Profile
eToro USA is a FINRA and SEC-registered broker-dealer offering commission-free stock trading and cryptocurrency investing to U.S. residents. Unlike its European counterpart, eToro USA does not offer CFDs, forex, or copy trading for regulatory reasons. Instead, it focuses on providing a simplified gateway to real asset investing with a strong emphasis on social interaction and user engagement. This eToro USA review covers its regulatory compliance, execution model, tradable instruments, fees, platforms, and investor protections under U.S. jurisdiction.
Regulation and Security
eToro USA LLC is registered with the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC). Cryptocurrency operations are handled by eToro USA’s affiliate, which is registered with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB).
Client securities are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 (including $250,000 for cash claims) in the event of broker failure. Cryptocurrency assets, however, are not SIPC insured. eToro USA uses custodians like Apex Clearing for brokerage assets and third-party custodians for digital asset storage.
Execution Model
eToro USA operates a market agency model for equities, where orders are routed to market makers or exchanges via clearing partners like Apex. It uses a Payment for Order Flow (PFOF) model, which may influence order routing but complies with SEC best execution guidelines. Cryptocurrency transactions are processed by eToro’s crypto affiliate and executed internally.
There is no CFD trading, leverage, or margin account functionality available on the platform. All assets are traded as real, underlying securities or tokens.
Platforms and Tools
eToro USA offers a unified proprietary web platform and mobile app designed for simplicity and social engagement. Key platform features include:
- Real asset stock and crypto trading
- News feeds and social commenting on each asset
- Watchlists, real-time price alerts, and market overviews
- Beginner-friendly interface without complex charting or tools
Advanced tools such as trading APIs, MetaTrader, or algorithmic strategy support are not available. All trading is manual and discretionary.
Supported Instruments
eToro USA supports a limited range of asset classes compared to its global counterparts. Current offerings include:
- U.S. equities (NYSE, NASDAQ listed)
- Cryptocurrencies (BTC, ETH, ADA, DOGE, SOL, etc.)
No support is provided for forex, indices, ETFs, mutual funds, options, or commodities. CopyTrader and Smart Portfolios are also unavailable in the U.S. due to regulatory restrictions.
Account Types and Fees
All users are offered a standard taxable brokerage account. No retirement accounts (e.g., IRAs) or institutional accounts are available. Fee structure includes:
- Stocks: 0% commission on buy and sell trades
- Cryptos: 1% fee per transaction (charged both on buy and sell)
- No monthly platform fees or minimum balance
Accounts are denominated in USD only. eToro USA does not offer leverage or short selling. Order types include market and limit orders only. Stop-loss and take-profit functionality is not supported at this time.
Retail and Institutional Features
eToro USA is strictly a retail-focused platform. It does not cater to high-frequency traders, hedge funds, or institutions. There is no FIX API, prime brokerage access, or custom execution infrastructure. However, retail investors benefit from:
- Commission-free equity investing
- Crypto exposure with low minimums
- Social feed and asset-based discussion
- SIPC protection for securities accounts
Client Protection and Transparency
eToro USA ensures high regulatory standards under U.S. law:
- Registered with FINRA and SEC for securities
- FinCEN registration for cryptocurrency compliance
- SIPC protection up to $500,000 for brokerage accounts
- Separate custodians for equity and crypto assets
eToro USA publishes key disclosures, fee schedules, order routing practices, and financial statements via its platform and official filings. Crypto assets are stored in cold wallets using institutional-grade security practices but are not federally insured.
Base Currencies, Order Types, and API Access
Only USD is supported as a base currency. Deposits are accepted via ACH and debit card, with no fees. Supported order types include:
- Market orders
- Limit orders
There is no access to stop-loss, trailing stop, GTC, or OCO orders. eToro USA does not provide API access or integration with third-party trading tools or aggregators.
Pros and Cons
- Pros:
- FINRA and SEC regulated broker-dealer
- Commission-free U.S. stock trading
- Crypto trading with transparent fee structure
- Simple, social trading interface
- SIPC protection for securities accounts
- Cons:
- No copy trading or Smart Portfolios in the U.S.
- No support for forex, CFDs, or ETFs
- Limited order types and no advanced tools
- Crypto not protected by SIPC
- No margin trading or short selling
Frequently Asked Questions
Is eToro USA a regulated broker?
Yes. eToro USA is a registered broker-dealer with the SEC and a FINRA member. It also complies with FinCEN requirements for crypto trading as a Money Services Business (MSB).
Can I trade forex or CFDs on eToro USA?
No. Due to U.S. regulations, eToro USA does not offer forex trading, CFDs, or leveraged products. Only real stocks and cryptocurrencies are supported.
What cryptocurrencies can I trade on eToro USA?
Supported cryptos include Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), Dogecoin (DOGE), and others. The full list is available on the platform.
Does eToro USA offer copy trading?
No. The CopyTrader and Smart Portfolio features are not available in the U.S. due to regulatory limitations.
Are my assets protected with eToro USA?
Equity assets are SIPC-insured up to $500,000. Cryptocurrency assets are not insured, but are secured via cold storage and third-party custodians.
