eToro is an online brokerage firm founded in Tel Aviv, Israel in 2007. It has over 17 million users in over 100 countries and 43 U.S. states. The brokerage is among the leaders in the financial services market. And not surprisingly it was worth over $800 million in 2018. It’s an interesting company that offers some great features, and as well as all things, some lackings. So let’s hop right in.
- ✅ The social trading experience is amazing. You can see what more experienced traders are doing and read tips from other users. Essentially integrating a social media platform but for traders.
- ✅ You will be able to copy the positions of certain more experienced traders, thanks to their CopyTrading program. And it excels at greatly diminishing the learning curve for newbie traders.
- ✅ Both the website and app are easy to use and offer a great layout.
- ✅ You’ll be able to trade over 15 CFD cryptocurrencies.
- ✅ The platform offers a commission-free stock trading experience and low fees on forex trading.
- ❌ A fee of 1% is calculated for buying or selling crypto assets on eToro.
- ❌ The minimum investment for trading cryptocurrencies is at least $10 which complicates things if you wanted to spread your investment out.
- ❌ Copy-trading requires at least a starting budget of $200.
- ❌ US customers cannot trade stocks, but only cryptocurrencies.
- ❌ Non-trading fees are often high.
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
So all things considered it can be a good trading platform if it fits all your specific needs. But if we have to be honest, it’s far from the best. So read on to find out some alternatives brokerages to consider.
Top eToro Alternatives (Europe & UK)
Capital.com or Capital Com SV Investments Limited is a brokerage and trading platform that claims to use artificial intelligence to aid clients trading. The company was established in 2016 and is based in Limassol, Cyprus.
- ✅ Traders’ funds are secured by one of the best security protocols on the market.
- ✅ Capital.com offers great educational material so that traders can keep improving their skills.
- ✅ 135 currency pairs offered for forex traders.
- ✅ No commission trading, very low service fees, and extremely competitive spreads.
- ✅ Competitive service pricing, free of commission trading, and very low spreads on over 200 available assets.
- ❌ The claim that their trading platform is “powered by artificial intelligence” misleading.
- ❌ There’s no automated trading option.
- ❌ The platform cannot integrate with the widely used MT4 trading platform.
Plus500 is an online brokerage that offers trading activity through “contracts for difference” (CFDs), both on their site and app. The company was founded in Israel back in 2008 and has since expanded and now has many subsidiaries all around the world.
- ✅ It operates in over 50 countries and offers a wide array of different assets and financial products.
- ✅ Trading on Plus500 is done via a platform called WebTrader, it is very functional and among other things allows users to easily create watchlists and analyze charts.
- ✅ Clients are also protected from negative balances, so you can’t lose more than what you invest.
- ❌ Very poor customer service, that is available only through email or the live chat window.
- ❌ A lack of educational resources.
- ❌ US clients cannot use the platform, due to regulation by the SEC.
- ❌ Traders can’t integrate a third-party app on WebTrader, which is a big deal for more advanced traders.
Avatrade is a forex and CFD brokerage and trading platform. The company was founded in 2006 and it belongs to AvaGroup. The headquarter is in Australia, but it also has subsidiaries all around the world.
- ✅ Great, affordable fees if you’re a depositor.
- ✅ A particularly extensive array of offered assets.
- ✅ The company has a very good reputation and a perfect legal record.
- ✅ Traders can use a leverage of 400 to 1, although not in the EU; the legal maximum there is 30 to 1.
- ❌ The platform is not open to US clients.
- ❌ Avatrade does not offer trades guaranteed execution.
Top crypto eToro alternatives
Binance is the leading crypto exchange in the market the biggest by trading volume and probably the best known. It came into the scene in 2017 and has quickly grown since. It was founded in China but has since moved out due to over-regulation by the Chinese government.
- ✅ Considered by consumers to be the most trustworthy crypto exchanges out there, with slip-ups being extremely rare.
- ✅ Low fees, the lowest among centralized exchanges.
- ✅ Fees can be lowered even more by using the Binance coin (BNB).
- ✅ Your coins are insured in the eventuality of a security breach. Although it does not cover personal failures such as, giving your password to a person that steals it all.
- ✅ The trading is packed with all the features an advanced trader needs and expects.
- ❌ Not the best option if you just started trading crypto.
- ❌ Even though it’s a great platform if you are serious about crypto you might want all the benefits of a decentralized exchange instead.
- ❌ Does not support a lot of traditional payment methods.
- ❌ Binance can’t operate in 12 US states, due to lack of regulatory state requirements.
- ❌ It does not offer a daily market analysis, which is what you would expect from such a platform.
Coinbase is the leading cryptocurrency exchange in the US, a go-to for most people new to the world of crypto. Offering its services to 32 countries and all US states except Hawaii. The platform used to only allow Bitcoin trading but has since expanded to allow all coins that fit its criteria.
- ✅ The platform offers a solid collection of 25 cryptocurrencies that users can invest in, trade, and also stake.
- ✅ Coinbase is widely considered the best crypto exchange for beginners to start with, due to how easy and accessible the layout is.
- ✅ Users will be able to open their Coinbase account in a matter of hours.
- ✅ There’s a lot of educational material available on the platform for cryptocurrency investors.
- ✅ The high liquidity is what sets Coinbase apart, it stops most price separates from happening.
- ❌ Coinbase, unfortunately, has high fees, if you’re not using Coinbase-Pro. And the Pro version also has many more features that could overwhelm traders new to the game.
- ❌ Users do not have control of their crypto wallet keys. They’re in the hands of Coinbase, which essentially means you do not autonomously control your crypto holdings. Like most centralized exchanges this goes against the whole idea of crypto and DeFi.
- ❌ Once you are more of a veteran in the world of cryptocurrencies you might find the selection of alt-coins offered at Coinbase lacking.
Cex.io is a Russian-based cryptocurrency exchange that opened for business in 2013. The company went through several changes in the years, initially being connected with the now shut down cloud mining site Ghash.io. The following years saw it grow and develop independently offering card deposits, FIAT markets, and even releasing a mobile app.
- ✅ It’s a well-known platform with a good security protocol.
- ✅ The simple interface and slick design make it very easy to use.
- ✅ If you’re still in doubt, the platform is regulated by the US government agency FinCEN. Which adds an additional layer of trust due to how reliable and strict it’s known to be.
- ✅ Cex.io offers a large selection of cryptocurrencies you can choose from.
- ❌ Trading fees can be quite high compared to the competition.
- ❌ Bureaucracy is slow, the verification and registration process takes longer than expected.
Kraken is both a cryptocurrency exchange and bank which was founded in 2011 in the US. The platform is open to traders in 48 US states and 176 countries. And allows the trading of 40 cryptocurrencies, also providing price information to the Bloomberg terminal.
- ✅ A very secure exchange that requires a two-factor authentication process.
- ✅ Competitive fees.
- ✅ The platform offers a simple to use approach to trading.
- ✅ Integrates stalking services, OTC, margin indices, futures, dark pools, and Cryptowatch.
- ❌ The website can be slow sometimes.
- ❌ Customers can’t deposit with debit or credit cards.
Conclusion – eToro competitors
The first step is to find the best broker that fits your needs and satisfies all the criteria. And it is essential that you are comfortable with the brokerage you are using, everything from the interface to the customer service should be of your liking. The most important keyword in this industry is trust, do you and can you trust this broker with your hard-earned money? If the answer is no, look elsewhere for alternative to eToro. Giving your money to a company you cannot trust is foolish, to say the least.
Once you found your broker you can finally start trading. But remember always, always educate yourself in the art trading before you start. No matter what broker you chose, trade responsibly and do not invest more than what you are willing to lose.
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- eToro vs Trading 212 Comparison: Fees, Spreads, Pros & Cons
- Plus500 vs eToro Comparison: Fees, Spreads, Pros & Cons
Which is better eToro or Plus500?
eToro is probably the best option when it comes to buying shares. It allows fractional ownership and is way more functional. If on the other hand, you’re in search of a CFD provider then Plus500 comes out on top, but not by a lot. But only because the spreads are slightly lower on Plus500. eToro also offers free educational resources and both platforms have demo trading accounts.
eToro also has the advantage of offering social and copy-trading. So in conclusion neither is best, both are good for beginners and it all boils down to personal preference.
Is eToro better than Trading212?
Trading212 is the best option for most traders. It offers a very simple to understand and simplified layout, a ton of educational resources, small minimum deposits, and a lot more assets to choose from. Although both platforms offer commission-free trading, all things considered, Trading212 will still have lower fees. So it without question comes out on top.
The only exception is if you intend to use the social and copy-trading features. If you are the type of trader who values these sorts of programs, they are only offered at eToro. And the platform excels at them.
How much does eToro charge per trade?
A fee of 1% is calculated for buying or selling crypto assets on eToro.
Is Robinhood better than eToro?
Robinhood is best for people who want to trade stocks, ETFs, and crypto in one platform. While eToro is probably best suited for people specifically interested in crypto trading. And it also integrates perfectly with the social and copy trading options if that suits you better.
Can eToro go bust?
Although eToro is an established and profitable business that in 2018 was worth around $800 million. Even though it is extremely unlikely as you probably guessed, it does not mean it cannot go bust. eToro is not a company that is too big to fail.
Is eToro good for beginners?
eToro is great for beginners. First of all, you will be able to open a demo account and practice your trading with virtual money which is a great pro, just so you know what you are getting into.
On top of that, it offers a dashboard ideal for beginners who don’t have the skill or mindset yet to think about fees. And what greatly diminishes the learning curve is the social and copy-trading integration, which lets you copy and see the positions of other professional and more experienced traders.
How much can you invest in eToro?
The minimum deposit varies depending on the country you are in, from $50 up to $1000. And the maximum deposit is $1 million per transaction.
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