eToro Exchange Review
eToro is one of the best social trading platforms and an online forex broker founded in 2006 in Tel Aviv. On the eToro platform, users can trade and invest in multiple assets across various categories, including cryptocurrencies.
In this eToro exchange review, we’ll discuss the cryptocurrency aspect of eToro including the eToro pros and cons, how to buy on eToro, how to sell on eToro, how to deposit money on eToro, how to withdraw from eToro, how to deposit with PayPal, and other frequently asked questions.
eToro Pros and Cons
As with all cryptocurrency exchanges, eToro has certain advantages and disadvantages
- World-class customer support
- All of your assets in one place: eToro clients can access a wide selection of cryptocurrencies and manage them using one account on a single platform.
- No digital wallet necessary: eToro operates using state-of-the-art encryption technology and your funds are kept safely in tier-one banks.
- Shorting the market: The Contract for Difference (CFD) option on eToro helps users make potential profits even if the crypto market is in a downward trend.
- Crypto Copy Fund: This long-term investment instrument created by eToro offers a ready-made portfolio of six cryptocurrencies.
- No daily withdrawal limits
- No cryptocurrency deposits
- Only two crypto-markets: BTC and ETH
- Minimum anonymity
- Not an actual exchange: You own nothing, just speculate
- Relatively high fees
How to Buy and How to Sell on eToro Exchange
Getting started on eToro is fairly quick and easy. You just open an account and start trading.
Typically, when you buy/sell cryptocurrencies on an exchange, you have a balance for each coin. eToro is different. When you buy a cryptocurrency here, you just create a trade for that specific cryptocurrency and amount. If you were to buy more, it would create a separate trade. So every time you buy a cryptocurrency, it just lists all of the buy trades you have.
Let’s say you want to buy Bitcoin. Search for “BTC” in the search bar at the top, click on “Trade” next to “BTC,” select the amount you want to buy, and click “Open Trade.” Instantly, that buy trade for Bitcoin is created.
To sell Bitcoin, you need to “close” that trade. Click on “Portfolio,” then click on “BTC,” and click the “X” on the far right of the trade you want to close. This is equivalent to selling on an exchange.
eToro Account Verification Process and Time
The eToro account verification time depends entirely on the completeness of the verification form and the authenticity of the documents.
To verify your account, follow these steps:
- Go to “Settings.”
- Click on “Account.”
- Click on “Upload Utility Bill/ID” and answer the questions on the Know Your Customer (KYC) form.
- Upload a legible, color copy of any government-issued photo ID document (e.g. passport or national ID card) and a recent utility bill or bank statement from the past six months.
Once the documents are uploaded, you should be verified in less than 24 hours. But sometimes it can take longer, even up to five days.
How to Deposit/Withdraw Money from eToro Exchange
Depositing money in the eToro exchange is pretty straightforward.
- Log in to your account.
- Click on “Deposit Funds.”
- Select the currency and enter the amount to be deposited.
- Finally, select your preferred deposit method.
Depending on your mode of payment, you will get prompts. Follow the prompts and complete the deposit.
Withdrawing funds is just as simple. However, you can only withdraw funds using the same deposit method and the same account used to deposit.
Here’s how to withdraw funds:
- Click on “Account Balance.”
- Select the “Withdrawal” tab.
- Enter the amount (in USD) to withdraw.
- Complete the electronic withdrawal form as required.
- Click “Submit.”
Please note: The minimum withdrawal limit for eToro is $50.00 and all withdrawals have a flat fee of $25.00.
How to Deposit/Withdraw Money Using PayPal
The rules for depositing using PayPal are the same as above. For method of payment, choose PayPal. You will be redirected to a new page to log into your PayPal account.
- Enter your login details.
- Review the transaction.
- Click “Pay.”
For PayPal deposits, eToro has a minimum single deposit limit of $50.00 and the maximum deposit per transaction is $20,000. Withdrawal funds will be sent to the same PayPal account as used for your deposit.
How to Deposit/Withdraw Money Using Credit Card
To deposit on eToro with a debit card or to deposit on eToro with a credit card, just follow the generic deposit/withdrawal methods. In method of payment, select credit/debit card and enter the following details:
- Card number
- Expiration date
- CVV (3 digits on the back of your card)
Follow the prompts to complete the transaction. The minimum deposit limit for eToro via credit/debit cards is $50.00 and the maximum deposit per transaction is $20,000.
How to Deposit/Withdraw Bitcoin on eToro Exchange
eToro does not accept cryptocurrency deposits so one cannot deposit Bitcoin on eToro. And by the same logic, one cannot withdraw Bitcoin from eToro. All it allows you to do is create buy trades and sell trades for Bitcoin.
eToro Exchange Withdrawal/Deposit Fees
eToro does not charge any deposit fees. However, it charges a flat fee of $25.00 for each withdrawal transaction.
When it comes to cryptocurrencies, eToro’s exchange fees are different to other exchanges. When you open a crypto trade, the price you pay is higher than the market price.
eToro Credit/Debit Card Fees: No deposit fees. $25.00 per withdrawal. However, the credit card bank might add its own fees for deposits and withdrawals.
eToro Trading Fees: Joining eToro is free and there are no eToro trading fees. eToro’s revenues come purely from the spreads (the difference between the Ask and the Bid prices of the symbol you’re trading) and overnight fees.
eToro PayPal Fees: The eToro PayPal fees are similar to the credit card fees. There is no deposit fee and there is a fee of $25.00 per withdrawal irrespective of the amount withdrawn.
Countries eToro Exchange Supports
Although eToro has a worldwide spread, it is not supported by the U.S. There are more than 60 eToro-supported countries spread over Europe, Asia, North America, South America, Africa, and Australia, with more than half of them in Europe.
List of Currencies Supported by Etoro Exchange
While there are no eToro-supported currencies, per se, investors can purchase CFDs in six different cryptocurrencies on the eToro platform:
- Bitcoin (BTC)
- Dash (DASH)
- Ethereum Classic (ETC)
- Ethereum (ETH)
- Litecoin (LTC)
- Ripple (XRP)
How to Make Money on eToro
In one word: copy-trading. On eToro, you can automatically copy all the trades of experienced and professional traders. Just hit the big blue “Copy” button on a successful trader’s profile. Better still, you can copy multiple traders and spread the risk. However, the minimum amount needed to copy a single trader is $50.00 (depending on the country).
Is eToro Exchange Safe?
The safety of an online brokerage inevitably depends on regulation, quality of service, and security technology. eToro scores high in all three areas. From a regulatory standpoint, it is overseen by both the Financial Conduct Authority (FCA) and the Cyprus Securities Exchange (CySEC). And eToro meets their stringent guidelines.
As for security technology, eToro uses SSL encryption technology to protect its users from cybersecurity attacks. So is it safe to trade on eToro? I’d say it is as safe as putting your money in the stock market.
As that does not say much, lets us do a comparison of eToro vs its nearest competitors. The chart below gives a good account of eToro vs ZuluTrade, and eToro vs Ayondo.
|Platform||Forex broker and social trading network||Forex broker and social trading network||Forex broker and social trading network|
|Sign Up||Allows demo account before signing up with real money||Allows demo account before signing up with real money||Allows demo account before signing up with real money|
|Minimum Deposit||$50 (Depending on the Country)||€100, £100, $100, CHF100.||€250, $300|
|Account Trading Currency||USD||Euro, USD, British Pound Sterling, Swiss Franc||USD, Russian Ruble, British Pound Sterling, Euro, Australian Dollar, Japanese Yen|
|Broker Choice||Own Broker||Own Partnership Broker (Gekko)||Own Broker and More Than 50 Others|
|Cost/Trade||Spread only||Spread only||Spread + Commission|
|No. of Traders Allowed to Copy||20||5||Unlimited|
|Automatic Trade Copying||Yes||Yes||Yes|
|Mobile Apps||Android, iOS, BlackBerry OS||Android, iOS||Android, iOS, Windows Phone|
|Facebook, Twitter Integration||Yes||No||Yes|
|Customer Support||Telephone, e-mail||Telephone, e-mail||Telephone, e-mail, and online chat|
(Source: “Compare Social Trading Network and Platform Features,” SocialTradingGuru, last accessed February 23, 2018.)
In my opinion, there’s not much to separate the three. Most of the features offered by all three platforms are very similar. Which one is the best very much depends on how you want to trade and/or invest.
The good thing is, all of them offer free fully functioning demo accounts so you can first try and see which one suits you best before committing to any one. After all, it’s better to be safe than sorry.