eToro offers a cryptocurrency exchange that supports trading in more than 30 cryptocurrencies, as well as an online brokerage platform with a limited selection of stocks and exchange-traded funds (ETFs). Social features and an active community make this platform a good choice for people who prefer a more community-based trading experience. However, if you only want a reasonably priced crypto exchange, the high fees for trading on the eToro platform may seem a bit high.

What makes eToro a good choice

At eToro, imitation really is the sincerest form of flattery: the platform offers features that allow you to mimic the investment strategies of top cryptocurrency traders – and be rewarded if others copy your trading strategies.

These options may appeal to more advanced cryptocurrency traders, who can earn annual rewards of up to 2% of their average balance for developing followers on the platform.

Disadvantages of eToro

If you’re not a beginner or aspiring to become a cryptocurrency influencer, but simply want rock-bottom trading fees – or comprehensive access to assets other than cryptocurrencies – eToro won’t be your first choice.

Users can find cheaper cryptocurrency trading elsewhere – check out their options in Forbes Advisor’s list of the best crypto exchanges. And if you want a full-fledged brokerage account, check out our list of the best online brokers.

Features of eToro

Founded in Israel in 2007, eToro has expanded into a number of international markets over the past decade and a half. The platform offers different features in different countries; the US version does not support all the options available internationally.

Like many other crypto exchanges, any US resident can open an account on eToro, but not all of the platform’s features are available in every state. For example, cryptocurrency trading is not available in New York, Nevada, Hawaii, and Minnesota.

Fees

Prices can be somewhat opaque on crypto exchanges, especially on those that target beginners, such as Coinbase and Gemini. Therefore, it is refreshing that eToro clearly states the fees it charges when trading cryptocurrencies.

For each cryptocurrency trade, eToro users pay a flat fee – technically a bid-ask spread – of 1%.

Despite this clarity on fees, eToro’s pricing model has an unusual wrinkle. Many exchanges charge a fee every time a crypto asset is bought or sold. On eToro, however, you pay for the “round trip” upfront – that is, you pay a 1% upfront fee plus a 1% purchase fee if you sell a coin. According to eToro, this profit/loss is “updated in real time as the market price changes.”

If you plan to keep your cryptocurrency purchases on the eToro platform and never move them elsewhere, this difference may be a matter of semantics. However, if you transfer your coins to an external crypto wallet, you can no longer move them back to the eToro trading platform. In that case, you have essentially lost the yield spread fee.