eToro Exchange Review

eToro cannot be considered as a pure cryptocurrency exchange because it allows the users to buy/sell/trade stocks, commodities, currencies, ETFs (Exchange Traded Funds) and cryptocurrencies. The eToro exchange was originally launched in 2007 by eToro(Europe) Ltd. It is headquartered in London, UK and registered as a Financial Services company. eToro extended the platform to trade Bitcoin, Ethereum and other popular cryptocurrencies in 2017.  The company slowly build its reputation to be considered as the world’s leading social trading network because it is used by more than 3 million investors all over the world. Currently, the residents of US cannot buy cryptocurrencies using the eToro exchange. However, the company is planning to introduce the crypto trading to its US customers very soon.

Is eToro Exchange Safe?

Yes. eToro Exchange is completely secure for buying/selling/trading cryptocurrencies like Bitcoin, Ethereum and more. It is authorized by the CySEC (Cyprus Securities Exchange Commission) and  regulated by the FCA (Financial Conduct Authority). Plus, eToro provides a lot of basic and advanced tools for the users which will guide them to make their investment in cryptocurrencies.

eToro Pros

  • Easy to use even for inexperienced traders
  • FREE virtual trading account
  • Educational materials (videos) for newbies
  • Provides advanced trading tools like CopyTrading
  • Multilanguage support
  • 24/5 customer support via email
  • Available as mobile app
  • Unique trading features like Social Trading, CopyTrading etc.

eToro Cons

  • Supports only limited number of cryptocurrencies
  • Live chat feature is not available
  • First time deposit amount is very high
  • Does no accept cryptocurrency payments
  • Don’t provide any kind of wallets for storing the cryptocurrencies.

How the eToro Exchange Works

Like all other cryptocurrency exchanges, you need to create a free trading account on eToro to start buying/trading cryptocurrencies. Besides the standard trading account, eToro also offers a free lifetime demo account which will be highly beneficial for new traders. Once you verify the account after uploading the necessary documents, you need to deposit money into your account by using any of the payment options available in eToro. You can start buying the cryptos once the money reaches your account.

EToro Sign Up & Login Process

Sign up (Only for the new users):

  1. Go to https://www.etoro.com/ and click ‘SIGN UP’ on the top right of the page.
  2. Next, fill all the basic information like first name, last name, username, email, password and phone number. (signup1.png)
  3. Then, click the ‘Create Account’ button to complete the sign-up

Verifying the account

Before starting trading on eToro, you need to verify your account by providing the proof documents for identity and address. To verify your identity, you need to provide any government ID like passport, driving license etc which contains your photo.

For address verification, you can provide any of the documents given below:

  • Bank/Credit card statement
  • Income Tax letter/Bill
  • Water/ Gas / Electricity Bill
  • Council tax bill
  • Rental Agreement (Issued by an official rental agent)
  • Letter from your employer
  • Phone/Internet bill
  • Letter from your local municipality

Also, you need to make sure that your POA (Proof of Address) is not older than 6 months or more. Plus, your name and address should be clearly visible.

Once you upload the above mentioned documents, eToro will process that within few working days. And, you will be notified about the approval of your account. You can also see a ‘Green Tick’ mark next to your username which can be seen in your profile.

How to buy bitcoins from EToro?

First, you need to add funds to your eToro account for buying Bitcoins, Ethereum or cryptocurrency coins which is explained below.

Depositing money to your account

  1. Login to your eToro account and click the ‘Deposit Funds’ button.
  2. Now, select the desired amount, currency and the payment method. (Based on your location, the minimum value of your first deposit will vary. It falls in the range of $200 to $10,000). deposit
  3. Finally, click the ‘Submit’ button.

Based on your payment method, the money will be reflected either instantly (credit/debit card) or a couple of business days. (Wire transfer). By default, eToro processes all transactions only in USD. If you are using any other currency, then you need to pay the exchange rate fee.

Note: If your account is not a verified one, then you need to deposit at least $2250 to buy cryptos from eToro exchange.

Buying Bitcoins from eToro

  1. Log in to your eToro account and click the ‘Real’ button to start buying bitcoins. (Clicking the ‘Virtual’ button will take you to your demo account using which you can get the real trading experience by investing your virtual money).
  2. Click on the ‘Trade markets’ tab which is located on the side panel and select the option named ‘Crypto’. All the cryptocurrencies will be listed as individual squares with two buttons ‘Buy’ and ‘Sell’. (The color of the Buy/Sell button is red/green. A red color indicates that the cryptocurrency is doing bad against the USD whereas green color indicates that the crypto is performing well against the USD.buy1
  3. Click the ‘Buy’ button of the desired cryptocurrency you wish to buy. Now, a separate window will be displayed on the screen which will prompt you to select the number of units you need to buy.buy2
  4. Select the number of units and click the ‘Open Trade’ button to start the buying trade.
  5. Once the trade has been completed successfully, it can be seen under your Portfolio.

The minimum amount of trade on eToro is $200.

How to sell bitcoins on eToro?

Currently, you cannot withdraw bitcoins or other cryptocurrencies directly to your wallet. Instead, you need to convert them to fiat currencies and place a withdrawal request to the original payment method which is used for depositing money into the account. eToro is planning to launch its own digital wallet in 2018.

To sell the bitcoins or other cryptocurrencies you have bought previously from eToro, you need to close the trade by locating that on your portfolio.

  1. Login to your eToro account and click ‘Portfolio’ button on the left side menu of your account page.
  2. Next, click on ‘BTC’. Can you see an ‘X’ button on the right side of the page? Click that to close the trade which is equivalent to selling the bitcoins. ( You can also find a button marked ‘S’ which is different. Don’t click that as it will open a new sell trade ).
  3. Finally, you will receive the equivalent fiat currency for the bitcoins within few days to the chosen payment method.

You will receive an email notification from the eToro support team once your withdrawal is completed successfully. Alternatively, you can keep track of the status on your Portfolio as well.

Unique Trading Features & Tools of eToro Exchange

Given below are the some of the unique trading features of the eToro exchange.

CopyTrading

If you are someone who would like to invest a huge sum of money in cryptocurrencies, then you can utilize the CopyTrader feature of the eToro. What is CopyTrader? It is an innovative feature of the eToro exchange which allows you to copy the trading activities of a successful trader. However, you need to make sure that the trader you have chosen to follow is really an experienced one and does not make profits in a fluke. Otherwise, you will end up with a big loss.

CopyTrading is relatively a new concept and not a proven concept. And, there is no guarantee that you will always get profits by copying someone. So, it is up to the individual to accept the risk and use the CopyTrader feature of the eToro exchange. The minimum investment required to utilize this feature is $5000.

Virtual Trading Account

Most of the cryptocurrency exchanges don’t provide many options for the users to learn trading. However, eToro exchange offers a lifetime free virtual trading account with a pre-loaded value of 100,000 USD. (Virtual money). And, the member can do kind of transactions on the virtual account in the same way as the real account. It is a great self-learning tool available for the members of the eToro exchange. As the values showed the virtual account is exactly the replica of the current market values, it will be extremely useful for the newbie as well the experienced traders.

CopyFunds

CopyFund is a unique feature of eToro which utilizes machine learning algorithms by aggregating various assets. It is a thematic investment instrument developed by eToro with the aim of providing double-digit returns for the long term. The minimum amount that should be invested to use the CopyFund feature is 5000 USD.

List of Top 20 countries supported by eToro

Even though eToro is not available in the US yet, it is available in the majority of countries in the EU (European Union). And, it accepts users from more than 60 countries all over the world. Here is the list of Top 20 countries which are supported by eToro.

  • United Kingdom (UK)
  • Belgium
  • France
  • Finland
  • Ireland
  • Italy
  • Cyprus
  • Greece
  • Germany
  • Hungary
  • Portugal
  • Spain
  • Sweden
  • Netherlands
  • Cyprus
  • Czech Republic
  • Slovakia
  • Slovenia
  • Poland
  • Australia

Accepted Payment Methods

Wire transfer seems to the easiest option for all the users who are residing outside UK. However, eToro offers a lot of payment methods when compared with other cryptocurrency exchanges. However, some payments are not available for all the countries and the maximum amount of deposit per transaction varies based on the payment method as given below:

Method Country Maximum Transaction Amount
Credit/Debit card (Visa, Master card, Diners club) UK 20,000 USD
Giropay Germany 30,000 USD
PayPal Luxemburg 10,000 USD
Neteller UK 10,000 USD
Wire Transfer All Unlimited
Skrill UK 10,000 USD
WebMoney UK 50,000 USD
Yandex Russia 5000 USD
Wirecard Germany Unlimited
China Union Pay Hong Kong 20,000 USD

 

Supported Cryptocurrencies

Given below is the list of supported cryptocurrencies by eToro.

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Ripple (XRP)
  • Dash (DASH)
  • Litecoin (LTC)
  • Ethereum Classic (ETC)
  • Stellar (XLM)
  • EOS
  • NEO

eToro Fees & Limits

Fees

Given below is the list of various types of fees that are deducted from your account to buy/sell bitcoins and other cryptocurrencies.

Withdrawal fees

The minimum withdrawal fee is 25 USD for any amount greater than or equal to 50 provided your currency is in USD.

Conversion Fees

For both deposits and withdrawal, you need to pay the conversion fee if you are using a currency other than USD. And, the fees for the different types of currencies to USD are given below:

AUD 100 Pips
CAD 250 Pips
EUR 250 Pips
GBP 50 Pips
JPY 250 Pips
RMB 50 Pips
RUB 50 Pips

If you are not familiar with the concept of Pips consider the example below:

Let’s start by understand what a pip is. Let’s consider an example of the currency pair Euro and U.S. Dollar (EUR/USD) . Assume the trading exchange rate is of 1.2000 (1 EUR = 1.2 USD). Now consider that the rate increased to 1.2010. In doing so we say that the price ratio increases by 10 pips. Hence 1 pip is equivalent to 0.0001 for currencies which are typically handled to 4 decimal places. One of the few exceptions where 1 pip is equivalent to 0.01 is when trading to YEN as YEN is traded to 2 decimal places.

Now consider a transaction of 1000 Euro at an exchange rate of 1.2000 (To convert EUR to USD). 250 Pips conversion fee would cost (1,000 / 1.2000) x 0.0250 = 20.8333 EUR fee

Overnight fees

A spread is nothing but the difference between the buying and selling price. eToro will charge for spreads only during the closing of positions and not the opening of a position. The overnight fees for the various cryptocurrencies are given below:

Cryptocurrency Spread(%) SELL BUY
BTC 1.5 -0.47 -0.47
BCH 5 -0.14 0
DASH 3 -0.039 0
EOS 3 -0.001 0
ETHEREUM 2 -0.0367 -0.0367
ETC 3 -0.0017 0
LTC 3 -0.006 0
NEO 5 -0.012 0
XLM 5 -0.00004 0
XRP 3.5 -0.00002 0

 

Inactivity Fee

If the account is inactive for a longer period of time ( Depositing accounts – 12 months, Nondepositing accounts – 4 months), then you need to pay a monthly inactivity fee of $5. And, the fee will be canceled immediately once you log in to that account.

Limits

Unlike the other cryptocurrency exchanges, the buying limits are not set based on the type of the account. Instead, it depends on the payment method used for depositing money. Refer the section “Accepted payment methods” of this post to know the limits.

Top Competitors

Coinbase and Binance can be considered as the top competitors for eToro because both these exchanges provide support for more number of cryptocurrencies when compared with eToro. However, eToro has got more learning materials and innovative features like social trading which makes it a unique cryptocurrency exchange to buy/sell/trade cryptocurrencies like Bitcoin, Ethereum and more.

eToro Security Features

eToro offers the flexibility to keep your profile as public or private. If it is set to private, no one else can view your trading data and your profile will not appear on the search. To keep all your transactions secure, eToro utilizes the SSL technology for data transmission so that your information will be completely secure.

Besides that, eToro is fully compliant with the GPDR regulations and keeps the personal information of all its registered members safe. As eToro does not provide any wallet, the responsibility of storing the cryptocurrencies is fully handled by the users so that you don’t need to worry about the hacking of your cryptos.

eToro Customer Support

You can contact the customer support team of eToro by using the submit the form by choosing either Visitor or Existing User option and send your detailed query. The customer support team is available for 5 days in a week (Mon-Fri, 24 hours) and will try to resolve your issues as soon as possible.

Alternatively, you can refer the detailed posts on various topics like Copy Trading, Deposit, Withdrawal under the ‘Help’ section of the website.

eToro Rating (Out of 10)

8

Conclusion

Even though eToro supports an only limited number of cryptocurrencies, it is the most secure exchange to buy bitcoins. Also, it provides a lot of interactive learning materials for both the new and experienced traders so that they can gain huge profits. And, their social investment platform is an innovative and unique concept which is not available on other cryptocurrency exchanges. Simply, eToro exchange is the best option for anyone to buy/trade cryptos irrespective of their location as it is available in more than 60 countries all over the world.