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Is eToro Safe?

By Will Ellis
Last Updated on March 23, 2024

Generally speaking, you’re pretty spoiled for choice if you’re a trader who’s looking to get involved with investing on the internet these days.

From options like Coinbase that’ll let you trade cryptocurrencies online to other, more encompassing options like eToro, there are tons of trading platforms out there for you to get started with.

Having said that, one of the main qualms people are going to have about any kind of online investing platform is regarding how safe their money actually is — you only have to look to 2022 to see platforms like FTX seemingly appearing to be fairly safe but were fraudulent in reality.

etoro Logo

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

Fortunately, eToro has a lot going for it to suggest it’s not going to go down the same path FTX did, but it’s still imperative to know a little bit more about the safety/security features of their platform if you’re planning on using it.

So, throughout this article, we’ll be taking a closer look at some of the safety aspects of eToro and cryptocurrency in general — from knowing which regulatory bodies eToro complies with to understanding how the platform works overall.

Table of Contents:

eToro Overview ➡️


eToro is actually one of the most popular trading platforms available on the market, and a lot of this seems to be due to how versatile it is — integrating a range of financial instruments like stock and crypto.

As an investor, you’ve generally got quite a wide avenue of areas to explore with The eToro trading platform, so it’s not like some of the other trading platforms that only cater to one specific part of investing, cryptocurrency, for instance.

So, before we jump into how safe your money is with one of their retail investor accounts, let’s walk through some of the basics you’d expect to find on the eToro platform.

Stock Trading on eToro

To kick things off, let’s focus on one of the more traditional investments people are going to make with eToro: stocks.

There’s nothing particularly unusual or fraudulent here, either — eToro generally offers a great platform for any traders out there wanting to make investments. If you’re using their mobile app or website, you’ll be able to access a fairly vast array of stocks that span over quite a few different industries and regions, so you’re usually able to build a pretty diversified portfolio with eToro.

Aside from this, the platform’s also got quite an intuitive design that simplifies a lot of the stock trading process, so whether it’s real-time market data or a bunch of analytical tools on the side, you’ve got all the support you need to make good investments here.

Crypto Trading

The world of cryptocurrency is certainly one that has a lot of investors worried — whether it’s down to issues with legitimacy, money laundering, or potential scams — and this can naturally leave a pretty sour taste in most people’s minds that’ll make them ignore any of eToro’s crypto services immediately.

In reality, though, and we’ll come onto this in a bit more detail shortly, trading crypto couldn’t be much safer on eToro.

Like the majority of crypto platforms, you’re, of course, able to buy and sell a selection of cryptocurrencies — including some of the obvious choices like Bitcoin or Ethereum — but you’re also able to relax knowing that eToro is fully committed to security and regulatory compliance.

What’s more, you’re also able to access the eToro Money crypto wallet, which is essentially their answer to storing and distributing crypto assets on their platform. While this is definitely helpful in terms of how convenient it is — even mentioning on their website that you don’t need to memorise a particular phrase or write down your private keys to get into your account — in the spirit of safety, it’s worth mentioning that this isn’t exactly the best option available to you.

To reiterate, yes, of course, it’s nice being able to use a platform that comes with its own wallet, but these are actually known as ‘hot wallets’, and they’re far less secure to use than their alternative (cold wallets) given that they’re online based.

Cold wallets, on the other hand, are absolutely something you should be looking into buying if you’re an investor who’s worried about leaving your funds on an online platform. eToro’s crypto wallet is safe, but if you remember how FTX customers felt in 2022, you’d know that you’re probably almost always better off storing your currency in an offline wallet that can only be accessed by you.

Account Creation and Security: A Seamless Process With Rigorous Safeguards


At this point, a lot of people might be worried about inputting all of their personal details into a site they’re unsure of, but rest assured, you’ve got nothing to worry about when creating an eToro account — not to mention how simple it is to do, too, only requiring some basic information and an identity check.

Regulatory Compliance

In terms of what kinds of regulatory bodies eToro actually adheres to, your back’s covered by a range of different organisations. Firstly, so that they’re actually able to operate within the country, eToro, of course, has to comply with the regulatory framework that’s set by the Australian Securities and Investments Commission (ASIC).

Aside from their legal obligation to do this, it does, however, show that eToro has an overall commitment to maintaining some of the highest standards when it comes to financial security and general transparency, so we have to give eToro some credit for that.

Outside of Australia, it’s definitely worth mentioning that eToro is also subject to oversight by some global regulatory bodies, too — the Financial Services Compensation Scheme (FSCS) in the UK and eToro USA LLC for any users in the United States, for instance.

Exploring eToro Trading Features 👀️


Copy Trading

Once you’ve got started with an account and make your way through to their dashboard, you’ll notice one of their most innovative features, eToro’s copy trading service, which has actually had a major impact on the way investors (who perhaps don’t have too much experience in trading at the moment) are able to approach the financial markets.

Put simply, eToro gives you an opportunity to essentially replicate (or ‘copy’, as they put it) whatever trades some of the more successful and well-experienced investors are making, and these people are usually just referred to as “Popular Investors” on the platform.

The idea here is generally that the ‘skill gap’, if you will, between elite traders and retail investors who are looking for a user-friendly experience is reduced, ultimately allowing people with less experience to be able to trade stocks and crypto profitably.

We’ll come onto why this might not be the ‘safest’ trading strategy you could employ shortly, but just to finish up on the explanation of how this feature works, you just need to browse through the profiles of all those Popular Investors we mentioned earlier and find one that you like — ensuring that things like their trading strategies, risk tolerance, and historical performance all look okay to you.

Then, once you’ve finally found the right trader who generally seems to have similarly aligned investment goals, all you’d have to do is allocate the funds and you automatically mirror any of their future trades.

This is actually quite an exciting feature, as not only does this kind of thing save time for your average investor, but it also gives them a way of diversifying their assets since you can spread your funds across a few different Popular Investors so you’re not all in on one single strategy.

Now, this is a feature that’s pretty easy to get carried away with, but in reality, this is an incredibly irresponsible way of investing money. Sure, it’s not entirely dissimilar from hiring an accountant and letting them invest your money for you, but features like the eToro copy trading service are never going to make you a better trader if you’re simply relying on the performance of other people.

It’s not an illegitimate service or anything, but if you’re looking for a safer alternative to making investments — whether they’re in cryptocurrency or stocks — take time to develop a trading strategy of your own; it’s literally the only way you’re ever going to have success in such a competitive industry in the long run.

Trading Strategies and Educational Resources

Fortunately, eToro seems to recognise that the majority of investors out there are going to want to work on their own specific trading strategies, so you’ve got access to a bunch of different tools and resources that’ll help you do this on their platform.

Let’s walk through just a couple of these:

Fundamental Analysis

First off, it’s a given to most investors that you’re going to need some level of understanding of a business’ fundamentals whenever you’re considering investing in it.

Having said that, what specific data you should be looking at in order to gain an understanding of this can be pretty complicated for beginners, so that’s why eToro gives you a chance to analyse things like a company’s financial health, market position, and growth prospects all without leaving their platform.

With this information in mind, you’re then able to make a lot more informed decisions when it comes to making trades, and you can be confident knowing that you’re only ever making investments into companies that tend to exhibit pretty strong fundamentals.

Technical Indicators

For anyone who prefers going into trades after performing a hefty amount of technical analysis, eToro also gives you plenty of different tools and indicators to do this with — from things like moving averages to more complicated options like stochastic oscillators.

You shouldn’t need us to tell you, but of course, using these kinds of tools is going to make it a lot easier for you to analyse price charts and even spot any potential trends or reversals — ultimately letting you time your entries and exits a lot more effectively.

Educational Resources

Again, despite a lot of the attention going to eToro’s copy trading service, it’s worth keeping in mind that you are still able to access quite a good selection of different educational resources when you’re using this platform — whether you’re a mobile or web user.

To be specific, no, you’re not able to book face-to-face chats with trading pros, but you can generally expect to see things like articles, tutorials, and even webinars that cover a pretty wide range of topics — starting with the basics of trading all the way up to the more advanced strategies.

Obviously, there’s nothing sinister about eToro offering this kind of thing on their platform, so you can actually take a bit of comfort knowing that they genuinely seem to be rather committed to educating all of their users — ultimately ensuring that every investor can have a good time on their platform, regardless of how experienced they may or may not be.

Fees and Costs 💰️


Currency Conversion Fees

Let’s move onto some of the fees eToro users can generally expect to find when trading on the platform, of which there are certainly their fair share.

Fortunately, though, eToro actually offers commission-free stock trading, but that doesn’t mean you shouldn’t still be mindful of some of the currency conversion fees that are included whenever you trade an asset that’s in a different currency from the one that your account’s associated with (trading in USD while your account is AUD based, for instance).

As such, it’s naturally pretty crucial that you factor some of these fees into your overall trading strategy so you can be sure your profits aren’t being eaten up before you make any kind of progress.

eToro Mobile App 📱️


Accessibility and Convenience

The vast majority of stock or cryptocurrency brokers are always trying to make the overall trading experience as spoon-fed and effortless for their users as possible, and oftentimes, this is facilitated by providing some sort of mobile app.

Put simply, that’s exactly what you’ll be getting with eToro — a convenient mobile app that’s available on both the App Store and Google Play store so that you’re able to make trades on the go.

The app’s completely safe, too, but in terms of the functionalities, you’ll be getting a relatively user-friendly interface that comes with things like real-time updates as well.

When you’re actually on the app, though, you’ll, of course, be able to do pretty much all of the same things that you can on their website, whether that’s managing your trading portfolios, executing trades, or just generally staying informed about any potential market developments — the only difference is that you can do it from all from the palm of their hand.

Withdrawing Funds on eToro 🔎️


Seamless Withdrawal Process

To wrap this eToro review up and whether it’s actually a safe platform for you to trade on — the answer, in short, is yes, eToro is completely safe for users all around the world to get started.

This is topped off by just how easy eToro makes the overall withdrawal process whenever you decide that you want to take your funds out of your wallet and back into your bank account (you’d normally find this either impossible or incredibly convoluted with some of the less safe/nefarious trading platforms out there).

etoro Logo

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

Whether it’s with a bank transfer or they’re sent directly to one of your external e-wallets, you’ve got plenty of options for how you’d like to withdraw funds from your eToro account, so expect this level of convenience if you’re considering investing on their platform.

Disclaimer:

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Social trading. eToro does not approve or endorse any of the trading accounts customers may choose to copy or follow. Assets held in your name. Capital at risk. See PDS and TMD.

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.

Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk. May not suffice as basis for investment decision.

FAQs 📢️


Is eToro Suitable for Both Beginners and Experienced Investors?

Absolutely, and this can’t be overstated — whether it’s the educational tools or their copy trading features, eToro is a fantastic beginner platform to get started with. On the other hand, the platform’s advanced tools and Dedicated Account Manager service make it pretty valuable for the more experienced investors out there who’d prefer to implement their own trading strategies and further refine their skills.

How Secure Is eToro’s Mobile App?

As you might expect, the level of security eToro provides extends to its mobile app, too. In terms of your user info and transactions, you can feel safe knowing that there are plenty of different security and encryption measures in place, meaning you’re able to trade on the go while enjoying the same level of security as the desktop version.

Can I Trade on eToro 24/7?

Though the stock market isn’t open around the clock, yes, eToro does still provide 24/7 trading for cryptocurrencies, so anyone using their platform can engage in crypto trading pretty much whenever they want to. Given that it’s an unregulated market, the cryptocurrency market doesn’t have any kind of opening times as you might expect with the stock market, so it’s definitely more flexible.


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