2019 eToro crypto currency review: trading bitcoin, etherium, litecoit, ripple. Fees/cost, investments, account minimum, charts, and managed portfolios.


Rating:  4.5-star brokerage firm rating

Overview of eToro

If you’re interested in exotic investments—stuff like spread betting, contracts for difference, copy trading, cryptocurrencies, or forex—you really need to check out eToro. Founded in 2007, it is one of the few social investment networks in existence. Let’s check it out.


Company Details

eToro is based in Tel Aviv, Israel, with offices in London and Cyprus. Because it has no physical presence in the United States, Americans have had difficulty in the past opening accounts. Today, eToro has more than 8 million total accounts worldwide.


Available Investments

eToro offers a lot of different types of investments, although the range varies from country to country. In the United Kingdom, stocks can be traded. In other countries, contracts for difference on stocks can be traded. In all countries, short stock positions are CFD’s. Besides equities, CFD’s can be traded on commodities, ETF’s, indices, forex, and cryptocurrencies.


eToro Markets


There’s one caveat for U.S. clients. Forex trading is not available. Up until 2018, Americans could not even open an eToro account. That has changed, but there are still trading limitations.

eToro’s specialty is copy trading. This is a social networking system among eToro customers. The broker displays trades that clients are making, and it’s possible to copy their trades. Clicking on ‘copy’ next to a customer’s recent trade automatically places the same trade in a proportional amount.

Once again, there’s a caveat for U.S.-based traders. eToro says they can only copy the trades of other U.S.-based clients. In our test account, we were not able to copy anyone at all.


eToro Fees, Commissions, and Account Requirements

eToro charges a $10 monthly inactivity fee for any account that has had no activity for the past twelve months. Simply logging in is considered activity. eToro promises not to close open positions to cover the monthly charge.

Converting one cryptocurrency into another costs 0.1% of the transaction. There is a maker fee of 0.005%, and a taker fee of 0.05%. Maker fees are for orders that add liquidity to the order book. Takers fees take liquidity off of the order book.

CFD’s for ETF’s cost 0.09% per side. There are no ticket fees and no rollover fees.

Because eToro accounts are denominated in U.S. dollars, any foreign currency deposit will be converted when eToro receives it. This will incur a forex fee, which varies by currency. The typical rates we found were around 1%. eToro charges $25 per withdrawal, and there’s a $50 minimum amount.


Research on eToro’s Platform

The best place to start on eToro’s browser-based trading platform is at the top of the screen. Here, there is a search box that can return an investment’s profile if you know the ticker symbol or name. For example, we got a profile page for American Electric Power by typing in ‘AEP’ and ‘American Ele.’ Once you’re on the profile page, there are a few choices in the top menu.

The first is a feed menu. This provides comments on the stock from other eToro users. Posts can be liked and commented on. They can also be shared with other social media sites, such as Facebook and Twitter.


eToro Portfolio


Next is a stats tab. Clicking on this generates a financial profile for the asset under investigation. For AEP, we found the company’s revenue ($16.2 billion), its EPS (3.97), its dividend yield (3.27%), and its 52-week range ($62.64 - $80.91).

Also under the stats tab are financial statements. There are numbers shown for vital stats, and some of the data is shown in bar chart format.

In the left-hand menu, there is a news feed icon. Clicking on this produces a new page with what is essentially a collection of posts from other eToro customers. This of course is part of the company’s social networking approach to trading. We were disappointed not to find any news articles, market indexes, or streaming video news. On the right-hand side of this page is a list of eToro customers who are currently trending. We found traders from all over the world.


Charting

Next to the stats tab is a chart tab. The default setup is rather simple. Clicking on an expand icon pushes the chart higher up on the screen and adds several nice tools. Because there is a left-hand menu on the browser platform, a chart cannot quite be expanded the full width of the monitor.

During our testing, we were impressed with the number of charting tools. There is a crosshairs icon that intersects with time and price and also provides OHLC data. A comparison tools is able to compare an asset against some other investment (indexes included).


eToro Charts


There are several chart styles available, including candlestick, hollow candles, bar, line, Heikin-Ashi, renko, and mountain.

The program’s charting is very customizable. Both light and dark themes are available. A chart can be set to regular or logarithmic. There are many drawing tools as well. We found pitchforks, doodles, ellipses, rectangles, segments, and rays.

We found nearly a hundred technical studies on the charting program. Some of the more notable ones include TRIX, weighted close, Williams %R, and true range.


CopyTrader Details

If you decide to simply copy the trade of another eToro user, you’ll need to invest at least $200. eToro allows its customers to copy up to 100 other users. There’s also a maximum of $500,000 and a minimum of $1 that can be invested in a copy trade. It’s possible to copy an entire portfolio or only new positions. Specific positions can be closed without closing an entire portfolio.


Placing a Trade

When you’re ready to place a trade, eToro’s order form is very simple. For cryptocurrencies, you can choose amount of coins or dollar amount. The current price of the coin is displayed at the top of the screen. A clock icon tells you whether the market is currently open or not. Whole-dollar amounts can be invested, a nice feature.


eToro Crypto Trading


Managed Portfolios

If you don’t find a lot of success in the cryptocurrency market, eToro offers managed portfolio services. Assets deposited in a CopyPortfolio are managed by eToro investment professionals. Auto rebalancing is available at no extra charge.

There are two types of CopyPortfolios: Top Trader Portfolios and Market Portfolios. The former are made up of eToro customers who have the best track records. The latter combine CFD commodities, stocks, or ETF’s with one market strategy.


Recommendations

We do not recommend eToro for beginners. Its trading system is geared more towards experienced traders. During our investigation there was a warning at the bottom of the screen that 70+% of traders lose money on CFD’s. Definitely not for beginners.

On the other hand, there is no minimum deposit requirement, and our eToro account came with a simulated trading mode. So new traders could open an account and practice in demo mode. Small investors could do the same.

Active traders might do well with eToro’s commission schedule, although similar brokers could offer better rates.

Mutual funds aren’t available at eToro. As for ETF’s, it seems better to us to use an American firm with a large list of commission-free funds, like Vanguard or Firstrade.

eToro would be a terrible place for retirement savers; and as far as we know, it doesn’t offer any IRA’s or retirement services anyway.


eToro Crypto Trading Review Judgment

eToro has an interesting brokerage business. What allows it to stand out among its peers is its copy trading service. But these traders are amateur traders, and it seems better to us to copy professionals. Also, Americans still have very limited resources on the broker’s platform.


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eToro Crypto Currencies Trading reviewed by TopRatedFirms.com Rating: 4