Through eToro, users can buy and sell a range of assets, including stocks, exchange-traded funds (EFTs), and cryptocurrencies. Many assets can be bought and sold with 0% commission, but if you want to trade cryptocurrencies, you may incur higher fees than on other platforms.
As with other investment platforms, eToro has built-in educational resources, but users can also learn from each other through a newsfeed and other social features.
- 0% commission on shares and EFT trades
- trading multiple asset classes including crypto
- social and educational characteristics
- Withdrawal fees apply
- The fees on crypto trading are relatively high
- Inactivity fee goes into effect after 12 months
Who should choose eToro?
If you are new to investing, eToro could be a good entry point. The platform is easy to navigate and available through a browser or mobile app.
eToro allows users to invest in a selection of 1,600 stocks, but if you feel unsure about choosing your own portfolio, you can choose a ready-made option based on your interests and priorities.
It’s also a cost-effective starting point, since you won’t be charged any commission or management fees on the stocks and EFTs you buy and sell. Rather than relying on revenue from stock trading fees, eToro makes its money through fees such as its £3.83 ($5) flat rate withdrawal fee, inactivity fee, conversion fee currencies and its relatively high crypto trading fees.
eToro could also be a good choice if you want to connect with other investors, as the platform incorporates social elements that allow users to share their thoughts.
To get the most out of these features, you need to understand investment terminology. But since eToro has its own educational resources, you can get up to speed quickly.
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CFDs are complex instruments and come with a high risk of losing money quickly due to leverage. 68% of retail investor accounts lose money when trading CFDs with eToro. Investing in crypto-assets is unregulated in most EU countries and the UK. No consumer protection. Your capital is in danger.
eToro offers and features
As a multi-asset investment platform, eToro offers users the ability to trade cryptocurrencies, stocks, and EFTs all in one place, as well as offering a few additional features.
Invest in stocks
eToro users can invest in around 1,600 stocks as well as a range of EFTs. You can choose your own collection of assets or invest in a ready-made ‘smart wallet’, trading with as little as £7.67 ($10).
In the UK, eToro users can also choose to trade contracts for differences (CFDs). CFDs are complex and extremely risky. If the trade goes wrong, you may end up owing money and losing your initial investment as the contracts involve borrowing capital – 68% of retail investor accounts lose money when trading CFDs with eToro .
Invest in cryptocurrencies
The eToro platform allows users to buy and sell over 20 cryptocurrencies, including:
- Bitcoin (BTC)
- Bitcoin Money (BCH)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Stellar Lumens (XLM)
eToro offers its own crypto wallet for users to store their tokens.
Through smart wallets, users can invest in a pre-selected collection of assets, which aim to diversify their holdings.
Some portfolios focus on a specific theme, such as technology or cryptocurrencies, while others replicate the portfolios of successful investors on the platform. If these “popular investors” earn enough copycats, they can earn additional income on top of their investment profits.
To use eToro’s Smart Portfolios, you will need to invest at least £382 ($500). You can only cash out by closing the entire wallet.
Social trading community
eToro allows investors to connect with each other through a social media-like news feed, where news and strategies are discussed. Regular blogs and custom alerts are another way for users to follow the market.
eToro users can access lessons on investment conditions, market interpretation and different types of assets through the eToro Academy. Topics range in complexity from beginner to expert level.
When you first sign up, you can access a “practice account” that allows you to invest a virtual fund of $100,000 so you can get familiar with the platform before the real money changes of hands.
eToro users who have made at least £3,833 ($5,000) in profit on assets sold can join the eToro Club, which offers benefits such as personalized investment advice, free webinars and access to subscription services such as The Wall Street Journal.
It is possible to trade from an Android or iOS device with the eToro trading app. If you purchased cryptocurrency through the platform, there is also the eToro Money wallet app, which allows you to store or transfer your coins.
eToro is regulated by the Financial Conduct Authority (FCA) in the UK, and the platform uses advanced encryption to secure user information. You can also select two-factor authentication to log in.
eToro Commissions and Fees
One of the main advantages of eToro is that users can trade stocks and EFTs without paying any commission or management fees.
Although there is a flat £3.83 ($5) withdrawal fee, it is possible to buy and sell on the platform with no fees eating away at your profits. This is a special bonus for new investors, as there is no financial barrier to entry.
However, trading cryptocurrencies incurs a flat fee of 1% whether you are buying or selling.