So you probably heard about this Social Trading broker, but you’re not sure if your money will be safe and that you won’t be cheated there. If you want to know why you can trust this company, read this five reasons to trust eToro.
eToro is regulated by CySec and UK
Your typical online broker is registered on Isle of Man, Virgin Islands, Curacao, Barbados or other nonsense but beautiful location. Such exotic tax havens works very effectively when you want to hide your profits or execute exit scam, running with your investors’ money. That’s not the case here. eToro is a company registered under EU jurisdiction on Cyprus and in UK (available for British investors). This gives it a large credibility and guarantees that it must adhere to EU law and it is properly regulated and supervised by two financial authorities: Cyprus Securities and Exchange Commission and UK’s Financial Conduct Authority. This also means that eToro’s operations must comply with the European MiFID financial harmonization law and must be fully transparent for these governmental bodies. It’s a guarantee that your money won’t mysteriously evaporate one day and the company is under strict supervision of EU authorities.
Investor Compensation Fund guarantees compensation up to 20 000 EUR
This also gives investors another nice feature that you won’t find in barely regulated brokers: Investor Compensation Fund, required by the CySEC. Under this fund, single investor can be compensated up to 20 000 EUR in the event of claims arising from any malfunction. Be aware that cryptocurrencies are unregulated and are exempted from this policy, so that’s another reason to invest in stocks and currency pairs. You can read this document here.
eToro is too big to fail
This is the largest internet broker online, period. With 6 million users and more than thousand financial instruments to trade, it offers unparalleled possibilities and it holds a lot of capital to endure unexpected events (like CHF market crash in 2015) that would wipe out smaller brokers. eToro is too big to fail, especially that it’s now supported by world’s biggest financial institutions.
eToro is partnered with world’s biggest banks
eToro secured investments from largest Chinese non-state owned financial institution – Ping An Insurance (Group) Company of China, Ltd – world’s world’s largest and most valuable insurer worth US$204 billion and from largest Russian bank that specializes in lending – Sberbank. This adds a lot of credibility to eToro and ensures that this broker is partially controlled by its investors, at least when it comes to financial liability.
eToro is totally transparent when it comes to earnings of its members
Thanks to this whole “social trending” idea, you can see all earnings or losses and trades of investors, tracked in real time, so you can be sure what the actual profits are and how much you can earn from investing on eToro. You can check comments, ask questions and see how everyone is trading. Not only this is a great opportunity to learn from the best and swap big ideas, but also to ensure that there is no shady stuff going on. If there were any scam brewing, you would discover it right away, because other investors are always sharing their insights!
You can see transaction history and gains or (losses) of any member in real time – here are mine ATM. BTW, nice results, huh?
Is eToro perfect broker then?
Almost! There are some glitches here and there, especially now that there are influx of new members, but that doesn’t impact overall great experience and transparency of this company. If you want to invest trade hundreds of stocks, cryptocurrencies and forex pairs, join eToro and open free demo account to see for yourself how easy (and most important – safe) can trading be. Have a nice profits!
All trading involves risk. Only risk capital you’re prepared to lose. Past performance is not an indication of future results. This content is for educational purposes only and is not investment advice.