eToro Review: Everything You Need To Know

eToro is a global cryptocurrency exchange that is widely known for its social, stocks, and Contract For Difference (CFD) trading. Unlike most Australian crypto exchanges, users have the ability to connect with like-minded traders in the community and automatically copy-trade successful traders and portfolios through eToro’s unique social trading platform.

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What Is eToro?

eToro is a multi-asset social trading platform that offers cryptocurrency, stock, and CFD trading to people all over the world. Since their inception in 2007, eToro has expanded across the world and have reached over 20 million users. eToro is now a global leader in the social trading market. 

Australian investors and traders are able to use eToro. The platform is a holder of an Australian Financial Services Licence issued by the Australian Securities & Investments Commission (ASIC). The primary fiat currency is USD meaning that investors and traders residing in countries apart from the US will need to pay for conversion fees. 

Key Takeaways

Name

Core Services

Available Cryptocurrencies

Deposit Options

Deposit Fees

Trading Fees

Withdrawal Fees

Mobile App

eToro (eToro AUS Capital Ltd)

Fiat-to-crypto, copy trading, social trading

BTC, ETH, BCH, XRP, DASH LTC, ETC, ADA, MIOTA, XLM and 15+ more

Direct bank transfer, credit / debit card, Neteller, PayPal, Skrill

None

Spread only (0.75% – 5%)

USD $5 (excluding conversion fee to AUD)

Yes

Top Features You Should Know

Copy Trading

eToro’s copy trading feature is one of their most unique and compelling selling points. This form of social trading is not offered by most exchanges available to Australians and is a unique market differentiator for beginner investors who want to mirror the performance of successful traders. While most investors are accustomed to deciding which investments they want to get exposure to on their own, eToro provides two options: 

  • “Copy People”, or
  • Invest in a “Copy Portfolio”.

The Copy People function allows users to view the portfolios held by top-performing traders. Users will be able to sort through portfolios using the filters provided to view portfolios that may be appetising to their investment objectives and needs. Portfolios are organised into the following categories: 

  • Editor’s choice
  • Most copied
  • Trending
  • Long-term stock investors
  • Long-short investors
  • Multi-strategy investors

eToro also presents an indicative risk rating, however, users should conduct their own research to minimise potential risk to their capital.

The “Copy Portfolio” feature is a portfolio management product that is quite similar to investing in a specific index where someone chooses a mix of assets to invest in for you.

By choosing a suggested portfolio, users will automatically obtain a copy of multiple markets or traders based on a predetermined investment strategy of their choosing. This is an incredibly easy way to build a diverse portfolio without knowing much about the specific investments, helping beginner investors to minimise their risk and obtain a top-performing portfolio.

There are two types of Copy Portfolios:

  • Market Portfolios – Top performing assets from a specific market (e.g. crypto, semiconductor stocks, and technological companies).
  • Top Trader – A collection of portfolios from top-performing eToro traders.
  • Partner Portfolios – Investment portfolios developed by eToro and based on thorough market research and strategy. 

Beginner Friendly Interface

The original trading platform was designed for beginners in mind. Although eToro has expanded its services, it has managed to maintain the same level of user-friendliness. eToro’s dashboard and trading interface are clean and well laid out, making it very easy to navigate and buy crypto.

eToro strives to make online trading and investments of a wide range of assets (including cryptocurrencies) very accessible to beginners and everyday users, and they have provided a number of resources to help newcomers get the hang of investing. 

A virtual tour of the platform is offered upon the first login so beginners can get the lay of the land.

While eToro’s method for buying crypto is straightforward, they also offer a fairly sophisticated trading interface that has been displayed in a way that is less overwhelming than other trading displays. 

Demo Trading Account

Building further on their mission to make investing accessible to beginners, eToro provides an extremely useful demo or ‘virtual’ account where new users can begin with a $100,000 deposit to become familiar with the platform’s features and user interface. The demo mode has the same appearance as a real account and users can easily switch between the real and demo modes.

For those wanting to test the platform before putting any real money down, the demo version is perfect for allowing you to simulate real trades with no risk. Many new investors make a number of mistakes when starting out, so eToro’s demo version makes the investing journey for those who are new to crypto a whole lot less daunting.

Trading Academy

eToro shows their commitment to helping newcomers learning the ropes of crypto investment by providing an impressive wealth of educational resources in their Trading Academy. Along with covering a number of investment topics including stocks, trading, and the basics of using the platform, their crypto education section is well built out and very accessible.

While they have yet to build out their videos section for cryptocurrency, they do offer a number of helpful and interesting podcasts on cryptocurrency to help you stay up to date:

Is eToro safe to Use In Australia?

In Australia, eToro is a secure and trustworthy social trading and cryptocurrency platform that is regulated by the Australian Securities and Investments Commission (ASIC). eToro is authorised by ASIC to provide financial services under Australian Financial Services License 491139. 

Etoro implements best-in-class security measures to safeguard against the loss, damage, or theft of stocks and assets including bank-level encryption and firewalls. Users also have the option of activating 2FA on their account to provide another verification mechanism. 

While some eToro held assets are covered with insurance cover of up to $1 million, cryptocurrencies are not included under this insurance policy.

How Do The Fees Compare?

Deposit Fees

eToro charges zero fees for fiat deposits into the user wallet. However, a number of fees apply for cryptocurrency transfers. Specific crypto deposit fee details can be read here.

Trading Fees & Spreads

eToro charges zero trading fees however spreads apply for every transaction. Whilst the spread is the difference between the buy and sell price of a digital asset, eToro offers set percentage spreads that differ depending on the asset purchased. Spreads begin from 0.75% for Bitcoin. 

Crypto

BTC

ETH

BCH

XRP

DASH

LTC

ETC

ADA

MIOTA

XLM

Spread %

0.75

1.90

1.90

2.45

2.90

1.90

1.90

2.90

4.50

2.45

Given that the trading volume for Bitcoin is the largest, the corresponding spread is the lowest. Alt coins with lesser trading volume typically attract higher spreads. 

Normally, the spread is ‘hidden’ amongst the transaction cost, so presenting set percentage fees provides a level of transparency to traders. 

The 0.75% spread for trading Bitcoin is slightly higher compared to other Australian exchanges such as Digital Surge and Cointree which offer trading fees starting from 0.5%. Conversely, the spread fees for altcoins such as Cardano (2.90%) and MIOTA (4.50%) are significantly higher and users may want to consider a cheaper alternative if trading these coins is likely to occur.

Withdrawal Fees

Regardless of the amount, every withdrawal from eToro will attract a withdrawal fee of USD $5. Since all withdrawals (and deposits) are conducted with USD, Australians will also incur a currency conversion fee. 

Based on our reviews, Australians have access to several other exchanges where zero withdrawal fees are charged. The fee structure of eToro should be assessed by traders and investors prior to committing.

Accepted Countries

eToro is available in Australia for individuals to use however investors are not able to purchase actual crypto as it is not registered with AUSTRAC. Instead, the platform is a regulated CFD provider that complies with local laws that are enforced by ASIC. 

The platform does not have a licence to sell actual cryptocurrency assets. Users that want to directly purchase Bitcoin and other digital assets will need to use an AUSTRAC regulated exchange such as Swyftx, Digital Surge or CoinSpot.

Getting Started

Account Creation & Verification

Users will need to provide a username, email address, and password to create an account. eToro verification is mandatory for all users that want to trade on the platform. The process and information to be submitted vary slightly across each jurisdiction in accordance with local regulations. It usually takes a few days for eToro to complete the identity verification procedure.

Deposit Methods & Limits

eToro operates using USD which means that users from Australia or other countries will need to pay a currency conversion fee (when a deposit and withdrawal occurs). Supported fiat currencies that will incur a conversion fee include EUR, GBP, AUD, RMB, THB, IDR, MYR, VND, and PHPCurrency conversions are carried out at the prevailing spot rate with a typical mark-up of 50 Percentage Points (PIPs).

Depositing funds into a new account can be undertaken using a credit/debit card, POLi, PayPal, Neteller, Skrill, and direct bank transfer. Australians should note that deposits can only be made using credit/debit cards, POLi and PayPal.

Method

Credit / debit card

PayPal

POLi

Bank transfer

Neteller

Skrill

Fiat

AUD, USD, EUR, BGP

AUD, USD, EUR, BGP

AUD, USD, EUR, BGP

USD, EUR, BGP

USD, EUR, BGP

USD, EUR, BGP

Speed

Instant

Instant

Instant

3 – 7 days

Instant

Instant

Maximum Limit

$40,000

$10,000

$70,000

$10,000

$10,000

No limit

Trading Interface & Charting Tools

eToro uses pro charts to offer a clean and uncluttered charting interface that will be useful to both beginners and experienced traders. While the platform offers a number of risk management tools, including stop-loss orders, they have intentionally stripped back the visual display of the trading interface in order to give a less overwhelming view of an assets price chart.

eToro provides a range of options and tools for asset analysis suitable for beginners, but experienced traders who want more comprehensive charting capabilities and technical indicators should consider platforms that utilise TradingView. This package is generally regarded as the premium charting interface in the crypto world. 

Customer Support & Reviews

Users seeking support will be able to find the “Help” tab on the user interface where numerous Frequently Asked Questions (FAQs) are located. If a query is not able to be answered then customers can reach customer support via submission of a ticket

We submitted a ticket with a query relating to fees and the insurance policy and our experience with the support team was generally positive. Whilst the waiting period was three hours, the response was direct and specifically addressed the query.

The live chat is only available for club members during business hours. This is an area for improvement to make instant assistance more accessible for beginners.

Based on 8,600 TrustPilot reviews, eToro has received a rating of 3.6 / 5.0. Nearly 40% of customer feedback on eToro’s easy-to-use interface, online experience, and great customer support has been rated as excellent. However, almost 40% of customer feedback was rated as negative and mostly related to account managers, varying customer service, and technical issues on the platform. Overall, the highly polarised feedback does not reflect well on the eToro customer support team.

Mobile App

eToro offers a mobile app that is compatible for iOS and Android devices. The mobile app allows eToro users to view real-time market price alerts, investment reports, a summary of their trades, and asset market values. 

Frequently Asked Questions

Is eToro Regulated?

In Australia, eToro is a holder of Australian Financial Services Licenced issued by ASIC. The platform is a licensed and registered financial company in multiple trading jurisdictions around the world including Europe under the Cyprus Securities & Exchange Commission, and in the UK by the Financial Conduct Authority (FCA).

Can Australians Use eToro?

Traders and investors based in Australia are available to use eToro. The platform is a regulated CFD provider that complies with local laws that are enforced by ASIC. eToro trades under the company eToro AUS Capital Pty Ltd, AFSL 491139, and holds an Australian Financial Services License (AFSL).

However, the platform does not have a licence to sell actual cryptocurrency assets in Australia. Users that want to directly purchase Bitcoin and other digital assets will need to use an exchange that is regulated by AUSTRAC.

Our Verdict

Overall, eToro is an incredibly fluid and enjoyable platform that is aptly suited for beginner traders. It is a global leader in the social trading space with beginners able to copy successful portfolios, practice trading on a demo account, and having access to comprehensive education content. 

That being said, eToro operates in USD and Australians will need to consider the extra currency conversion fees. Other drawbacks include the relatively high fees, limited selection of supported crypto, and the basic charting tools.   

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