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eToro USAis a comprehensive investment platform that gives investors access to the stock and crypto markets. It provides simplified trading strategies, advanced tools and features, and community features.
Business Insider compared eToro USA to the best cryptocurrency exchanges and found its coin selection limited compared to other exchanges. That said, eToro stands out for its unique community-guided trading features.
Introduction to eToro USA
eToro USA is a community and social-focused investment platform for trading stocks, ETFs, and popular cryptocurrencies like Bitcoin and Ethereum.
US investors have three options: trade on their own, use eToro's CopyTrader™ system to mimic the portfolios of successful investors, or invest in one of its Smart Portfolios. Smart Portfolios are a blend of cryptocurrencies overseen by eToro and its partners.
The platform stands out for its community features, which let you see how experienced traders invest and even allow you to mimic their strategies.
However, CopyTrader is only available for crypto trades. Although eToro doesn't have a robo-advisor, beginners can benefit from eToro Academy, which offers investing guides and courses on options trading, crypto, blockchain, and ETFs.
Another downside is that some of eToro's advanced features are unavailable to US investors. This includes mutual funds, crypto-to-crypto trading, staking, CopyTrading for stocks and ETFs, and short selling.
If you're considering setting up an account, remember that eToro doesn't support US traders in New York, Minnesota, Nevada, or Hawaii.
How eToro USA Works
US-based investors can purchase stocks, ETFs, options, and cryptocurrencies on eToro USA.
Cryptocurrency Trading on eToro USA
With eToro USA eToro USA, you can directly invest in three cryptocurrencies: Bitcoin, Ethereum, and Bitcoin Cash. You can access more digital coins and tokens through a curated Smart Portfolio.
Users can securely store crypto assets with the eToro Money Wallet or use the platform's CopyTrader™ system to pull from the expertise of other advanced crypto traders.
Stock and ETF Trading on eToro USA
The eToro platform has more than 3500 fee-free stocks and fractional shares available for trading.
The platform also offers over 390 ETFs, including:
- Index ETFs: Exchange-traded funds that track the performance of certain sectors' performance.
- Dividend ETFs: For investors interested in earning dividend payments in exchange for holding certain stocks in their portfolios.
- Bond ETFs: A low-risk ETF option best for investors with risk tolerances of wither moderate or conservative.
- Commodity ETFs: A blend of different commodity assets, including physically backed funds, equity funds, CFDs, and exchange-traded notes (ETNs).
- Spot Bitcoin ETFs: For diversified indirect cryptocurrency exposure, invest in the iShares Bitcoin Trust (IBIT) and ARK 21Shares Bitcoin ETF (ARKB).
Copy trading on eToro
Through eToro USA's CopyTrader, you can mimic a top-performing trader's investment portfolio, allocate a set amount for copying the trader, and then click "copy." The minimum you can allocate is $200.
US clients can only copy other US clients' crypto portfolios. Although US traders are limited to the states, you can copy up to 100 other users simultaneously. The minimum amount to copy another trader is $200, but the maximum amount is $500,000.
Investors who meet eToro's criteria to become a "Popular Investor" can opt to have their portfolios copied by other eToro users in exchange for payments.
As part of the Copy Trading platform, eToro says US investors can also access SmartPortfolios for a $500 minimum and no management fees. These fully allocated crypto portfolios are based on a certain theme or strategy. Plus, eToro's Investment Team manages them for you, making them suitable for passive investors.
Options Trading on eToro
eToro USA offers an options trading app with access to leverage-based trading strategies, an incentive-based reward system, and no commissions or fees. You can earn up to 4.9% in interest on cash balances when you sign up for a cash program through eToro Options.
There's no minimum equity requirement to join, although eToro recommends having at least $500 in your account. You must also opt into eToro's Options High-Interest Cash Program and meet the risk tolerance and investment goal requirement at the point of registration.
Fees and Charges on eToro USA
You'll need at least $50 to get started with eToro USA. Stocks, options, fractional shares, and ETFs are commission-free. Crypto assets charge a 1% fee on trades in addition to the market price.
Enrolling in the cash program with eToro Options carries a monthly operational fee of $2, but this fee is waived for accounts of $5,000 or more.
There's a FINRA trading activity fee of $0.000119 per share for each sale (a maximum of $5.95 per trade), rounded to the nearest penny.
Pros and Cons of eToro USA
Let's review the benefits and disadvantages of investing with eToro USA.
Pros
- Low minimum requirements and trading fees
- Offers crypto, stocks, ETFs, fractional shares, options, and more
- eToro Acadamey guides and courses
- CopyTrader system
- Communal trading features
- Free virtual practice account
Cons
- Not available in all US states and territories
- Limited cryptocurrency selection
- Limited brokerage account options (no retirement savings accounts, joint accounts, or custodial accounts)
- Doesn't offer mutual funds or futures contracts
Trustworthiness and Security of eToro USA
Security features available through eToro USA include two-factor authentication, security alerts, and personal information guarded under SSL encryption software. US stocks are covered by SIPC insurance; cryptocurrencies are not.
The Better Business Bureau has given eToro USA an F rating for multiple unresolved customer complaints against the business (including resolved complaints) and recent government action.
In September 2024, the SEC claimed that eToro operated as an unregistered broker and clearing agency regarding its crypto assets as securities. The platform neither agreed nor denied these claims, but it did agree to a cease and desist order and a $1.5 million penalty.
In August 2023, the ASIC (Australia Market Regulator) sued eToro on charges of design and distribution obligation breaches. ASIC alleged that 20,000 retail traders were exposed to significant risk and harm because eToro's target market for CFDs was too broad. This lawsuit is still pending as the court proceeding continues to be postponed.
Google Play: 3.8/5
Apple Store: 4.4/5
How to Become a Popular Investor on eToro USA
To qualify as an eToro Popular Investor and earn monthly payments, you must:
- Be a fully verified user
- Follow all account requirements (full name, profile bio, etc.)
- Have at least $50 invested
- Meet a maximum risk score of 7
- Open or close a position in the last 30 days
- Have a minimum of 2 months of investing with a minimum of 1 open position
- Only hold crypto in your account
- Not be copying other users or SmartPortfolios
Payments are fixed per investor and paid monthly to your eToro account. You can also receive additional bonuses for advancing the ranks.
Twitter and eToro
Twitter and eToro partnered on April 13, 2023, to release a new investing feature on the popular social media platform. Twitter (now called X) will allow users to buy and sell various investments and other assets, such as stocks and bonds, through eToro. Users can also view market charts and other financial tools in real time.
You can view real-time pricing on various assets (including cryptocurrencies, stocks, and more). You can't actually buy or sell stocks directly on Twitter. Instead, the social media platform will direct you to eToro's site.
You can access eToro's site on Twitter by clicking the "view on eToro" button on the Twitter app.
eToro USA vs. Other Cryptocurrency Exchanges
Here's how eToro compares to similar crypto trading platforms.
eToro vs. Coinbase
*Coinbase is facing charges by the US Securities and Exchange Commission (SEC), which claims Coinbase broke securities rules. Coinbase denies these allegations and continues to push back despite a failed attempt to dismiss the SEC's claims.
eToro and Coinbase are both popular cryptocurrency exchanges offering various crypto products. However, the two platforms differ regarding fees, investment choices, and account features.
Coinbase offers hundreds of cryptocurrencies, making it the stronger option for crypto-focused investors as eToro USA is significantly more limited. Coinbase also provides numerous features for institutional clients like commerce, ventures, and crypto compliance services.
eToro is the better option for investing in more than just crypto, as it offers commission-free stocks, ETFs, and options. Moreover, hands-off investors can invest in eToro's pre-built SmartPortfolios and CopyTrader system.
eToro vs. Robinhood
eToro USA and Robinhood Investing were once entirely different platforms. eToro dominated the crypto space, while Robinhood offered a combination of stocks, ETFs, options, and cryptocurrencies.
But now that eToro USA offers stocks and ETFs, both platforms may appeal to those who want to diversify across various investment types. eToro has a larger cryptocurrency selection, so it's probably the best choice for traders who want more options.
Robinhood has a leg up on eToro by offering IRAs with up to a 3% match bonus. Compared to eToro, Robinhood is better for experienced active traders and retirement-focused individuals.
Methodology: How We Reviewed eToro
When reviewed eToro USA using Business Insider's rating methodology for rating investment products to compare pricing, investment selection, security, ethics, and overall customer experience.
Some investment platforms are best for beginners, while others are more suitable for more advanced investors. eToro was evaluated based on its performance in each category compared to similar platforms. We give each product a rating between 1 and 5.
Business Insider's eToro Rating
| Feature | Rating (out of 5) |
| Fees | 4.00 |
| Investment selection | 3.50 |
| Security | 3.50 |
| Ethics | 2.00 |
| Access | 3.50 |
| Customer service | 2.50 |
| Overall score | 3.22 |
eToro USA FAQs
One tool that makes eToro different from other trading platforms is that it offers a unique social trading feature called CopyTrading. This feature allows investors to mimic the trades of successful investors, fostering a community of learning and sharing while also providing beginners with the benefit of watching how experienced investors trade.
Yes. Your money will be safe with eToro since the investment app provides multiple security and trading features to protect account holders' personal information. eToro is equipped with encryption security measures that protect data transcriptions and adhere to strict regulatory standards.
Yes, you can trade cryptocurrencies on eToro. eToro USA offers 21 different cryptocurrencies, including bitcoin, ether, litecoin, and dogecoin. The platform also offers SmartPortfolio, which is a blend of cryptocurrencies aimed at matching certain themes or market sectors.
eToro's social trading feature allows users to observe trading behaviors from popular and successful investors within the eToro USA community. Other investors can then mimic these portfolios to match their trades. However, the CopyTrader system is only available for crypto portfolios.
There aren't many fees associated with trading on eToro USA since trades of stocks, fractional shares, options, and ETFs are commission-free. However, there is a 1% fee on crypto trades.
