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.
About Nadav Zelver
