TL;DR

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• eToro is well-regulated and operates under several major financial authorities.
  
• The platform uses robust security measures, including SSL encryption and Two-Factor Authentication.
  
• eToro offers insurance for non-crypto assets and segregates user funds from operational funds.
  
• Users appreciate eToro’s user-friendly interface and social trading features but have raised concerns about customer service delays and certain fees.
  
• Regularly monitor your account, use strong passwords, and enable 2FA to enhance security.
  

Overview of eToro

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The eToro platform is a global trading giant and has been around since 2007. With eToro, you get a smorgasbord of trading options. These options include cryptocurrencies, stocks, and ETFs. 

History and Background

So, the eToro trading platform wasn’t formally known as eToro. In 2007, it went by the name RetailFX. The primary focus under that name was on forex trading. As the trading game shifted in the 2010s, it was rebranded under the name eToro and introduced social trading. This innovation gave eToro a distinctive edge in such a crowded market. Ever since then, eToro trading has continued to expand its offerings, becoming a comprehensive trading hub for investors across the globe.

User Base and Reach

Fast forward to now and there are over 33 million users from more than 140 countries that use eToro. So, is eToro good for trading, it’s safe to say that it has a user-friendly interface and some pretty unique social trading features. This allows users to follow and copy the trades of successful investors. With such a large, active user base, it’s easy to see that others are truly valuing what eToro has to offer. If you’re wondering about how other platforms compare, you may want to take a look at the ANZ Investing Review.

Features and Offerings

So if eToro is legit, just what does it bring to the table? Truth be told, the platform offers a broad range of options, as mentioned above. These include cryptocurrencies, stocks, ETFs, along with those sweet social trading features. Both newbies and experienced traders can benefit greatly from all eToro has to give.

Cryptocurrency Trading

If you’re all about crypto, eToro provides users the opportunity to trade over 25 cryptocurrencies with a fixed 1% fee per transaction. These eToro fees are transparent so you know exactly what you’re paying for. You’ll find that popular cryptos like Bitcoin and Ethereum are available, making eToro a go-to for many crypto investors.

Stock and ETF Trading

eToro really knocks it out of the park when it comes to stocks and ETFs. They offer commission-free trading for over 2,400 stocks and 250 ETFs. Additionally, the platform allows users to buy fracture shares. This means you can invest in high-priced stocks with smaller amounts of money. It’s easy to see how this flexibility, along with those competitive eToro trading fees make this an attractive option for many investors out there.

Regulatory Compliance and Legal Standing

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In order to properly address the question, “Is eToro legit?”, we’ve got to take a look at safety and regulation. These are a big deal in the trading world, and it’s safe to say that eToro definitely doesn’t fall short. 

The eToro platform is overseen by many major financial authorities. This is a good thing. That means that eToro complies with both federal and international laws. Those include FINRA and the SEC in the US, the FCA in the UK, CySEC, and ASIC. With a strong regulatory framework, users can rest easy knowing that eToro is trustworthy.

European and Australian Regulations

When it comes to Europe and Australia, eToro operates under some pretty stringent regulatory oversight. This is a good thing, as it makes way for a secure trading environment for its users. 

The eToro platform is regulated by three major financial authorities: the Financial Conduct Authority (FCA) in the U.K., the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC).

The FCA is renowned for its rigorous standards, which require eToro to maintain high levels of transparency, financial stability, and consumer protection. This ensures that eToro operates fairly and clients’ funds are secure.

CySEC, based in Cyprus, also plays a crucial role in overseeing eToro’s operations within the European Union. CySEC’s regulations align with the European MiFID II directive, which promotes transparency across EU financial markets and offers enhanced protection to investors.

Down under, ASIC regulates eToro’s operations in Australia. ASIC’s stringent regulatory framework mandates that eToro adheres to strict financial standards and practices, ensuring the protection of Australian investors.

These regulatory bodies collectively ensure that the eToro platform remains compliant with international financial laws, providing users in Europe and Australia with a reliable and secure trading environment. For those new to trading and looking to understand the process better, check out our How to Buy Shares guide.

Investor Protections

Safety nets in place is a big deal, especially when it comes to your very own hard-earned money. That’s why it’s important to know that eToro is safe. They provide several layers of investor protection. These are in place to safeguard your investments from any potential risks. 

Segregation of Funds

With the eToro platform, one of the key ways your money is protected is by keeping client funds completely separate from the company’s operational funds. This means that your money isn’t mixed with eToro’s business operations, keeping it completely safe and secure. Additionally, eToro trading funds are kept in reputable banks such as Barclays and Coutts, for that added layer of security.

Insurance and Guarantees

Impressive protection doesn’t stop there. eToro offers insurance for non-crypto assets of up to $1 million through Lloyd’s of London. With this coverage, you get an additional layer of protection for your investments such as cash, CFDs, and securities. Considering the transparent eToro fees structure it’s good to know your assets are covered by a trusted insurer like Lloyd’s.

Security Measures

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When deciding, is eToro safe, it doesn’t end at protecting your money. They go above and beyond to safeguard your data as well. In fact, there are many security measures in place to protect both user data and funds. These include secure storage, data encryption, and user-level security features like Two-Factor Authentication (2FA). Let’s explore these eToro safe measures in more detail below:

Data Encryption and Storage

Your data remains eToro safe. This is because the eToro trading platform employs SSL encryption to protect all personal info. Basically, this means that any data you’re sending or receiving via eToro is encrypted and safe from unauthorised access. Plus, they store data in secure, cold storage. This storage isn’t connected to the internet which means it’s safeguarded from cyber attacks.

User-Level Security Features

The overall security of the eToro trading platform lets you know that eToro’s legit. That’s because they take user security seriously, with features that protect accounts from unauthorised access. 

Two-Factor Authentication (2FA)

That user-level security that keeps you eToro safe is through Two-Factor Authentication (2FA). This means that when you sign in, you’ll need both your password and a security code that’s sent directly to your phone. With user-level security features like these, it’s much more difficult for just anybody to access your account without your explicit permission.

Strong Password Protocols

So, with a strong password, is eToro safe? You bet it is. eToro encourages users to create strong, unique passwords. They also suggest that users change them periodically. A strong password by their standards is a mix of letters, numbers, and special characters. When you regularly update your password, you keep eToro safe, and enhance your account security. For help managing your passwords, be sure to check out our blog on best password managers.

Fees and Costs

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It’s important to understand eToro fees and costs so you can manage your investments effectively. eToro charges both trading and non-trading fees. It’s vital to keep these in mind if you wish to maximise your investment returns. Let’s look at these fees a bit more closely:

Trading Fees

As mentioned earlier, eToro trading fees include a 1% fee on crypto transactions. This also includes no commission on stock and ETF trades. These fees are competitive and transparent.

Non-Trading Fees

In addition to trading fees, eToro fees also include non-trading fees. These are for things like withdrawal, inactivity, and conversion. It’s important to be aware of these because they can impact your overall profitability.

User Reviews and Complaints

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The eToro platform has garnered a great deal of insight from users, like with this YouTube video here. When deciding for yourself, is eToro safe, it’s important to look into reviews of both the good and the bad to find out more about the platform. Here’s what we’ve uncovered:

Positive Reviews

When users talk about eToro. They often highlight its user-friendly interface, wide range of assets, and social trading features. The platform’s popularity also reassures new users that eToro is safe. All-in-all, these aspects make the eToro platform quite appealing to both new and experienced traders. Many people love how easy it is to navigate eToro and that the social trading feature allows users to follow and copy the trades of successful investors. Not only does this unique feature help traders learn from experts, but it also builds a sense of community.

Common Complaints

Of course, nothing is without flaws, and that includes eToro. That said, some users have expressed concerns for customer service delays and high eToro fees for specific transactions. Issues like these can really impact the overall user experience and cause frustration that affects trust in the platform. Additionally, while eToro’s fees are competitive, the non-trading fees can add up overtime and impact profitability. The pros do outweigh the cons however, and eToro remains on the top of list of the best trading platforms.

Current Events Related to eToro

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Knowing that eToro’s legit is one thing. It’s also important to stay informed with the latest developments as it relates to the platform’s performance and future prospects. An example of this is how eToro recently expanded its offering to include new financial instruments. Things like this impact the platform in a positive light and in turn, increase the user base.

Regulatory Updates

Say it with me: eToro is legit. This is due to eToro’s adherence to regulatory updates. They’ve been working diligently to meet new financial regulations in many countries. An example of this would be with eToro’s efforts to comply with MiFID II regulations in Europe. Compliance with these not only makes eToro legit, but enhances user confidence in the platform’s integrity.

Tips for Safe Investing on eToro

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There are some ways to keep yourself from asking, “Is eToro safe?”, while using the platform. Here are some tips:

Enable Two-Factor Authentication (2FA)

As mentioned earlier 2FA is going to add an extra layer of security to your eToro account. Set up is a pretty straightforward process: go to your account settings, enable 2FA, and then just follow the prompts to link your phone. This simple step enhances account security and keeps your eToro safe.

Use Strong, Unique Passwords

As stated earlier, to keep your eToro legit, you’re definitely going to want a strong, unique password. This means you shouldn’t use information that’s an easy-guess. So birthdays and common words are out-of-the-question.

Monitor Account Activity

Regularly reviewing your account activity is vital in ensuring that eToro is safe. This way, you can detect any suspicious transactions. Be sure to set aside time each week to go through your transaction history. If you notice anything unfamiliar to you, be sure to report it immediately to eToro’s support team.

Avoid Phishing Scams

Phishing scams are a common threat anywhere. However, you can avoid them if you stay vigilant. Always verify the authenticity of emails and messages that claim to be from the eToro trading platform. There will be signs like misspelt words, suspicious links, and requests for personal information. It’s vital that you never click on links or download attachments from unknown sources. Hence, you should only interact with verified eToro communications. For more on protecting yourself, be sure to read more on what is doxxing.

eToro‘s Customer Support and Resources

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The eToro platform provides many different customer support options and education resources to help users learn the platform and improve their trading skills. Let’s look at these in a bit more detail below:

Customer Support Options

On the eToro trading platform, you’ll find 24/7 customer support through live chat and an online ticket system. This is in place to make sure you can get the help you need, regardless of the hour of the day. The online ticket system is great for less pressing matters.

Educational Resources

As if we can’t keep thinking of enough reasons to answer the question, “Is eToro safe?”, we find more within the education resources provided by eToro. These include tutorials, webinars, and a Virtual Portfolio. This helps users learn about investing, eToro fees,  and the platform’s features.

Comparing eToro with Other Trading Platforms

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To decide for yourself, is eToro good, you can always compare it with other trading platforms. This will help you see its strengths and weaknesses, so you can make the right choice for yourself. Here’s what to think about:

Fee Comparison

We already know that eToro fees are pretty darn competitive. We’ve got that 1% fee on crypto transactions and no commission on stock and ETF trades that we’ve already talked about. However, users should keep those non-trading fees in mind as well. But when comparing with other companies, the eToro fee structure is transparent and in many cases, lower. Understanding these fees will help you make a well-informed choice.

Feature Comparison

On the eToro trading platform, the social trading and Virtual Portfolio really set it apart from other platforms. So when you’re taking this platform head-to-head with others, be sure to keep those innovative features in mind.

Security Comparison

Based on all you’ve learned in this guide so far, you’ve found out that eToro is safe. Remember that eToro employs strong security measures, as we mentioned earlier (SSL encryption, cold storage, and 2FA). When looking into other platforms, keep these safety measures in mind. They’re essential in making sure that users can feel safe and confident whilst they’re trading.

Learnings Recap

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Based on what you’ve uncovered with us today, is eToro safe? Let’s take a look at this quick recap to be sure you’ve got a solid understanding of all eToro’s safety, features, and benefits:

• Regulation: eToro is well-regulated and operates under several major financial authorities.
• Security Measures: The platform uses robust security measures, including SSL encryption and Two-Factor Authentication.
• Investor Protections: eToro offers insurance for non-crypto assets and segregates user funds from operational funds.
• User Experience: Users appreciate eToro’s user-friendly interface and social trading features but have raised concerns about customer service delays and certain fees.
• Security Tips: Regularly monitor your account, use strong passwords, and enable 2FA to enhance security.

Final Thoughts

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At Privacy Australia, we emphasise the importance of maintaining your digital privacy and security. While eToro provides robust security measures, using a VPN can further protect your online activities, especially when accessing financial platforms. Privacy Australia offers comprehensive reviews of the best VPNs, ensuring that your investments and personal data remain secure.

We believe eToro is a solid choice for traders looking for a reliable, secure, and user-friendly platform. But at the end of the day, the choice is up to you. As long as you follow the tips within this guide, your trading experience and investments are bound to be secure. Stay sharp and may the trades be ever in your favour!

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