eToro USA Review
eToro USA Review: eToro, established in 2007, is a social trading and investing platform aiming to make financial markets accessible to all.
Led by founders Yoni Assia and Ronen Assia, the platform fosters a global community, emphasizing shared knowledge and investor education. With a user-friendly interface and 0% commission on stocks and other assets, eToro enables investors to engage socially, learn from others, and build confidence to invest in cryptocurrencies, stocks, ETFs, and options.
Key features include a diverse marketplace, CopyTrader™ for automated replication of successful investors' moves, and a risk-free virtual portfolio for learning. The platform prioritizes security, segregates cash, and upholds privacy. With industry-leading security systems, segregated cash, and a commitment to privacy, eToro ensures a trusted and secure environment for millions of investors from over 100 countries.
Advantages of using eToro USA
Diverse Asset Portfolio: eToro bridges the gap between traditional and modern investing, allowing users to trade equities, ETFs, and a variety of leading cryptocurrencies. The platform's fractional shares feature facilitates easy diversification in US stocks with zero commissions and no trading volume limits for select customers.
CopyTrader™ and Smart Portfolios: eToro's innovative features like CopyTrader™ allow users to replicate the strategies of successful investors in real-time at no extra cost. Smart Portfolios, designed for crypto assets, offer ready-made investment portfolios based on predetermined market strategies.
Virtual Portfolio for Practice: eToro offers a risk-free environment for newcomers with a virtual portfolio of $100,000. This allows users to practice investing in real-time before committing actual funds, enhancing their confidence and understanding of the platform.
Regulatory Compliance: eToro's commitment to regulatory compliance is evident through adherence to FINRA and SEC regulations. Security measures like SSL encryption and Two-Factor Authentication (2FA) are implemented to protect users' funds and personal information.
Community-Driven Approach: eToro's vision since its founding in 2007 revolves around creating a global community of over 35 million registered users. This community facilitates the sharing of investment strategies, fostering a collaborative environment for learning and idea exchange.
Crypto Trading with Security: eToro stands out in the crypto space by providing a secure and regulated environment for investing in a wide range of cryptocurrencies. The eToro Money crypto wallet offers an added layer of security for storing digital assets.
Transparency and Verification: eToro promotes transparency by encouraging users to share real names and pictures, ensuring visibility into each client's relevant data, such as gain percentage and risk score. The platform's strict verification process adds an extra layer of security.
Recognition by Credible Sources: The platform's recognition by top-tier outlets like CNBC, TechCrunch, and The Telegraph attests to its legitimacy and success in the fintech industry. This external validation reinforces eToro's position as a trustworthy investment platform.
eToro USA at a Glance
eToro USA serves two types of Traders
New Traders
eToro is a suitable platform for beginners with its user-friendly interface, emphasis on simplicity, and access to popular investment options. The platform offers various features such as smart portfolios, social trading, and copy trading to cater to different preferences.
Account opening is quick and digital, and educational materials are provided, including a demo account for practice.
Experienced Traders
The CopyTrader and Popular Investor programs allow users to replicate the strategies of leading experienced traders, with no participation fees. Traders can apply to become Popular Investors themselves, earning compensation as they advance through the program's tiers.
The platform also functions as a robo-advisor for cryptocurrencies through Smart Portfolios, and an option trading interest of 4.9%.
Other Benefits of using eToro USA
Exclusive eToro Club Benefits: Experience a tailored financial journey with eToro Club. From tiered benefits starting at $5,000 to $250,000, enjoy perks like live webinars, premium subscriptions, VIP events, and the exclusive Crypto Cashback program.
4.9% Annual Interest: eToro USA provides a unique advantage by offering a 4.9% annual interest on cash balances, allowing traders to capitalize on market trends and earn additional returns on idle funds.
Global ESG Trends: eToro USA places a spotlight on Environmental, Social, and Governance (ESG) considerations, offering ESG scores for over 2,000 assets. With a user-friendly approach and daily updates, the platform enables investors to make informed and sustainable investment decisions aligned with global ESG trends.
🦅eToro USA FAQs
How to use eToro in the USA?
To use eToro in the USA:
Open an account by providing the necessary information and verifying your email.
Verify your email address through your account settings.
Complete your profile by adding personal details, including your Social Security Number.
Verify your phone number for enhanced account security.
If automatic verification fails, submit proof of identity, proof of address, and Social Security Number card.
Deposit by logging in, clicking 'Deposit Funds,' and selecting your preferred payment method.
Follow these steps to start your investment journey on eToro in the USA.
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
What states is eToro available in?
eToro is operational in the United States and welcomes residents from nearly every state, including Alabama, California, Texas, and more, with the option for users in unsupported states to register and access a virtual portfolio while awaiting full availability.
It's essential to be aware that eToro is not currently available in specific locations like American Samoa, Guam, Hawaii, Nevada, New York, Puerto Rico, and the US Virgin Islands. The platform's availability in certain states is subject to updates, and notifications will be sent when it becomes available.
What are the fees on eToro for US users?
Stocks and ETFs:
Commission Fees: 0% - No commission charges for buying or selling stocks.
Regulatory Transaction Fees: Covered by eToro upon selling a stock.
Options Trading:
Commission and Contract Fees: 0% - No commission or contract fees for US options trading.
Processing Fees: Possible processing fees charged by the clearing firm for certain services.
Regulatory Trading Fees:
National Regulator Fee: $5.10 per $1,000,000 of principal traded on sells only.
FINRA Trading Activity Fee (Options): $0.002 per contract for each sale of an option.
FINRA Trading Activity Fee (Equities): $0.000119 per share for each sale of a covered equity security, capped at $5.95 per trade.
Options Regulatory Fee (ORF Fee): $0.02905 per contract.
LQT Fee: $0.02 per contract.
Crypto Trading:
Buying or Selling Crypto Fee: 1% - A transparent fee applied to the market price for buying or selling cryptoassets.
Transfer Fees: Refer to the eToro website for information on cryptoasset transfer fees and limits.
Deposits and Withdrawals:
Deposit and Withdrawal Fees: $0 - eToro USA LLC does not charge fees on deposits or withdrawals.
Bank Charges: Check with your bank as they may charge fees to receive funds, depending on the payment method.
Spread Impact on Investments:
Spread Definition: The difference between the buy and sell prices.
Example: If a customer buys $1,000 of a cryptoasset at the buy price of $100, they will own 10 coins. Selling immediately at the sell price of $98 results in a loss of $20 due to the spread.
CopyTrader:
CopyTrader Fees: $0 - No extra fees to copy another trader.
Crypto CopyTrader: Regular trading fees apply for cryptoassets when using CopyTrader.
How to deposit funds on eToro USA?
To deposit funds on eToro USA, follow these steps for a seamless transaction:
Navigate to the Deposit Section:
Begin by logging into your eToro USA account. On the left-hand navigation panel, locate the "Deposit Funds" button at the bottom.
Specify Deposit Amount:
Once you've clicked on "Deposit Funds," you'll be prompted to specify the amount you wish to deposit. Ensure the amount meets the minimum requirement for your chosen payment method.
Choose Payment Method:
eToro USA provides three payment methods for users in the United States. Select your preferred method from the following options:
Debit Card:
Minimum: $100
Maximum: $40,000 per transaction
Processing Time: Instantly
Bank Account:
Minimum: $100
Maximum: $10,000 per day
Processing Time: Instantly
PayPal (Bank Account or PayPal Balance Only):
Minimum: $100
Maximum: $10,000 per transaction
Processing Time: Instantly
Wire Transfer:
Minimum: $500
Maximum: $1,000,000 per transaction
Processing Time: Four to seven business days
Note: Wire transfers are temporarily unavailable due to a vendor switch. Please use alternative payment methods during this period.
Enter Payment Information:
After selecting your payment method, enter the necessary information. For debit card transactions, provide card details; for bank transfers, input relevant account details. If using PayPal, ensure it's linked to either your bank account or PayPal balance.
Confirm Transaction:
Review your deposit details to ensure accuracy. Once satisfied, proceed to confirm the transaction.
Monitor Account Balance:
After you complete the transaction, please keep in mind your eToro account balance. Deposits through debit cards, bank accounts, or PayPal should reflect instantly, while wire transfers may take a few business days.
Linking a Bank Account on eToro for Online Banking is optional (Easier for future deposits)
To link your bank account for online banking on eToro:
Log in, select "Deposit Funds," and choose "Bank account."
Link your account by entering credentials and completing the process.
Future transactions can use the linked account.
Withdrawals are restricted for the first 7 days post-deposit.
Ensure the bank account name matches the eToro account name.
For US users, the minimum deposit is $10, maximum is $10,000 per day. Use a debit card if the bank is not listed.
How to withdraw money from eToro in the USA?
To withdraw funds from your eToro investment account in the USA, you have several options available. Please note that your eToro account must be verified to complete the withdrawal process.
1. Withdrawal via eToro Platform:
Navigate to the Withdraw Funds tab in the left-hand menu on the eToro platform.
Enter the withdrawal amount (with a minimum of $30) and complete the required steps.
Your funds should reach your bank account within a few business days, depending on your bank. You can track the withdrawal status on your withdrawal dashboard.
2. Wire Transfer:
For wire transfers, please follow these steps:
Provide the correct ABA (fed-wire eligible) routing number and account details.
If prompted during the withdrawal process, fill out the relevant information for wire transfer.
Ensure the bank account is under the same name as your eToro account.
Note that eToro USA LLC does not charge fees on wire transfers, but your bank might.
Funds deposited via online banking cannot be withdrawn until 7 days after the deposit was made.
Withdrawn funds via wire transfer usually arrive within 7 business days.
3. Withdrawal from eToro Options Account:
If you have an eToro Options account, follow these steps:
Navigate to Settings in the eToro Options App.
Click on Withdraw Money.
Once your withdrawal request is approved, it will take 1-3 business days for the funds to appear in your bank account.
Additional Notes:
Funds invested in open positions cannot be withdrawn; withdrawals come from your available balance.
In some cases, wire transfer instructions may be required for security reasons or due to restrictions from your bank.
Withdrawal processing times may vary, but funds typically clear within a few business days.
For users in the USA, withdrawals might take up to 7 business days, depending on your bank and payment method.
What assets can I trade on eToro USA?
On eToro USA, you can trade a variety of assets, including cryptocurrencies, with access to a secure crypto wallet. The platform offers over 3,271 stocks with zero-commission trading and fractional shares. ETFs are also available for portfolio diversification. eToro provides a risk-free virtual portfolio of $100,000 for new users to practice trading. Noteworthy features include CopyTrader™ and Smart Portfolios, currently limited to crypto assets but with plans to expand to stocks and ETFs.
eToro USA Promo
The eToro USA Promo offers a $10 crypto bonus to eligible new users in the US who open an eToro investment account and complete the verification process. The bonus, available for select cryptocurrencies, is automatically credited upon verification, appearing in the portfolio and account history. Users can choose from 9 cryptocurrencies, and the bonus can be managed like a regular trade.