EToro Review 2023: Pros, Cons and How It Compares – NerdWallet

Where eToro shines

Innovative platform: EToro made its name through its social investing platform, an innovative tool that allows users to copy the trades of other investors.

Established internationally: Founded in 2007, eToro has more than 25 million users in 140 countries worldwide — and the U.S. is now on that list. In 2022, the company began offering U.S. customers access to stocks and ETFs. Previously, while eToro ran multi-asset brokerages (offering stocks, commodities and forex trading) in other countries, U.S. customers could trade only cryptocurrencies on the platform.

Virtual trading: Every eToro account also gets a $100,000 virtual trading account, so you can practice trading with play money.

Where eToro falls short

Limited service: EToro currently offers its crypto service in 46 U.S. states and Washington, D.C. While all U.S. residents can sign up for a free eToro account for virtual trading, eToro is currently unavailable for actual cryptocurrency trading for residents in Hawaii, Minnesota, Nevada and New York.

Limited ETF selection: The company currently only offers access to about 200 ETFs.

EToro is best for:

• Cryptocurrency, stock and ETF traders.

• Social or copy trading.

EToro at a glance

Minimum trade

$10; $200 to use eToro CopyTrader.

Trading and transaction fees

Crypto: 1%

Stocks and ETFs: No commission

Number of cryptocurrencies

25

Crypto-to-crypto trading pairs

No crypto-to-crypto trading.

Website transparency

Information easily found on the website.

Storage and security

Users can use their own digital wallet, but crypto transferred from the platform can’t be transferred back.

Staking and rewards

EToro does not offer staking.

Mobile app

Two highly rated apps for iOS and Android.

Customer service

Email and ticket support; chat and phone support available for eToro Club members only.

More details about eToro’s ratings

Minimum trade: 4 out of 5 stars

EToro’s minimum trade amount is $10, and the minimum deposit amount is $10 if done by debit card or bank account connection. The company offers the ability to invest in fractional shares of stocks, which means you can buy a small slice of a share with any amount over $10.

Trading and transaction fees: 4 out of 5 stars

EToro charges a 1% fee for buying or selling crypto assets on its platforms. For stocks and ETF trades, there is no commission, and the broker foots the bill for regulatory transaction fees when you sell a stock.

Number of cryptocurrencies: 4 out of 5 stars

There are 25 cryptocurrencies available to trade on eToro.

Crypto-to-crypto trading pairs: 1 out of 5 stars

Direct crypto-to-crypto trading isn’t available to U.S. users. However, in the separate EToro Money app, there is a crypto-to-crypto conversion option similar to Coinbase’s offering, available for Bitcoin, Litecoin, Bitcoin Cash, Ethereum and Stellar.

Storage and security: 3 out of 5 stars

EToro provides a free digital wallet to store cryptocurrency, known as eToro wallet, available in iOS and Android. There is a 2% fee to transfer funds from eToro’s investment app to its crypto wallet.

Users can transfer cryptocurrency from the eToro platform to their own digital wallet, but eToro notes coin transfers are one-way — which means any coins transferred can’t be transferred back to the eToro trading platform.

Staking and rewards: 1 out of 5 stars

EToro does not offer any staking products.

Some context on staking and rewards: Staking programs operated by centralized businesses such as exchanges have been under regulatory scrutiny, with some facing allegations that their offerings amount to unregistered securities. In this fast-moving space, a company’s outlook can change quickly, so it’s possible that an exchange could end its program and unstake your tokens without your approval or knowledge.

Mobile app: 4 out of 5 stars

EToro’s app is available for iOS and Android, and has received mostly positive reviews. And although it does not offer crypto-to-crypto trading pairs, EToro’s mobile app offers advanced charting capabilities, customization and alerts.

Customer support options: 1.5 out of 5 stars

EToro’s standard customer support is limited, offering only email contact or a support ticket option. EToro Club members can also receive customer support via live chat and phone, though methods of contact depend on the level of club membership. Only members at the silver level and above — which requires equity of $5,000 or more — can call to speak to a representative directly.

Other features you should know

Social investing: EToro’s CopyTrader allows you to copy and trade automatically based on the moves of other traders. How it works: You choose an investor you want to copy, and with a click of a button, you can begin mirroring their positions automatically (with the option of a stop-loss level to limit potential losses). The service is currently available only for crypto, but eToro says it plans to add copy trading for stocks and ETFs.

The minimum amount to copy a user is $200. Users can copy up to 100 traders simultaneously. Even without using CopyTrader, users can view millions of other traders’ portfolios, stats and risk scores. (While they have full access to all public profiles worldwide, U.S. clients can copy only other U.S. users).

Is eToro right for you?

For cryptocurrency investors who want to mirror the moves of serious crypto traders, eToro’s social investing platform is an attractive offer. With 25 cryptocurrencies to buy, eToro has a greater selection than some other U.S. crypto brokerages. The addition of stock and a limited ETF selection in 2022 makes the broker a more well-rounded choice for investors who want to invest in multiple assets.

How do we review cryptocurrency platforms?

NerdWallet’s comprehensive review process evaluates and ranks platforms and companies that allow U.S. customers to buy and/or sell cryptocurrency. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgments on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 10 factors. The final output produces star ratings from poor (one star) to excellent (five stars).

For more details about the categories considered when rating brokers and our process, read our full methodology.