Is eToro Legit?

Page Summary

Choosing a trustworthy broker is fundamental to an excellent online trading experience. eToro is a leading provider of social trading services, and it has licenses from the Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC). It has secure platforms and account authentication methods.

Key Features Comparison

Key Features eToro XTB Trading 212
Banking background No No No
Broker listed on stock exchange No Yes No
Annual financial statements on website No Yes No
Mobile two-step authentication Yes No Yes
Broker ownership transparency No Yes No
Broker management transparency Yes Yes No
Broker is audited by the Big Four No Yes No

Each broker has strengths and weaknesses. This article answers the question, “Is eToro legit?”

Regulation & Investor Protection

The foundation of a broker’s trustworthiness is the top-tier regulation and investor protection programs. eToro is regulated in the UK, Cyprus, and Australia. It has licenses from the FCA and ASIC.

eToro Regulation & Investor Protection

Country of regulation: UK, Cyprus, Australia
Investor protection amount: £85,000 for UK residents, €20,000 for non-UK residents

The FCA in the UK offers the Financial Services Compensation Scheme (FSCS) with protection for £85,000 for each covered account. The investor protection amount for non-UK residents is €20,000.

Additional areas that support the trustworthiness of a broker are banking background, stock exchange presence, transparent financial statements, two-step authentication (2fA), ownership transparency, and auditors.

Banking Background

A banking history adds to the safety of an online broker. eToro doesn’t have a banking background.

Transparent Financial Statements

Financial statements reveal insights about a brokerage firm’s practices. eToro doesn’t publish annual financial statements.

Two-Step Authentication

An online trading account must benefit from the best safety measures. eToro offers two-step authentication on all its platforms.

Ownership & Management Transparency

eToro displays the basics of its management structure on eToro doesn’t publicly share details about its ownership structure.

Big Four Auditors

The Big Four audit trustworthy online brokers. These auditors are KPMG, PWC, Deloitte, and EY. The Big Four do not audit eToro.

Final Verdict

eToro is a leading social trading broker with excellent services and platforms. It is a trustworthy broker with top-tier licenses. You should read our in-depth reviews to learn more about brokerage firms and safety features.

eToro compared to other brokers:
eToro review


eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.


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