eToro has recently seen a surge in popularity. Because of this eToro has announced they are raising the minimum first deposit amount to $500.
This is a significant change from the previous $200 amount. But eToro says it's necessary to maintain the level of service they offer.
One of the reasons eToro has gotten so popular recently is because they were one of the first mainstream trading platforms to offer cryptocurrency trading. When the price of Bitcoin surged, so too did interest in trading it. I can imagine things got pretty crazy at etoro trying to cope with the massive demand.
Is $500 too much?
Personally I love financial products that offer a low barrier to entry. For example, one of my favorite apps Acorns – allows you to get started with just a few dollars. This means that anyone can try it out, no matter what your financial situation is. The last thing I want to see eToro become is a tool for a small select group of investors.
So it's sad to see etoro raising the minimum first deposit to $500. On the other hand I can see why eToro is doing this. If you start with $500, it allows you to diversify your portfolio across more markets/people which could reduce risk and provide a better long term outlook for investors. At the end of the day, $500 isn't much more than $200.
It will be interesting to see if this is a permanent change of whether once the crypto hype dies down a little bit things will change. As always I'll keep you posted on the latest updates.
This is for first deposits only
Remember this change is for first deposits only. So once your account is up and running and you've made your initial deposit, you'll be able to invest smaller amounts if need be.
Remember to Diversify and Don't Go All In
Never invest more than you can afford to lose, and always diversify your investments. Don't get swept up in all the crypto hype and put it all into one coin, or one trader. I want to see you have long term success with eToro!