trading on etoro usa

eToro Commissions and Fees

 

Pricing can be confusing on crypto exchanges, particularly those that cater to beginners, such as Coinbase and Gemini. So it’s refreshing that eToro clearly lists the fees—technically “spreads”—it charges when you buy crypto. Spreads can vary by coin, and they fluctuate depending on market conditions.

That said, eToro uses a pricing model that’s a little more complicated than those offered by some of its rivals. Normally, you pay a given spread each time you buy or sell an asset. On eToro, you pay for the “round trip” up front. That means you’re paying a spread for the eventual sale of the coin in advance, plus a spread on the purchase.

If you plan to keep your crypto purchases on eToro platform and never move them elsewhere, this difference may be a matter of semantics. If you expect your crypto purchases to grow in value over the period of time you hold them, you may end up paying a smaller sell fee in advance based on a lower market value of your crypto when you buy it.

Here’s one of the big limitations of eToro. If you transfer your coins to a crypto wallet, even the platform’s own eToro Money wallet, you can no longer move them back onto the eToro trading platform. In this case, you’ve essentially lost the “sell” spread fee and would have to pay it again somewhere else, eventually.

Spreads range from a low of 0.75% for Bitcoin (BTC) to a high of 5.0% for Tezos (XTZ). Do the math, and eToro’s spread fee on BTC works out to about 0.375% each way. That fee is on the higher end of competing crypto exchanges, but not excessively high. Other coins, however, could be obtained much cheaper elsewhere.

Other eToro Fees

eToro does not charge any other trading commissions or account management fees. There are no cash withdrawal fees, though the company has a $30 withdrawal minimum.

You’ll pay a crypto transfer fee of approximately 0.50%, up to a maximum of $50, when you send funds from the eToro investment app to the eToro Money wallet, which is necessary to move coins off the eToro platform. Crypto-to-crypto conversion rates, based upon eToro market rates, cost 0.1%.

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eToro Platform and Technology

The eToro platform offers a good selection of standard brokerage features, like watch lists, price alerts, news feeds and customised charts. But where it shines is its unique community and automated trading models.

CopyTrader and Popular Investor

 

CopyTrader and Popular Investor are flip sides of the same coin. When users enroll in CopyTrader, they can duplicate the crypto trading strategies of leading traders, termed Popular Investors.

There’s no fee to participate—Popular Investors are compensated by eToro directly—and once you’ve made your trading bones, you can apply to be a Popular Investor yourself.

You can also use eToro’s related offering CopyPortfolios to replicate the performance of crypto-focused portfolios managed by eToro. This effectively turns eToro into a kind of hands-off, no-fee robo-advisor for cryptocurrencies.

 

Social Trading Community

 

Social-media-like feeds of user thoughts and comments are present throughout the eToro platform. You see a general feed immediately when you log in that covers user thoughts on crypto, markets and investing broadly.

 

When you navigate to each coin or managed portfolio, though, you gain access to a unique feed that presents user posts related only to that specific offering. These comments may be helpful in sparking trading ideas for those new to the crypto world, but keep in mind that their quality is not assured.

eToro Club

The eToro Club is a premium membership that affords users with more features based on their balances. (Officially, eToro calculates this based on your “realized equity,” equal to the amount you’ve spent to buy securities at eToro plus your cash holdings.) Membership is available once users have $5,000 of purchased crypto assets or cash holdings in their eToro account. Membership grants users:

  • Dedicated expert trading support

  • A market newsletter and analyst reports

  • Live webinars

  • Early access to new products, services and features
     

Mobile Apps

The eToro platform supports two separate apps: the eToro Cryptocurrency Trading app and eToro Money wallet app. Both are available on Android and iOS. The trading app approximates the web platform, while the wallet app enables users to send and receive tokens as well as convert cryptocurrencies into other coins.

Users must understand that the eToro Money wallet app is the only avenue to transfer coins off the eToro platform. This is a necessary step if you want to maximize security by storing your crypto holdings in an offline cold wallet.

Not all competitors let you move your coins off their platforms, and eToro holds a competitive advantage for offering this critical feature. Unfortunately, be aware that you will incur a fee to do so. If you plan on using an exchange to buy coins and transfer them elsewhere for storage, you may be better served by a platform like Gemini, which offers a set monthly amount of free transfers off their platform, not to mention lower trading fees.

eToro US Range of Offerings

 

The eToro platform offers trading in 27 cryptocurrencies. This is enough to cover the basics for most crypto beginners, but advanced users may find the list limiting. Some of eToro’s more popular available coins include:

Users will not be able to open new Cardano (ADA) or Tron (TRX) positions after Dec. 26, 2021. The company expects to eventually offer brokerage services and trading in a range of other assets, like ETFs and stocks.

eToro Research and Education

 

The eToro platform offers plenty of resources for researching and learning about individual coins and the broader cryptocurrency market. The research and educational resources are tailored to beginner to advanced users.

The eToro Academy is populated with online guides and videos, covering everything from how to use Etoro to individual coin profiles and investment strategies. The platform’s News and Analysis section provides the latest crypto market news and thoughtful insights into crypto markets.

And let’s not forget the platform’s crypto paper trading offering. This may help beginner traders get a sense of what it’s like to invest in a notoriously volatile asset class, without risking any of their own money.

eToro Customer Service and Security

 

Users can contact eToro customer service via email or online chat. The listed phone number is just a recording that directs users to chat. But here’s the thing about chat: It’s only available for eToro Club members. In effect, this means most users will only have email customer service options. You can also visit the Help Center to sort through categorized lists of FAQs.

In terms of security, cash assets are held in Federal Deposit Insurance Corp. (FDIC)-insured bank accounts. Security protocols for crypto include offline and online storage of coins, two-factor authentication and state-of-the-art monitoring tools. In addition, no member of the eToro staff can transfer users’ crypto out of cold storage.

About eToro

 

Founded in 2007 by Israelis Yoni Assia and Ronen Assia, eToro was built to be a global trading platform, starting with forex. Over the years, it’s added more asset classes, including crypto in 2017, as well as its more social features, like CopyTrader. Today the platform serves millions of users in over 140 countries.

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eToro US Summary

eToro is a relative newcomer to the U.S. market. While it offers a comprehensive online brokerage platform in other countries, in the U.S. it only provides crypto trading. The eToro Trading Platform for Beginners offers 27 cryptocurrencies, a transparent fee structure and an active community of users. If all you want is a reasonably priced crypto exchange, however, beware that eToro charges comparatively high trading fees.

etoro USA

Via eToro's website

Fees

0.75% to 5.0%

Coins Available

27

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Who Should Choose eToro US?

 

Newcomers to cryptocurrency who want to learn by doing might be most at home on eToro. The platform offers an active user community, and social features like news feeds for specific coins. Chatting with others and diving into social feeds can provide a great introduction to the world of crypto.

At eToro, imitation is truly the sincerest form of flattery. The platform offers features that let you emulate the investing strategies of top crypto traders—and be rewarded if others copy your trading strategies. The latter part may appeal to more advanced crypto traders, who can earn annual rewards equal to up to 2% of their average balance for developing followers on the platform.

If you’re neither a beginner nor someone who’s looking to become a crypto influencer, but simply want rock-bottom trading fees—or access to other assets beyond crypto, eToro’s would not be your first choice as a crypto exchange.

Users can find lower-cost crypto trading elsewhere—check out your options on Forbes Advisor’s listing of the best crypto exchanges. If you’re looking for an all-in-one trading platform, with access to a variety of different asset classes, look to our list of the best online brokers.

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