The Pros and Cons of eToro (2020 Update)

Whether you are saving money or trying to learn how to invest in Bitcoin, you are likely to encounter a relevant app-based platform. There is all manner of online trading platforms falling over themselves to attract investors by making trading more accessible. This is where eToro beats the competition as an early market entrant.

For the last decade, eToro has disrupted trading cryptocurrency and enabled millions of investors to join the game. The company offers a robust array of tools in addition to a user-friendly interface that allows potential investors to buy cryptocurrency on their own.

A key player when it comes to Bitcoin CFD and trading cryptocurrency, there’s more to the company than meets the eye. eToro has been in the eye of the storm of a Fintech revolution during the last decade. The firm’s social trading platform has introduced an exciting twist to traditional cryptocurrency trading. This eToro review will help you clearly understand the pros and cons of this industry leader.

What is eToro?

eToro’s trading platform differs completely from many other trading platforms so much so that some people have thought it is a scam. Nothing is further from the truth. eToro is a legitimately licensed brokerage that’s registered by the Cypriot Investment Firm (CIF). The leading Bitcoin CFD Company is regulated by Europe’s Cyprus Securities and Exchange Commission and the U.K.’s Financial Conduct Authority.

eToro is recognized as among the best trading platforms in the Forex broker industry. The company is especially popular among investors who want to engage in social trading, where you can replicate the moves of experienced traders. With over 6 million users globally, eToro has become a game-changer in trading cryptocurrency, making it a reliable and trustworthy trading platform. Let’s now dive into our eToro review.

The Advantages of Using Etoro

Regulation

The firm is regulated by numerous national and international bodies and is compliant with transnational instructions on client practice and security. eToro is licensed by the U.K.’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange, and can broker currencies and derivatives in Australia. The firm has dramatically improved compliance expanding to the United States and follows guidelines by the Securities and Exchange Commission (SEC) and other related bodies.

User Friendliness

eToro’s social trading aspect has put it head over shoulders above many other similar brokerages. But what truly sets it apart above everything else is its user-friendly platform with its intuitive design. The firm’s platform has a world-class interface that seems seamless when compared to your traditional brokerage. The platform offers a high level of user satisfaction, giving it a more significant advantage of competitors.

Crypto Assets and Markets

The great variety of investment and trading options available on eToro makes the company one of the most prominent platforms for trading cryptocurrency. Potential investors have the benefit of trading bitcoin and other assets using the same trading platform. Another aspect of eToro’s uniqueness has to do with its social element. A good example is CopyFunds, the long-term thematic investment involving a managed portfolio that offers asset and expert traders a preset strategy. This enables newbies to imitate investment moves by experienced traders.

Payment Options

eToro offers various payment methods. This means you get to choose the method that best suits you. The different payment methods used for trading bitcoin on the platform have different minimum deposits. The leading payment methods in the platform include bank transfers, wire transfers, MasterCard, Visa, PayPal, NETELLER, Skrill, Webmoney U.K., to name a few.

When you want to withdraw, you fill out a form and receive your payout via debit or credit card, bank transfer, or PayPal. Make sure to have a color passport copy, a copy of your signature, and proof of address.

Social Trading

Social trading is perhaps the hallmark of the advantages of eToro as it moves trading practices from the experts into the hands of any investor. The technique combines traditional investment practices with online communities for the newbie and the expert. The best thing about social trading is that it is transparent, saves you time, gives you the requisite and experience, and allows you to take a step back.

Amount of Tradable Assets

The eToro platform goes beyond trading cryptocurrency. There are a variety of assets you can choose from. The available financial assets include stocks, currencies, indexes, commodities, and ETFs. Currently, you can trade:

• 13 stock index CFDs like UK100, SPX 500, NSDQ100, and China50 among others
• 47 currency pairs including USD, EUR, GBP, CAD, JPY, AUD, and others
• At least 1300 stock CFDs
• 16 cryptocurrencies – BTC, ETH, XRP, BCH, LTC, DSH, ADA, LTC, NEO, EOS, XLM, NEO, TRX, BNB, ZEC, IOTA, XTZ
• 83 commodity CFDs such as oil, gold, silver, copper, platinum and natural gas

The Disadvantages of Etoro

Country Restrictions

While eToro is open for investors from all over the world, you want to be careful that your country isn’t among the countries that are excluded. The United States used to be on the list, but today only a few states are still exempted. The list of restricted countries includes Afghanistan, Albania, Belarus, Bosnia and Herzegovina, Botswana, Brunei, Burundi, Canada, Chad, Congo Republic, Crimea Region, Cuba, Ethiopia, Guyana, Guinea, Guinea-Bissau, Iran, Japan, Laos, Libya, Mali, Myanmar, Namibia, Nicaragua, North Korea, Palau, Samoa, Serbia, Somalia, Sudan, Syria, Turkey, Uganda, and Yemen.

Higher Fees

The eToro platform presents with many types of fees, which can make it pricier. For instance, international users have to part with $200, while U.S. and Australian investors must part with $50. The platform also applies fees based on a fixed spread of 3 pips to the USD/EUR, one of the highest anywhere. The Forex, Index and commodity spreads are also high and can get higher based on market conditions.

Conclusion

Apart from trading cryptocurrency, eToro also is a perfect platform for the investor. The additional features like CryptoPortfolios and user-friendly interface give it an edge over the competition. It’s not ideal for those trading less-popular cryptos, but it’s also great for the regular Forex and stock trader. eToro has become a trustworthy platform and is, therefore, highly recommended.