Investor protection at eToro

Your peace of mind is our priority

You’ve entrusted us with your hard-earned money, and we take that responsibility very seriously. On this page, we’ve gathered together the answers to our users’ most frequently asked questions regarding investor protection.

More in-depth information can be found by clicking on the links provided. If you do not find the answer to your question, eToro Customer Service is always happy to assist you.

How are funds held and safeguarded at eToro?

Your funds are held in top-tier institutions

The eToro Group works with globally renowned banking partners including:

* These banks are partnered with the eToro group and do not serve all entities within the group

How does eToro hold users’ money?

We only work with top-tier banks and financial institutions, including J.P. Morgan, Deutsche Bank and Coutts, all of whom are rigorously supervised by both internal and external authorities.

Unlike banks, eToro is prohibited by law from using client funds. Kept in separate, segregated accounts, all user funds are completely independent of the company’s. No matter eToro’s financial status, your money is in no way affected.

How are users’ funds safeguarded at eToro?

eToro adheres to the strict standards of investor protection set by leading regulatory authorities around the world. Every penny deposited by a client is held in a separate, segregated account. This means that even in the highly unlikely event of eToro’s bankruptcy, you will be entitled to compensation.

We also employ state-of-the-art monitoring tools to detect and prevent fraudulent activities.

What happens in case of eToro’s insolvency?

We’ve been around since 2007, and have a strong, diversified business model with an ever-growing global user base of millions. However, in the unlikely event of insolvency, we have clear, straight-forward, strictly-regulated processes in place to ensure that compensation would be made according to each user’s geographic location, assets they are invested in and the amount of money invested.

What happens if a bank where users’ funds are held goes bankrupt?

All of our clients’ funds are kept secured in tier 1 banks, which are under strict federal supervision.

In case of eToro’s bankruptcy, is there a difference between users holding the underlying asset and those holding CFDs?

No. In the unlikely case of eToro’s insolvency, all users will be compensated according to local regulations.

Layers of safeguarding

Rest assured that eToro, as a responsible and regulated broker, has processes in place to ensure that your funds are safeguarded at all times. In the unlikely event of an eToro insolvency, eToro users will be entitled to compensation, depending on their country of residence and amount invested. For more detailed information on investor compensation schemes, click here.

An assigned liquidator will manage the dissolution of eToro’s assets and distribution among its users.

Regulatory protection compensates users, should company assets fall short.

For users with larger balances, private insurance covers losses of up to 1 million euros/AUD.

Account security

Your security and privacy are of the utmost importance. The eToro platform has many measures in place to protect our community. We recommend you do the following:

Activate Two Factor Authentication

2FA adds an additional layer of security to access your account, by entering a verification code sent to your mobile phone via SMS or phone call. In case you do not have the 2FA activated, we highly recommend you turn it on in your Account Settings. For a quick video tutorial, click here.

Activate Biometric authentication

Face/Touch ID is an optional access method for the eToro mobile app that uses facial or fingerprint recognition to allow you to unlock the eToro app. This replaces the username, password and / or 2FA code when logging in.

Complete verification in your account

If you verify the email address and phone number linked to your eToro account, it will be more protected, and less likely to be compromised.

Protect your password

Create a strong password, which contains ten or more characters, including at least one uppercase character (A-Z), number (0-9) and/or symbol. Never share your password. eToro will never email you to ask for your password or other sensitive information.
For more information on keeping your account secure, click here.

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