eToro Review for Australians

Dominic Harper // January 9 // 0 Comments

eToro Australia is a very well-known broker that not only gives Aussies the chance to trade cryptocurrencies, but also plenty of other markets such as stocks, forex and ETFs. They have been around since 2007, and have made a big impact with their 'social trading' functionality. This means that users can communicate with other investors via the in-built social media newsfeed. Additionally, you can copy the trades of the most successful traders, so you don't need to come up with your strategy. This is very useful for beginners to cryptocurrency and trading in general.

What is eToro Australia?

eToro Australia is such a versatile cryptocurrency trading platform, that is great for beginners and experienced traders. Here is a brief overview of the top features offered on this exchange.

  • 75 different cryptocurrencies supported
  • Trade stocks from 16 global markets, including the USA
  • Mobile apps available for iOS and Android
  • Trade forex and stocks
  • Cryptocurrency staking available to earn interest
  • Margin trade with up to 30x leverage
  • Demo account - practise trading with free $100,000 play money
  • CopyTrader - mimic the trades of the most successful investors
  • Social Trading - interact with other eToro investors

Australian Alternatives to eToro

Bybit
CoinSpot
Swyftx
Coinstash
Digital Surge
Crypto Exchange
Crypto Exchange
Bybit
CoinSpot
Swyftx
Coinstash
Digital Surge
Fiat Currencies
Fiat Currencies
AUD, USD, GBP, EUR, NZD & more
AUD
AUD, NZD
AUD
AUD
Cryptocurrencies
Cryptocurrencies
BTC, ETH, LTC, XRP, EOS & 280+ more
BTC, ETH, LTC, XRP, BCH, ADA & 410+ more
BTC, BTG, BCH, ADA, ETH, ETC & 320+ more
BTC, ETH, DOGE, DOT, XRP, LINK & 1,000+ more
BTC, ETH, ADA, BNB, SOL & 300+ more
Deposit Methods
Deposit Methods
Visa/Mastercard, Apple Pay, Cryptocurrency
Bank transfer, BPAY, Cash, POLi, PayID, Cryptocurrency
PayID, OSKO, Bank transfer, Credit card, Cryptocurrency
Bank Transfer, PayID, Cryptocurrency
POLi, PayID, Cryptocurrency
Trading Fees
Trading Fees
0.1% for spot, 0.01%/0.06% for derivatives
Market order: 0.1%, Instant buy: 1%
0.6%
0.85%
0.5%

Features

Great for Beginners

eToro has a simple interface that makes it an excellent choice for first-time crypto investors. In the screenshot below, you can see the Home page, which is basic and uncluttered. Along the top of the screen, you can see scrolling market prices and graphs. Underneath is the social media News Feed, where you can interact with other eToro investors, and to the right of the that is the biggest movers in your portfolio and watch list. Along the left side of the screen is the menu where you can access anything you need. To start purchasing crypto, clik on Discover, which will take you to the markets.

The home page (shown below) has key market prices and graphs scrolling along the top, social media news feed below, and the biggest movers from your portfolio and watchlists on the right. The menu on the left is straightforward - click Discover to begin investing in the markets of your choice.

Social Trading

This is the biggest aspect of eToro Australia that sets it apart from any other crypto trading platform. They have a social media aspect built into their exchange, so you can post questions, interesting articles, and comment on other people's posts. It is a great way to learn more about investing, gain knowledge and even helpful tips or advice.

CopyTrading

Following on from the social aspect of eToro is CopyTrading. This is a unique feature not found on any other crypto exchange. It lets you choose a successful trader that you can follow, and your trades will automatically copy the exact trades that they do. In this manner, you can profit from the success of someone else, without needing to have your own trading strategy. This is especially helpful if you are a beginner, and have no experience with trading. 

If you are an experienced trader, you can offer your services and allow people to copy your trades. You will be paid for this, so it's a great way to earn extra money while you trade.

Trade Crypto, Stocks, Forex and more

eToro Australia is not a trading platform just for cryptocurrency. In fact, it started out with many other trading markets instead, and added cryptocurrency later. You can trade 75 cryptocurrencies on eToro, as well as stocks from the USA and other global markets and forex. Experienced traders will enjoy using eToro as their one-stop shop for both stocks and cryptocurrency trading.

Demo Mode

eToro Australia offers a Demo mode, where you can practise trading crypto and other assets using $100,000 of free play money. It is an excellent way to get acquainted with the different assets you can trade, and try out different strategies, before investing your real money.

Fees and Payment Methods

You can deposit AUD via bank transfer, credit card, debit card, PayPal and POLi into eToro. The deposit is free, but there is a currency conversion fee because the money is automatically converted to USD before you can use it. If you use bank transfer, the currency conversion fee is 50 pips, which is about 0.7%, but if you use the other methods of depositing, it will be 100 pips, or 1.38%. Withdrawing AUD from your account will incur a charge of $5 plus currency conversion fee of 50 pips (0.7%).

Trading fees vary depending on the asset, as listed below. 

Stocks: 0% fee

Cryptocurrency: 1%

For the assets below, the trading fee is included in the spread. If you are unfamiliar with this term, spread is the difference between the buy and sell price. A basic way to look at it would be to say that the transaction fee is equal to half of the spread.

Security

eToro is a safe trading platform that has been around since 2007. eToro complies with ASIC, FCA and CySEC regulations, so there are measures to protect their users. Clients' funds are held safely in top-tier banks and all of their private data is safely stored under SSL encryption.

Pros and Cons of eToro

  • P R O S
  • Many trading markets, such as crypto, stocks and forex
  • Social Trading platform where you can interact with other investors
  • CopyTrading so you can automatically copy the same trades as successful traders
  • Demo account where you can practise trading with $100,000 free play money
  • Stake your crypto to earn interest while you HODL
  • C O N S
  • Currency conversion from AUD to USD incurs fees
  • Trading fees of 1% are higher than competitors
  • Only 75 different cryptocurrencies available

Conclusion

eToro is such a great choice for Aussie investors that want to dabble in crypto, and also want exposure to US stocks and forex. It is easy to use, and there is a whole community of eToro traders to help you on the social media platform if you need it. For newcomers, you can take advantage of the CopyTrading feature which lets you copy someone else's trading strategy automatically, and is a great way to get started. There's also the Demo account with free $100,000 to play with means you can get the hang of trading without risking your real money. 

The one downside for cryptocurrency enthusiasts is that eToro only offers 75 different coins. If you are serious about crypto trading, and not so much the other assets such as stocks or forex, I suggest you try using Binance Australia. With over 600+ coins, low trading fees of 0.1% and no deposit or withdrawal fees, it is an excellent choice for advanced cryptocurrency traders. If you want to do more research first, also take a look at our article on the best crypto exchanges in Australia. The table below also gives a brief snapshot of the top crypto platforms and some key information.

Australian Alternatives to eToro

Bybit
CoinSpot
Swyftx
Coinstash
Digital Surge
Crypto Exchange
Crypto Exchange
Bybit
CoinSpot
Swyftx
Coinstash
Digital Surge
Fiat Currencies
Fiat Currencies
AUD, USD, GBP, EUR, NZD & more
AUD
AUD, NZD
AUD
AUD
Cryptocurrencies
Cryptocurrencies
BTC, ETH, LTC, XRP, EOS & 280+ more
BTC, ETH, LTC, XRP, BCH, ADA & 410+ more
BTC, BTG, BCH, ADA, ETH, ETC & 320+ more
BTC, ETH, DOGE, DOT, XRP, LINK & 1,000+ more
BTC, ETH, ADA, BNB, SOL & 300+ more
Deposit Methods
Deposit Methods
Visa/Mastercard, Apple Pay, Cryptocurrency
Bank transfer, BPAY, Cash, POLi, PayID, Cryptocurrency
PayID, OSKO, Bank transfer, Credit card, Cryptocurrency
Bank Transfer, PayID, Cryptocurrency
POLi, PayID, Cryptocurrency
Trading Fees
Trading Fees
0.1% for spot, 0.01%/0.06% for derivatives
Market order: 0.1%, Instant buy: 1%
0.6%
0.85%
0.5%

Frequently Asked Questions

Is eToro Australia safe?

Yes, eToro is a safe and trusted trading platform that has been around since 2007. They comply with ASIC regulations, they hold users' funds in top-tier banks and store personal info with SSL encryption.

Is eToro insured in Australia?

Yes, eToro has insurance purchased from Lloyd's of London, covering up to $1 million, and is automatically provided to all eToro clients in Australia. It covers their users suffering losses due to eToro's insolvency and in case of Event of Misconduct. The insurance covers cash, CFD positions and securities, but not cryptoassets.

Is eToro trustworthy?

Yes, eToro is a well-established company that has been around since 2007 and has millions of users around the world. 

Is eToro an Australian company?

eToro is not an Australian company, but they do have an Australian branch, which is regulated by ASIC.

About the Author: Dominic Harper

Dominic has a background in finance and is passionate about cryptocurrency, blockchain technology and NFTs. He has been investing in crypto since 2017, and is excited about the potential for innovation and creative uses for NFTs in the near future.

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