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- Simple and clean UX for beginners
- Seamless account setup
- 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.
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
- Start trading fast; high limits
- Easy way for newcomers to get bitcoins
- Your capital is at risk.
- Best for Nigeria, South Africa, Indonesia, Malaysia
- East to use interface
- Trusted exchange
- High liquidity and buying limits
- Easy way for newcomers to get bitcoins
- "Instant Buy" option available with debit card
What Type Of Broker Is eToro?
eToro is a market maker broker using the Streight-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:
- District of Columbia
- New Jersey
- New Mexico
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington DC
- West Virginia
Opening an eToro Account
The process of opening up an account on eToro is seamless and fully digital.
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 or withdrawal 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:
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.
Make no mistake, the eToro USA cryptocurrency platform is geared mainly towards beginner level traders and investors.
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.
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.
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.
To investors favoring the more laid-back approach, eToro offers the CopyFunds feature that allows them to invest in fully-managed pre-set portfolios on various themes effortlessly.
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’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.
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.
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.
Review By: Jordan Tuwiner
eToro USA Alternatives
Bitpanda is a Bitcoin broker based in Austria. It offers a wide range of payment methods and has good prices.
CEX.IO allows for the buying of bitcoins for low fees via credit card. Customers can also purchase for free with bank transfers.
Coinbase Pro is an exchange run by San Franisco based Coinbase. It has been active since 2015 and supports Bitcoin, Litecoin, Ether and Bcash trading.
Coinbase, available to users in over 55 countries as of 2020, is the world's largest Bitcoin broker.
Coinmama is a bitcoin broker based in Israel. They specialize in selling bitcoins for credit card to nearly anyone in the world.
eToro is a trading platform that supports users from nearly any country. It supports Bitcoin, ethereum, litecoin, Zcash and many other coins.
Founded in 2011, Kraken is a cryptocurrency spot exchange that also offers futures contracts and margin trading.