eToro – what we know and have as facts about it; This is a trade name of the group of companies that includes eToro (Europe) Ltd., which is authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) under the license number 109/10; eToro (UK) Ltd, which is authorized and regulated by the Financial Conduct Authority (FCA) under the reference number 583263; eToro AUS Capital Pty Ltd., which is authorized by the Australian Securities and Investments Commission (ASIC) under license number 491139. These licenses allow it to conduct various financial services, including receiving, transmitting, and executing customer orders.
Here is what we found about what type of broker the company is. The eToro (UK) Client Term and Conditions document shows that eToro UK will act as an agent on behalf of the customer transactions. This means that eToro (UK) will enter into a transaction with eToro Europe and therefore eToro Europe will be the counterparty to customer’s trades. The same document for eToro (Europe) shows that the company may act as a principal and it will be the counterparty to customer’s trades. So, even though eToro (UK) uses the Straight Through Processing (STP) model to execute the orders, eToro (Europe) is a market maker. In general, dealing with market makers involves a conflict of interest because they do not transmit every customer deal and hope that customers will lose. Every loss of customers is their profit.
We also found that there are some posts in forums about aggressive emails, high transaction fees, unjustified execution of stop loss orders, unjustified change of leverage, poor or lack of customer support, price manipulation, many platform bugs, and withdrawals issues.
So far, we have not received any complaints from customers of eToro. If you have any criticism to share with us or feel annoyed by eToro, please fill in the form below, detailing your case. Once we have made your case public, we may attempt to mediate between you and eToro if you wish.