eToro USA Review 2021

Item: eToro USA
Rating: 3
Author: Eric Rosenberg

Stock Trade Fee:N/A

Account Minimum:$50

Promotion:N/A

Open Account

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

Eric Rosenberg

Last updated: Jul 07, 2021

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While cryptocurrencies began as something just for those who are very tech savvy, these days anyone can get in on the action. eToro is a global brokerage that offers cryptocurrency trading to those living in the U.S. It’s an ideal platform for beginners, as it includes a free virtual portfolio and the ability to learn from other traders.

With an eToro account, you can buy and sell bitcoin, ethereum, and other popular cryptocurrencies, among other features useful to crypto aficionados. Keep reading to learn more about how the fees work, what the platform looks like, and how you can get started with eToro.

Pros:	Cons:
Trade 14 cryptocurrencies, including Bitcoin and Ethereum No major fees outside of spread-based pricing Virtual accounts and copy trading features for new traders	Spread fees can be high for some trades Limited tradeable assets in the U.S. No inbound crypto transfers from external wallets

eToro USA Overall Rating

3.0

Here's how we rate brokers

Cost & Fees

4.0

Banking

0.0

Account Types

1.5

Customer Support

2.5

Tradable Securities

1.0

Promotions

3.5

Account Opening

4.5

Regulations, Reputation & Security

5.0

Trading Platforms

3.0

Research & Education

3.5

Order Types

2.5

Official Site:https://med.etoro.com/B13544_A29055_TClick.aspxDemo Account:Open Demo AccountAccount Minimum:$50Stock Trade Fee:N/APromotion:N/AETF Trade Fee:$0Mutual Fund Trade Fee:$0Options Base Fee:$0Options Per Contract Fee:$0.05Bonds Trade Fee:$0Futures Trade Fee:N/AForex Trade Fee:N/A
Phone Trades:N/ABroker Assisted Trades Fee:N/AAnnual Account Fee:N/AAccount Transfer Fee:N/AAccount Closing Fee:$0Account Inactivity Fee:N/AIRA Annual Fee:N/AIRA Closure Fee:N/ATradable Securities:N/ACommissions Free ETFs:N/ACommission Free Mutual Funds:N/A
Number of Mutual Funds (Total):N/AComplex Options Max Legs:N/AAccount Types:Taxable, JointOS compatibility :N/AWeb Platform:YesMobile Trading:iOS App, Android AppOrder Types:Market, Limit, Stop, Trailing Stop, Algo

Rate eToro USA

Cost & Fees4.0

Summary: eToro fees are built into the currency trade price, so you know exactly what you’ll pay for your trade every time.

eToro uses spread-based pricing for cryptocurrency purchases, which may be a new concept to many U.S. traders. With spread pricing, eToro adds a small margin between what customers pay when buying and selling various currencies. If you’ve ever used a currency exchange on an international trip, they use similar pricing models.

At eToro, spreads range currently from 0.75% for Bitcoin up to 5% for less-popular coins. The most popular cryptocurrencies on the platform have spreads below 2%. Lower spreads mean you pay less to trade. For smaller trades, these spreads mean you will pay very little. But active and large accounts could see those fees add up behind the scenes.

Account Types1.5

Summary: eToro offers one type of taxable cryptocurrency trading account for users in the United States alongside a virtual currency account.

When you sign up at eToro, there is just one type of account supported, a taxable cryptocurrency “brokerage” account. This is not a traditional stock brokerage account but works in much the same way for cryptocurrency trades. Accounts are free for legal U.S. residents.

Upon signup, you also get a virtual account with fake dollars you can use to try out cryptocurrency trading and investing before risking real dollars. This is known as paper trading in the stock market and works like stock market games you may have played in school, but you’re only competing against yourself.

Accounts are available in most states. You can’t open accounts in Delaware, Minnesota, New Hampshire, New York, Nevada, Puerto Rico, Tennessee, Hawaii, Guam, American Samoa, US Virgin Islands. If you live anywhere else, you’re good to go.

Tradable Securities1.0

Summary: For traders in the United States, there are 16 available currencies to trade, including Bitcoin, Ethereum, Stellar, and others.

Investing doesn’t mean just stocks, and for eToro users in the United States, it means no stocks at all. If you’re an international user, stocks and other assets are available on eToro. Here’s a current list of what’s supported:

Bitcoin
Ethereum
Bitcoin Cash
Ripple XRP
Dash
Litecoin
Ethereum Classic
Cardano
IOTA
Stellar
EOS
NEO
TRON
ZCASH
Tezos

This list has grown since eToro launched in the U.S. in 2018, and it’s likely more will come in the future as well. We may even see support for stocks added at some point, as that is already available on its foreign platform.

Account Opening4.5

Summary: Signing up for a new eToro account is quick and easy using the eToro website or mobile app.

When opening a financial account in the United States, you can expect to hand over some basic contact information. According to the eToro user agreement, accounts are only available to adults who are at least 18 years old and legally residing in the U.S.

To fund your account, the easiest option is to link a bank account to transfer in funds, though wires are also supported.

You don’t need to deposit any real funds to test the platform using virtual currency, though you need real funds transferred in from your bank to buy actual Bitcoin or other currencies.

Trading Platforms3.0

Summary: eToro’s trading platforms on the web and mobile give you fast access to market data and trading tools.

If you spend most of your time on a laptop or desktop, you will likely spend the most time on the web-based eToro platform. You can take a look without an account here.

Prices are updated live in the eToro platform

The dashboard gives you an overview of all eToro currencies with links to your watchlist, portfolio, and newsfeed. You can open a detailed page with stats, charts, research, and recent discussions from other eToro users for each currency.

An overview of Ethereum on the stats page

One unique feature is called CopyTrader, where you can view and mimic others’ trades on the platform. Automating this brings you new trading opportunities, but there are unique risks involved as well.

When you’re away from your PC, you can easily trade or monitor your accounts in the eToro Android and iOS apps, including a similar feature set. Note that the eToro trading app is not the same as the eToro Wallet, a digital cryptocurrency wallet to store, send, and receive. However, the wallet doesn’t get the same good reviews that the trading platform receives from users.

Overall, traders can seamlessly move between the desktop web platform and mobile platform with ease. The platform isn’t as advanced as some larger rivals, but it covers the basics and works perfectly for new traders and those who don’t need the most advanced charting and trading tools.

Order Types2.5

Summary: eToro traders can use market orders and other types of trades in their accounts.

eToro is a beginner-friendly crypto platform. It handles the basics you can expect, like market orders. You can also enter stop loss and take profit trades to trigger under certain conditions automatically.

You can also create orders through CopyTrader, where your trades automatically do the same as another user. If you use CopyTrader, consider adding on stop orders to limit your losses when you’re away from your account.

There are not many advanced trading options with eToro, but that should be fine for most beginner and hobbyist traders. Serious crypto enthusiasts may want a more powerful trading platform with more trade types supported.

Banking0.0

Summary: eToro doesn’t currently offer a banking product.

No banking product here. While you can “bank” your crypto in eToro and its companion eToro wallet, you can’t do regular banking activities in USD. You’ll need a bank account linked to eToro to deposit and withdraw funds.

Customer Support2.5

Summary: Regular users have limited customer support options with eToro.

eToro is primarily a self-service trading platform for most users. There’s a limited help section on the website and embedded in the web trading platform. Non-customers can’t reach customer support at all. Current customers can reach a live agent using chat support.

According to the Customer Service Center on the eToro website, it can take up to seven days to respond to help tickets. That’s a really, really long customer service wait and a drawback up eToro.

Those with growing balances may qualify for eToro Club, a premium membership where you can access an account manager for improved customer service. Accounts are eligible once you reach a $5,000 balance or greater. Members also get enhanced staking rewards (kind of like interest on cryptocurrency) for eligible balances.

Regulations, Reputation & Security5.0

Summary: eToro is not a bank or stockbroker in the United States. It has a good reputation, but cryptocurrency accounts inherently have more risk.

Like most crypto platforms, you won’t find registration with the SEC, SIPC, or FINRA listed at the bottom of eToro’s website. But it is still a law-abiding company that features a reputable product.

Account balances are held through a custodial bank account and are FDIC insured for up to $250,000. eToro USA LLC is registered with FinCEN as a money services business. It’s also registered with many state-level regulators. These bodies typically protect those in the U.S. against payment fraud and help monitor for illegal money laundering.

Outside of the risks that come with trading cryptocurrencies, you shouldn’t have any added worries using eToro.

Research & Education3.5

Summary: eToro features basic research tools and education resources, but CopyTrader and social features make it a great place to learn about crypto.

Cryptocurrency research is more about market movements than fundamentals, so eToro’s tools are focused on charting and analysis for those types of assets. There isn’t a ton to rave about here, but the basics of what you may want to know are all available.

The education and market guides resources give you more information to learn how the markets work and move up the learning curve. It isn’t as robust as what you would see with a major stockbroker, but it covers what any new trader needs to know to get started.

Trading experience

Summary: eToro works for new to experienced cryptocurrency traders and investors.

eToro’s feature set and user experience make it a leading option for those new to cryptocurrency. Unlike some advanced cryptocurrency products that require a ton of tech knowledge, you can start with eToro as a beginner who only gets the basics of crypto markets without getting totally overwhelmed.

The social and copy trading features also help newer traders quickly learn the markets. Advanced traders should find their needs covered, but there are more advanced platforms available from competitors that also cover more currencies. Depending on your charting and trading needs, eToro could work for nearly any cryptocurrency trader.

FAQ

Is eToro regulated?

eToro is regulated in the United States as a money transfer company. The FDIC insures uninvested funds up to the $250,000 limit.

Where is eToro based?

eToro’s US headquarters is in Hoboken, New Jersey. It operates international registered offices in London and Cyprus with additional offices in Tel Aviv, Sydney, and Shanghai.

When was eToro founded?

eToro started in 2007 and launched in the U.S. in 2018.

How does eToro make money?

eToro makes money from spreads on cryptocurrency trades.

How do I deposit to an eToro account?

ACH or wire transfer

How do I withdraw money from eToro?

ACH or wire transfer. Coins can be moved to external wallets.

How do I open an account with eToro?

Online at etoro.com or the eToro mobile app.

Does eToro offer margin accounts?

No.

Are funds at eToro secured or insured?

Uninvested funds are FDIC insured.

Overall3.0

Summary: eToro is a great place to get started with cryptocurrency for traders in the U.S.

With predictable pricing, an easy-to-use platform, and a growing community of excited cryptocurrency users to help you learn and refine your strategy, eToro could be the right place to get started buying bitcoin online, among other currencies.

New and experienced crypto traders may find a good home at eToro, but it’s a standout choice for newer traders. If you want to get started with Bitcoin, Ethereum, or other popular cryptocurrencies, you should certainly consider eToro as a home for your crypto account.

Disclaimers

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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