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eToro Review

Regulation: CyCES (EU), FCA (UK)
Special Offer: CopyFunds™
Minimum Deposit: $200
Available Cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Ripple, Litecoin, Dash, Neo, Steellar, Ethereum Classic
Spreads From: 1.5%
Max Leverage: 10:1
Deposit Options
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eToro is a leading online trading platform. It offers clients a wide range of trading tools for use in multiple markets. eToro currently offers exchange traded funds (ETFs), stocks, commodities, and cryptocurrencies too.

eToro operates on the cutting edge of the Fintech scene. Clients have access to rates from the inter-bank market, stock exchanges, and futures markets. It is a no dealing desk company – all trades are instantaneous. eToro gets its live feeds from the world’s biggest financial companies and institutions.

Since eToro is fully regulated, there is zero market manipulation and the broker makes a profit through a simple markup process. eToro uses STP (straight through processing) to place trades for clients as if they were there on the market floor. This means that all cryptocurrency trades go through instantly.

Company Information

eToro is one of the most respected financial services enterprises. eToro operates under eToro UK Ltd with license # FRN 583263, and in Europe under CySEC regulation with license #109/10. eToro remains one of the world’s foremost providers of cutting edge online trading, with a wide range of investment options now available too. eToro also offers an extensive range of digital currency trading options to clients, including: BTC, ETH, BCH, XRP, DASH, LTC, ETC, XLM and NEO.

How does eToro work?

Traders must first register an account with eToro by inputting personal information, verifying their account details, and making a deposit. Depositing funds into your account requires you to login, click on deposit funds, enter the amount you would like to deposit and the currency you wish to deposit in, and then your deposit method. eToro is a derivatives trading brokerage (CFDs – Contracts for Difference) with leveraged products. With cryptocurrency trading, you can choose 9 options: BTC, Ethereum, BCH, XRP, LTC, DASH, LTC, ETC, XLM, and NEO. You either choose sell or buy depending on whether you’re bullish or bearish on the cryptocurrency in question.

Who should use eToro and why?

eToro is best suited to experienced traders. In the footer of their home page, they state unequivocally: ‘…As such, CFDs may not be suitable for all investors. You should not invest money that you cannot afford to lose… Trading CFDs… Carries a high level of risk and can result in the loss of all your investment.’ However, if you understand cryptocurrency trading, the trade or invest options through eToro are ideally suited to you.

Exchange rates & fees

eToro does not charge any fees on most financial instruments that are available. It simply adds a markup and keeps traders in the loop with prices from the financial markets. However, for cryptocurrencies, there are no overnight fees, and no weekend fees. Traders will only be privy to fees when they short cryptocurrencies, or those who are leveraging Ethereum or Bitcoin positions. The following table below indicates the overnight fee per single unit of each of the 9 digital currencies:

Deposit Options for different locations

Cryptocurrency traders at eToro can fund their account by using the available payment methods listed under the deposit tab. The following payment options are now available at eToro: credit card such as Visa, Diners Club, MasterCard, Sofort, PayPal, Neteller, Skrill Limited UK, wire transfer, WebMoney, wire card – wire and credit card, and Yandex. Depending on where you’re located, different regulatory bodies are responsible for the payment methods that you can use. For example, China UnionPay is regulated by the Government of Hong Kong, while Visa and MasterCard are regulated by the Financial Conduct Authority. Sofort is regulated by Germany’s BaFIN, while PayPal is regulated by CSSF of Luxembourg. Yandex is regulated by the Central Bank of Russia.

How easy is it to use eToro?

 

Trading cryptocurrency at eToro requires customers to register an account. To complete your registration, you must be from an eligible country. Once you have entered your account information, including your username/password, you will be able to navigate to the cashier, make a deposit and trade for real money while the markets are open. Cryptocurrency trading is easily conducted. eToro has simplified the registration process by allowing you to login with Google or Facebook.

Since each digital currency has only 2 possible options – buy or sell, you simply click on your preference based on your forecast. It’s imperative that you have a sound understanding of buy and sell instruments so that you can leverage your money to the maximum. When you choose to buy or sell digital currency like Bitcoin or Ethereum, you simply click on the respective tabs in the trading platform.

Is eToro safe & reliable?

eToro is one of the safest and most reliable trading brokerages in the world. It has full licensing through the FCA (Financial Conduct Authority) with license #FRN 583263. It is also fully licensed by the Cyprus Securities Exchange Commission (CySEC) with license #109/10. Cryptocurrency traders have nothing to worry about at eToro – it sports over 7 million registered traders globally. eToro UK and eToro Europe comply with MiFID (Markets in Financial Instruments Directive) requirements.

Trading platform/software

The eToro platform is a proprietary trading platform which includes eToro WebTrader, and eToro OpenBook. There also mobile trader options, and the new eToro software. These include cutting-edge technology such as CopyTrader™, CopyFunds™, and the Popular Investor Program.

How long does it take to purchase Bitcoin with eToro?

Once you are registered at eToro, you can deposit funds into your account and instantly start buying or selling Bitcoin. Simply click the buy or sell button, and the trade will be executed.

eToro customer support

eToro customer support is available through multiple channels including:

  • Self-populating FAQ with NanoRep
  • Facebook, Twitter, LinkedIn, G +, YouTube
  • Online contact form with upload functionality
  • Online help and support 24/5 (Monday through Friday)
  • eToro UK physical address, eToro worldwide broker and service center in Europe
  • Business development email bizdev@eToro.com, public relations at PR@eToro.com

Special features

eToro provides multiple special features to cryptocurrency traders, including daily cryptocurrency tracking, daily market analysis, CopyFunds functionality, updates to the range of financial instruments, a blog, live webinars, social trading, trading e-Course is and the like.

Clients feedback

eToro has a rating of 2/5 stars on TrustPilot from some 956 reviewers. While somewhat negative, many of the complaints are from traders who do not understand the verification practices in place.

Bottom line

eToro ranks highly in the social trading arena. It is internationally respected as a top provider of CFD trading in multiple assets including Forex, commodities, indices, shares, and cryptocurrency. It is also fully licensed and regulated to offer investments in assets. As far as cryptocurrency trading goes, eToro has relatively high spreads. Trust is not an issue with this platform – clients across the board respect the services provided by eToro.

Final Thoughts
Pros
  • FCA & CySEC regulation
  • 9 cryptocurrencies available
  • Trading and investing options for financial instruments
  • CopyTrader and WebTrader platforms
  • Wide range of educational resources
Cons
  • Minimum trade amounts vary according to your country/region (for example: Israel is high at $10,000)
  • Not regulated by ASIC
  • Website not updated on all pages about range of cryptocurrency options available
  • Full registration needed for demo trading platform
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