App & Software

e Tora USA: complete review 2022

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

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

If you are not in the United States, regardless of whether you are a citizen of the US or another country, you will need to find another option. Fortunately, eToro is huge and offers services in many countries around the world.

eToro USA Review: General Overview

eToro USA, which is regulated by the SEC, is a good social copy trading broker for US traders. Asset selection is limited, but they provide commission-free access to many blue-chip stocks and popular ETFs. EA and scalping are prohibited so not ideal for day traders or crypto investors due to limited selection and high spread.

Apart from these key points, you should note that apart from cryptos, stocks and ETFs, no other asset types are currently allowed to be offered. This means no futures or other derivatives at this time. Although no negative balance protection is offered, this is not important as all assets are traded as real. Importantly, eToro holds traders’ funds in segregated bank accounts. This makes it impossible to lose more than you deposit with the broker.

Problems and advantages with eToro USA


Some of the main concerns you may have, especially as a more experienced trader using eToro USA, is that they do not have a large selection of assets available. That’s less than 2,000, and while that may not seem like much, it’s less than some competitors.

This lack of assets causes the side problem of limited assets and signal providers to copy trade from as they cannot trade forex and other assets.


Of course, the advantages of eToro USA far outweigh any disadvantages. As is common with eToro, they also remain super affordable with a low minimum deposit and even in the US they continue to dominate as the best social trading platform.

Additionally, while copy services may be somewhat limited by a lack of assets, they still prove to be excellent and on par with most competitors in the US market.

eToro USA: Here’s Who May Face Trading Restrictions

As mentioned, you may face some restrictions based on your location even within the US. In order to assess them, we should keep in mind that eToro USA offers 3 types of assets. Cryptocurrencies, stocks and ETFs.

Now in some US states, stocks and ETFs are not available as of January 2021. These states are Delaware, Hawaii, Nevada, New Hampshire, New York and Tennessee.

Additionally, even if you are a US citizen based outside the country, eToro’s US subsidiary cannot offer you any services due to regulatory requirements. Again, if this is the case for you, you should definitely check out our main eToro review for other options that may be available to you.

Is eToro legal in the US? Is it regulated in the US?

eToro is legally authorized to offer financial services in the US. eToro USA LLC is registered with FinCEN and has been offering cryptocurrencies since 2018. On August 4, 2020, it received an SEC order (#8-70212) and opened an office in Hoboken.

eToro USA Exchange Review: Commission-Free Stock Alternative

When it comes to stock brokerage, there are actually a number of positive points to discuss if you are interested in trading stocks. The first is the fact that eToro is world famous and well regulated by the SEC in the United States.

Although they have a relatively small number of stocks and ETFs that you can trade, about 950 in total, they are tradeable without commission. This is a great plus and provides you with an absolutely top-notch trading environment. If you want to know more about their business model, you can read our article on how etoro makes money on the lowdown.

Unfortunately, they don’t offer after-hours or pre-market trading, but you can trade fractional shares for as little as $50, making stock investing through a broker extremely affordable. You will also have access to a wide range of educational content along with many expert opinions on the platform to provide insight and assistance.

In most US states, you will then have access to a total of 17 stock indexes with stocks from around the world. This selection includes the NASDAQ, SPX, 13 major European exchanges and markets as wide as Saudi Arabia and even Hong Kong’s Hang Seng.

As a stock scalper, eToro is not for you as they do not allow this strategy and the offer is somewhat limited anyway, but apart from this small drawback, they are a really excellent choice if you want to trade shares of the world’s leading companies. best possible prices.

eToro USA Cryptocurrency Review: A Valid Crypto Exchange Alternative?

Talking about the availability of cryptocurrencies, on the positive side we can say that partial investment in cryptocurrencies is possible. This means you can start with as little as $10. On the other hand, there are also only a limited number of cryptocurrencies to choose from and you will have to deal with higher spreads that go up from 1%. If you want to know more about their spread-based business model, you can read our article on how etoro makes money on the lowdown.

On the other hand, you will be able to look at the fundamental analysis of many crypto assets, many of which are compiled by industry experts. On the other hand, there are higher spreads as we mentioned. These start from 1% on BTC but can go up to 5% for some currencies depending on volatility.

Social trading platform eToro USA

One of the best points about eToro worldwide is their strength when it comes to social trading. In this regard, they do an excellent job of offering their own trading platform that is extremely user-friendly and available as a web or mobile app.

A number of copy trading features, such as the ability to copy and communicate with other traders, are built into the platform even at the demo account level, although they are not always available in all US states. If these features are not available in your country, they will appear as grayed-out boxes.

Tools are also available through the platform to help you with the all-important task of risk management, such as the ability to set stop losses and take profitable positions. In addition, you will have access to a wide range of chart analysis tools and functions.

eToro US Mobile Platform (iOS and Android)

On mobile devices, the eToro USA platform is just as powerful as you will find in the webtrader version. All the same features and the same layout are available. The only minor 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 via the App Store or Play Store depending on your device.

eToro USA Security

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

Money and customer protection

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

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

eToro US Account Types

There are two different types of accounts, a practice account and a real account. Here’s a detailed look at both:

eToro US practice account

A practice account, otherwise known as a demo account, is the ideal place to start. A demo account with eToro is unlimited and all you need to register is your email address, password, username and phone number.

There is absolutely no obligation to open an account with real money when trading with a demo account and trading is completely risk-free as you have access to $100,000 in virtual funds.

Signing up is completely free and you can check out our eToro demo account review for more information.

Real eToro USA account

Once you are ready to start trading for real, your only option is to trade on a real account. It comes with a minimum required deposit of $50. This will be enough for you to start trading.

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

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