If you’re parking a sizeable balance with eToro, you want straight answers on how secure that cash really is. eToro operates under the watch of multiple regulators. In the UK, it’s overseen by the Financial Conduct Authority (FCA). In Europe, the Cyprus Securities and Exchange Commission (CySEC) keeps an eye on it. Down in Australia, it’s the Australian Securities and Investments Commission (ASIC).
These regulators don’t take shortcuts. One important rule: eToro must separate client funds from its own accounts. So your deposits sit in ring-fenced accounts, kept away from company operations and debts.
There’s a backup layer too. Some investors qualify for national protection schemes. For instance, UK clients could be covered by the Financial Services Compensation Scheme (FSCS) up to a set limit if eToro ever went under.
On the technical front, eToro runs on bank-grade security, strong encryption, and layered systems that lock down your account against unwanted access. It also sticks to tight compliance checks to stay in line with global regulations.
Source: eToro.com - Investor protection at eToro
Still, no platform removes market risk. Big sums can drop in value fast if trades turn south. It’s worth thinking about how much you’re fine holding with one broker versus splitting your funds across different accounts or custodians for added peace of mind.
eToro’s track record is strong, backed by 40 million+ users worldwide. Its regulated status, account segregation, and investor compensation schemes add a layer of protection for storing larger amounts. Even so, I can't emphasize enough that risk comes with the territory. How you spread that risk can matter just as much as where you keep your account.
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 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.
About Mike Druttman
