eToro
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- Cryptocurrency exchange eToro operates in more than 140 countries, including the US.
- US traders can take advantage of 17 different cryptocurrencies, with a $50 minimum.
- eToro also offers social trading features that let you mirror the portfolios of advanced traders.
- Click here to set up an account with eToro.
Is eToro right for you?
| You may like eToro if you… | You may not like eToro if you… |
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eToro is an online cryptocurrency exchange offering Bitcoin and more than 15 other cryptocurrencies. While the company has global reach, it has separate offerings for US traders.
US investors have three options: trade on their own, use eToro’s CopyTrader™ system to mimic the portfolios of successful investors, or invest in one of its Copy Portfolios, which are portfolios of digital currencies overseen by eToro. The exchange also offers educational resources and video guides, wallet storage, and debit card support.
Yoni Assia, Ronen Assia, and David Ring founded eToro’ in 2007, but the company expanded its services to US investors in 2018. eToro says it has more than 20 million registered users.
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eToro |
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| Editor’s rating | |
| Fees | 0.75% – 5% spread, depending on cryptocurrency (0.1% crypto-to-crypto conversions) |
| Account minimum | $50 ($25 to trade) |
| Promotion | None at this time |
| Open account | |
How does eToro compare?
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eToro |
Binance.US |
Kraken |
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Min. Investment $50 ($25 to trade) |
Min. Investment $10 |
Min. Investment Depends on type of cryptocurrency |
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Fees 0.75% – 5% spread, depending on cryptocurrency (0.1% crypto-to-crypto conversions) |
Fees 0.1% spot trading fee; 0.5% instant buy/sell fee (4.5% fee for deposits with US debit card) |
Fees 0% – 0.26% |
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Investment choices Cryptocurrencies |
Investment choices Cryptocurrencies |
Investment choices Cryptocurrencies (including fiat assets), tokens, futures |
| Open an account | Open an account | Open an account |
Like eToro, Binance.US is part of a larger global cryptocurrency exchange. While eToro and Binance.US are similar in that they both only offer cryptocurrencies, Binance.US has a larger selection of cryptocurrencies and lower fees (though deposits with a US debit card at Binance can be costly).
However, eToro has Binance.US beat in the educational resources department. The exchange offers a larger selection of tools and guides for newcomers.
Kraken, on the other hand, could be a better option for those interested in trading different types of virtual assets. The exchange also offers lower fees and account features like futures trading.
Keep reading to see if eToro is right for you.
Ways to invest with eToro
Cryptocurrencies:
If you’re solely focused on exchanging cryptocurrencies, eToro USA could be right for you. It currently offers 17 cryptocurrencies: Bitcoin, Ethereum, Ethereum Classic, Dash, Litecoin, Bitcoin Cash, Stellar Lumens, NEO, EOS, Cardano, IOTA, TRON, Zcash, Tezos, Chainlink, Uniswap, and Dogecoin.
The exchange also offers the option to buy Bitcoin with a debit card, buy Bitcoin with a bank account, securely store crypto assets with the eToro Money Wallet, or use its CopyTrader™ system to pull from the expertise of other advanced crypto traders.
Here’s how the eToro CopyTrader™ system works: You choose a top-performing trader whose portfolio you’d like to mimic, allocate a set amount (the minimum amount you can allocate is $200) for copying the trader, and click “copy.” eToro says this allows you to mirror the trader’s investments in proportion to the amount of money you’ve allocated.
Currently, US clients can only copy other US clients’ portfolios. Although US traders are limited to the states, you’ll have the option to simultaneously copy up to 100 other users. The minimum amount to copy another trader is $500, but the maximum amount is $500,000.
Finally, eToro says US investors also have access to the following four Copy Portfolios (these are portfolio management accounts eToro handles for you): CryptoEqual, CryptoPortfolio, Crypto-currency, and TheTIE-LongOnly CopyPortfolio.
While TheTIE-LongOnly CopyPortfolio has a $2,000 minimum requirement, you’ll need at least $5,000 for the CryptoEqual, CryptoPortfolio, and Crypto-currency portfolios.
Educational resources:
While the CopyTrader system is a great option for beginner traders, the exchange also offers additional educational resources that could be helpful for newcomers. Among these are the following financial markets guides:
- How to buy Bitcoin for the first time
- What is cryptocurrency? A beginner’s guide
- How to buy Ethereum
- The complete Blockchain guide
With eToro Trading Academy, investors also get access to video tutorials on crypto trading and market updates.
Geographic restrictions:
If you’re thinking of setting up an account, keep in mind that the exchange doesn’t currently support US traders in New York, Delaware, Minnesota, New Hampshire, Nevada, Puerto Rico, Tennessee, Hawaii, Guam, American Samoa, and the US Virgin Islands.
Is eToro trustworthy?
The Better Business Bureau has given eToro a C rating for the following reasons: (1) There are 37 complaints filed against the exchange, and (2) eToro failed to resolve two complaints it.
The BBB rates companies based on how well it believes they’ll interact with customers. Since bureau ratings range from A+ to F, eToro’s C indicates an average level of customer interaction skills.
However, the BBB says its ratings don’t necessarily imply that a company will be reliable or perform well; for this reason, it’s important to conduct your own research in addition the bureau’s results.
eToro has closed 30 complaints in the last 12 months, according to BBB data.
Rickie Houston is a wealth-building reporter at Personal Finance Insider who covers investing, brokerage, and wealth-building products.
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