What Is eToro?
eToro is a social trading platform that allows users to trade stocks, cryptocurrencies, and forex as well as keep up with the investing strategies and patterns of other users.
The company is based in Tel-Aviv, Israel, and its CEO is Yoni Assia.
The platform has over 25 million registered users in over 140 countries.
How Does eToro Work?
eToro has several different sides to its business.
This includes the ability to trade different asset classes, copy top traders’ portfolios, and trade virtual currency for practice.
Let’s talk about the different features available on eToro.
You’ll be able to find your favorite companies and easily invest in them or learn how others are investing in them.
eToro is currently beta testing ETFs for U.S.-based customers.
ETFs are currently only available in 44 states.
Crypto is where eToro got its start.
eToro was one of the early adopters of crypto trading and it functions as a full crypto exchange.
If you’re looking for an introduction to cryptocurrency, check out our crypto article here.
You can create a watchlist by adding stocks and cryptos that you’re interested in.
Any securities that you add will populate your Watchlist page, where you can see them all in one place.
The watchlist shows you the price, gain or loss percentage, and chart for each security.
You can also see the 52-week price range for each security as well as analyst sentiment.
The sentiment will tell you whether most analysts are rating a security as buy, hold, or sell.
You can easily trade your favorite securities from the Watchlist view.
One of the features that makes eToro so unique is its social aspect.
The platform is essentially bridging investing and social media!
The “copy trading” feature lets you automatically replicate another investor’s strategy or portfolio at the click of a button.
You can look at how top investors are trading, and what securities they’re fans of right now.
These top investors get paid when you copy their strategies through eToro’s Popular Investor Program.
eToro also has a Virtual Portfolio feature.
The Virtual Portfolio allows you to paper trade, or trade virtual money as practice for real investing!
The Virtual Portfolio allows you to trade any security you can trade in your real portfolio.
So, now that we know what eToro is and how it works, how much does eToro cost?
eToro is a commission-free investing platform for stocks; you won’t have to pay any fees when you trade equities.
If you’re based in the U.S., you won’t have to pay too many fees to trade on eToro.
For example, the company charges a 1% fee any time you buy or sell cryptocurrency on their platform.
If you’re using the eToro Money Wallet for your crypto, you’ll also pay a 0.1% conversion fee to convert one coin to another.
There’s also a 0.5% transfer fee (minimum of $1, maximum of $50) when you transfer funds from your eToro brokerage account to the Money wallet.
eToro also charges miscellaneous fees for certain optional services.
For example, if you decide to transfer your eToro account to another brokerage, you’ll pay a $75 ACATS fee.
You’ll also pay different fees for paper services, wire transfers, and other services.
These fees are typical among most brokerages and are easily avoidable depending on how you use the platform.
You will have to withdraw a minimum of $30 any time you want to withdraw money from your account.
Is eToro Safe?
As you’re doing your due diligence while evaluating eToro, you’re probably asking: is eToro reliable?
Well, we think that eToro’s years of business in the investing world and millions of users speak for themselves.
This means that eToro is heavily regulated by the government, just like many other big investing platforms.
eToro is also a member of the Securities Investor Protection Corporation (SIPC).
This means that your stocks and deposited cash are protected in the event that eToro goes out of business and you’re unable to liquidate the assets in your account.
Keep in mind that cryptocurrencies are not insured.
Note for International Investors
If you are not based in the U.S., you can trade CFDs on eToro.
A CFD, or contract for differences, is a derivative contract that lets you bet on the future price of a security without actually buying it.
The buyer (you) and seller (eToro) of the contract make bets on whether the price will go up or down, and the loser has to pay the winner the difference between the original price of the security and the price at the end of the contract.
If you’re located outside of the U.S. and want to get started on eToro, create an account here!
If you’re looking for a modern investing platform that can connect you with other investors, eToro might be the right choice for you.
You can learn new investing strategies, practice trading risk-free, and duplicate successful investors’ portfolios!