EToro Review 2021: Pros, Cons and How It Compares

A pioneer in social and copy trading, eToro has launched in the U.S. The company offers investors the ability to copy the trades of pros, but it currently offers only cryptocurrency trading, which is notoriously volatile.
Kevin VoigtOct 15, 2021

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Our Take

3.5

NerdWallet rating 

The bottom line: Users on eToro are allowed to begin trading cryptocurrency for as little as $50, and its innovative trading platform lets investors mirror select traders with successful track records, move-by-move. But consider the risks inherent in trading these highly speculative assets.

eToro

eToro

Fees

0.75% to 2.9%

varies by cryptocurrency

Account Minimum

$50

Promotion

None

no promotion available at this time

Pros & Cons

Pros

  • Offers access to 17 cryptocurrencies.
  • Low minimum to fund an account and begin investing.
  • Social trading: Ability to match moves of popular traders.

Cons

  • Service only available in 44 U.S. states.
  • While eToro has forex and equity trading available in other countries, U.S. eToro customers are limited to crypto trades.

Compare to Similar Brokers

TradeStation
Robinhood
NerdWallet rating 
NerdWallet rating 
Fees

$0

per trade

Fees

$0

per trade

Account Minimum

$500

Account Minimum

$0

Promotion

$50 - $5,000

cash credit with a minimum deposit of $5,000

Promotion

1 Free Stock

after linking your bank account (stock value range $2.50-$225)

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Full Review

Where eToro shines

Innovative platform: eToro made its name through its social investing platform, an innovative tool that allows users to copy the trades of other investors.

Established internationally: Founded in 2007, eToro has more than 20 million users in 140 countries worldwide — and the U.S. is now on that list. However, while eToro runs multi-asset brokerages (offering stocks, commodities and forex trading) in other countries, so far U.S. customers can trade only cryptocurrencies on the platform. The company plans to expand its U.S. offerings in the future.

Where eToro falls short

Limited service: eToro currently only offers its crypto service in 44 U.S. states and Washington, D.C. While all U.S. residents can sign up for a free eToro account for virtual trading, eToro is currently unavailable for actual cryptocurrency trading for residents in these states: Delaware, Hawaii, Minnesota, Nevada, New York and Tennessee.

eToro is best for:

  • Cryptocurrency traders.

  • Social or copy trading.

eToro at a glance

Minimum trade

$20; account minimum is $50, or $200 to use eToro CopyTrader.

Trading and transaction fees

Fees vary by cryptocurrency, but most range between 0.75% and 2.9%. Check with provider for current fees.

Number of cryptocurrencies

17.

Crypto-to-crypto trading pairs

Not offered in the U.S.

Website transparency

Information easily found on the website.

Can use your own digital wallet?

Yes, but crypto transferred from the platform can't be transferred back.

Mobile app

Two highly rated apps for iOS and Android.

Customer service

Email and ticket support; chat available for paid subscription members.

More details about eToro's ratings

Minimum trade

eToro’s minimum trade amount is $20, and the minimum deposit amount is $50 if done by debit card or bank account connection.

Trading and transaction fees

EToro charges its trading fees through spreads that may rise and fall with market conditions. Unlike some other providers, eToro charges round-turn — one spread for both buying and selling crypto assets. Spreads ranged from 0.75% for Bitcoin trades to 5% for trading Tezos. Most cryptocurrency spreads range between 1.9% and 2.9%. (Check eToro's site for current pricing.)

Number of cryptocurrencies

There are 17 cryptocurrencies available to trade on eToro.

Crypto-to-crypto trading pairs

Direct crypto-to-crypto trading isn’t available to U.S. users. However, there is a crypto-to-crypto conversion option similar to Coinbase’s offering, available for Bitcoin, Litecoin, Bitcoin Cash, Ethereum and Stellar.

Digital wallet options and security

EToro provides a free digital wallet to store cryptocurrency, known as eToro wallet, available in iOS and Android. The cost to convert crypto into fiat currency (which is to say, U.S. dollars) and vice versa is 5%, which some users may find a costly bite into any potential profits. The minimum transaction is $125 and the maximum is $10,000.

Users can transfer cryptocurrency from the eToro platform to their own digital wallet, but eToro notes coin transfers are one-way — which means any coins transferred can’t be transferred back to the eToro trading platform.

Mobile app

eToro’s app is available for iOS and Android, and has received mostly positive reviews.

Customer support options

eToro’s customer support is limited, offering only email contact or a support ticket option. For an additional cost, “Club Members” can receive customer support via live chat.

Other features you should know

Social trading: EToro’s CopyTrader allows you to copy and trade automatically based on the moves of other traders. How it works: You choose an investor you want to copy, and with a click of a button, you can begin mirroring their positions automatically (with the option of a stop-loss level to limit potential losses).

The minimum amount to copy a user is $200, and the maximum amount is $500,000. Users can copy up to 100 traders simultaneously. Even without using CopyTrader, users can view millions of other traders’ portfolios, stats and risk scores. (While they have full access to all public profiles worldwide, U.S. clients can copy only other U.S. users).

Is eToro right for you?

For cryptocurrency investors who want to mirror the moves of serious crypto traders, eToro’s social trading platform is an attractive offer. With 17 cryptocurrencies to buy, eToro has a greater selection than some other U.S. crypto brokerages.

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