eToro Review
Overview
During the stay-at-home portion of the pandemic the notion of community or social investing took hold. Thanks, in large part, to groups of traders congregating or platforms such as Reddit to rally around meme stocks and cryptocurrency, investing became something like this, if not a communal experience for many people, particularly relative novices.
Main Features
- eToro places its focus on this social aspect of investing more than any other platform.
The collective wisdom of millions of investors is at your fingertips.
Learn, share your experience and join the converstaion.
Building connections leads to building confidence.
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Pros
- Free stock and ETF trading
- Seamless account opening
- Social Trading
Cons
- High non -trading fees
- Only one account base currency
- Customer support should be improved
Unique Features
- For starters, eToro gives users the option of using its CopyTrader technology
- With CopyTrader, you can essentially set your account on autopilot, replicating the trades of the platform’s top traders. eToro does not charge any fees to use this feature. On the flipside, users can apply to have their trades copied and get paid based on their AUC (assets under copy).
- eToro offers an online Trading Academy with all the resources you need to be successful in trading
eToro’s CopyTrader feature allows you to trade like one of their top investors
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Another potentially attractive eToro feature, especially if you’re a beginner, might be simulated accounts. Before you put real money on the line, eToro allows you to practice with a $100,000 virtual portfolio.
Beyond these unique features, let’s consider how eToro stacks up against the competition on the basics.
Selection
You can trade stocks and cryptocurrency on the eToro platform. At the moment you can trade about 30 coins via eToro, including popular names such as Bitcoin and Shiba Inu.
Fees
You can trade more than 2,000 stocks across 17 exchanges commission-free on eToro with just a $10 minimum per trade. eToro also allows users to invest in fractional shares of stock.
eToro keeps its cryptocurrency fee structure relatively straightforward.
eToro makes its money on the spread, which is the difference between buy and sell price of a coin. You pay this charge on a percentage basis, which can be as high as 5% or more. For example, as of this writing, the spread on Bitcoin was 0.75%. On more thinly-trade coins, you’ll pay more, moving potentially closer to 4% or 5%.
You pay no other trading fees as well as no transaction cost to deposit money. However, eToro charges $5 to withdraw money with a minimum withdrawal of $50.
To learn more about its
trading and non-trading fees, visit eToro
Bottom line: At the moment, eToro is only available in 45 states with New York among the state’s notably absent from the list.
Despite this-and eToro’s comparatively limited cryptocurrency offering-the platform might make sense for you simply because of its unique features, aimed at new traders.