eToro is one of the world’s largest social trading platforms and a multi-asset brokerage with millions of clients globally.
Your capital is at risk
Is eToro legit?
The broker is regulated by top-tier authorities worldwide, including the FCA in the UK and Australia’s ASIC. It’s safe to say that eToro is not a scam but rather a fully legit enterprise trusted by nearly 30 million people with their funds.
Remember that brokers reviewed on BrokerChooser are regulated by at least one top-tier authority. We also put together a detailed compilation of brokers and service providers not recommended by BrokerChooser.
Is eToro safe?
Whether a broker is safe depends on a variety of factors and we looked at most of them to gauge the safety profile of eToro. Based on our analysis of the factors listed below, we think that eToro belongs in the category of safe brokers.
These are the aspects our experts consider when analyzing the safety of a broker:
- Is the broker listed on any exchange
- Does it have a banking parent company
- Does it provide a two-step login
- Does it disclose its financial results transparently
- Does it provide investor protection
Check out the following table to see how eToro performs in these categories and how it stacks up against its closest competitors.
|Safety features||eToro||XTB||Trading 212|
|Broker listed on stock exchange||No||Yes||No|
|Annual financial statements on website||Yes||Yes||No|
|Mobile two-step authentication||Yes||No||Yes|
|Broker ownership transparency||Yes||Yes||No|
|Broker management transparency||Yes||Yes||No|
Note that the above criteria carry a different weight when it comes to safety. We think the most important feature is to be regulated by at least one trustworthy authority. With CFD and forex brokers, it's also a cardinal question whether they provide negative balance protection.
eToro investor protection
eToro is regulated in the following countries and provides the following investor protection:
|Country of regulation:||UK, Cyprus, Australia|
|Investor protection amount||£85,000 for UK residents, €20,000 for EU residents, no protection for Australian residents|
On top of the protection provided by the regulatory authority, eToro offers private insurance to its clients through Lloyd's. The amount is £/$/€ 1,000,000 for cash, securities and CFDs and it applies in the event of eToro's insolvency.
As an additional safety feature, eToro also provides negative balance protection for CFD trading, but only for retail clients from the European Union and Australia.
If you trade cryptos on eToro, you will not be entitled to any kind of investor protection.
Your capital is at risk
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.