eToro Review 2024 - Is the eToro Online Brokerage Safe?
- 0% commission for stock, ETF, and options trading
- 25 popular cryptocurrencies up for trade with fixed 1% fee
- Earn up to 4.9% APY on uninvested cash
eToro is an online brokerage platform that offers trading on thousands of stocks and ETFs, options, and 25 popular cryptocurrencies. Our eToro review found that this wide selection of assets isn’t eToro’s only advantage. It also stands out for low trading fees—including 0% commission on stocks, ETFs, and options—and its innovative social trading network. You can share your trades and copy more experienced traders with just a click or tap.
eToro does have some shortcomings, including limited stock analysis and research tools and a lack of crypto-crypto trading pairs. However, if you want access to a wide range of assets and social trading at the lowest possible price, this brokerage platform can be very attractive.
eToro Pros and Cons
- 0% commission for stock, ETF, and options trading
- Trade 25 popular cryptocurrencies with fixed 1% fee
- Earn up to 4.9% APY on uninvested cash
- Copy more experienced traders and investors
- Free demo account with $100,000 in virtual money
- Not available in New York, Hawaii, or Nevada
- $5 withdrawal fee
- Doesn’t support magin trading
eToro Evaluation Methodology
We tested out eToro by opening a US account with the broker. We evaluated everything from the sign-up and deposit process to how easy it was to trade stocks and crypto to how long it took to make a withdrawal. We also took a close look at eToro’s social and copy trading tools since these are relatively unique among US brokerage platforms.
We compared eToro’s range of assets and trading fees directly against similar brokerage firms. Our analysis also considered additional tools, like charting and research features, to determine what types traders and investors would most benefit from using this brokerage.
About eToro
eToro launched in Tel Aviv, Israel in 2007 as a broker for contracts for difference (CFDs) for forex and commodities. It added stocks, ETFs, and Bitcoin to its list of assets in 2013, then expanded into the US in 2017 as a cryptocurrency-only broker. In 2022, eToro opened up stock, ETF, and options trading for US customers.
eToro added its signature copy trading feature in 2010. This was highly innovative at the time and remains one of the biggest draws to eToro. Copy trading has since been mimicked by several other brokerage firms in the US and abroad.
Today, eToro has more than 25 million users across more than 140 countries, including more than 2 million users in the US. It’s available in 47 states, not including New York, Nevada, or Hawaii.
What is eToro Good For?
eToro is a competitive brokerage for stock, ETF, options, and crypto trading in the US. It offers 0% commission trades on stocks, ETFs and options, and a low 1% fee on cryptocurrency trades. eToro also stands out for its social trading tools, including copy trading.
Let’s take a closer look at the areas in which eToro excels compared to the competition:
Commission-free Stock and ETF Trading
eToro offers 0% commission trades on more than 3,200 stocks and 270 ETFs. The company carries nearly all stocks trading on the NYSE and NASDAQ exchanges along with a wide range of popular American Depository Receipts (ADRs). eToro does not support trading on OTC stocks or penny stocks.
Commission-free Options Trading
Options trading on eToro is also commission-free for hundreds of US stocks. Options trades can have up to 2 legs, enabling a wide range of hedging strategies. An options builder helps you analyze the risk and reward of each options trade.
Cryptocurrency Trading
Cryptocurrency trading is a highlight of using eToro. Users get access to 25 cryptocurrencies (compared to just 15 tokens on Robinhood) at a fixed trading fee of 1% for each buy and sell transaction. This low fixed fee makes eToro one of the best crypto exchanges in the US for buying crypto with a debit card.
You can withdraw crypto you purchase at eToro to an external crypto wallet for a fee. eToro even offers its own free mobile crypto wallet called eToro Wallet. However, you can’t transfer crypto back from an external wallet to your eToro account.
Social Trading
Social trading is another major draw to eToro and one of its most unique features. On this platform, you can share your trades, follow other traders, and comment on trades. You can also share your thoughts on the market in a feed that feels similar to Twitter (now X).
Another helpful aspect of social trading on eToro is that you can monitor sentiment on any asset. For example, you can see what percentage of eToro users are buying a stock versus selling it. This can help you decide how to trade.
eToro offers copy trading, which lets you mimic the positions of another trader or investor with just a click. This is great for actively trading without a lot of work or for quickly building a portfolio in a new asset class, such as cryptocurrency. Investors can also sign up for eToro’s Popular Investor Program, which pays you to allow other users on the platform to copy your trades.
Earning on Uninvested Cash
Traders who qualify for an options account at eToro can earn up to 4.9% APY on uninvested cash. That’s significantly higher than the average US savings rate of 0.47% APY.
Customer Support
eToro offers 24/7 customer support by live chat and email. We found that the support agents were responsive and helpful when we got in touch. eToro reviews from current customers praise the broker’s customer service team as well.
In addition, eToro has a very detailed online help center. There are FAQs covering almost every aspect of trading and the eToro platform, so this is a great place to start if you have questions.
Charting Tools
eToro offers basic candlestick charts to quickly give you an idea of an asset’s price action. For more in-depth analysis, eToro offers access to ProCharts, an advanced charting software with tons of built-in indicators and customization features.
Where Could eToro Improve?
While we enjoyed most aspects of the trading experience on eToro, there are some areas where the platform could be improved.
Hidden Fees
eToro’s fees are generally lower than competitors’, but there are some hidden fees to watch out for. For example, you’ll pay $5 to withdraw cash from the platform. You’ll also pay a 2% fee to transfer crypto from your eToro account to an external wallet.
Crypto-Crypto Swaps
eToro doesn’t offer any crypto-crypto trading pairs. If you want to swap one crypto for another, you’ll first need to sell for USD and then purchase the new token. This results in additional trading fees and settlement periods.
Stock Analysis
eToro offers only limited financial information about stocks, such as their market cap, revenue, and price-to-earnings ratio. The platform doesn’t provide access to balance sheets or additional financial metrics that many investors use when evaluating companies. eToro also has very limited crypto analysis tools.
Cryptocurrencies Available on eToro
eToro offers 25 cryptocurrencies for US traders. Here’s a full list of the eToro crypto tokens currently available:
- Bitcoin
- Ethereum
- Bitcoin Cash
- Litecoin
- Stellar
- Ethereum Classic
- EOS
- IOTA
- NEO
- ZCash
- Tezos
- Maker
- Compound
- Chainlink
- Uniswap
- Shiba Inu
- Yearn.finance
- Dogecoin
- Aave
- Enjin
- Basic Attention Token
- Algorand
- Dash
- Decentraland
- Polygon
Copy Trading on eToro
Copy trading is a unique feature of eToro that involves automatically mimicking the positions of another trader. If they buy or sell an asset, a proportional amount of that asset will be bought or sold in your trading account.
Anyone can copy trade on eToro. You must commit a minimum of $200 to copy a trader and you can copy up to 100 different traders at a time. eToro offers detailed statistics about each trader, including a list of their recent trades and a chart of their overall profitability, so you can decide who to copy.
There are no fees for copy trading, but all normal eToro trading fees apply.
eToro Mobile Trading Apps
eToro offers outstanding mobile trading apps for iOS and Android. The investment apps for eToro offer access to all of the broker’s features, including trading, copy trading, and more. It’s easy to deposit or withdraw money using the mobile apps and you can initiate new trades in a few taps.
Importantly, ProCharts is available through the mobile trading apps for eToro. This enables you to analyze price action on the go in order to make trading decisions. You can also monitor news and check analyst price targets for stocks.
Is eToro Safe?
eToro is a major brokerage with more than 25 million users worldwide and more than 2 million users in the US. It’s regulated in the US by the Financial Industry Regulatory Authority (FINRA) and governed by Securities and Exchange Commission (SEC) rules for stockbrokers. Globally, eToro is overseen by major regulators including the UK’s Financial Conduct Authority and the Australian Securities and Investments Commission.
All eToro customers in the US are protected by the Securities Investor Protection Corporation (SIPC). This guarantees your funds up to $500,000 ($250,000 for cash). In addition, eToro’s clearinghouse, Apex, offers supplemental insurance for up to $37.5 million per customer ($900,000 for cash).
Your online eToro account is protected by 2-factor and biometric authentication. These are highly secure measures widely used throughout the financial industry.
Opening an eToro Account
We found the process of opening an eToro account to be fast and painless. The broker’s online sign-up takes about 3 minutes.
You’ll need to provide your name, email, and phone number to get started, then create a username and password for your account. After that, eToro requires that you upload a copy of your ID in accordance with regulations.
The minimum deposit to open an account is $100, which is reasonable for most traders. Future deposits have a minimum of $1. You can make a deposit by debit card, bank transfer, or PayPal.
Our Rating for eToro
eToro earned a net rating of 4.3/5 at the end of our eToro review. We were impressed with many aspects of this brokerage platform, including its low fees, copy trading, and overall seamless user experience.
- Fees (4/5): eToro offers 0% commission for stocks, ETFs, and options and a low 1% fee for cryptocurrency trades. However, it does have withdrawal fees.
- Assets (4/5): eToro offers 3,000+ stocks, 270+ ETFs, and 25 cryptocurrencies. It lacks forex or bond trading and doesn’t support crypto-crypto trading pairs.
- Analysis Tools (4/5): You get access to ProCharts and analyst price targets for stocks. However, eToro has limited tools for financial or fundamental analysis.
- Additional Features (5/5): eToro’s copy trading and social networking features are highly unique and offer additional ways for users to trade on the platform.
- Support (4/5): eToro offers 24/7 customer support by live chat and email.
- User Experience (5/5): eToro’s sign-up process is fast and easy, and the broker has excellent mobile apps for iOS and Android.
How Does eToro Compare?
It’s worth comparing eToro against several other popular US brokers that offer stock and crypto trading so you can decide if eToro is the best option for you.
| eToro | Robinhood | Webull | |
| Assets | Stocks, ETFs, options, cryptocurrency | Stocks, ETFs, options, cryptocurrency | Stocks, ETFs, options, cryptocurrency, commodities |
| Number of Cryptocurrencies | 25 | 15 | 8 |
| Minimum Deposit | $100 | $0 | $0 |
| Trading Fees | 0% for stocks and ETFs, 1% for crypto | 0% for stocks, ETFs, and crypto | 0% for stocks, ETFs, and crypto |
| Unique Feartures | Copy trading | Retirement accounts | Advanced charting |
eToro FAQs
Does eToro charge any additional fees?
eToro charges no fees for stock and ETF trading and a 1% commission for crypto trading. eToro also has a $5 withdrawal fee and a 2% fee for transferring crypto to an external wallet.
What kind of social community does eToro offer?
eToro is a social trading platform that enables users to display their trades publicly and comment on others’ trades. Users can also share their thoughts on the market in a social feed and follow traders whose opinions they like.
What are CopyTrader and Popular Investor?
CopyTrader is eToro’s copy trading program, which allows users to automatically mimic the moves of another trader or investor. You can copy up to 100 traders at a time with a minimum of $200 invested per trader. Popular Investor is the program by which traders make their portfolios available for copying. Successful traders who join the Popular Investor program can get paid by eToro to trade.
What is eToro Club?
eToro Club is a membership program that offers access to features like additional market analysis, cashback on crypto investments, and access to exclusive events and webinars. Access to eToro Club is based on your account balance. You must have a minimum of $5,000 at eToro to join.
Is eToro trustworthy?
eToro is a highly trustworthy brokerage platform that’s regulated by FINRA and the SEC. It has more than 2 million users in the US. All US customers are protected by SIPC insurance and additional insurance from Apex clearing.
Is eToro really free?
eToro offers free trades on stocks and ETFs. However, you will need a $100 minimum deposit to open a brokerage account. There’s also a $5 withdrawal fee. Crypto trading at eToro is not free.
Can you make money with eToro?
eToro is an investing platform, and all investments involve risk. You can make money on stocks and crypto, but you should only invest money you are willing to lose. When copy trading, remember that a trader’s past performance is not a guarantee of future success.
Is eToro good for beginners?
eToro can be a good option for beginner traders because of its social trading community. You can see what others are buying and selling and use comments to ask questions and learn. You can also copy more experienced traders, giving you a way to dive into stock and crypto trading even if you don’t have your own strategy yet.
What type of broker is eToro?
eToro is a multi-asset broker that offers stocks, ETFs, options, and cryptocurrencies. It’s also a commission-free broker for stocks, ETFs, and options.
References
- eToro Expands U.S. Investment Offering to Include U.S. Stocks & ETFs (PR Newswire)
- National Rates and Rate Caps (FDIC)
