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eToro Review – Is eToro the Best Broker in June 2022?


US clients looking for a user-friendly and low-cost trading platform might consider eToro. This SEC and FINRA-regulated broker offers thousands of commission-free stocks and ETFs, alongside dozens of cryptocurrencies.

Plus, it takes just minutes to open an account and US clients are treated to fee-free deposits via debit/credit cards and e-wallets. In this eToro review, we explore how this popular broker compares in terms of supported markets, fees, payments, trading tools, and more.

eToro Review: Pros & Cons

The results of our eToro review and summarized in the following pros and cons:

Pros

  • Regulated by the SEC and FINRA
  • US clients can get started with a minimum deposit of just $10
  • USD payments via debit/credit cards and e-wallets are fee-free
  • Thousands of commission-free stocks and ETFs
  • 70+ cryptocurrencies
  • Minimum trade size is just $10 across all supported markets
  • Mobile app for iOS and Android
  • Secure eToro wallet for crypto investments

Cons

  • No support for third-party trading platforms like MT4
  • US clients can not access forex, commodities, or indices

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Tradable Assets

US clients have access to three core assets at eToro – crypto, stocks, and ETFs. In this section of our eToro review, we explore each asset class in more detail.

Crypto

eToro offers one of the best places to buy cryptocurrency in the US. The platform offers more than 70 digital tokens, with more being added on a regular basis.

Large-cap tokens – such as Bitcoin, BNB, XRP, Cardano, and Solana are covered, as are popular meme coins like Dogecoin and Shiba Inu. Those with an interest in the metaverse will appreciate that eToro supports the likes of Decentraland and The Sandbox.

Those that wish to buy Bitcoin on eToro, or any other supported token that carries a high-cost price will be pleased to know that the platform requires a minimum trade size of just $10.

etoro crypto

For instance, if Bitcoin was priced at $10,000 and the user invests $10, this would mean that they own 0.1 BTC token. This will appeal to investors that wish to gain exposure to cryptocurrencies but with a small amount of capital.

Once crypto is purchased on the platform, our review of eToro found that the tokens are automatically added to the user’s portfolio. This means that when it comes to cashing the crypto out, the user can do this in a matter of seconds.

With that said, the platform also offers a separate eToro crypto wallet that can be downloaded as an iOS and Android app.

This offers more control over the purchased crypto, such as being able to send tokens from one wallet to another. The eToro Money app also allows users to swap one token for another at the click of a button.

Cryptoassets are a highly volatile unregulated investment product.

Stocks

eToro offers a huge library of stocks that now covers over 2,500 equities. In the US, this covers both the NYSE and the NASDAQ. eToro also offers support for international stocks.

Unlike other brokers in the US, this does not come in the form of an ADR (American Depositary Receipt). Instead, eToro offers direct access to the exchange in question.

This covers stock markets in the UK, Germany, the Netherlands, Italy, Canada, Hong Kong, Saudi Arabia, and more. Just like crypto, eToro allows US clients to invest in stocks from just $10 per trade.

etoro stocks

This will suit investors that are looking to buy stocks in expensive companies. For instance, the likes of Berkshire Hathaway, Alphabet, and Booking Holdings all trade for thousands of dollars per share.

Another important thing to mention about stocks at eToro is that all markets are commission-free. Not only does this include US-listed stocks, but all supported international exchanges too.

For those looking for inspiration of what stocks to buy, eToro offers numerous filters. For instance, investors can search for stocks by the respective industry or exchange.

eToro also lists stocks with the highest share price increase and decrease over the prior 24 hours.

ETFs

Our eToro review also found that the broker is strong in the ETF department. There are popular ETFs offered by iShares, SPDR, Vanguard, and many others. Markets cover everything from the S&P 500, dividend stocks, gold, silver, and more.

The minimum investment per ETF is just $10 at eToro. Once again, this is the case no matter how much the ETF is trading for. Just like stocks and crypto, eToro does not charge any trading commissions on ETF investments.

Assets Not Available to US Clients 

eToro is also popular for its forex, commodity, and indices trading markets. However, these markets are offered in the form of CFD trading on eToro, which are not available to US clients.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

eToro Fees & Commissions

Our eToro review found that the broker offers some of the lowest fees in the market – especially to US clients.

For a full breakdown of the eToro fees to consider before opening an account – read on:

eToro Trading Fees

eToro fees for buying and selling assets are as follows:

Crypto Trading Fees

When users invest in crypto, eToro fees amount to 1% of the transaction size. For instance, buying $100 worth of Ethereum would yield eToro crypto fees of just $1. However, the specific fee is actually built into the trading price.

For example, let’s suppose that the market price on Ethereum is $2,000. In this scenario, eToro would display the price as $2,020 to the user.

This is also the case when the user decides to sell. For instance, let’s say that at the time of the sale, Ethereum carries a market price of $3,500. In this scenario, the user would sell Ethereum at a price of $3,535.

Although lower crypto trading commissions are available elsewhere, it is also important to take into account the fees related to USD deposits and also the level of regulation on offer.

As we cover in more detail shortly, debit/credit card and e-wallet deposits and withdrawals are fee-free for US clients and the platform is regulated by the SEC and FINRA. Therefore, paying a commission of 1% still offers tremendous value.

Stock Trading Fees

US clients can use eToro to buy and sell stocks on a commission-free basis. On the one hand, 0% commission trading on US-listed stocks is something offered by most online brokers these days.

However, where eToro really stands out is that it also offers commission-free trading on international stocks. This is the case regardless of if the stock is listed in the UK, Canada, Hong Kong, or any other supported market.

google stocks on eToro

This means that US clients can build a highly diversified portfolio of stocks from multiple markets and economies without being hit with unnecessary fees.

With that said, eToro users will still need to take into account the spread – otherwise referred to as the difference between the bid and ask price of a stock. At eToro, we…



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