The social investing and trading platform eToro announced that it will finally be launching its platform in the U.S. The platform, which already operates in more than 140 countries, will be available in 30 states and two territories with plans to expand elsewhere in the U.S. after receiving the necessary regulatory sign-offs.
The U.S. platform will only support trading for crypto assets at launch, but eToro plans to add additional asset classes within the next 12 months. In eToro’s existing markets, the company’s 10 million-plus users are able to trade and hold more than 1,500 different asset classes and markets, including stocks, bonds, cryptocurrencies, fiat currencies, commodities and more.
Though eToro even supports more advanced trading strategies — including short-selling and the use of leverage — the platform’s transparency and community engagement features act as great tools for beginners to learn the capital markets and learn how to trade.
EToro is equal parts trading platform, social network and educational resource. Anyone who signs up for eToro can see, comment and copy the trading activity of everyone else on the network, as well as their realized returns and losses to date (though only on a percentage basis to protect sensitive financial information). While learning from the strategies of their peers, users can opt to invest with virtual currency to practice and effectively train before actually risking their own money.
Alternatively, based on a trader’s track record, other users can choose to mimic their portfolio through eToro’s “CopyTrader” feature, which not only proportionally allocates funds to match the trader’s portfolio but can also automatically make any trade the copied investor makes. On top of that, members are also able to share, comment on, engage with or follow specific users, assets or markets — allowing them to participate in the latest debate and news regarding their particular area of interest.
Despite being limited to crypto at launch, almost all the same features available in eToro’s existing geographical markets will be available in the U.S. And alongside its trading platform, the company is launching its digital multi-signature eToro wallet, where users can store, send and receive multiple coins across a multitude of cryptocurrencies.
Using their eToro accounts, U.S. users can now transfer cryptocurrencies to and from their trading account and can easily convert between them, as well. The wallet initially will support Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple and Stellar for U.S. users, but the company plans to make additional currencies available in the near future.
EToro users can make transactions and share trading activities and portfolio performance with the community, allowing users to discuss ideas that are executed using real dollars
The expansion plan, however, doesn’t come without risk. EToro is entering a competitive marketplace — alongside other popular trading platforms like Coinbase and Robinhood — and is launching its crypto-only version in the midst of “crypto winter,” where widespread weakness has plagued the sector.
Part of the strategy is attributable to the fact that crypto is a lighter lift from a licensing perspective relative to other asset classes in the strict and highly fragmented U.S. regulatory environment. But eToro’s launch strategy is also firmly rooted in the company’s belief in the immense market opportunity that exists with the tokenization of assets.
“We think [the tokenization of assets] is a bigger opportunity than the internet and we have to be in the U.S. when it happens, given it’s the financial hub in the world,” eToro founder and CEO Yoni Assia said in a conversation with TechCrunch.
EToro is taking a long-term view with its strategy and isn’t thrown by the current crypto weakness. Assia equated the market softness to the dot-com bubble, where despite the crash, the internet still permeated and disrupted the economy in the long run. And just like with the internet, Assia and eToro believe there will be more than enough room for multiple winners in the broader crypto ecosystem.
The company was the first platform in its markets to support Ethereum and Ripple, and believes that as similar currencies and the next generation of investors mature, eToro will be there to support them wherever they are in whatever way they need.
“When I founded eToro, I envisioned a community where people could trade, invest and share their knowledge in a simple and transparent way,” said Assia. “EToro also acts as a bridge between the old world of investing and a blockchain-powered future, helping our users navigate and benefit from the transition to crypto assets for wealth building.”
FAQs
Yes, we accept residents of the United States. eToro is available in almost every state. See which states are currently supported here. For regulatory reasons, we cannot provide our service to US citizens who reside outside the USA.
Does eToro give you a crypto wallet? ›
The crypto wallet is part of the eToro Money app. It enables you to hold a variety of cryptoassets, all in one user-friendly and trusted place. There's no need to memorize or write down private keys or phrases.
Why can't I transfer crypto from eToro to wallet? ›
Only BUY (long) positions that are backed by real crypto (not CFDs) can be transferred to the crypto wallet. Cryptoassets held in CopyTrader and Smart Portfolio positions are not available for transfer to the crypto wallet.
Can I take my crypto out of eToro? ›
Yes, you can. It is possible to withdraw crypto positions that meet certain requirements from the eToro platform to the eToro Money crypto wallet. This process is called 'Crypto Transfer'. For more information about transferring crypto, please click here.
Is eToro legit in the USA? ›
eToro is a reputable company trusted by millions of users worldwide. We are regulated by multiple agencies, including the Financial Industry Regulatory Authority (FINRA) and the US Securities and Exchange Commission (SEC), which prohibit such illegal activities.
Do I need SSN for eToro? ›
A valid US phone number connected to your smartphone (non-VOIP) A valid email address. A valid SSN. ITIN will not be accepted.
Is it safe to leave crypto on eToro? ›
The crypto wallet is secured by advanced signature mechanisms and analytic behavior machine learning to provide our clients with the best security possible and for us to be able to identify and prevent potential threats by malicious third parties.
Do you actually own crypto on eToro? ›
When you invest in real cryptoassets on eToro, we purchase the tokens on your behalf and register them in a segregated account under your name. Once the position is closed, we sell the coins on your behalf, and the invested amount +/- any profit or loss is converted to fiat currency.
How safe is the eToro wallet? ›
Yes. eToro operates in accordance with FCA, CySEC and ASIC regulations, meaning that there are measures in place to protect investors. On eToro, our clients' funds are kept secure in top-tier banks or placed in qualifying money market funds. All personal information is guarded under SSL encryption.
Why can't i withdraw all my money from eToro? ›
There are several reasons your funds may not be available for withdrawal. The most common of which are uncleared deposits or unsettled proceeds from your trades. Funds deposited via ACH are considered uncleared for 6 business days after the date of deposit.
Yes, all withdrawal requests are subject to a $5 fee. Any withdrawals sent in currencies other than USD are subject to conversion fees. Details of our fees can be found here.
What is the minimum withdrawal from eToro? ›
In your eToro investment account, click Withdraw Funds. Enter the amount you wish to withdraw (the minimum is $30). Select Withdraw to eToro Money.
What happens to my crypto if eToro goes bust? ›
eToro adheres to the strict standards of investor protection set by leading regulatory authorities around the world. Every penny deposited by a client is held in a separate, segregated account. This means that even in the highly unlikely event of eToro's bankruptcy, you will be entitled to compensation.
Do I need a crypto wallet with eToro? ›
For investors new to crypto, a hot wallet on a trusted exchange is a great starting place. For example, eToro offers a custodial wallet within the eToro Money app, designed for simple set-up and use. Investors can access their assets using eToro credentials, removing the need to memorise a private key.
Can I withdraw USD from eToro? ›
To withdraw USD from your eToro investment account: Select the Withdraw Funds tab from the left-hand menu. Enter the amount. The minimum withdrawal amount is $2.
Is eToro copy trading available in the US? ›
Clients of eToro USA can copy only US-based investors with our CopyTrader™ system. There are some users that may not be copyable: Their account is private. Their risk score is too high.
What states are supported by eToro? ›
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, ...
Can you trade US stocks on eToro? ›
If you open a stock position on the eToro investment platform, eToro will hold the stocks on your behalf in a segregated omnibus account. Should the company issue dividends, your balance will be updated in accordance with your holdings. Currently, eToro clients can use the allocated voting rights only for US stocks.
Why can't i use eToro in ny? ›
eToro Options is not yet available for New York residents for new users. However, if you are a Gatsby user and resident of NY you can continue to access eToro Options. See our available US states here.
