eToro USA Review
eToro USA is about as as easy and convenient as it gets when it comes to cryptocurrency trading. It's a shame however that the full eToro platform for stock trading and more isn't available in the USA.
Pros:
  • Incredibly easy to use
  • Trade major cryptos and store in wallets
  • CopyTrading makes it easy to copy best traders
Cons:
  • USA version only supports crypto trading
  • CopyTrading limited to traders in US
80%Overall Score

Disclaimer: Transacting in virtual currencies is subject to various risks, such as price volatility, and is therefore not suitable for everyone. Cryptoassets are volatile instruments which can fluctuate widely in a very short time frame and, therefore, are not appropriate for all traders. Other than via CFDs, trading cryptoassets is unregulated and, therefore, is not supervised by any regulatory framework. Your capital is at risk.

eToro started over 10 years ago but due to strict trading laws on stock trading, it’s only recently that it’s finally available in the USA.

At the moment, it’s only available for cryptocurrency trading in the US but it plans to open-up the full stock trading platform in 2020.

The global version of eToro already has 10 million users worldwide in 140 different countries and has been in fintech since way back in 2007.

eToro launched its cryptocurrency trading platform in the past year and offers long-only cryptocurrency trading in 15 major currencies (and counting) in 40 different states.

It also conveniently has its own secure cryptocurrency wallet which means you can trade and save your funds on the same platform.

In this review of eToro USA, we look at what it currently offers to users in the US.

Please note that MacHow2 may sometimes earn compensation from clicks.

Is eToro Legit?

Because it’s very accessible, even to those without trading experience, one of the first questions people ask about eToro is whether it’s a scam or not?

Quite simply, eToro is trustworthy because it’s subject to all the strict financial regulations that other financial services are.

eToro is legit and is fully licensed in multiple US States. eToro has become a registered broker in the USA and regulated by both the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA).

In other parts of the world, it is regulated in Europe by the Cyprus Securities and Exchange Commission (CySec) and in the UK by the Financial Conduct Authority (FCA).

eToro has even been featured by the Financial Times as one of its Top 10 Financial Companies to watch so it’s safe to say, that eToro is definitely legit and trading with it is as secure as any other stock trading platform.

However, it’s also important to be aware that in the specific world of cryptos, there is still no regulatory framework like there is for traditional stocks although that may eventually change as cryptos become more mainstream.

It’s also true that eToro won’t allow you to withdraw funds until your identity has been fully verified. This requires sending copies of your ID and other information and it may take some time before your identity is checked.

Which Parts Of eToro Are Available In The USA?

At the moment, eToro only offers crypto-currency trading in the USA.

This might sound surprising in the home of Wall Street but its due to strict regulations on what’s known as “CFDs” (Contract For Difference) in the US.

This applies to all trading and gambling platforms in the US like eToro that use spreads and you can read more about why it affects US users only in this Forbes article.

For the moment, you’ll also see that certain features are disabled. Some buttons are grayed out (such as the option to open SELL trades) and you can’t comment on the News Feed for example.

Please note however that eToro is not available in all US States yet.

Specifically, it’s currently available in Massachusetts, Pennsylvania, Utah, Wisconsin, Indiana, Missouri, Maryland, Michigan, Colorado, New Jersey, South Carolina, Washington, Virgina, Arizona, Ohio, Georgia, Iowa, Mississippi, Alaska, New Mexico, North Dakota, South Dakota, Arkansas, Maine, Oklahoma, Rhode Island, Kentucky, Montana, Wyoming, California, Oregon, Vermont, Alabama, Kansas, Connecticut, Washington DC, Florida, Texas, Idaho, Northern Marianas and the US Minor Is.

What Are The Highlights Of eToro?

Some of the benefits of using eToro for crypto-trading include:

  • Ability to use eToro’s own crypto wallet. This is much more convenient than having to use an external crypto currency wallet.
  • The worldwide version of eToro has been in the crypto-currency trading business since 2013 so the US version has benefited from that experience and know how.
  • The eToro platform is secure and has never been subject to hacks or security breaches.
  • Crypto trading is very easy to understand on eToro compared to other crypto trading sites and services.
  • There’s a 15 major crypto currencies available to trade with with more being added.
  • eToro will automatically diversify your crypto basket to make sure you’re getting a balanced portfolio – especially important in the volatile world of cryptos.
  • eToro doesn’t allow you to leverage trades to prevent you losing more than you’ve invested.
  • Hedging trades is not possible
  • You can test trade on eToro with a $100,000 virtual currency account.
  • You only need to make a minimum deposit of $50
  • You can trade with a minimum position for any single trade fixed at $25
  • Limits are imposed on maximum position taken to reduce systemic risk

How Much Does eToro Cost?

You can sign-up to trade with eToro for free and you only need a minimum deposit of $50 to start trading with.

eToro doesn’t charge any commissions on trades. Rather, it makes its money through spreads.

The spreads in general are slightly higher on eToro than many other platforms although they are still competitive and on the upside, there are no other hidden fees.

Cryptocurrency trading spreads start at 0.75% of trade value for Bitcoin/USD pair.

etoro usa review - crypto spreads

What Can You Trade On eToro USA?

At the moment, the US version of eToro only allows you to trade cryptos. However, this will change in the future when the platform is completely opened-up.

At the moment you can trade the following cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Ripple, Dash, Ethereum Classic, Litecoin, Cardano, IOTA, Stellar, EOS, NEO, Tezos, Tron and ZCASH.

As the number of crytpo currencies increases, eToro will gradually add the most popular ones.

eToro has its own cryptocurrency wallet which makes it easy to store and transfer profits from trading. You can convert between two currencies on the fly and receive transfers from other wallets.

etoro crypto wallet

You can withdraw and add funds easily into any bank account via wire transfer and the minimum withdrawal is $50.

eToro’s crypto wallet is also regulated by the Gibraltar Financial Services Commission for extra security and is securely encrypted.

eToro CopyTrader

One of the best features of eToro is the CopyTrader system which allows you to copy successful traders without needing any trading knowledge.

etoro usa - copytrader

In the global version of eToro, you can copy traders from anywhere in the world although in the USA version, you can only copy traders in the USA.

eToro also has mobile apps for iOS and Android which allow you to copy trade anywhere or just keep and eye on your investments.

etoro us version - mobile app

If you have any problems, eToro customer support is available via live chat or ticketing 24 hours a day but only Monday to Friday.

For a more in-depth look at the fully functioning global platform, check out our other eToro review to get an idea of what’s coming to eToro USA soon.

You can sign-up for a free eToro USA account here to try it for yourself.

Disclaimer: Transacting in virtual currencies is subject to various risks, such as price volatility, and is therefore not suitable for everyone. Cryptoassets are volatile instruments which can fluctuate widely in a very short time frame and, therefore, are not appropriate for all traders. Other than via CFDs, trading cryptoassets is unregulated and, therefore, is not supervised by any regulatory framework. Your capital is at risk.

About The Author

MacHow2
Author

MacHow2 is devoted to helping you get the most of of your Mac. We're passionate about all things Mac whether it's helping users with software recommendations or solving technical problems. If you've got any comments about this article, get involved by leaving a comment below. You can also contact us directly using the contact form at the top of the site. Please note that in the interests of transparency, MacHow2 may sometimes receive compensation from link clicks or vendors.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe to MacHow2!

Get notified when new articles are published and for special offers on Mac software.

error:

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close