eToro Cryptocurrency Exchange Review

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eToro History

The broker started working in 2007, so the company has a lot of experience. Customers are offered the opportunity to trade independently using the OpenBook platform or invest in other traders. eToro Invest is positioned as one of the best companies in the world in terms of reliability of investments.

About the Company, Licenses and Regulation

Depending on which country you are a resident of, you will have to work:

  • with eToro (Europe) Ltd. – for residents of all countries of the world except the United Kingdom. It is regulated by CySEC, license number 109/10;
  • eToro (UK) Ltd. works with UK residents. In this case it is already regulated by the FCA, license number FRN 583263.

Otherwise, the official website eToro standard promises solid profits, reliability of invested funds, etc. It is emphasized that more than 4 million people from almost all countries around the world have become customers of the broker.

Nevertheless, in some countries, for example in the U.S., the company does not work due to the peculiarities of legislation. The list of countries with which it does not work includes Turkey, Sudan, Canada, Japan, Brazil, North Korea, Syria, Cuba, Algeria, Ecuador, Myanmar and Iran.

Registration on eToro

The registration procedure at Etoro broker is quite simple – it is necessary to enter the name, surname, login, e-mail address, as well as phone number. At this stage, the user also creates a password for the trader’s office. Further, an email with a link to confirm the registration will be sent to the email address.

For full work with the company, as well as for withdrawal limits, it is necessary to pass verification. As part of this procedure customer provides copies of documents confirming the identity, as well as the registration of the user.

Deposit and Withdrawal Methods

At the moment, eToro users can only deposit fiat currency into their accounts. It’s easy enough to do. You can use your credit or debit cards, also bank transfers and PayPal are available. All the funds in your eToro account are actually in US dollars, so even if you deposit Euros or other currencies, they will automatically be converted into US dollars, which obviously means that you will still have to pay the conversion fee.

Withdrawals are made via credit or debit cards, bank transfers and PayPal. However, there is a fixed fee of $25 for each withdrawal.
Currently, eToro users can only deposit their accounts in fiat currency. It is easy enough to do. You can use your credit or debit cards, bank transfers and PayPal. All the funds in your eToro account are actually in US dollars, so even if you deposit Euros or other currencies, they will automatically be converted into US dollars, which obviously means that you will still have to pay the conversion fee.

Withdrawals are made via credit or debit cards, bank transfers and PayPal. However, there is a flat fee of $25 for each withdrawal.

eToro Commission

Compared to other cryptocurrency exchanges, eToro’s platform structure is a bit more complicated.

It does not charge a commission for trading, as other exchanges do. However, you will pay for so-called “spreads” when selling or buying cryptocurrency. If you want to sell a cryptocurrency, for example, you have to pay a percentage of the selling price. This percentage comes from the “spread” which is the difference between the buy price and the sell price. Let’s give an example to make it clearer.

If you sell one bitcoin for $7000, you will also have to pay 0.75% of the bitcoin value itself (0.75% is the “spread” of bitcoin at $7000). So, if 1 BTC is worth $7000, then the percentage you will have to pay will cost you $52.5. In addition to this, eToro also charges a so-called “overnight” commission, as the trader borrows money from the platform in order to hold a trading position.

If you take for example other cryptocurrency exchanges, the commission there will be much less and more profitable for users. Moreover, eToro also charges withdrawal and inactivity fees. The withdrawal fee is exactly $25, with withdrawals only going from $50 and up. The inactivity fee is $10 per month, provided that the user has not been active for 4 months or more.

Security on eToro

Until 2017, the company did not have any security problems. This is due to the fact that cryptocurrencies were not directly linked to the platform and were not stored there. Instead, users had a contract for difference. Thereby making it impossible for hackers to “steal” those coveted bitcoins from users’ accounts.

But after the operation of the system changed in September 2017, and transactions thereby became direct, the website has not indicated clear measures for user security since then. Nevertheless, eToro keeps its clients’ holdings separate from their own bank accounts. In terms of overall compliance with financial regulation, regulated by CySEC in Europe, FinCEN in the U.S. and the FCA in the U.K., eToro is one of the safest online exchanges.

Pros
  • Trade shares (CFDs) without transaction fees and other recurring charges! (except for trades with borrowed funds)
  • When buying real shares, eToro acts as a sub-broker with full regulatory support
  • The ability to buy fractional share contracts (e.g. you can buy 1/5 of a share of Amazon for only $500)
  • Ability to connect to autotracking of the best trades
Cons
  • Has a Cyprus Brokerage License
  • In contracts for difference (CFD) eToro essentially acts as a dealer, you do not acquire the asset ownership, you bet on the future rise / fall in asset prices, but you do not get the ownership of the shares, while when buying real shares eToro acts as a sub-broker with full regulation
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