No, eToro Money isn’t a bank. It’s a licensed electronic money institution (EMI), which means you get some banking-like features like transfers, an e-wallet, and even a UK debit card, but without things like deposit insurance or loan services.
It’s offered through two legal entities:
Both are regulated as EMIs (under the FCA in the UK and the MFSA in Malta). They’re not banks, and they don’t operate like one.
| Feature | eToro Money (EMI) | Traditional Bank |
| License | EMI under FCA (UK) / MFSA (Malta) | Full banking license from central regulator |
| Deposit protection | No FSCS/DCS protection; funds are safeguarded separately | Covered by schemes like FSCS (UK), DCS (Malta) |
| Lending | Doesn’t lend out your funds or pay interest | Can lend deposits and pay interest on savings |
| Services offered | Wallet, transfers, debit card (UK), SEPA/Faster Payments | Broader suite: loans, savings accounts, mortgages |
| Regulator oversight | Monitored under e-money regulations by FCA or MFSA | Supervised under full banking laws and frameworks |
Your money isn’t just floating around. It’s held in a separate, ring-fenced account at a licensed bank, away from eToro’s own funds. This is known as safeguarding.
In the rare case that eToro went bust, your money doesn’t vanish. Because of these protections, you’d still be able to recover your balance. Just don’t expect government-backed deposit insurance to kick in.
So yes, it acts a bit like a bank in how you use it. But it’s not one.
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.
Crypto investments are risky and highly volatile. Tax may apply. 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.
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