Is eToro Safe? Regulation, Investor Protection & Oversight

Is eToro Legit and Safe? An Analysts Deep Dive

eToro operates multiple, separately regulated entities (UK, EU/Cyprus, Australia, Singapore, UAE/ADGM, Seychelles). Client cash is held in segregated accounts, US securities are SIPC-protected via the US broker, and retail clients in covered regions have Negative Balance Protection. eToro also completed a SOC 2 Type II audit on its crypto-custody operations. These are meaningful protections, but they do not remove market risk. Always confirm which eToro entity you on-board with; product access and protections vary by jurisdiction.

What Questions Do Customers Commonly Ask about Safety?

Q1: Are my funds segregated from eToros own money?

Yes. eToro states client money (except margin) is held in segregated accounts with authorized institutions/top-tier banks. This reduces exposure to firm default.

Q2: Can my account balance go negative?

Retail clients benefit from Negative Balance Protection under applicable rules; you wont owe more than your account balance in those regions.

Q3: Are my US stocks insured?

US securities with eToro USA Securities are covered by SIPC up to $500k ($250k cash sub-limit). This does not protect against market losses.

Q4: Does eToro undergo security audits?

Yes. eToro announced SOC 2 Type II compliance for its crypto-custody operations in 2024 and again in 2025 (press and investor notices).

How Is eToro Regulated across Different Jurisdictions?