eToro cryptocurrency trading and CFDs – February 2019 review

eToro Cryptocurrency Trading & CFDs

• Over 5 million users worldwide
• Open trades in only 3 minutes
• Copy top-performing traders
  
  Cryptocurrencies are a highly volatile investment product. Your capital is at risk.
  
  CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider.

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How to trade cryptocurrency CFDs on this popular social trading platform.

With millions of registered users around the world, social trading network eToro offers access to a diverse range of financial markets. Since February 2017, the platform has also allowed users to buy several popular cryptocurrencies and trade CFDs on those digital currencies.

So, what cryptocurrency CFDs does eToro offer, what deposit methods are supported and how can you open a position? To find out, we’ve compiled this comprehensive review of eToro’s crypto CFD service.

What is eToro?

Launched in 2007, eToro is best known as a social trading platform that aims to cater for everyone from beginners to more advanced traders. It provides access to a wide range of capital markets, including stocks, commodities and foreign currency.

eToro actively encourages traders to interact with and seek advice from one another through its platform. This is best reflected in the CopyTrader service, where users can copy all the trades of leading investors.

With headquarters in Tel Aviv, Israel, eToro also has offices in Cyprus and the United Kingdom. In addition to its social trading services, it introduced bitcoin CFD trading in 2013, and now offers the option to trade a total of 11 leading cryptocurrencies.

Australian users access eToro’s trading products and services via eToro Australia, which is authorised by the Australian Securities & Investments Commission (ASIC) to provide financial services. It arranges for its clients to be provided services by eToro Europe, a registered Cypriot investment firm.

Trading features

eToro Australia users can access the following features through the platform:

• STP. eToro uses both STP (straight-through-processing) technologies and NDD (no dealing desk) practices. This ensures that all trades are executed in real time and without any interference.
• Markets available. As well as 11 cryptocurrencies, eToro provides access to stocks, commodities, foreign exchange, exchange-traded funds (ETFs) and indices.
• Trading Academy. This online platform provides live webinars, online courses and a range of trading videos to help you gain a deeper understanding of the ins and outs of trading.
• Social trading features. eToro offers the CopyTrader system, which allows users to copy the trades of other platform users, as well as a social newsfeed and a Popular Investor program.

Supported currencies

eToro users can trade the following currency pairs:

Which countries can I use eToro from?

eToro is available in many countries around the world, including Australia. However, it is not available to residents from the following countries:

How do I make deposits onto eToro?

eToro accepts the following payment methods:

How much does it cost to use eToro?

All withdrawals from eToro are subject to a US$25 fee. Any withdrawals sent in currencies that are not US dollars are also subject to conversion fees.

Accounts that are inactive for 12 months or more are also subject to a monthly fee of $5.

Like other exchanges, eToro charges spreads on financial instruments. A full list of average spreads is available on the eToro website.

How do I create an eToro login?

To register for an account with eToro, follow these simple steps:

1. Visit the eToro website.
2. Click the “Sign up” link at the top right of the screen.
3. Create a username and password, enter your email address and phone number, and read and agree to the relevant terms and conditions.
4. Complete a trading knowledge assessment from ASIC to activate your account.
5. To increase your account deposit limits you’ll also need to complete your profile. You’ll have to provide your full name, date of birth, gender, address and passport details.

How do I trade cryptocurrency with eToro?

If you want to trade cryptocurrencies with eToro, follow these steps:

1. Sign up, complete a trading knowledge assessment and verify your account.
2. Click the “Trade Markets” link on the left of the screen and select “Crypto”.
3. Choose your currency pair, such as BTC/USD, and click on it.
4. Choose either an “Order” or a “Trade”, and select either the “Buy” or “Sell” tab.
5. Enter the details of your transaction and click “Open Trade” or “Set Order”.

Please note that buying cryptocurrencies on eToro means you are acquiring the underlying asset, and the crypto is purchased and held by eToro on your behalf. These long (buy) positions are unregulated products and eToro warns that they do not come with any investor protection.

However, short (sell) positions opened for cryptocurrencies on eToro are executed using CFDs, and are issued under the regulations of the Cyprus Securities & Exchange Commission (CySEC).

What transfers and limits are there?

The minimum deposit limit could be anywhere from $200 to $500 for most users. To find out what limit applies to your account, log in and click on the “Deposit Funds” link.

eToro has a minimum withdrawal limit of US$50, and withdrawal requests are processed within one business day.

Is eToro safe to use?

eToro employs a number of measures to help ensure the security of your account, including:

• A stringent verification process
• Client funds are not used for margining or hedging purposes
• Client funds are kept in a segregated account
• Deposits communicated using Secure Socket Layer (SSL) technology

eToro Australia holds an Australian Financial Services Licence issued by ASIC. It arranges for its clients to be provided services by eToro Europe, which is regulated by CySec.

Customer support

eToro offers an online Customer Service Centre where you can submit a support ticket if you have a problem with your account. Customer support is available 24/7, while there’s also an online help centre with answers to a wide range of frequently asked questions.

Pros and cons

Frequently asked questions

• Can I deposit funds into my eToro account using PayPal?

  Yes, PayPal is a supported deposit method.

• Can I deposit funds into my eToro account with my credit card?

  Yes, credit card payments are accepted.

• Can I trade cryptocurrencies with leverage on eToro?

  Users with Platinum VIP status have the option to use 2x leverage on bitcoin and Ethereum trades. However, leverage is not available to any other users.

• Can I place stop-loss or take-profit orders?

  Stop-loss orders are no longer offered on crypto trades, but you can apply a take-profit order after your position has been opened.

Disclosure: At time of writing the author holds ADA, ICX, IOTA and XLM.