Is eToro 100% Safe?

Written by Nadav 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.