Detailed Review On eToro – The Copy Trade Platform From A To Z

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Detailed Review On eToro - The Copy Trade Platform From A To Z

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Etoro is considered the rising star in the world of CFD and cryptocurrency trading. In parallel, it also provides many other convenient services. However, they have indeed led the Fintech revolution for over a decade and built the reputation of the leading social trading platform in the world.

Etoro started out as a joint trading platform. However, they soon integrated cryptocurrencies and other trading tools to keep up with the changing market and increasing customer demand. They are among the pioneers in adding social features to the platform in the form of CopyTrading and CopyPortfolios.

Today, there are more than 10 million registered users on Etoro. This proves that Etoro is a pioneer in the field of combining social networking with trading. Let us take a look at the Etoro platform in detail.

A detailed introduction to Etoro
A detailed introduction to Etoro

Risk warning: CFDs are complex instruments and run the risk of losing money quickly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take a high risk of losing money.

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Quick statistics about the Etoro platform

Quick statistics about the Etoro platform
Quick statistics about the Etoro platform

The history of Etoro

Etoro actually started in 2007 with three founders wanting to make transactions easier for everyday users.

At the same time, they want to reduce their dependence on banks and other traditional financial institutions. Etoro started out as an online trading platform with charts representing financial instruments and an intuitive interface.

The history of Etoro platform
The history of Etoro platform

Development process

– In 2009, Etoro launched the WebTrader trading platform. It included a wide range of professional tools for traders of all skill levels.

– In 2012, Etoro added stocks to its other assets such as currencies and commodities.

– The Etoro mobile app launched in 2013 for Android and Apple, expanding the reach of the platform. This was also when Etoro provided the convenience of cryptocurrencies, helping to trade Bitcoin through CFDs.

– In 2015, the platform updated the interface for a more creative and intuitive experience.

– In 2016, Etoro added CopyPortfolios. The managed portfolios included various assets of top successful traders in the trading market.

– In January 2017, EToro expanded its reach in the crypto world by adding support for crypto trading to the platform. They started with a bunch of popular cryptocurrencies, including Ethereum, Litecoin, and XRP.

– In 2019, they launched eToroX – its own cryptocurrency.

Which cryptocurrencies does Etoro support?

Compared to other platforms specializing in cryptocurrencies, we can see that the options for supported cryptocurrencies on Etoro are relatively limited.

This is the result of focusing on developing the system as a common trading platform. It is opposed to a platform that only focuses on cryptocurrencies.

You can own the most popular cryptocurrencies. Supported categories include Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, and Ripple.

The Etoro crypto-supported portfolio
The Etoro crypto-supported portfolio

Cryptocurrencies are an unregulated investment product that is very easy to disappear. There is no policy to protect investors. Your capital is at high risk. Indicative price and current market price are both displayed on the eToro trading platform.

What sets eToro apart from other platforms?

One of the things that make Etoro stand out from other platforms is the number of portfolios and trades available.

Thanks to the many ways to invest and trade, users can utilize the same platform for the need to trade cryptocurrencies alongside traditional assets.

Etoro’s social elements also make it unique, namely CopyPortfolios. This is a long-term investment in the form of a managed portfolio. These include top assets and traders with predefined strategies. The ability to copy investments of successful traders is also very innovative.

The stand-out of Etoro
The stand-out of Etoro

Which trading tools does Etoro offer?

The system aims to educate traders and provide them with a platform for investing.

Once registered, eToro users will get a Cameron virtual currency account with $100,000 so they can trade using strategies and skills before investing with real money.

Etoro also offers many other tools to help with practical trading such as the economic calendar. Just enter the date and time zone you want to see and the assets you trade. The system will then display economic news with updated events that are likely to affect your trading assets.

In addition, it provides the most detailed regular market analysis and market overview. So you can use a lot of useful information if you need a reference.

Every asset that is available for trading on the platform has its own page. There, you can view detailed information, news, charts, and research.

Useful tools in Etoro
Useful tools in Etoro

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What is CFD?

CFD (contracts for difference) is a type of derivative transaction. With CFD, traders can speculate whether the global financial markets are moving up or down. This can be done with cryptocurrencies as well as indices, stocks, currencies, treasury, and commodities.

The important thing to note about CFD trading is that you are not going to buy or sell an asset as you normally would. Instead, you sell or buy certain units of a platform based on a prediction of whether the price will go up or down.

When the price moves in your favor, then you will get many existing CFD units that you sold or bought. You will lose money when the price goes against the initial prediction. You need to be cautious in CDF trading as possible losses can exceed your deposit (negative accounts).

How is CFD on Etoro?

Trade CFD with Bitcoin
Trade CFD with Bitcoin

On Etoro, trading CFDs and cryptocurrencies go hand in hand. As mentioned earlier, Etoro first entered the crypto world by offering Bitcoin trading through CFD in 2013. This makes eToro a pioneer in the crypto investment world.

CFD trading continues to play an important role on the Etoro platform. Because many transactions involve cryptocurrencies with CFD contracts instead of trading with actual assets.

Starting September 3, 2017, people investing in crypto BUY positions on Etoro actually own the assets on the trading platform. Before that, they owned a CFD that was not an asset. In addition, eToro offers actual cryptocurrencies trading. If you choose to open short positions or SELL cryptocurrencies on Etoro, this is still CFD.

What is CopyPortfolios?

CopyPortfolios has been added to the Etoro platform recently. This feature is available for crypto as well as traditional trading. This creates a tradable asset by selecting an investor with a good trading strategy.

What is CopyPortfolios?
What is CopyPortfolios?

During the crypto bull run in May 2017, the fund grew 66%. In the first three months, that fund generated more than 125% of profits under the name “Crypto CopyPortfolios”. This is a CopyPortfolios made up of a balanced crypto portfolio containing Bitcoin, Ethereum, Ethereum Classic, Litecoin, Dash, and Ripple.

What is CopyTrading?

Another cool feature on Etoro that you can use for crypto and foreign currency investment is CopyTrading.

Copytrading is an innovation that allows users to look at other traders’ profiles and copy them. That means profits will reflect their trading efficiency level.

Good traders are more likely to become popular investors of their users if they have low-risk scores and deliver steady profits.

They then receive a reward for sharing effective strategies. By utilizing CopyTrading and copying an investor in your portfolios, you can invest in the market without having to do too much research yourself.

Copytrading feature in Etoro
Copytrading feature in Etoro

Past profits are not an indication of future results. Transaction history is presented for less than 5 years and may not be sufficient as a basis for an investment decision. This is not investment advice. Please consider before using the CopyTrading function.

Who can use Etoro?

Etoro can be used by anyone, as long as it’s legal in the host country. Etoro has an active list of countries where the platform is blocked due to changes in the regulations that conflict with transaction laws.

This means that people in the United States, Canada, Vietnam, Cuba, Japan, North Korea, Iran, Syria, Turkey, Serbia, Albania, and Sudan can legally use the Etoro platform.

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Does Etoro have a minimum trading regulation?

The Etoro platform prides itself on offering tools that traders of all experience levels can use. Even so, you must have at least $200 to join CopyTrading and invest a minimum of $5,000 for CopyPortfolios.

The minimum amount for positions is based on the investor’s options. For currencies (like cryptocurrencies) and commodities, it’s just $25.

For stocks, it is $50.

Finally, for ETFs and indices, it is $200.

For those who signed up on April 2, 2017, or later, the rule of a minimum trade depends on the level of choice, in the form of leverage multiplied by the investment amount. Regarding cryptocurrencies, this minimum total is $200.

The minimum amount for ETFs and stocks is $500. For commodities, it’s $2,500. And for indices and for Forex, it’s $5,000.

For example, if you open a cryptocurrency trade with a leverage of x1, you must invest at least $200. However, if you choose to invest $100, you must have minimum leverage of x2.

How does eToro charge?

The Etoro platform profit from the different fees it charges on customers’ investments.  Etoro does not charge a fee to open a position, but instead, it charges on the spread. There is a list of minimum spreads for each cryptocurrency.

We statisticize that spreads vary based on liquidity and market conditions.

The daily break difference is as follows: 1.5% for BTC, 5% for BCH, 3% for DASH, 2% for Ethereum, 5% for ETC, 3% for LTC, 5% for NEO, 5% for XLM, and 3% for XRP.

Transaction fees in Etoro
Transaction fees in Etoro

Due to the nature of cryptocurrency trading is trading over 24/7. And especially, there are no fees on overnight or weekend transactions. Etoro only charges on users holding highly leveraged Ethereum or BTC positions. It can be said that fees vary according to market conditions.

eToro customer reviews

Platform users agree that the Etoro platform is easy to use. Etoro has an intuitive interface that makes it easy for beginners to perform transactions.

You can use the platform on PC, Mac, Android, or iOS devices. Etoro’s beautiful, intuitive interface always displays information related to cryptocurrencies and other assets. It adopts a rich variety of charts that make traders feel comfortable.

In general, Etoro has global online brands. The platform has been established for quite some time so you can be sure that your money is safe. The complaints from users are often about traders from whom they copied did not perform as well as planned.

This is not these traders’ own fault. The trading process is a complicated job because everyone experiences losses as well as profits.

Other issues revolve around Etoro heavily promoting that you can buy Cryptos when trading with them. But in reality, you don’t actually own the asset. This is the same for all brokers of this type. If you want to physically own crypto assets, you will need to purchase them on the Coinbase exchange or Binance exchange.

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How to deposit and withdraw money on Etoro?

There are many methods of depositing money into eToro. So you can choose the one that best meets your needs. Remember that different methods have different minimum deposits.

You can choose to deposit money via wire transfer including Domestic banking, Visa, MasterCard, NETELLER, PayPal, Yandex, Webmoney UK, Skrill, and other services.

To withdraw money, you must fill out a form. Then, you may receive money as requested via PayPal, domestic bank, Visa, your Mastercard. To withdraw money, you will need a scanned copy of your ID, a colored copy of your passport, and proof of address.

Deposit into Etoro
Deposit into Etoro

Integrated utilities of the eToro e-wallet

Etoro has officially announced a crypto-focused trading platform targeting customers in the United States. This is in addition to a cryptocurrency wallet and a built-in mobile app that allows for the purchase of cryptocurrencies with a credit card.

The service has been announced and allowed US customers from 32 states and territories to trade different amounts of cryptocurrencies. These include popular assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP, Dash (DASH), Neo (NEO), and EOS.

At the same time, the multi-signature crypto e-wallet supports six cryptocurrencies including Bitcoin (BTC), Bitcoin cash (BCH), Ethereum (ETH), Litecoin (LTC), Stellar (XLM), and XRP. Additional currencies will be added in the future.

Etoro has also announced that the smartphone e-wallets are available to both iOS and Android device users.

Existing Etoro users can log into their e-wallets to trade and store cryptocurrencies. They can also convert assets in the e-wallets with just a few clicks. Alternatively, you can also receive and send money by sharing your e-wallet address or using a QR code.

The Etoro e-wallet allows users to:

– Manage and store many cryptocurrencies.

– Exchange between cryptocurrencies.

– Transfer cryptocurrencies from their Etoro account (limited to certain cryptos).

Etoro e-wallet
Etoro e-wallet

How to buy cryptocurrencies with a credit card

Etoro customers can buy cryptocurrencies directly from Etoro e-wallets using a Visa card. The investment platform has partnered with a popular third-party payment provider named Simplex. From there, eToro allows integrating Visa and MasterCard payments.

After completing the process, your purchase will be transferred to your Etoro e-wallet.
It’s important to note that Simplex can choose to approve or deny your request. They will ask for additional documents or proof of identity. These may include government-issued official documents or selfies. This service is also subject to the following fees and restrictions.

eToro e-wallet fee

Fees for converting from e-wallets to cryptocurrencies:

– The eToroX fee is 1%.

– The Simplex fee is 4%.

eToro e-wallet fee
eToro e-wallet fee

The actual market rate is determined by EtoroX. Once the transaction is approved by Simplex, the blockchain fee is deducted from the purchased cryptocurrency. The fees above are applied to all cryptocurrency transactions.

Note that additional fees may also be accrued as a result of fees imposed by your bank or credit card issuer.

Is Etoro safe?

To give users peace of mind, Etoro takes steps to provide security. The entire company is fully under regulation and complies with the FCA and CySEC guidelines. To help traders make responsible decisions, the platform offers a wide range of tools for all experience levels. Tutorials for first-steps and risk management features are also available.

Etoro also takes precautions to ensure that customers’ money and personal information are secure.

With all of that in mind, you should remember that there are no crypto regulations. Because of this, if you join in crypto trading or investments related to cryptocurrencies, you will not receive insurance from an investor compensation program in the UK or Cyprus.

Even so, Etoro prides itself on solving problems as seamlessly as possible. In addition, there are many social platforms where you can sign up for complaints, which can be shared with other users.

In conclusion

Though the Etoro platform focuses on more than just cryptocurrencies trading, it is a useful platform for traders trading cryptocurrencies or CFDs.

The additional features of the Etoro are what gives it the advantages such as CopyPortfolios and Copytrading together with various charts. This platform is also very intuitive, making it attractive to everyone.

It is also a great platform for regular stock trading and Forex, or invest in pre-built portfolios in different industries.

We have been using Etoro for years now and have had no problems with them. Deposits and withdrawals are processed quickly and reliably.

Etoro has proven to be reliable in the industry for many years. We recommend that you try trading in Etoro to protect your pocket.

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