eToro USA Review

eToro.com is a reputable trading platform, famous in the social trading industry. In 2018, the brand decided to conquer the US market and launched the local brand there. First, the company functioned solely as a crypto trading broker. Yet, later it added other items to its list of tradeable assets. Therefore, now it offers stocks and ETF trading as well. 

With a history dating back to 2007, eToro has amassed a large user base across more than 140 countries. When cryptocurrency emerged, the brand used a unique chance to enter the American market.

One of its key features is CopyTrader, the social trading tool and a proprietary product of the project. It allows novices to repeat trades from top traders with just a few clicks. Thus, the tool offers a fresh approach to this asset class.

This guide aims to provide a comprehensive eToro review to help traders make informed decisions.

eToro offers trading services across many regions worldwide including the USA

eToro USA Tradable Assets

Note that the list of assets mentioned here is relevant only at the time of writing. In time, eToro USA may start supporting more items.

• Stocks

  Users can invest in 2.089 stocks offered by the company. The list includes Netflix, Google, Facebook, Microsoft, American Express, and Amazon. Also, it is possible to trade Adobe, Disney, Tesla, McDonalds, Apple, Nike, Spotify, Ebay, Johnson & Johnson, etc.

• ETFs

  eToro USA provides access to a diverse selection of 269 ETFs. These ETFs cover various asset classes and markets. Thus, they offer investors to choose from a wide range of investment opportunities.

• Crypto

  On eToro USA, users can invest in 24 crypto assets. The list includes Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Dash, and many others.

Please note that the above securities were correct as at the time of publication.
Since then it is likely the above list has evolved.

How Much Leverage does eToro USA provide?

The eToro platform does not offer leverage trading options for its users in the USA. The service doesn't give any clear comments on this restriction on its website. However, the most probable cause is the complicated regulatory landscape in the USA when such risky trading is concerned.

Does eToro USA accept US clients?

Is eToro USA regulated and are my funds protected?

The platform is regulated by US regulators FINRA, SIPC, and FCA.

eToro USA LLC is registered as a Money Services Business with FinCEN. The last one is a government bureau administered by the US Department of the Treasury. Also, the company holds licenses to conduct business in almost all the states with a few exceptions. The platform cannot operate in American Samoa, Guam, Hawaii, Minnesota, Nevada, New York, Puerto Rico, and US Virgin Islands.

The SIPC (Securities Investor Protection Corporation) insurance covers the US stocks or options that users hold in their eToro USA accounts. This is a nonprofit corporation established by Congress to provide limited protection to investors in the event of a brokerage firm's failure. Also, customers' cash is protected by FDIC insurance for up to $250,000 per depositor.

Account Opening

To open an eToro USA account, you should follow the following steps.

First, visit the eToro USA website and find the "Join Now" page. Provide the needed information on this page o create an account. Choose a username, enter your email address, and set a secure password. Also, you can sign up via Facebook or Google.

Next, read and review eToro's Terms and Conditions, Privacy Policy, and Cookie Policy. Make sure that all is clear and that you agree to these policies. After that, click on the "Create Account" button.

Finally, check your email inbox to look for a message from eToro USA. Open the email and click on the verification link to confirm and activate your eToro account. After that, you will be able to freely log in to your eToro USA account and explore the eToro service and its features.

It's possible to open an account on eToro USA with just a few clicks of a mouse

eToro USA account types

On eToro USA, there are different account types, each offering unique functionality and benefits. Also, it is worth mentioning eToro Club membership in this context. It is an ongoing loyalty program created to enhance the trading experience of valued clients. 

The program provides various services and tools to enhance the trading experience. Membership is automatic for clients with a tier balance of at least $5,000. There are five levels: Silver, Gold, Platinum, Platinum+, and Diamond. As it usually happens, each level offers additional rewards based on your tier balance. 

For example, silver members get access to market webinars, Smart Portfolios, partner apps, and a dedicated Customer Success Agent. Simultaneously, gold members receive the same benefits plus expert market analysis updates. Platinum members enjoy exemption from withdrawal fees, access to a top-tier digital publication, and more. Next, platinum+ members receive all benefits mentioned above plus access to special events. Finally, Diamond members receive all of the above, along with premium digital publication access and exclusive invitations to Diamond events.

Account Closing Process

To close your account on eToro USA, follow these steps.

Log in to your eToro USA account and go to the Account Settings page. Click on the self-service account closure link at the bottom to start the closure process. Ensure that you have closed all open positions and withdrawn all the funds. 

The scheme slightly varies for eToro Options account. Ensure that you have a $0 balance. Also, make sure to cover any remaining negative balances. Once you do that, contact eToro USA by creating a ticket to request the closure of your eToro Options account. eToro’s team will review your request and complete the closing procedure.

Features

eToro USA is known for its community features allowing users to copy investing strategies of other experts. In particular, the CopyTrader feature is the core asset that sets this broker apart. New traders find it convenient to follow others with just a few clicks. 

At the same time, the process is quite user-friendly. You just need to find a trader to copy, allocate an amount, and confirm the action. Interestingly, you can copy up to 100 traders at once. Also, it’s worth mentioning that CopyTrader calculates position sizes automatically, but it lacks specific risk management options. However, a stop-loss feature is available, and users can pause or cancel the copy feature anytime they want.

Another unique feature is the Popular Investor Program designed for community growth. It rewards traders who create their own networks of followers, as they increase their trading volume in this way. The program has four tiers and provides more revenue streams for well-followed traders, even with small deposits. Thus, eToro USA offers monetary incentives to its community members.

Besides, the platform features the eToro Club, which provides traders with research and analytics data. However, only users with gold status and higher get access to it. Thus, they can unlock it when the value of their assets exceeds 10,000 USD. 

eToro USA offers the following features to meet the requirements of its customers:

• Trading. To help its users improve the decision-making process, the platform offers a watchlist and news feed.
• Portfolio overview. With eToro USA, there is a chart that shows your portfolio and helps to focus in the right way.
• Loyalty program. As it usually happens, it serves to reward loyal users within the eToro club.
• Social trading. The company has developed CopyTrader to help its community members share their ideas and tactics with each other. 
• Chart Analysis. In the past, eToro USA offered its own chart design. However, in March 2023, it released an upgrade where it implemented the TradingView charts into its workflow. Thus,  eToro USA users now have access to state-of-the-art charts integrated with an intuitive user interface

Commission and charges

Usability

The uncluttered eToro USA design and features provide a great user-friendly experience. The in-house team does its best to provide a sleek design and simple interface. Opening an account is a matter of several minutes. The process is clear as well as trading and other features.

How to place a trade

To open a trade, follow these steps:

First, choose an instrument you want to trade. Next, select the desired investment amount and confirm the trade to proceed. When opening a trade, you have the option to toggle between "Amount" and "Units" to specify the investment value or the number of units you want to purchase. 

Finally, the Open Trade window will display essential information about your position. Thus, you will see the number of units based on the current asset price, the percentage of your total equity allocated to the trade, and the associated exposure.

The trading interface on eToro USA is user-friendly and convenient

Does eToro USA Offer Demo Accounts?

Users can engage in risk-free trading through the demo account. With a virtual portfolio of $100,000, they can practice trading stocks, ETFs, and cryptos. This is a basic value-added service for eToro USA. Students can discuss trading with pros, gain insights into strategies, and enhance their financial skills. The demo account helps users to learn about the markets and build confidence in their trading abilities without the fear of actual capital loss.

What Are eToro USA's Opening Hours?

Concerning the NASDAQ exchange, the market opens on Monday at 16:30, and closes on Friday at 23:00. Also, consider the daily break from 23:00 to 16:30. The same open hours apply to the NYSE exchange.

Stocks and ETFs

The US stock markets usually operate from 9:30 am to 4:00 pm ET on normal working days (Monday to Friday). However, on bank holidays, the markets may either be closed fully or have reduced trading hours which reduces stock trading possibilities.

Crypto 24/7

Crypto markets are open at all times, as trading is available to all US users around the clock. Please, note that crypto trading may sometimes be temporarily disabled due to market volatility or planned maintenance works.

Customer Services

On eToro USA, the Support Hub serves as a one-stop spot for all clients’ service needs. It helps to track open tickets, access records of solved issues, search for answers in the knowledge base, and submit questions directly to the members of the team.

Make sure you visit the page of a Help Center with a FAQ section before you submit a request to customer support. There you can find answers to common questions and gain helpful insights.

Does eToro USA Provide Mobile Trading?

eToro USA has a helpful mobile app that offers the same set of features that is has the full desktop version of its website. While ome of its rivals prefer limited features for ease of use, eToro USA stands out by offering an array of advanced solutions to meet the needs of traders. One can download the app for free on eToro's website, in the Google Play Store for Android devices, and in the Apple App Store for iOS devices.

Does eToro USA Provide Trading Education?

eToro Academy is an educational platform designed to help users enhance their trading knowledge and skills. Thus, it offers a range of educational resources and tools to empower traders at all levels, from beginners to experienced investors.

The eToro Academy offers various learning materials, including articles, videos, tutorials, courses, and webinars. The content covers a wide range of topics related to trading and investing. Traders can explore specific topics of interest and develop a deeper insight into various trading tactics with its help. Besides, eToro Academy offers a social trading aspect, which allows users to interact with other traders, ask questions, and share information within the eToro community. 

The eToro Academy provides numerous educational materials to help users get a better understanding of the trading process

Frequently Asked Questions (FAQs)

Is eToro USA regulated?

Yes, the platform is regulated by US regulators FINRA and SIPC. 

Since the platform operates in other regions as well, it is also controlled by appropriate regulators such as the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC).

Does eToro USA offer leverage?

No, eToro USA doesn’t offer leverage. The most likely reason is the complicated regulation of such risky trading activities in the US.

Is my money protected?

Since the company is regulated by SIPC, it provides a certain level of protection for your investments. SIPC membership indicates that the broker has met certain regulatory requirements and participates in the SIPC protection program.

Does eToro USA provide a swap-free account?

Yes, eToro USA provides a swap-free or Islamic account (no Riba). 

Is eToro USA a market maker?

Yes, eToro USA is a market maker. However, it follows an STP-NDD hybrid model. It means that the platform acts as an intermediary between forex and traders and makes money from losing positions.

Conclusion

In conclusion, it’s worth saying that eToro USA is a reputable and user-friendly trading platform that offers a wide range of financial instruments. With its innovative social trading features, users can learn from experienced traders and even copy their trades. A low entry threshold enables trading and investing with a relatively small initial investment. Thus, it is possible to start small and grow your portfolio at your own pace.

The platform's intuitive interface, comprehensive educational resources, and demo account make it suitable for both beginners and experienced traders. While eToro's fees may not be the lowest in the market, its unique features, such as the CopyTrading system and the eToro Club loyalty program, provide added value. Overall, eToro USA is a reliable choice for individuals looking to enter the world of online trading and investing.