eToro USA Demo Trading Accounts
Most new investors at eToro USA start off with a demo account first, in order to get acclimated with their unique Crypto Currency copy trading platform. This is a very important step at the beginning of your investing journey. You need to properly understand the way that their software works, so that you will not be stuck when you are ready to invest or make a trade.
It is a good thing that eToro USA gives all their new customers a free demo account. You will be able to see order types, leverage and margin requirements, stop loss and take profit settings.
Demo Accounts vs. Real Accounts.
A Demo Trading Account is the perfect way to test out your newest trading strategy. If you are building going to invest in a Copy Fund, or Social Trading, you would be smart to follow them closely with a demo trading account.
There are a few differences in a demo account, as opposed to a real account.
- The money in your account is paper money, therefore, if you lose $10,000, you can start again.
- Psychologically investors are not as cautious when using a demo account. This causes them to place riskier trades, and sometimes gain huge profits, which are fake.
- All trades will execute on a demo account, but in a real account there are sometimes liquidity issues which will prevent an execution.
- The market price on a demo account not always 100% correct and the spread may be tighter than in live market conditions.
- Some brokers do not show all available underlying assets in the demo account.
How to Open a eToro USA Demo Account?
In order to open a demo trading account at eToro USA, you will need a valid phone number and an email address.
Go to: https://www.etorousa.com/
Once there, enter your Full Name, User Name, Email Address and contact Phone Number. On the next screen they will ask for your mailing address, along with a couple of questions to ensure your are qualified to invest.
If you are under 18, you cannot get a trading account. Instead focus on your schooling, and by the time you graduate, Bitcoin will have fallen to $10 a coin.
eToro is really into their Social Trading and Copy Trading Investment Funds. Copy trading can do nicely in a bull market, but it gets tricky when markets pull back.
Comparing Crypto Brokers
Crypto Currency / Bitcoin brokers are mostly unlicensed websites, and some have grown into being regulated brokers. Some have restrictions on the accepting clients from sanctioned countries, and others do not accept from leading countries. For instance, American brokers do not accept clients from the United Kingdom and vice versus. So, it is always important to find a broker that is licensed by your government’s monetary authority.
Local brokers are better because of a few reasons.
- They are licensed and regulated in your country, and your money is secure.
- Spreads on Forex pairs with your local currency are tighter. For example; British Forex brokers have tighter spreads on GBP/USD than an Australian or Canadian Forex broker.
- Latency, which is the amount of time it takes to confirm an order, happens faster. Although the internet is very fast, there exists latency issues when connecting from Kansas City to Japan.
eToro USA Summary Review
eToro USA is part of the eToro group, which started as a European Forex broker, and has now moved into the Crypto Currency trading space.
In the United States they are currently only offering investing and trading in 30 Crypto Assets. They are popular in the Social Trading and Copy Trading Services business, because most people have already lost money investing in Crypto, so they think that someone else can be profitable.
It says on their website “eToro USA LLC is licensed by the Illinois Department of Financial and Professional Regulation (IDFPR) as a money transmitter.”
When you have a complaint about your broker, and you cannot resolve it directly at the broker, you may want to elevate the complaint to the regulator.
Here are links to the popular regulatory agencies: Cyprus CySEC , United Kingdom FCA, Australia ASIC, South Africa FSCA. Another option is to hire an outside company to attempt to recover your deposits. Learn more about Wealth Recovery Experts.
Investors that use a legitimate broker that is licensed and regulated have less problems. Check out the list of Top Rated Brokers.