One of the most well-known brokers in the world, eToro has literally thousands of positive reviews out there online. However, there are also many negative ones coming from dissatisfied clients, and some of them call the broker a scam. In this article, we’re going to explain how this broker works and how it gets regulated to help you understand whether you should trust it with your money or not.
Security overview
Founded back in 2007, eToro is a major online trading platform. While traders just call it a broker, the company itself aims to become something more, a truly social platform that would allow its clients to interact and help each other earn. And that’s not just about sharing news or something like that: the broker actually has a copy trading system that allows you to look for successful traders and imitate their deals to get passive income.
The broker operates in almost 150 countries. The company has various divisions in many of them, so it’s heavily regulated by several major financial organizations at once. For example, in the UK eToro is regulated by the Financial Conduct Authority (FCA), a very influential national regulator. The regulator closely monitors the broker’s transactions to make sure the customers’ funds are safe and secure, so you don’t have to worry about your money just disappearing one day.
While some disgruntled ex-users still continue calling eToro scam, there are absolutely no reasons to worry for your funds. The platform has been around for more than 15 years, and it complies with even the strictest standards of the industry. The broker implements the latest means of security, and crypto funds are also extremely safe with eToro. They are kept in cold storage, so there’s almost no chance they will be stolen by hackers.
Availability issues
The broker didn’t work with users from the US in the past, and that was viewed by some traders as an evident sign of its inability to provide a decent level of security for its users. But in 2022, that changed, and now eToro is fully available in the US. However, be wary that the platform is still inaccessible in a number of states, including Hawaii, Minnesota, Nevada, and New York.
The platform is also not available in several major countries, including Canada, China, India, Japan. If you are unsure whether the broker works for your state or country, make sure to contact its customer support and ask them.
The author of the article Mikhail Vnuchkov constantly shares information about financial markets on his Twitter. We recommend that you familiarize yourself with it.