eToro Review
The aim of eToro is to make the virtual currency market available to more people. The platform is designed to be easy to use – with a simple interface. The site is different to most other brokers because it is also a social investment network. A social investment network is a service that allows users to follow and potentially copy the choices of popular investors and anyone on the site can become a popular investor. The vision of the site is for a completely open network where people can share, learn, copy, interact and compete with one another.
If you display your real name and your photo on your profile, then you can gain a verified status icon for those who become popular investors. The photo and name are checked by the eToro customer services team. This gives you the trust that the people you are following are real people. If a person has many copiers, then they get a fixed monthly commission payment.
There are now over six million users on the network and more professional traders are being attracted to the site, as it gives them great earning potentials. There are a lot of training materials for new investors and it is a good place for inexperienced traders to learn how to make money in virtual currency.
Pros
The chance to learn from professional traders and potentially make a lot of money. The social element of eToro is its unique selling point – and it is one of the true crypto-communities. The education material on the site is excellent. There are videos on how to make a successful trade through to how to read the moves of an experienced trader.
You are given $100,000 of pretend money to practice trading with before having to invest any real money. This demo account is an outstanding way to help newbies learn the strategies that will lead to them making a profit.
There are several cryptocurrency CopyFunds that people can invest in. These are put together by the eToro Investment Committee. These funds are a balance of currencies.
Cons
The number of cryptocurrencies offered on eToro is relatively limited. This is because it started as a general trading platform only and so is not solely focused on virtual currency.
All the trading learning tools are focused on traditional trading, as opposed to trading in cryptocurrency.
There are some countries where it is not legal to trade on the site, including the US.
Payment Methods Accepted
You can deposit money into eToro using many different methods. These methods have varying minimum deposits. You can choose bank transfer, Visa, MasterCard, NETELLER, PayPal, Yandex, Webmoney UK, Skrill and many others. To withdraw you will typically need to receive the money via PayPal – with its associated fees. You will need to go through a verification process to withdraw from the site.
Supported Countries
There is a list of countries that are blocked from use due to internal regulation. This means that those in the US, Canada, Cuba Japan, North Korea, Iran, Syria, Turkey, Serbia, Albania and Sudan cannot trade legally on the site.
Even though the site is regulated for fiat currency trading in the UK and in Cyprus, there are no regulations for cryptocurrencies. Individuals are not covered by the same regulatory organisations as fiat currencies.
Privacy
eToro, with its foundations in traditional trading, take the issue of the privacy of its clients’ data seriously. The site uses SSL encryption technology to ensure sensitive information is kept secure from unauthorised intrusions.
To become a verified user, you will be expected to share your real name and a photograph.
Limits and Liquidity
To start trading you need to make a minimum deposit – and this varies between regions – ranging from $50 to $1000. There is also a maximum limit depending on region. In the UK this is $20,000.
Speed
Trades on the site can be completed almost instantaneously. Verification of accounts, which is necessary for withdrawal of funds, can take several days. The withdrawal process has caused some frustration amongst users, but this is mostly because of a misunderstanding of the procedures surrounding withdrawal.
Reputation
The company adheres to the regulations and guidelines of the FCA and CySEC. The site wants to promote ethical and responsible trading. Therefore, eToro provides trading tutorials that provide guidance for all levels of experience – including the management of risk.
This is considered one of the most reputable online brokers and has been reviewed by many top sites and newspapers, including Forbes, the Financial Times, Fintech and more. Reviews find it difficult to come up with criticisms of the site and the concept behind the exchange.
Fees
eToro is free to join. There are no annual fees or commissions to pay. However, there are overnight rollover fees, which are slightly higher than you might experience elsewhere. If you are copying traders, some of whom hold positions open for weeks or months, then the rollover fees can add up quickly.
Customer Support
Customer support is available 24 hours a day and 5 days a week. If traders require assistance they can contact customer support through email or calling the support number. The downside is that there is no live chat – however, responses to email are said to be quick.
eToro Alternatives
eToro is unique is some respects in that it is a social networking platform and a cryptocurrency exchange in one place. It also trades fiat currencies. This makes it difficult to find true alternatives to eToro.
Paxful
Paxful, like eToro, aims to be a community for virtual currency traders. Paxful is a peer 2 peer trading site that focuses only on Bitcoin.
Coinbase
Coinbase is a leading crypto-exchange with a quality reputation and a safe place to store virtual currency. This is the go-to place to hold your digital wallet.
