The fact that eToro functions as an online broker and crypto exchange is its main selling point. Plus, the platform has some unique, socially-driven investing features that make it stand out from the crowd.
Supports Numerous Assets
One of eToro’s main selling points is that it supports a wide variety of financial assets. If you prefer trading under one roof instead of using a crypto exchange and broker, it could be for you.
Currently, assets eToro supports include:
- Cryptocurrencies (75+)
- Currencies (49)
- ETFs (250+)
- Stocks (2,900+)
For crypto, eToro supports major altcoins like Polkadot and Solana. It’s not the best broker for ETF investing due to the low number it supports. But you can trade stock and ETFs like other leading brokers offer.
Cryptocurrency Trading Tools
Another advantage of eToro is that it has two different ways to trade crypto depending on your needs and experience:
- Crypto Trading Platform: Lets you quickly spot trade 98 crypto pairs with spread fees as low as 1%. You also get some basic research tools and can trade with funds from PayPal, your bank account, or with a credit card.
- eToroX: This is eToro’s more professional exchange which supports 100+ crypto pairs. It also allows for crypto-to-crypto trades unlike the basic trading platform. You can also use its API for algorithmic trading if that’s up your alley. And trading fees use a maker/taker system, not spreads.
These two platforms are similar to trading with Coinbase or Coinbase Advanced Trading, and the flexibility is nice to have. To top it all off, eToro has its own crypto wallet where you can store your crypto. It lets you swap 500+ cryptocurrencies as well and is completely free.
One of eToro’s more unique features is CopyTrader, which lets you follow and mimic the trades of the platform’s top investors. According to its website, the average yearly profit in 2021 for the top 50 traders on the platform was 30.4%.
Granted, much of this performance is the result of a crypto bull run, so take CopyTrader results with a grain of salt.
However, CopyTrader isn’t just a leaderboard; you can actually put your money to work to proportionally match different traders. And CopyTrader has traders with various strategies, risk profiles, and asset allocations to choose from. Just note that there’s a $200 minimum to place a trade with CopyTrader.
Overall, this social trading system is similar to Public, another stock trading app that also lets you view public profiles of investors on the platform. But the fact that eToro lets you trade to match its top traders is an interesting feature.
You can create a virtual eToro account to practice trading with a $100,000 portfolio. This includes popular cryptocurrencies as well as stocks and ETFs. If you’re new to investing or want to test out some strategies, paper trading is an excellent tool, so it’s nice that eToro supports this.
eToro Smart Portfolios
If you need a helping hand with building your portfolio, eToro’s Smart Portfolios could be of interest. These prebuilt portfolios target different markets and sectors to let you invest in the areas that interest you.
Some popular Smart Portfolios include:
- Battery technology
- Big banks
- Cancer medicine
- Chinese tech companies
- Cloud computing
- Global logistics
- Renewable energy
Overall, eToro’s Smart Portfolios are almost a middle-ground between using a robo-advisor and a stock recommendation service like The Motley Fool. The variety is excellent however, and there are some ESG-friendly options as well.
With eToro, you can trade fractional shares of stock. This is ideal if you’re investing a small amount of money but still want to invest in expensive shares like Apple, Amazon, and Tesla. Major brokers like TD Ameritrade and other competitors don’t offer fractional share investing, so this isn’t a guaranteed feature.
One newer eToro feature is eToro Club, a tier-based membership that grants traders various perks and freebies. There are five different tiers ranging from Silver to Diamond. It takes $5,000 in realized equity to reach Silver tier. This includes your cash balance and the original purchase price of assets in your portfolio.
As you invest more through eToro, your Club perks improve. Notable ones include a dedicated account manager, free subscriptions to various financial magazines, and priority customer support. You can also get a subscription to Delta Pro, which a crypto portfolio tracker eToro owns that’s similar to Kubera.
Overall, eToro Club isn’t the main reason you should sign up for the broker-exchange. But it’s nice that eToro takes some steps to reward its loyal customers.
A final perk of eToro is that it’s available in 140+ countries. Many investing apps are focused on the U.S. market, but with eToro, it’s much more internationally friendly.