eToro USA: Complete Review 2021

Filippo Ucchino Last Updated: January 2021 15 min read

The very first thing to point out with eToro USA and US forex brokers, in general, is that they cannot offer services to any trader who is based outside the USA.

For this reason, you must be in the US to open an account with the US entity of eToro.

If you are not in the United States no matter if you are a US or non-US citizen, then you will have to look for another choice. Luckily, eToro is huge and offers services in many countries worldwide.

To learn more about the worldwide offering outside eToro USA, you should read our main eToro Review which is valid for any other country outside the United States.

Table of contents

What type of trader are you?

Newbie Trader?
Expert Trader?

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Virtual currencies are highly volatile. Your capital is at risk.

eToro USA Review: General Overview

eToro USA, which is SEC regulated, is a good social-copy trading broker for US traders. The asset selection is limited but they provide access to many blue-chip stocks and popular ETFs with no commission. EAs and scalping are prohibited so they are not perfect for day traders or crypto investors due to the limited choice and a high spread.

Aside from those key points, you should note that except for crypto, stocks, and ETFs, no other asset types are currently allowed to be offered. This means no futures or other derivatives for the moment. Also, although negative balance protection is not offered, this is not important since all assets are traded as real. What matters is that eToro holds traders’ funds into Segregated bank accounts. This makes it impossible to lose more than you deposit at the broker.

Problems and Advantages with eToro USA

Problems

Some of the main concerns you may have, particularly as a more experienced trader using eToro USA is that they do not have a great selection of assets available. This is less than 2,000 and while it may not seem a small number, it is less than some competitors.

This lack of assets causes the knock-on issue of having a limited number of assets and signal providers to copy trade from since they can’t trade forex and other assets.

Advantages

Of course, the advantages of eToro USA far outweigh any drawbacks. They likely have the lowest costs in the entire industry when it comes to stocks. No commissions or fees at all are charged. As is common with eToro they also remain super accessible with a low minimum deposit, and even in the USA, they continue to dominate as the best social trading platform.

Furthermore, while the copy trading services may be limited somewhat by a lack of assets, they still prove to be excellent and well on the level of most competitors in the American market.

Can you use eToro in the USA?

American citizens can use eToro to trade real cryptocurrencies, stocks, and ETFs. Only those based in Delaware, Hawaii, Nevada, New Hampshire, New York, and Tennessee may face some limitations. US Citizens and non-citizens outside the US cannot open an eToro USA account but can register with an alternative eToro subsidiary in their area.

The table below charts the exact availability of eToro for United States residents by location:

Area Is it Available?
United States of America Yes
United States of America Minor Outlying Islands Yes
Delaware No
Hawaii No
Nevada No
New Hampshire No
New York No
Tennessee No

eToro USA: Here’s who may face trading limitations

As mentioned, you may face some restrictions based on your location even within the US. To assess these we should remember that eToro USA offers 3 types of assets. Cryptocurrencies, stocks, and ETFs.

Now, in some US states, neither stocks nor ETFs are available as of January 2021. These states are Delaware, Hawaii, Nevada, New Hampshire, New York, and Tennessee.

Furthermore, even if you are a US citizen based outside the country, the US Subsidiary of eToro cannot offer you any services due to regulatory requirements. Again though, if this is the case, you should be sure to check our main eToro review for other options that may be available to you.

Is eToro legal in the USA? Is it Regulated in the US?

eToro is legally allowed to offer financial services in the USA. eToro USA LLC has been registered with the FinCEN and offered cryptocurrencies since 2018. On Aug 4th, 2020 they obtained SEC regulation (#8-70212) and opened an office in Hoboken. This enabled the addition of real stocks and ETFs trading.

etoro usa

eToro USA Stockbroking Review: The free stocks alternative

When it comes to stockbroking, there are in fact a number of positive points to discuss if you are interested in trading stocks. First among these is the fact eToro is world-renowned and well-regulated by the SEC in the United States.

Although they have a relatively small number of stocks and ETFs for you to trade, about 950 in total, they are tradable with no commission or fees whatsoever. This is a great plus and provides you a totally top value trading environment. If you want to know more about their business model, you can read our article on how does etoro make money for the lowdown.

Unfortunately, they do not provide trading in the after-hours or pre-market but you can trade in fractional stocks with as little as $50 which makes stock investing extremely accessible through the broker. You will also have access to a great range of educational content alongside many expert views on the platform to provide insight and help.

You will have access then, in most US states to a total of 17 stock indices with shares from around the world. This selection includes the NASDAQ, SPX, 13 major European exchanges, and markets as broad as in Saudi Arabia and even the Hang Seng in Hong Kong.

As a stock scalper, eToro is not for you since they don’t allow this strategy, and the offering is somewhat limited anyway, but aside from that small drawback, they are a really excellent choice if you want to trade top global company stocks at the best possible prices.

eToro USA Stockbroking Pros and Cons

Pros

  • No commissions whatsoever are charged
  • Many of the major trading markets are taken care of
  • Expert analysis is available for free in many markets

Cons

  • There is not a wide variety of different stocks available beyond the major companies
  • No pre-market or after-hours trading is available
  • Scalping is not permitted by the broker.

What type of trader are you?

Newbie Trader?
Expert Trader?

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Virtual currencies are highly volatile. Your capital is at risk.

eToro USA Crypto review: A valid crypto-exchange alternative?

Talking about crypto availability, on the positive side we can say that fractional crypt investment is possible. This means you can get started with as little as $25. The crypto you trade, just like the stocks and ETFs is also real so you own the asset itself. On the other hand, there are also just a limited number of cryptos to choose from, and you will have to deal with higher spreads that pick up from 0.75%.

eToro USA may not be the perfect crypto broker. Good variety though is available for those already stock trading as an alternative to dedicated crypto exchanges. Real ownership of the underlying cryptocurrency is an appealing point to many with this broker.

 If you would like to get started buying crypto, then all you need to do is buy it through the platform which is very easy to use and user-friendly for traders of all levels. You can also transfer your crypto to the eToroX wallet if you would like to use them outside eToro or just for storage. You can read more about this in our eToro Wallet Review (eToroX).

On the upside, you will be able to take a look at fundamental analysis on many of the crypto assets too with many of these compiled by industry experts. On the other hand, there are higher spreads here as we mentioned. These start from 0.75% on BTC but can reach as much as 5% on some currencies depending on volatility.

Here is a look at all of the cryptos made available from eToro to the US Crypto Traders:

Ticker Name Spreads
BTC Bitcoin 0,75%
ETH Etherum 1,90%
BHC Bitcoin Cash 1,90%
XRP Ripple 2,45%
DASH Dash 2,90%
LTC Litecoin 1,90%
ETC Etherum Classic 1,90%
ADA Cardano 2,90%
MIOTA Iota 4,50%
XLM Stellar 2,45%
EOS Eos 2,90%
NEO Neo 1,90%
TRX Tron 3,50%
ZEC ZCash 3,50%
BNB Binance Coin 2,45%
XTZ Tezos 5,00%

eToro USA Crypto Review Pros and Cons

Pros

  • You have two places available to store your crypto, either one the platform or in your wallet
  • Access to free fundamental analysis is provided
  • The service is very accessible with a minimum starting point of just $25

Cons

  • The spreads do start from a relatively high point
  • There are only a small number of cryptos available to choose from

What type of trader are you?

Newbie Trader?
Expert Trader?

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Virtual currencies are highly volatile. Your capital is at risk.

eToro USA Social Trading Platform

One of the best points about eToro all around the world is their power when it comes to social trading. In this respect, they do an excellent job in offering their proprietary trading platform which is extremely user-friendly and available as web-based or on mobile app.

A range of copy trading features like the ability to copy and interact with other traders are built into the platform even at the demo account level although they are not always available in every US state. If these features are not available in your state, they will appear as greyed out boxes.

Tools are also available through the platform to help with the all-important task of risk management like the ability to set stop losses and take profit positions. Added to that, you will have access to a solid range of charting analysis tools and features.

etoro usa app

eToro USA Mobile Platform (iOS and Android)

On mobile, the eToro USA platform is just as powerful as you will find through the webtrader version. All of the same features, as well as the same layout, are made available. The only slight difference and limitation you may notice is the availability of charting tools. This is more limited in the mobile app.

The app itself is available on both iOS and Android devices and can be downloaded through your App Store or Play Store depending on your device.

eToro USA vs Other US Brokers

If you are still not sure if eToro is a perfect choice, here we show you a few different selections and details on each as a US trader:

Minimum Deposit Forex Stocks Crypto Margin Trading
eToro USA $50 No Yes Yes Yes
Forex.com $50 Yes Yes Yes Yes
IG Markets USA $250 Yes Yes Yes Yes

What type of trader are you?

Newbie Trader?
Expert Trader?

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Virtual currencies are highly volatile. Your capital is at risk.

eToro USA Security

As a trader with any broker, security is always a top priority. To that end, Here are some things to expect from how eToro USA works to keep you safe and secure:

Money and Customer Protection

First and foremost, all of your funds deposited will be held in segregated accounts. This means the broker has no direct access to use your funds for anything other than your trading. Although there is no negative balance protection offered, this is not really required since all the assets are traded as real with eToro USA. This means there is never an opportunity for your balance to be negative since there is also no leverage.

The broker is very well regulated by the SEC who takes a proactive approach and can be contacted at any time if you do have a security concern around the broker.

eToro USA Costs & Accounts

Let’s take a closer look at the different account types and any associated costs you can expect to encounter when trading at eToro USA. Some of these costs can be avoided if you achieve a high etoro club membership level.

eToro USA Account Types

There are two distinct account types available, the practice, and the real account. Here is a detailed look at both:

eToro USA Practice Account

A practice account, otherwise known as a demo account, is the perfect place for you to get started. The demo account with eToro is unlimited and all you need to get signed up is your email address, password, username, and phone number.

There is absolutely no obligation to open a real money account if you are trading with a demo account and the trading is totally without risk since you have access to $100,000 in virtual funds.

It’s completely free to sign up and you can check our eToro Demo Account review for more information.

eToro USA Real Account

Once you are ready to get started with real trading you have the one real account trading choice. This covers crypto, stocks, and ETFs and comes with a minimum deposit amount of $50 required. This will be enough to get you started in trading.

When opening a real account, the process is still an easy and fast one. You will though need to confirm your identity and address for security purposes and regulatory requirements. This should be a smooth process and you can read all about it in our eToro account verification guide.

eToro USA Minimum Deposit: Is it worth it?

A minimum deposit of $50 is in place at eToro if you fund through internet banking. This amount increases to $500 if funded through wire transfer. There is a limit of $10,000 per day that can be deposited but overall this is a very low minimum deposit amount and makes the broker accessible.

If you are getting started with an eToro demo account you will be pleased to note these are free to open and use as well as unlimited in duration. When considering that eToro is one of the most trusted names in the industry with excellent features and combining to offer a unique and good value approach to trading real stocks and crypto as well as social-copy trading, then we can say it is certainly worth it.

eToro USA Accepted Payment Methods

At present, there are 2 deposit methods available if you are starting out at eToro. The first of these is an electronic transfer from your bank using online banking. It typically takes up to 3 business days to process.

Domestic wire transfers are also available for making your deposit and these tend to take 4-7 business days. You should note that if you make a deposit via online banking, you cannot withdraw again until at least 6 days after you have made your deposit.

From the broker side, there are no fees on deposits, though you should check with your own bank on any processing fees they may apply.

eToro USA Withdrawals

When it comes to withdrawals, you can expect a $5 flat fee from eToro and there is a minimum withdrawal amount of $25 that you need to be aware of. Withdrawal methods are the same as those available for your deposit and typically take up to 5 business days to complete.

For more information and in-depth detail about making a withdrawal, you can check out our eToro Withdrawals guide.

Account Base Currency

Only the US Dollar is available as an account base currency with eToro. What this means is that if you deposit in any currency other than USD, you will have to pay a small conversion fee. The same applies to making withdrawals.

eToro USA Fees

While eToro does a great job in remaining almost entirely fee-free for US Traders, there are still some to consider.

Inactivity fee

eToro does charge an inactivity fee. This is a monthly fee of $10 though it will only be charged if you are inactive for a period of 12-months or more. It will not be charged once you become active again.

What type of trader are you?

Newbie Trader?
Expert Trader?

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Virtual currencies are highly volatile. Your capital is at risk.

eToro USA Trading Features

eToro operates an STP/NDD model. This means fast execution of your trades with no interference from the broker.

Also, since they deal only in real assets of crypto, stocks, and ETFs at the moment, no leverage is offered when trading with the US subsidiary of eToro.

etoro us platform

eToro USA Education and Support

Finally, an area that can be of great importance when choosing a broker to trade with, and have a big impact on your trading experience, is education and customer support. Here is how eToro US looks on that front:

Languages

Both English and Spanish languages are fully supported by the trading broker. Other languages are also available which you can check out directly with the broker.

Research

eToro has a number of features available to help you get the best possible insight when it comes to the available markets and conducting research. As mentioned earlier, the platform does provide for fundamental analysis and market research from a number of analysts and industry experts that you can access free of charge. This is regularly updated on a daily basis.

You will also find a very helpful eToro blog that is often updated with insightful articles and guides as well as a detailed economic calendar that keeps you in the loop on the most important economic events daily.

Customer Support

Top-level customer support is available from eToro in several ways. You can contact the support team through email, telephone, or web-based live chat. You are sure to receive a fast and professional reply from a knowledgeable support agent particularly during the opening hours of the market.

What type of trader are you?

Newbie Trader?
Expert Trader?

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Virtual currencies are highly volatile. Your capital is at risk.

eToro USA FAQs

Is eToro prohibited in the USA?

Absolutely not. eToro has operated in the US since 2018, and further improved its regulatory situation in 2020 obtaining SEC certification which is the highest form of regulation possible for a broker in the United States. Add to that, they are and always have been fully compliant with all regulations.

Is eToro legal in Georgia USA?

If you are based in the US State of Georgia, then you can use eToro. Georgia does not prohibit or restrict your use of eToro at all.

Why can’t I use eToro USA?

eToro USA is restricted to US residents only for regulatory reasons. If you do not live in the US, you can still open an account with other eToro subsidiaries depending on where you live.



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