eToro Review 2024: Pros & Cons

etoro disadvantages

These comments may be helpful in sparking trading ideas for those new to the crypto world, but their quality is not assured. To rank the best crypto exchanges overall and the best exchanges for beginners, we assessed all of the features and options offered by these 25 platforms. The editorial team then developed a standardized methodology, analyzing 10 key benchmark features and variables to assess quality across the platforms. Blain Reinkensmeyer has 20 years of trading experience with over 2,500 trades placed during that time. He heads research for all U.S.-based brokerages on and is respected by executives as the leading expert covering the online broker industry. Blain’s insights have been featured in the New York Times, Wall Street Journal, Forbes, and the Chicago Tribune, among other media outlets.

How We Picked the Best Online Brokers and Trading Platforms

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 dedicated account manager directly. EToro offers a very basic staking program that lets users earn rewards for holding ADA and TRON cryptocurrencies.

eToro v Trading 212: key similarities

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. EToro’s standard customer support is limited, offering only email contact or a support ticket option.

Table of Contents

However, advanced traders looking to trade cryptocurrency may want to look at popular crypto exchanges to fulfill their crypto needs. On the eToro platform, a “Trading” tab lets you view prices and buy, sell, or convert crypto, ETFs, or stocks. EToro offers 21 cryptocurrencies, over 3,250 stocks, and more than 270 ETFs, covering the most important assets and securities. However, its list of tradable assets is not as vast as some of its peers. Additionally, users won’t find many order types beyond basic market and limit orders, which prevents more advanced traders from getting the most out of the system. We test all available trading platforms for each broker and evaluate them based on a host of data-driven variables.

etoro disadvantages

How do we review cryptocurrency platforms?

We don’t like this portfolio section as in the end everything is expressed in percentages and we don’t know the reality of the situation. The trader could be making a $10 profit and we end up reading it as 300% of the trade’s value. This section of the stats will allow you to see the trader’s asset class distribution across his trades and some other basic stats like his profitability and average trades per week. As such, it’s critical to research coins before making any purchases. As long as you’re responsible and know what you’re doing, eToro can potentially lead to big profits.

Popular Forex Guides

Cash assets are held in Federal Deposit Insurance Corp. (FDIC)-insured bank accounts for funds up to $250,000. EToro users pay a flat fee—technically a bid-ask spread—of 1% for each crypto trade. Steven Hatzakis is the Global Director of Research for

If you’re keen on trying out your luck with cryptocurrency trading, start slow and don’t invest more than you’re willing to lose. The crypto and the stock trading world can be a very unpredictable place – always do proper research and know what you’re getting yourself into. All in all, it is evident that most of the eToro reviews have been correct – the company is well-established and has many years of experience to back it up.

A digital wallet, known as the eToro Wallet, is provided by eToro to store cryptocurrency. CopyTrader provides the extent of trading idea generators at eToro. Users can search for, follow, and copy trades of investors that match their interests and goals.

etoro disadvantages

However, I am disappointed that the ProCharts mode is only available to higher-tier users. In addition, fully automated trading systems such as those supported on MetaTrader 4 or cTrader are not permitted on eToro, which will disappoint algorithmic traders. Notably, after 12 months of inactivity, a $10 monthly fee will be charged on any remaining available balance. This won’t impact active traders but casual investors should keep this in mind. It’s also good to see that traders can access stocks commission-free, enabling purchases in bulk or fractional shares from as low as $10. EToro gets a very high assets and markets rating of 4.5 for its huge investment offering spanning popular asset classes and regions.

Back in 2007, eToro made its debut in Israel, thanks to the vision of three ambitious entrepreneurs. Initially, the platform centred around forex trading, but it didn’t take long for eToro to gain momentum and evolve into a global service with a broader product lineup. If you’re a newbie in the world of cryptocurrencies and prefer a hands-on learning experience, eToro might just be your ideal destination. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

As with other investment platforms, eToro has built-in a range of educational resources, but users can also learn from one another through a news feed and a range of social features. Let’s take a closer look at some of the platform’s key features. EToro is one of the most established online brokerages offering crypto trading services in the United States. The user-friendly interface, available on the web and mobile, provides easy access to a range of crypto assets. The platform’s CopyTrader and SmartPortfolios features further expand on the beginner-friendliness of the platform, making the crypto asset market more accessible for newcomers.

In all of these areas, eToro has proven itself more than capable of earning clients’ trust. I have been writing about all aspects of household finance for over 30 years, aiming to provide information that will help readers make good choices with their money. The financial world can be complex and challenging, so I’m always striving to make it as accessible, manageable and rewarding as possible.

  1. There are “Research” and “News” tabs for most of the individual cryptocurrency, stock and ETF pages (these are only available to funded accounts).
  2. EToro’s strengths lie more in social trading, long-term investing, and copy trading.
  3. This is partly because they were very quick to jump into cryptos when these currencies first started to emerge.
  4. An investment team monitors the portfolio offerings to ensure that they continue to match thematic elements and risk parameters.
  5. Hackers stole cryptocurrency from over 6,000 accounts because of an exposed flaw in the exchange’s two factor SMS system.

If you’re a US-based citizen, you should try out eToro’s digital market. It’s completely free and offers a great opportunity to find out how everything (options, settings, different interfaces, etc.) works before the company launches the live version. One of the most beneficial business decisions that eToro has made was to implement the trade copying feature into its platform. It will bridge the gap between beginner investors who don’t want or have the time to do their research and veterans that have been in the game ever since the inception of Bitcoin. Recently, eToro has released a new, BETA version of a US-based marketplace.

Choosing the right trading platform depends on your individual needs and trading style. EToro, with its user-friendly interface and unique features, is particularly well-suited for beginners in Australia. It’s known for its innovative CopyTrader and social trading functionalities, which allow users to follow and replicate the trades of experienced investors, making it a great learning tool for those new to trading. For cryptocurrency investors who want to mirror the moves of serious crypto traders, eToro’s social investing platform is an attractive offer. With 21 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.

etoro disadvantages

You can invest in a wide variety of portfolios that focus on everything from private equity and infrastructure to technology and health care while blending the allocation of ETFs, stocks, and cryptocurrency. An investment team monitors the portfolio offerings to ensure that they continue to match thematic etoro elements and risk parameters. These portfolios are particularly appealing to beginner investors. EToro’s mobile app is user-friendly, with a simple, uncluttered design. The beginner-friendly user interface combined with the feel of a social media app makes for an innovative, creative user experience.

There’s no additional authentication required to open an eToro account. In addition to meticulous annual data collection by our in-house analyst, every broker that participates in our review is afforded the opportunity to complete an in-depth data profile. EToro USA is a member of Finra and accounts are insured up to $500,000 by the Securities Investor Protection Corporation, or SIPC, which protects against a broker’s insolvency. EToro offers education on its global home page in the form of its own eToro Academy as well as a News and Analysis page, a collection of news articles, and its “Digest and Invest” podcast channel. The cost of eToro’s copy-trading service is incorporated into its spreads.

The platform’s high fees can result in substantial financial losses during the trading and investing process. Furthermore, advanced traders often desire to invest in new cryptocurrencies listed on decentralized exchanges like Uniswap, which eToro does not support. EToro is a leading discount brokerage and social trading platform that supports retail investor accounts. As mentioned above, eToro lets investors connect with one another through a social media-like news feed, where news and strategies are discussed. Regular blogs and personalised alerts are another way users can keep track of the market.

If you’ve made it this far, I think a summary of what we’ve covered would be both useful and beneficial. One of the main complaints that people seem to have when it comes to eToro, though, is that the customer support department could use some improvement. There seems to be a lot of issues regarding the support itself, response timers and helpfulness, etc. There are quite a few eToro reviews on the internet, but a lot of them seem to rush through the “cryptocurrency” part of the company.