eToro Logo

SIPC coverage:

 

Yes

FDIC insured:

 

Yes

Mobile app:

 

Yes

Account minimum:

 

$50 (for US-based users)

Editorial Rating

eToro Logo

Editorial Rating

eToro Review

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SIPC coverage:

 

Yes

FDIC insured:

 

Yes

Mobile app:

 

Yes

Account minimum:

 

$50 (for US-based users)

Account types:

 

Retail, Professional

Trading fees:

 

0.75% - 4.50%

eToro Logo

Editorial Rating

eToro is a multi-asset brokerage company that is currently most popular for its cryptocurrency trading options. Since beginning its US expansion in 2018, the platform has become popular among American crypto traders, although they still can’t exploit the full range of products and features. With the service’s gradual rollout stateside, interest increases. So, here we are with our comprehensive eToro review to help you decide whether this is your trades’ future home.

What Is eToro?

eToro is an international trading platform founded in 2007 with an impressive track record of developing and introducing new features. The company team is proud of its multi-asset trading service and tools like WebTrader and OpenBook. Other than this, the platform is also great for forex trading. Still, it goes without saying that in 2021, eToro crypto seems to be the most interesting to the general public.

How to Use eToro in the USA?

Here’s a brief eToro USA review:

Since the company has an office in the USA (as well as in Israel, Cyprus, the UK, and Australia), it’s legal to use this brokerage from 41 US states. For now, American traders are limited to crypto trading, but the company plans to open its full range of offerings in the near future.

To use eToro in the USA, you need to open an account. Just bear in mind that due to regulatory reasons, the service is unavailable to US citizens residing outside the country.

What Are the Account Requirements?

To register an account and join the family of eToro traders, you should follow several simple steps. First, you need to submit your personal information, including your full name, username, email, and phone number. Second, you’ll have to upload an image of a passport or an ID card. You also need to confirm your residence with a valid utility bill from the last six months.

How to Start Trading?

To start trading, you need to deposit a minimum amount to your account. The first-time deposits vary by country. For eToro USA, it’s just $50. Yet, for Israeli users, this figure is as high as $10,000. Corporate account holders also deposit a minimum of $10,000.

It’s also worth noting that you may want to use online banking for your initial investment as all deposits via bank transfer should be at least $500.

What Can You Trade?

eToro’s tradable categories are:

  • Currencies
  • Commodities
  • ETFs
  • Indices
  • Cryptocurrencies
  • Stocks

The platform even provides access to shares in some of the world’s largest companies. If you wonder how to buy Google stock, just look for the GOOG ticker symbol or Alphabet Inc, the search engine’s parent company. Still, as noted in most eToro reviews, equity investors, especially US-based, should consider one of the specialized online stock brokers.

At the moment, eToro doesn’t support options trading.

What Tools Are Available?

For your eToro trading to be successful, you will have to use a plethora of different tools. Most commonly, these tools support technical analysis, automated orders, and social interaction.

eToro is renowned for its CopyTrader System and Popular Investor Program. The former enables you to see what other users are trading in real-time. A feature of eToro’s social investment network OpenBook, the CopyTrader System also allows you to find and follow traders you like and copy their portfolios and actions.

Suppose you rise to the top in the OpenBook community and meet certain performance criteria. In that case, you can join the Popular Investors Program and earn an additional income from traders mirroring your investment strategy.

How Does the Platform Work?

Almost every eToro trading review usually ends up being a review of its flagship product OpenBook. As mentioned above, this feature allows you to follow other traders. Through a simple crypto trade, you can invest in a portfolio of cryptocurrencies. A far more advanced trading platform is the eToroX, which provides direct access to assets.

Is There a Client Portal?

The eToro USA API portal is still in its alpha stage. It’s also primarily oriented toward professional and corporate traders.

eToro Fees

The next thing worth delving into is the eToro fees. They are vastly different for the US and non-US users.

For instance:

  • Depending on the traded cryptocurrency, the fee for US customers is between 0.75% and 4.50%.
  • The spread depends on the coin. For instance, the eToro Bitcoin (BTC) spread is 0.75%, while Ethereum’s (ETH) is 1.95%.
  • The inactivity fee is $10 per year (once the account inactivity exceeds 12 months).
  • There is a minimum withdrawal amount of $30 (outside the US, there is a $5 withdrawal fee).
  • The fee for transferring cryptocurrencies outside eToro to your own wallet depends on the coin.

eToro Mobile App

The next relevant aspect of our thorough analysis is the eToro app review. The company’s mobile wallet supports both iOS and Android, which gives it a larger potential audience. The app allows for an accurate and reliable trade, making it arguably a contender for the title of the best crypto app. Yet, there are a couple of pitfalls.

The first downside of eToro Wallet is that it’s a custodial app, which means that the user isn’t really controlling the funds. The mobile app’s second drawback is more or less situational. There is limited coin support on the app (compared to eToro.com). If you plan to trade in these coins, it might turn out to be a significant disadvantage.

eToro Customer Service

The next thing worth covering in this eToro review is the vendor’s customer service. Since we’re currently experiencing a new wave of interest in crypto trading, the platform’s helpline seems to be overwhelmed. This is why it may take assistance staff up to 14 days to respond via email.

For those who have a pressing matter to discuss, like those experiencing (or just afraid of) eToro scams, there’s a live chat option available. The platform also has a well-organized help center, which allows users to find the answer they’re looking for on their own.

eToro Alternatives

People often turn to eToro reviews to figure out whether this is the right trading website for them. We’re here to help you get a reliable and accurate reference point. Check how eToro faces off against some of its competitors:

eToro vs Coinbase

The only way to make a fair comparison between these two platforms is to state from the very start that they focus on different things. For instance, eToro copy trading feature is unparalleled, while Coinbase specializes in buying cryptocurrencies with Fiat funds.

Also, Coinbase offers superior customer service, even though it has a much larger number of users. The advantage of eToro, on the other hand, is that it supports more cryptocurrencies. It also enables EUR deposits (not just USD like Coinbase does).

eToro vs Robinhood

When examining eToro charts and comparing them to Robinhood’s, it’s evident that the latter is superior in terms of fees. While eToro stocks trading is commission-free, the company charges per spread for ETFs and cryptocurrencies. Robinhood offers all these services at zero commission fee.

On the other hand, Robinhood lags behind in terms of education, tools, and customer support. Not to mention that it will take Robinhood a while to regain the trust of its users after the GameStop scandal. The impact of this was such that its position as one of the best day trading platforms is seriously shaken.

eToro vs Trading212

The biggest con that eToro trade has compared to Trading212 is its complex pricing structure with spreads, overnight crypto fees and different prices for different countries.

Some also argue that eToro has a higher margin loss, but this phenomenon is much simpler to explain than you would expect. The majority of eToro’s users are trading in crypto, which is quite a volatile market. Despite eToro warning their users, this still isn’t enough to make up for this fact.

eToro vs Interactive Brokers

When looking at the statistics, these two platforms are fairly similar. The biggest eToro bonus seems to lie in the fact that it allows physical and CFD cryptocurrency trading, as well as social and copy trading. These features are absent from the Interactive Brokers platform.

Interactive Brokers has been in the business for longer and has more Tier-1 licenses (six compared to eToro’s two). The platform has a lower percentage of retail CFD accounts that lose money (66% compared to eToro’s 75%).

Wrap Up

To sum up our eToro review, let’s say that the platform is a great choice for those interested in copying the trading strategies of their most successful counterparts. The platform has its downsides like complex commissions and fees, as well as subpar customer service. Still, in terms of available cryptocurrency trading options, tools and resources, eToro is second to none.

Pros

  • Low minimum deposit
  • Access to eToro Wallet
  • Social trading and copy trading options
  • Beginner-friendly crypto-trading platform

Cons

  • Inactivity fee
  • Complex pricing structure
  • Withdrawal fee (for non-US citizens)
  • US Traders are limited to crypto trade
eToro Logo

Editorial Rating

FAQ

Is eToro available in the US?

The eToro US platform is available in 41 states but with limited service availability. The company is in the midst of a gradual expansion, with plans to introduce more trading options and features to American users.

Can I use eToro in the USA?

eToro for USA residents is limited to crypto trading. Nonetheless, they probably have the most favorable terms. American traders pay a minimum deposit of only $50 (staggeringly low compared to other regions), and they’re not subject to the $5 withdrawal fee applicable to peers from other regions.

Is eToro legit?

Yes, eToro is a licensed and registered brokerage. Respective regulatory bodies oversee the company in Europe, the UK, and the USA.

Can you make money with eToro?

Yes. But making money with eToro is a question of having a good strategy, using the tools, and making all the right investment decisions. Yet, it’s worth mentioning that the percentage of eToro retail CFD accounts that lose money is unusually high at 75%.

Is eToro trustworthy?

There are no valid claims that would mark an eToro scam. The company operates in accordance with FCA, CySEC, and ASIC regulations to ensure its investors are protected at all times.

Is eToro good for beginners?

Yes, eToro is good for beginners mainly due to its specialty in social trading. This feature allows novice investors to learn by copying their more successful/experienced counterparts. Educational material is also vast and helpful. The platform itself is quite intuitive.

Is eToro really free?

Registering is completely free. As mentioned in our eToro review, the first-time deposit isn’t the same for every country. For the US, the minimum first-time deposit is just $50, which is close to the industry’s record low.