

While you can transfer crypto from the eToro platform to another type of wallet, you can’t transfer crypto back into your account on this platform. So, if you transfer coins out to trade (or do anything else with), you won’t be able to transfer them back in.

What eToro is best for

While the eToro platform may be a good option for a wide variety of crypto users, this platform shines in a few different areas. As such, it may be best for the following:

  • New crypto users: There’s not a steep learning curve with the eToro platform, which can make it a great stop for new crypto users who are still figuring out the nuances of the market. Other crypto exchange platforms may offer more crypto or token options, but the easily navigable user interface can be a big benefit for crypto users who are just starting out.
  • Traders who want access to multiple investment options: Most crypto platforms are limited to just cryptocurrency investment options, but eToro has added assets, like stocks and ETFs, to give investors more options in addition to the tokens listed on the platform.
  • Investors who want to take advantage of the social aspects of the platform: Trading crypto can be intimidating, but the social aspects of this platform can help. With the unique social trading tools it offers, crypto-wary investors can mirror the transactions of successful investors to help them get their footing.

Key features of eToro

There are a few key features that make eToro stand out against the competition. These include:

  • Social trading: Social trading is unique to eToro’s platform, and it gives crypto traders the opportunity to follow other users’ trades automatically.
  • Access to multiple asset classes: This platform recently listed stocks and ETFs in addition to cryptocurrencies, so U.S. users can keep multiple types of investments in one place.
  • Flat fees on trades: eToro charges a 1% flat rate on crypto transactions, which isn’t the lowest rate — but it’s still low enough to make the platform affordable for most crypto investors.

Cryptos listed on eToro

There are about 30 different crypto options currently available on eToro, including:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Litecoin (LTC)
  • Uniswap (UNI)
  • Stellar Lumen (XLM)
  • Chainlink (LINK)
  • Cardano (ADA)

Fees for using eToro

While nearly every crypto platform will charge fees to users for the transactions that they make, the good news is that eToro charges just one flat rate of 1% on crypto transactions. That said, it’s not the lowest fee comparatively, so it can be beneficial to look elsewhere if you’re planning to do a high volume of trading on the platform.

ActionGemini fee
Crypto trading1% of the transaction
Cash out crypto to fiat/USD5%, minimum $125 transaction amount

Alternatives to consider

Not sure eToro is right for you? Well, the good news is that you have plenty of other options. If you’re looking for an alternative to eToro, it may be worth considering the following:

Crypto.com: Good for new users who want access to more tokens

While Crypto.com charges hefty fees for crypto transactions, users get access to more than 250 coins to trade, stake, and exchange when using this centralized platform. That can make it a great option for users who want to gain easy access to more coins but don’t want to navigate the more complicated nuances of using a decentralized exchange.

Coinbase: Good for users who want a crypto-specific platform

Coinbase is another good alternative to eToro, and it can be a smart option for crypto enthusiasts who want a crypto-centric platform. While eToro offers stocks and ETFs to users, Coinbase is built around crypto trading and investing.

Nexo: Good for crypto lending opportunities

Nexo is built around crypto lending, which can be a lucrative way to earn on your crypto holdings. That isn’t the focus of eToro, so crypto users who want to offer their tokens to other users in return for interest payments — or crypto users who want to borrow crypto for trading or other purposes — may want to consider using Nexo instead.

Is eToro right for you?

If you’re new to the crypto trading space, or if you’re looking for a platform that’s easy to navigate as a new user, eToro may be right for you. The same goes for crypto enthusiasts who want to get access to the social trading features this platform offers. If the goal is to mirror your trades to a successful crypto trader’s transactions, this platform offers the functionality to do so.

On the other hand, if you’re looking for a platform that offers a wide breadth of functionality for experienced crypto traders, this platform probably isn’t a good fit. There are alternatives available on the market that are likely a better fit for your needs.

Final thoughts on eToro

eToro offers some unique features, like social trading, which make it stand out in a crowd. However, it likely isn’t the best fit for every type of investor. If you’re looking for a platform that offers a large number of token or coin options, or if you’re an experienced trader who needs more functionality, you may want to look elsewhere.

Either way, your best bet is to make sure that the platform offers the specific coin options and the specific functionality you need to be successful with your crypto goals before you open an account. And that’s true of any platform, eToro or otherwise.

Methodology

DeFiRate.com reviews cryptocurrency and Web3 products, services, and operators based on five quantifiable metrics to help crypto users understand how they compare based on similar metrics. For the best centralized exchanges, our editorial team compared customer support, 30-day trading volume, fees, cryptocurrencies available to trade, and average mobile app ratings from each operator to rate the top competitors in the space.

Frequently asked questions

  • Is my crypto safe when using eToro?

  • Is eToro good for beginner crypto users?