Which bank backs eToro?

Written by Mike Druttman

Reviewed by Wikitoro Team

eToro is not directly backed by a specific bank. It is a global investment platform that operates as a financial technology company, not a traditional bank. However, user funds are protected through various regulatory measures depending on the entity with which they are registered.

For example:

• In Europe, eToro (Europe) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). Client funds are held in segregated bank accounts at top-tier financial institutions, such as Barclays or Santander, but these entities do not act as sponsors or guarantors of eToro.
• In the United Kingdom, eToro (UK) Ltd is regulated by the Financial Conduct Authority (FCA). It also uses reputable banks to hold funds, always in accounts separate from the company's operating capital.
• In Australia, eToro AUS Capital Limited is regulated by the Australian Securities and Investments Commission (ASIC), under similar custody and fund protection standards.

In all cases, eToro uses reputable banks to store client funds, but this does not mean that these banks endorse eToro as an institution. The security of the funds comes from financial regulation and implemented protection systems, such as participation in compensation schemes for certain markets.

Although eToro collaborates with recognized banks to safeguard funds, it is not directly backed by any particular bank. Trust is based on regulation and the platform's operational transparency.

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. 61% 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.

Crypto investments are risky and may not suit retail investors; you could lose your entire investment. Understand the risks here https://etoro.tw/3PI44nZ.

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.