eToro is a trading platform based in the United States. It supports Bitcoin, ethereum, litecoin, Zcash and many other coins. This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

We may receive compensation when you use eToro USA. This post contains affiliate links. Disclosure.

Pros
  • Simple and clean UX for beginners
  • Seamless account setup
Cons
  • Cryptocurrencies only
  • No leverage, no hedging

eToro USA is a global multi-asset brokerage platform boasting more than 10 million users from 140 countries around the world.

In 2018, eToro started rolling out its cryptocurrency trading platform across the USA and it’s currently available to customers from 40 states.

etoro home page

Is eToro Legitimate?

Yes. eToro is a legitimate brokerage platform regulated by multiple regulators in different regions.

In the US, eToro is operated by eToro USA LLC which is headquartered in New Jersey and registered as a Money Services Business (MSB) with the FinCEN and all applicable state-level regulators.

In the UK, eToro is registered with and regulated by the Financial Conduct Authority (FCA). In Australia, it’s regulated by the Australian Securities and Investment Commission (ASIC) while in all other countries it serves customers through a Cyprus entity regulated by the Cyprus Securities and Exchange Commission (CySEC).

eToro USA Compared

  • Popular Exchanges
  • Coinbase
    • High liquidity and buying limits
    • Easy way for newcomers to get bitcoins
    • "Instant Buy" option available with debit card
  • Coinmama
    • Works in almost all countries
    • Highest limits for buying bitcoins with a credit card
    • Reliable and trusted broker

What Type Of Broker Is eToro?

eToro is a market maker broker using the Straight-Through-Processing (STP) trade execution model.

STP basically means that, instead of clearing all of the trades internally, eToro routes all user orders directly to the market.

Adding to this, eToro uses an NDD or Non-Dealing-Desk model, which simply means that eToro will not pass the orders through a Dealing Desk but instead, it will match the two sides of the trade directly together.

Which US States Are Currently Supported By eToro?

All US residents can register and create a virtual portfolio (a demo account with $100,000 in virtual trading funds) with eToro for free.

However, as of April 2020, only residents from the following 40 states can deposit funds and open up real trading accounts:

Alabama Alaska Arizona
Arkansas California Colorado
Connecticut District of Columbia Florida
Georgia Idaho Indiana
Iowa Kansas Kentucky
Maine Maryland Massachusetts
Michigan Mississippi Missouri
Montana New Jersey New Mexico
North Dakota Ohio Oklahoma
Oregon Rhode Island South Carolina
South Dakota Texas Utah
Vermont Virginia Washington
West Virginia Wisconsin Wyoming

Opening an eToro Account

The process of opening up an account on eToro is seamless and fully digital.


etoro create account


Before you can start trading cryptocurrencies, you’ll need to verify your account with eToro. The standard KYC process requires you to provide a verified phone number, a government-issued ID, and a proof of address.

That being said, the account verification process on eToro is super fast. Users can normally deposit their first funds and start trading cryptocurrencies in less than 24 hours.

Deposit Methods On eToro

Deposits can only be made via online banking or through a wire transfer. eToro doesn’t accept debit or credit card deposits.

The minimum online banking deposit on eToro is $50, and the only fiat currency they accept is the US dollar.

The minimum wire transfer deposit is $500.

Deposits are normally settled within 24h, while withdrawals can take up to 7 days.

The minimum position size on a single trade is $25.

The maximum position sizes are limited on all crypto trades regardless of the account funding.

eToro Pricing & Transaction Fees

eToro is perfectly transparent with its pricing. The broker doesn’t charge any deposit fees or any other send/receive transaction fees except for the 0.1% fee on crypto-to-crypto conversions.

As a market-making crypto broker eToro makes mosts of its profits on trading fees in the form of spreads. In brokerage terms, a “spread” is the difference between the price users pay to brokers vs. the mid-market price of the asset.

Here’s a full list of spreads on all cryptocurrencies currently available for trading on the eToro USA platform:


etoro fees


Note: Spreads are always subject to change. As a rule, spread updates apply to already open positions. The costs generated from the spread are charged after positions are closed.

eToro Features

Make no mistake, the eToro USA cryptocurrency platform is geared mainly towards beginner level traders and investors.


etoro security features


The platform offers a clean, intuitive dashboard and a super simple trading experience. It doesn’t, however, provide any advanced charting tools, leverage, or much-preferred hedging options geared towards more professional traders.

The Global eToro multi-asset trading platform is renowned for its social trading features.

One of the biggest strengths of eToro is that it caters equally well to beginner traders that prefer the more hands-on approach of day-trading as well as to more laid-back, passive investors that prefer to hold the same positions for months or even years.

eToro recently rolled out the CopyTrader and CopyPortfolio features for the US-based clients.

How to Buy Bitcoin on eToro

1. Select a Cryptocurrency

After you create your account, select “Trade Markets” on the elft hand side and then choose “Buy” on the crypto you want to purchase.


how to buy bitcoin on etoro step 1


2. Fund Your Account

2.1 Input the amount of money you want to buy and select “Open Trade”. If you have already funded you account, you can skip to step 3.


how to buy bitcoin on etoro step 2


2.2 Select the amount you want to fund select “Link Bank Account”.


how to buy bitcoin on etoro step 2.2


2.3 Hit “Continue” on the prompt


how to buy bitcoin on etoro step 2.3


2.4 Select your bank


how to buy bitcoin on etoro step 2.4


2.5 Input your bank credentials to link your bank account to your etoro account. Hit “Submit”.


how to buy bitcoin on etoro step 2.5


2.6 You will be redirected to eToro. Select “Add Account”.


how to buy bitcoin on etoro step 2.6


3. Finish the Purchase

Select the bank acount you want to use to fund your account and select “Deposit”.


how to buy bitcoin on etoro step 3.1


Select “OK” on the pending deposit prompt.


how to buy bitcoin on etoro step 3.2

How to Trade Bitcoin on eToro

Choose a coin you want to trade

Select “Portfolio” on the left hand navigation bar.


etoro portfolio


Choose a coin and hit “Close All” if you want to sell all of your crypto or “Select Specific Position” if you only want to sell one coin.


etoro close position


What is eToro CopyTrading?

eToro is a great social trading platform where the active day/swing traders can read news and interact directly with other fellow traders from all around the world.

The platform also offers a CopyTrader feature, which allows customers to subscribe to professional traders and automatically copy their trades and strategies.

etoro copytrader
eToro's CopyTrader Dashboard

Users can see other trader’s rankings, past performance, and the number of users already subscribed to their profile.

For already successful traders, the CopyTrader feature is a great way to add another source of fairly passive income to their earnings. Popular Investors - as eToro calls them - can make significant amounts of money by managing other people’s funds.

An elite level popular investor with more than $500,000 in assets under management (AUM) can earn up to $1000 plus a 2% annual management fee on the AUM.

If you are already a professional trader or investor, you can find out more about eToro’s Popular Investor partnership program here.

CopyPortfolio

To investors favoring the more laid-back approach, eToro offers the CopyPortfolio feature that allows them to invest in fully-managed pre-set portfolios on various themes effortlessly.

etoro copyportfolio
eToro's CopyPortfolio Dashboard

The pre-set portfolios have various degrees of risk exposure and differ in the general theme they follow. For example, users can invest in pre-set portfolios that include only stocks from big tech firms or include only commodities or cryptocurrencies and so on.

In the US, clients currently have four CopyPortfolios to choose from:

  • CryptoEqual — which comprises leading large-cap cryptocurrencies at equal allocation.
  • CryptoPortfolio — which focuses on cryptocurrencies with a market cap of over $1 billion.
  • Crypto-currency — which focuses on Bitcoin and Ethereum.
  • TheTIE-LongOnly CopyPortfolio — which supposedly uses natural language processing tools to determine the market sentiment on social networks and then uses this data for algorithmic trading.

Each of the above CopyPortfolios is periodically rebalanced to realize maximum profit and efficiency.

Note: The minimum amount needed to invest in TheTIE-LongOnly CopyPortfolio is $2,000 and the minimum for CryptoEqual, CryptoPortfolio, and the Crypto-currency CopyPortfolios is $5,000. Copy Portfolios are similar to stock indexes on the traditional markets — they’re counted as single trades; investors can’t pick and choose the capital ratios or the composition of the underlying assets in the portfolio.

Can Users Spend Their Crypto Outside eToro?

Users can spend external payments or spend their cryptocurrency funds only if they withdraw the funds from the eToro platform to their eToro wallet.

It’s important to note that the eToroX wallet is a multi-sig custodian wallet. This means that users do not own their private key, but instead merely possess a password to a wallet that’s essentially controlled by eToro.

The #1 rule in crypto:

Not your keys — not your cryptocurrency.

etoro withdraw coins
Select "Withdraw" on left hand navigation and select the coin you want to withdraw. Select submit.

Does eToro Work in the UK?

Yes, eToro works in the UK. eToro even has its own UK corporation called eToro UK Ltd in order to make sure eToro’s platform complies with the UK’s Financial Conduct Authority (FCA) regulations. UK residents can utilize all of the same tools and features that other eToro users outside the UK can.

Customer Support

eToro’s customer support can at best be rated as average. The customer support is available 24 hours a day, but only five days a weak — Monday through Friday and only via live chat or ticketing.

etoro customer support

The support team can take up to 7 days to respond to customer complaints.

No 24/7 phone support means that eToro customers can’t resolve urgent matters promptly. This is a big no-no for professionals betting large sums of money on the markets.

eToro vs Plus 500

etoro sponsors club atletico

Like eToro, Plus 500 was founded in Israel.

Both platforms have an intuitive layout and allow for leveraged trading. While the fees differ on the two platforms, on average they about even out so that users who make multiple trades in different assets can probably expect to pay about the same on both platforms.

There are several differences between the platforms, however. Plus 500 begins to charge a monthly $10 inactivity fee after only three months. They don’t charge any withdrawal fees whereas eToro charges a $25 fee.

They also differ from eToro in that they provide a way to email customer support while eToro makes it difficult to talk to a representative. eToro may be a better fit for people who would like to do CopyTrading while Plus 500 is a better fit for traders who would like access to more markets.

Conclusion

Overall, eToro is an excellent brokerage platform — but only for beginners. The UI is simple, clean, intuitive, and easy to learn.

Everything from setting up the account to the first deposit, trade, and withdrawal is optimized for ease of use and not necessarily for performance.

Professional traders seeking better trading fees/spreads, more cryptocurrency and fiat pairs, more advances charting tools, and a faster and more reliable customer service should probably look elsewhere.

Rating: 4.5

eToro USA Alternatives


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CEX.IOCEX.IO Read Review

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Coinbase ProCoinbase Pro Read Review

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CoinbaseCoinbase Read Review

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CoinmamaCoinmama Read Review

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eToroeToro Read Review

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KrakenKraken Read Review

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LunoLuno Read Review

Luno is a Bitcoin broker that supports Europe, South Africa, Nigeria, Indoensia and Malaysia.