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Is eToro A Scam Or a Legitimate Social Trading Platform In 2021?

Are you getting confused about reading eToro reviews online? When all you want to know about the trading website is: is eToro reliable? Is eToro safe, and most particularly, is eToro a legitimate trading platform? The answer to the above questions is eToro is not a scam, and it is a legitimate trading platform. However, in this article, we will be discussing why eToro is not a scam but a legitimate trading website. But before that, we need to understand what the eToro trading platform is and its background.

What is eToro?

eToro was founded in 2007 in Israel and it has more than 20 million users worldwide, including millions of registered users in 50 U.S. states. Etoro trading is the world-leading and largest social trading network, and it is the pioneer in the global Fintech revolution for more than 12 years. Etoro is a safe and controlled trading platform that offers a stable coins series and various crypto assets such as bitcoin, etherum, binance, and many more.

Etoro is a social trading platform that allows you to interact and execute trades with other traders and investors. Etoro is a broker that executes trades on your behalf, including a wide range of different financial markets that you can trade on. Besides that, it offers various partner programs available only in Europe, such as affiliate programs, broker programs, and popular investors.

Is eToro Regulated?

As a leading social trading platform and a global broker, eToro is highly regulated. Etoro has some trading entities, and each entity has its regulated credential. Thus, eToro is a registered trading company and a registered company in countries like United Kingdom, Australia, and Cyprus. A registered Cypriot Investment Firm (CIF) with the registration number HE20058. Etoro Europe is regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 109/10. In the U.K., eToro (U.K.) Ltd., (“eToro U.K.”) with the registration number 7973792 is authorized and regulated by the Financial Conduct Authority (CFA). In Australia, the product and service are provided by eToro AUS Capital Pty Ltd., (“eToro Australia”) with the registration number ABN 66 612 791 803 by the holder of an Australian Financial Services License (AFSL) 491139 issued by the Australian Securities and Investment Commission ((ASIC), and regulated under the Corporation Act (Commonwealth).

Is eToro a Scam or a Legitimate Trading Website?

Many people are not too sure; perhaps eToro is a scam or a legit trading platform. There are some negative reviews online regarding eToro’s services both as a broker and a social trading network. However, because eToro looks different from other trading platforms, some people feel that eToro is a scam, but that’s not the case; eToro runs a legitimate social trading platform. They are a licensed brokerage registered company by Cypriot Investment Firm (CIF), Financial Conduct Authority (FCA), and an Australian Financial Service License (AFSL). Also, they are recently licensed in some of the U.S. states like Alaska, Arkansas, Georgia, Iowa, New Mexico, Ohio, South and North Dakota, Vermont, and Washington. For some time, regulatory changes made the trading platform not to be available for U.S.-based investors. Still, now that eToro has been able to get licensed in the United States, United States-based investors can use some of their services.

They describe their trading system as a Straight-Through-Processing network. This means investors can leverage their broker license to access investments directly. Though they charge a fee for the service, they charge base on the trade and the market. When you trade during the active market period, they automatically transfer and process your trade. They don’t change the price from their end, but it can be changed due to the market changes. They are monitored and regulated under strict supervision, so the eToro trading platform is not a scam.

Generally, trading involves both high and low risks. Still, some individuals who are quick to lose money while trading on a platform like this are quick to put the whole blame on the platform, calling it a scam, and that’s more reason eToro provides risk management tools and enables you to withdraw your funds at your convenient time. They bring some new features to the forex trading industry, particularly in the cryptocurrency aspect. They create a safe platform where newbie traders can trade. Try to check the trading history of an experienced trader. You will discover that he had losses. This is great because you can see trading history so that you can go back to quite several years to thoroughly make your research about a trader before you decide to copy him or her. It is quite misleading to see only the trending data. A trader might have 75% returns, but if you dig a bit deeper into the trader’s stats and trading history, he might have had relevant losses. However, eToro will allow you to see beyond the surface to get a clearer picture of a trader you are about to copy.

Customer Service

You can connect with eToro via their online support community, where you can submit a ticket on any issue, and they will get back to you in no time. Also, you can as well reach out to their customer representative on their support line. However, partners have a separate customer service program that they can take advantage of.

eToro Withdrawals

Once your eToro account is verified with your identity and you have a minimum of $30 available in your account for withdrawal, you can withdraw it to your local bank account. However, if you have funds invested in open positions, you may decide to close them to make more money available for withdrawal. Also, you are free to withdraw any amount from $30 or more to your local bank account as long as you have the funds available in your eToro account. It will only take 3 – 8 business working days to receive your money in your local bank account.

Conclusion

eToro is a legitimate trading platform. There is no evidence or traces on the internet to prove that they purposely deceive their traders and investors by deflating numbers to show unrealistic profit targets. Yes, there have been, and there will always be some poor or inexperienced traders who lost a lot of their funds after early promises. However, that’s the risk involved when you invest because some of the potential profits that can be achieved with margin trading can be high, the risk is pretty high, and you must have come across that in the risk disclosure of any broker. Sure, they would like to have as many people trading as possible on their platform, and so does any broker; that’s just the way of running a business. It is now left to you as an investor to decide how much to invest and the risk to take.

Amit Kupfer

Amit Kupfer

Amit is the founder of Social Trading 101. He is a passionate value investor. His investor's "heroes" are Bruce c. Greenwald, Peter Lynch, Philip Fisher & Warren Buffett. Copy my trades on eToro 👉 https://etoro.tw/3nA3gTb

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