eToro makes it possible for American citizens to trade cryptocurrencies and become part of social trading. You may have heard about this platform as it used to win the 2020 contest among trading services for its simplicity. The users simply copy the trades of each other. eToro offers more than 1,900 tools for trading.
This broker is active since 2007, and it comes from Israel. Today, it serves people from 140+ countries. Initially, it used to be a graphics-intensive MarketFX platform. The brokerage basically deals with CFDs on the most known cryptocurrencies, but it is also possible to trade some other assets. Traders outside the United States can also use eToro to trade, for example, stocks.
Perhaps, the most obvious gap of eToro is pricing. If you chose regular CFDs and MarketFx spot trading, this broker is more expensive than many other market players. It will suit you only in case you prefer to trade high volumes. Except for the standard features, this broker has original research opportunities for social trading. It is easy to conduct a market analysis with the help of its instruments.
In general, the platform looks like a website with graphs and tables that display financial tools and an intuitive interface. As for the main advantages, those who have already tested eToro name:
Minimized dependency on banks and other traditional financial organizations;
Security – the funds are well-protected by the top industry security protocols;
Credibility and safety – In 2007, Fintech has called it the leader in terms of reliability, and the status has not changed since then;
Strict privacy and confidentiality policies.
Though this list of pros is impressive, you may still hesitate. Perhaps, we have to pay attention to the question of security more.
Is It Safe to Trade Using eToro?
Unlike many other brokers, this one is regulated and officially licensed. For CFDs, it is one of the best and safest options. The broker is also associated with low risks. The Financial Conduct Authority (FCA) monitors and controls the activity of eToro. The company comes from the United States and has an office in the UK too, and it isn’t publicly traded and doesn’t operate a bank. The overall trust score is 91/99.
Not all US residents can trade. In states like Illinois, Minnesota, and Nebraska, it is only possible to register to obtain an account. Those who live in Hawaii, Guam, and American Samoa cannot use eToro at all. As for the rest of the US, it is not necessary to be a guru of trading. Those who possess at least an elementary understanding of Marketfx and cryptocurrency can use eToro. Also, they canceled the annoying withdrawal fee in the United States. We can say that this broker is safe and licensed, but some of the cons are:
High MarketFx fees
A single account-based currency
Withdrawing funds is a rather slow process
Anyway, we have more to tell about eToro before you decide whether it suits you or not.
What Makes eToro Stand out from Other Similar Platforms?
The biggest advantage that may catch an eye from the first usage is the variety of investment and trading tools and opportunities. Because of the multiple options, traders can benefit from the same platform for their crypto needs as for other assets.
The supported cryptocurrencies might look limited. However, the platform was initially created to support only the most popular, time-tested coins. You can still trade:
- Ethereum Classic
- Bitcoin Cash
One more thing that will catch your eye for sure is the range of social elements. eToro was the one to invent the possibility to copy the investments of successful users. Another cool feature is CopyPortfolios. It is a long-term investment in the shape of portfolio bundling assets that the owner can easily manage. The platform also recommends the most effective trading strategies, so one can learn a lot when using it.
It is simple and quick to collect the best ideas for trading using eToro. One more unique feature is a Mobile wallet application that serves as a custodian with a multiple-signature scheme. It is close to the corresponding marketfx mobile app.
Finally, it is all about the stunning research options. Except for an economic calendar and news headlines that you can find almost everywhere, this broker also offers opportunities for tech and fundamental analysis. With the addition of TipRanks, research functions in eToro became even more exciting. To start research, insert the dates and time zone that you are interested in. The calendar will show the events that can possibly impact your assets.
After you sign up, your virtual account will be set up with $100,000. It is a nice way to train before investing real money. If you are a retail trader interested in crowdsourcing investment ideas with the help of copy-trading or sharing effective financial tips with others, eToro might be the right option for you. Also, it will work for you if you’re a high-volume trader.
|Registered Address||1 Canada Square 24th Floor Canary Wharf London UK, E14 5AB|
|Centro comercial Moctezuma||Market Maker|
|Regulation/Licensing||Financial Conduct Authority (FCA) in the UK Australian Securities and Investments Commission (ASIC) Cyprus Securities and Exchange Commission (CySEC)|
|Accepted Jurisdictions||Over 60 countries in Europe and beyond|
|Assets Offered||Cryptocurrencies, ETFs, Stocks, Indices, Commodities, Currencies|
|Platforms Available||Web, Mobile|
|Mobile Compatibility||iOS, Android|
|Payment Types Accepted||Wire transfer, major credit cards, PayPal, Skrill, WebMoney, GiroPay, Yandex Money|