In this article
WikiFX provides inquiry services in the forex field.
WikiFX evaluates the reliability of eToro based on the facts.
What is WikiFX？
| WikiFX is an authoritative global inquiry platform providing basic information inquiry and regulatory license inquiry. |
| WikiFX is able to evaluate the safety and reliability of more than 31,000 global forex brokers. |
| WikiFX gives you a huge advantage while seeking the best forex brokers. For more information, such as the review and exposure of brokers, please visit our website (https://www.WikiFX.com/en) |
To explore whether eToro is a scammer or not, we evaluated eToro from different aspects, such as regulatory status, exposure, etc.
1.Evaluate the reliability of eToro based on its general information and regulatory status
To understand eToro better, we explore eToro by analyzing three main perspectives:
A. General Info of eToro
B. Regulatory Status
C. Fund Security
A. General Info of eToro
eToro s general info has been shown below:
(source: WikiFX)
(source: WikiFX)
eToro was founded in 2007 as an online forex and CFD broker that provides traders with different financial instruments.
eToro supports 18 languages, including English, Chinese, and Spanish.
Market Instruments
By investing in eToro, investors can trade thousands of financial assets in multiple categories, including commodities, cryptocurrencies, forex, indices, and ETFs.
Minimum Deposit
The minimum deposit to open a retail account is $200. Except for the following:
For clients in Israel is $10,000.
For clients in the US and Australia is $50.
For clients in Russia, mainland China, Hong Kong, and Macau is $500.
Leverage
eToro has two types of accounts for different types of investors: Retail and Pro accounts. Retail accounts have maximum leverage of 1:30. Pro accounts are for those clients who have successfully passed the Professional Client Condition Test, which allows them to use unlimited leverage.
Spreads & Commissions
The minimum spreads start from 0.9 pips for EURUSD, 0.8 pips for GBP EUR, 1.2 pips for EUR GBP, 4.5 pips for Gold, 0.05 pips for Silver, 0.05 pips for Crude Oil, 0.01 pips for Natural Gas.
Trading Platform
eToro offers a wide range of financial assets for trading and investment. Traders can gain access to more than 2,000 assets to trade through the eToro mobile or web platform, and appreciate the benefits of collective intelligence using ready-to-use CopyPortfolios™.
Deposit & Withdrawal
eToro supports VISA, MasterCard, PayPal, wire transfers, NETELLER, WebMoney, Skrill, and other methods of deposit and withdrawal. Withdrawals are subject to processing fees, and any withdrawals in non-USD currencies are subject to exchange fees.
(source : WikiFX）
B. Regulatory Status
The legitimate license of eToro
According to WikiFX, eToro is a licensed broker. It is regulated by the following: the CySEC under the license number 109/10; the FCA under the license number FRN 583263; the ASIC under the license number 491139. Please note that IFSC regulatory status with license number:Unreleased is revoked. And it is an offshore regulation.
(source: WikiFX)
C. Fund Security
(source: eToro website)
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According to its website, eToro guarantees that clients funds are under protection. “Your Funds are kept in a Segregated Account” Account segregation is imperative since it allows traders to have access to their funds all the time. Even if the broker is bankrupt, traders will still be capable of getting their money back.
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eToro offers cyber security standards for protecting clients funds and privacy.
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As a regulated broker, the clients funds are protected by eToro under the strict regulations of several authorities.
2.The feedback from Twitter
To figure out whether eToro is a scammer or not, we made a survey about eToro on Twitter.
Reviews on Twitter:
eToro does have an official account on Twitter. This account has been operating for 13 years. It currently has around 26.1K Tweets and 322.3K followers. It seems that this account has played a significant role for its business on Twitter. It is active, and it interacts with other people very often.
(Source:Twitter)
There are a couple of negative comments related to eToro on Twitter. Traders were angry about being unable to withdraw their money. They got no response from eToro when money is out of control. Please beware of the potential scam.
3.Exposure related to eToro on WikiFX
On WikiFX, the Exposure consists of feedback from traders. A bad track record of brokers can be checked via Exposure. WikiFXs Exposure function helps you get feedback from other traders and remind you of the risks before it starts.
(source:WikiFX)
As of 25th February 2022, the number of the complaints received by WikiFX have reached 33 for this broker in the past 3 months. Many traders claimed that they are unable to withdraw money from eToro. Besides, the bad customer service is another reason why traders were so angry about eToro. Traders are difficult to get replies from eToro.
4.Special survey about eToro from WikiFX
A. Scoring Criteria
WikiFX gives brokers a score from 0 to 10. The higher the score is, the more reliable the broker is.
| The Scoring Criteria of Brokers on WikiFX |
| License index: reliability and value of licenses |
| Regulatory index: license regulatory strength |
| Business index: enterprise stability and operational capability |
| Software index: trading platform, instruments etc |
| Risk Management index: the degree of asset security |
According to WikiFX, eToro has been given a decent rating of 7.50/10.
(source:WikiFX)
According to the above, it seems that eToro is very poor at risk management. Risk management includes the measurement, assessment, and contingency strategy of risk. Ideally, risk management is a series of prioritized events. eToro seems not to have enough capital and good strategies to secure clients assets in the unstable market.
B. Field Investigation
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To help you fully understand the broker, WikiFX also investigates the brokers by sending surveyors to the brokers physical addresses.
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On WikiFX, you can visually check the physical addresses of brokers by pressing the “Survey” button.
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WikiFX did make a field survey on eToro on Aug 2021 but failed to find the office at their business address.
(source:WikiFX)
C. WikiFX Alerts
| The number of the complaints received by WikiFX against this broker reached 33 in the past 3 months |
| The number of this broker's negative field survey reviews has reached 2 |
| The regulatory status of IFSC (license number: Unreleased) is abnormal, the official regulatory status is Revoked. |
| The IFSC regulatory status with license number: Unreleased is offshore. |
| Current data shows that this broker is using Non MT4/5 Software |
(source: WikiFX)
5.Conclusion:
eToro is a licensed broker that is strictly regulated by several authorities. However, due to the outstanding complaints from the traders, we advise you to do more research and make yourself comfortable before you make a right decision. We recommend you seek the regulated broker with higher risk management index. WikiFX contains details of more than 31,000 global forex brokers, which gives you a huge advantage while seeking the best forex brokers. If you want to know more information about the reliability of certain brokers, you can open our website (https://www.WikiFX.com/en). Or you can download the WikiFX APP for free through this link (https://www.wikifx.com/en/download.html). Running well in both the Android system and the IOS system, the WikiFX APP offers you the easiest and most convenient way to seek the brokers that you are curious about.
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