eToro Insurance Policy - Is eToro Insured in 2024?
Insurance in a trading company is very crucial. With so much at stake, insurance also allows for financial stability, loss mitigation, commerce, and trade promotion.
eToro has individual insurance policies to protect your finances. As preventive measures, it also takes security seriously into account. From top-tier security of your funds and personal information to cutting-edge security technologies used in the infrastructure. If you are an eToro account holder or planning to become one, read on to know how your money is safe with eToro trading.
What is eToro Insurance?
The insurance provided by eToro gets sourced from Lloyds of London. They are one of the world-renowned suppliers of insurance in speciality and finance. They provide coverage of up to 1 million AUD or Euros. It depends on the region and currency you belong to.
All eToro customers are automatically covered by insurance. If you are an eToro customer, you can register separately for the insurance. It will be assigned automatically to your account.
The European investor compensation scheme has always safeguarded any eToro account investor. Each client is protected up to a limit of 20,000 euros if the broker becomes insolvent.
The protection aims to protect clients' liquidity and the financial items they hold on the eToro platform: CFDs, stocks, and ETFs. The insurance does not cover actual bitcoinspurchased on eToro and stored in the wallet.
The eToro insurance covers -
up to one million euros or Australian dollars (depending on the covered entity);
up to the whole amount purchased by eToro; and
subjected to an excessive quantity (as defined per applicable Policy).
The insurance covers CFD positions, cash, and securities. Digital asset trade (non-CFD) is not protected by insurance, as mentioned in the applicable Policy.
Cash
As your money is housed in different places for each type of account, the possible Federal Deposit Insurance Corporation (FDIC) insurance coverage varies.
ETFs, Stocks, Options
SIPC (Securities Investor Protection Corporation) insurance protects any US stocks, ETFs, or options held in your eToro Securities USA Inc. Brokerage account(s)- Apex Clearing Corporation, our clearing firm, has obtained additional insurance coverage to enhance SIPC protection. This supplementary insurance protects securities and cash in a brokerage account.
Cryptocurrency
Your eToro cryptocurrency is not insured.
Features of eToro Insurance Policy
The policy covers losses resulting from the following scenarios:
Although very unlikely, in a case of bankruptcy declaration;
eToro or its employees' wrongdoing causing financial loss to the customer;
Theft of financial instruments like stocks, ETFs, etc.
Needless to note, the policy does not cover losses resulting from trading activities or losses resulting from unfavourable changes in the financial products owned by clients.
The new eToro insurance policy has no expiration date and is available to all clients at no cost (even the new ones).
What Are The Levels Of eToro Protection?
Clients of eToro have three layers of protection in the unlikely event the company goes bankrupt.
The Allocated Liquidator:
In insolvency, the designated liquidator will oversee eToro's assets and, if applicable, money allocation among its clients.
Regulatory Protection:
Certain regulatory systems (ICF) apply to clients under CySEC regulations, which reimburse clients in the case of insolvency and a deficit of client money. The policy provides coverage for ICS (CySEC).
Private Insurance:
This investment insurance coverage supplied by Lloyd's of London protects losses incurred by bankruptcy, subjected to an excessive amount and up to one million Euro/AUD per client, as mentioned above.
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. 76% 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
"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.
FAQs
What Products Are Covered Under The Insurance Policy?
eToro takes care of its traders' financial security. The insurance covers funds, CFD assets, and stocks. It should be reminded that positions in non-CFD crypto assets are not insured.
Does eToro Insurance Policy Have Any Expiry Date?
In general, the insurance policy has no expiry date. However, eToro reserves the right to discontinue the insurance provision at any time. It is entirely at the company's discretion.
How Does eToro Protect Your Money?
With eToro, your funds are secure. To protect your funds, eToro keeps them in a separate account at a top-tier bank.
Who Is The eToro Insurance Policy Available For?
Yes. According to the Policy and as mentioned in the Client's Disclosure, the insurance will cover all eToro users of eToro (Europe) Ltd. and eToro AUS Capital Limited in the event of insolvency.
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Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.