Is eToro safe? Are my deposited funds protected?

The platform was created in 2007 and currently has around 19 million users worldwide (an increase of over 400% compared to the previous year). So it can be considered credible. eToro is monitored and regulated by FCA (in the UK) and CySEC (in Cyprus, for EU region).

Both institutions guarantee clients' funds in different amounts depending on where the user account has been registered or transferred. You can check which jurisdiction your account has been qualified to in your user settings. If you want to change the country, contact eToro support is required.

How your money is protected

eToro UK is covered by the UK Financial Services Compensation Scheme ("FSCS"). If eToro UK fails, the FSCS can return your money in your eToro account up to £ 85,000. For more information about the FSCS, visit fscs.org.uk or call the FSCS at 020 7741 4100 or 0800 678 1100. More details here: https://1mr3lc1zt3xi1fzits1il485-wpengine.netdna-ssl.com/wp-content/uploads/ 2020/10 / eToro-UK-Terms-and-Conditions-Staking-and-other-updates-01.10.2020.pdf

Please note that if you transfer your account to the UK, I believe you won't be able to use e-wallets as a payment method (excluding PayPal) and US ETF's will be offered as CFD's only. This shouldn't be a problem to anyone.

eToro Europe is covered by the Cyprus Investor Compensation Fund ("Fund"). If eToro Europe fails, the Fund can return your money in your eToro account up to € 20,000. For more information about the Fund, visit https://www.cysec.gov.cy/en-GB/complaints/tae/.

Importantly, the FSCS protection and the Fund protection are only applicable to regulated products. This means that any cryptoasset trades, including cryptoasset copy trades, are not protected, but security trades and security copy trades, and CFD trades and CFD copy trades, are protected.

Additional insurance

In addition to these two options, (which should be sufficient for most users), in October 2020 eToro has introduced an additional policy that protects the funds of customers on the account. Funds are secured up to EUR 1 million, but there are exemptions and a deductible of EUR 20,000. Find out more here: https://etoro-production.s3.amazonaws.com/e-marketing/MarketingAutomation/ClientsDisclosureCySEC.pdf