eToro provides free insurance, underwritten by Lloyd’s of London, for eligible customers in Australia. This insurance, available to Platinum, Platinum +, and Diamond Club members of eToro AUS Capital Limited, offers coverage in the unlikely event of eToro’s insolvency or an "Event of Misconduct". It covers up to 1 million AUD for cash, all CFD positions, and securities, but excludes REAL cryptocurrency positions, with certain conditions and excess amounts as defined in the policy.
51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Being an Australian resident with an investment account on eToro, I often wondered about the safety and insurance coverage provided by this broker. To address this concern, I conducted thorough research on their website and reached out to their support team multiple times. Here's what I discovered about their insurance policy specifically for this country:
The good news is that they do offer a significant safety net for eligible customers through free insurance obtained from Lloyd’s of London, a renowned specialist in insurance services. This coverage is specifically designed for the following club members of eToro AUS Capital Limited:
It provides a safeguard against potential losses arising from the unlikely event of eToro’s insolvency or in cases of an Event of Misconduct, as detailed in the applicable policy.
An "Event of Misconduct" is a critical aspect of this insurance policy. If you lost your cash or securities due to various forms of criminal activities like theft, embezzlement, fraud, and more, perpetrated by eToro or its representatives.
However, it's important to note that the policy does not cover losses related to the day-to-day performance of investments or any consequential or indirect losses. Additionally, for open positions, the policy covers only the collateral put up, not the value of the open positions.
The insurance covers up to 1 million AUD, subject to the aggregate limit purchased by eToro and an excess amount as defined in their policy. This extensive coverage provides a broad safety net for various trading activities and this includes the following:
While the insurance is comprehensive, it's important to be aware of its limitations. Notably, positions on real crypto are not covered under this policy. Also, the policy lists other exclusions which I suggest that you carefully read so you could be familiar with it to fully understand the scope of the coverage.
There's your answer. Yes, there's an insurance policy for specific eToro Australia account holders and if this applies to you, you should be aware of the specific exclusions and limitations, particularly regarding crypto positions and the coverage of open positions. This knowledge is essential to understand the extent of the insurance coverage available to you.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% 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.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Cryptoasset investing is highly volatile and unregulated in some EU countries. 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 hasbeen prepared by our partner utilizing publicly available non-entity specific information about eToro.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
