As discussed in more detail below, eToro US offers various services to customers through multiple entities. Please review these disclosures carefully as well as your Customer Agreement and other disclosures available in the eToro US Disclosure Library. You may also review our US website or contact Customer Service with any questions.
eToro USA Securities Inc. clears and settles stock, exchange-traded fund (ETF), and option trades through APEX Clearing Corporation (“Apex”), which is a clearing broker-dealer. Apex provides services that include, but are not limited to, custody of assets, reporting, trade confirmation, settlement, and securities delivery. Both eToro USA Securities Inc. and Apex are members of FINRA and SIPC.
When you deposit funds with eToro US through our main trading platform (website or mobile application), your funds are sent to eToro USA LLC. You can then use those funds to purchase stocks, ETFs, or cryptocurrency. If you tell the eToro broker-dealer to purchase stocks or ETFs in your account, that money is moved from eToro USA LLC to Apex. Apex will use those funds to purchase the relevant stock or ETF. If you sell a stock or ETF you hold through eToro USA, Apex will sell that investment and the proceeds will be sent back to your account with eToro USA LLC.
When you tell eToro USA LLC to buy cryptocurrency in your account, that entity routes your instruction to one of its overseas affiliates to fulfill your order. That affiliate purchases cryptocurrency for customers from secondary markets. Your cryptocurrency holdings will be custodied by that overseas affiliate, but in cold, warm, and/or hot wallets that are segregated from eToro corporate assets as well as the assets of non-US customers. When you tell eToro USA to sell cryptocurrency in your account, the sales proceeds are returned to your eToro USA account.
eToro Options is a product and mobile application offered by the eToro broker-dealer. When you want to trade options, you can transfer cash from your non-eToro source of funds to Apex directly. Those funds held at Apex will be used to purchase the relevant options positions. Any sales proceeds resulting from your options trades will be held at an account at Apex and can be returned to your original non-eToro source of funds. eToro may also make additional functionality available where your funds held at eToro USA LLC can be transferred to and from your options trading account at Apex.
Cryptocurrencies are not stocks, and your cryptocurrency holdings at eToro USA LLC are not FDIC insured or covered by SIPC. Buying and selling cryptocurrency involves risks, including loss of principal.
Customer cash in an eToro USA account for stock, ETF, and cryptocurrency trading has been deposited in a custodial account(s) opened for the benefit of eToro USA LLC customers at the following FDIC-insured bank(s): Cross River Bank. This customer cash is insured by the FDIC for up to $250,000 per depositor (an individual eToro customer) against the failure of the FDIC member bank. This coverage amount is inclusive of other cash a customer may have at that bank outside of the eToro custodial account. FDIC insurance does not protect against the failure of eToro.
US stocks, ETFs, or options purchased through your eToro USA Securities Inc. brokerage account(s) are eligible for Securities Investor Protection Corporation (SIPC) insurance in the event of eToro USA Securities Inc.’s (the eToro broker-dealer) failure. SIPC protection is limited to $500,000 per customer, including a $250,000 limit for cash. Please note that SIPC does not cover market losses, but only the failure of a broker-dealer. Learn more about SIPC coverage here.
All investments involve risks, including the loss of principal. The past performance of a security or financial product does not guarantee future results or returns. While diversification may help, spreading risk does not guarantee a profit or protect against loss.
Customers should consider their investment objectives and risks carefully before investing. Customers are encouraged to regularly review and update their profile with information about their investment goals and objectives. For more information regarding the potential risks of cryptocurrency and securities trading, please click on the referenced documents.
The price of a given financial product or security may increase or decrease based on market conditions and customers may lose money, including their original investment. The product features described below are meant for informational purposes only and are not intended to serve as a recommendation to a customer to buy, hold or sell any security or any other asset.
Charts, including charts relating to your historic portfolio valuations or performance, past prices of specific securities, valuations or performance of a CopyTrader or Smart Portfolio (both of these products are only available for cryptocurrency trading and are offered by eToro USA LLC) are provided for informational purposes only and should not be relied upon as an accurate or complete presentation of portfolio value, gains or losses, or the value or financial position. Charts are based on various data sources, which may include market data and other information provided by third party information providers. eToro does not make any representation or guarantee relating to the accuracy, timeliness, or completeness of charts, valuation or any information or data on which they are based. Without limitation, charts or valuations may not accurately take into account the impact of events relating to a specific security, for example corporate actions such as stock splits, dividends, mergers and acquisitions, or events relating to your or a CopyTrader account or Smart Portfolio such as charges, deposits, or withdrawals, and may in certain circumstances overstate or understate gains or losses. Past performance is no guarantee of future results. With respect to your portfolio, please refer to your account statements for the relevant period.
Commission-free trading refers to $0 commissions for self-directed individual brokerage accounts that trade stocks, ETFs, and options made available through eToro USA Securities Inc., which is the eToro broker-dealer. Keep in mind, other fees such as SEC trading fees, transfer fees, and clearing firm passthrough fees may apply to your brokerage account. Crypto trading has $0 commissions, but fees and price spreads apply to these trades. Please see our fees page to learn more.
The “Discover” page on our website and mobile application offers you an opportunity to learn about different categories and types of investments by searching various lists of investments and using tools to filter investment possibilities. These tools are not investment recommendations and information displayed on this page by eToro is not an endorsement or any category or type of investment. All investments involve risk and past performance of any Copy Traders, Smart Portfolio, or any investment in general does not guarantee future results or returns. There is always the risk of losing money when investing in securities or other financial products. These lists and the information within them are displayed based on objective criteria and are provided for informational purposes only. Again, the information on the Discover page is not a recommendation or endorsement to buy, hold, or sell any security or a recommendation or endorsement of any investment strategy involving securities.
Exchange-Traded Products: Investors should consider the investment objectives and unique risk profile of any exchange-traded product (ETP), including any ETF and any exchange-traded notes (ETNs), carefully before investing. A prospectus contains this and other information about the ETP and should be read carefully before investing. Customers should visit the relevant ETP’s details page to access a link to the prospectus. Additional regulatory guidance on ETPs can be found at the SEC website and at the FINRA website.
Fractional Shares: Fractional shares are illiquid outside of eToro and not transferable. Not all investments on eToro are eligible for fractional share orders. Please see our full Customer Agreement and the SEC’s website for more information on fractional shares.
Any market or asset commentary on our platform is provided for informational purposes only and is not investment advice or a recommendation of any security, transaction, account type, investment strategy involving securities, or order. Nothing in this commentary is a personalized recommendation, and the securities may not be suitable for you. You should not buy or sell any security without first determining it is appropriate for your portfolio or investment strategy.
Margin: The firm utilizes limited purpose margin accounts for all customers as default. This requires opening a margin account, but you are not afforded all margin account aspects like leverage. Learn more about margin trading at the SEC’s website here and here. For more information, please see our Disclosure Library for the Margin Disclosure Statement, Apex’s Agreement for Limited Margin, and Apex’s Customer Margin & Short Account Agreement
Online Trading: The response, execution prices, speed, liquidity, market data, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors. Customers should understand that eToro does not guarantee uninterrupted access to its platform and services or that all orders and requests submitted to eToro will be executed successfully.
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