Yes, we rate eToro as a safe to use in the UK, but whilst eToro is safe to use, the performance of your investments is not safe. The value of the stocks or investments you buy can go up as well as down and only you are responsible for ensuring that you make safe investments.
eToro is a DIY or execution-only broker that cannot give you advice on what to buy or sell.
eToro also offers higher risk investment products compared to traditional investment platforms like Hargreaves Lansdown and AJ Bell like cryptocurrencies and CFDs. Crypto is a very volatile investment and can go up or down very fast with little to no warning. Digital assets like Bitcoin are also unproven and unlike companies listed on stock exchanges, have no fundamental value or generate revenue.
If you choose to trade CFDs with eToro these can be unsafe for beginner investors as they are traded on margin, which means you can buy a lot of stock with only a small deposit. For example, you can select up to 5x leverage when trading UK shares. For example you could buy $5,000 worth of Tesla with only $1,000 on your account.
This means that your profit and loss are multiplied 5 times. So if Tesla moves 10% against you, your position would be worth 50% less. Or in other words it would only have to move 20% before you wiped out your entire deposit.
This is compared to buying full paid up shares and investing instead of trading, where you are not trading on margin.
But as long as you are sensible and don’t take on too much risk, eToro is a safe place to hold your investments.
eToro are also authorised and regulated by the Financial Conduct Authority (FCA) under Firm Reference Number 583263 . You can check this on the FCA register here.
This means it must comply with strict regulatory standards on client fund segregation, transparency, and operational conduct. Additionally, eToro Money UK Ltd is authorised by the FCA for electronic money and payment services under Firm Reference Number 900923 . eToro also implements two-factor authentication (2FA) to enhance account security, reducing the risk of unauthorized access .
This means that as an FCA-regulated firm, eToro UK is covered by the Financial Services Compensation Scheme (FSCS). This provides protection of up to £85,000 per person in the event that eToro UK becomes insolvent and is unable to return client funds .
But, remember that this protection applies only to regulated financial products. Investments in cryptocurrencies are not covered by the FSCS, as cryptoassets are not regulated products under applicable laws .
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
