Is eToro 100% Safe?

Written by Nick Zelver

Reviewed by Mike Druttman

eToro is a prominent online trading platform that has attracted a substantial user base worldwide. The question of whether eToro is "100% safe" encompasses several aspects, including regulatory oversight, security measures, and user experiences.

Regulatory Oversight

eToro is regulated and operates under the supervision of multiple financial authorities:

• United States: eToro USA Securities Inc. is registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). Cash holdings for U.S. residents are insured up to $250,000 through the Federal Deposit Insurance Corporation (FDIC), and securities are protected up to $500,000 by the Securities Investor Protection Corporation (SIPC). 
• United Kingdom: eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA). Eligible investments are protected up to £85,000 under the Financial Services Compensation Scheme (FSCS). 
• European Union: eToro operates under the Cyprus Securities and Exchange Commission (CySEC) with investor protection up to €20,000. 

Security Measures

eToro uses several security protocols to protect user accounts and data:

• SSL Encryption: All personal and financial information is protected using SSL encryption. This reduces the risk of unauthorized access. 
• Two-Factor Authentication (2FA): Users can activate 2FA to add an extra layer of security. This requires a verification code in addition to the password. 
• Segregated Funds: Client funds are held in tier-1 banks, separate from eToro's operational funds, so that user assets are protected even if the company faces financial difficulties. 

User Experiences

User feedback on eToro varies:

• Positive Reviews: Many users appreciate eToro's user-friendly interface and the ability to engage in social trading. For instance, a reviewer noted, "eToro is well worth a look for those with at least a bit of financial knowledge, as there isn't any hand holding, but the clear layout and info on every function should help most get up and running very fast! 5 stars well earned ⭐" (source: Play Store) 
• Negative Reviews: Some users have reported issues with customer service and withdrawal processes. An app user shared, "Etoro has the worst customer service I have ever seen in my life ! It has been 3 weeks to get my account verified even after submitting all documents." (source: App Store) 

While eToro implements strong security measures and operates under reputable regulatory bodies, the reality is that no broker can guarantee complete safety. For any interested users, I suggest that you should weigh eToro's security features and regulatory compliance against reported user experiences and regulatory actions to make an informed decision.

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.