If you’ve been looking to use the eToro financial trading platform, but you’re unsure about using it, then you’ve come to the right place. Is eToro safe?
In this article, we’re going to provide a brief guide that gives the answers to this question and more. If you’ve been on the fence about this platform by the end of this article, you’re going to have all the answers that you were looking for.
Let’s jump into this guide and answer all of your questions.
What Is It?
eToro is a platform that allows users to trade at a variety of levels. The platform began to operate in 2006 and has three partners that have played a role in the business operations.
This financial platform focuses on CFD trading and offers users the ability to use live and demo accounts. It also boasts free stock trading options to its users.
Is eToro Safe?
Here’s the section that you’ve been waiting for is the platform safe for people that are currently using it and those that want to use it as you. The answer is yes, the company works hard to meet compliance standards.
The Cyprus Securities and Exchange Commission provides a set of regulations that eToro must meet and exceed to continue operating their business. And a part of maintaining the business is ensuring that customers’ accounts and personal information are protected at all times while conducting business.
Failure to meet these compliance regulations could mean that the business faces heavy penalties and would have to cease business until they are back within compliance guidelines. MiFID is the name of the service provided to European entities, and it’s under the umbrella of the Cyprus Securities and Exchanges Commission (CySEC).
How Are Users Protected?
When it comes to knowing exactly how you’re protected when using the platform, there are some things to know. You can use your leverage, which is a loan that the broker provides to the trader to trade with.
Brokers, however, do have to lower the leverage level to help reduce the likelihood of traders losing money when the risk of higher leverages comes into play. There is a specific limit that has been set on the leverage that traders use in particular circumstances.
For example, when using leverage for cryptocurrencies, the maximum multiplier for leverage is x2. This protects you as the trader and other top traders from losing all of the money that you leveraged with.
We hope that the information you found above thoroughly answers the question of is eToro Safe? The company has to comply with a strict set of guidelines to ensure that the trader is protected at all times, no matter what.
If you’re looking for a reliable platform to fulfill your trading needs apply today with Velox Investments to find out more about our Passive Trading System. We look forward to educating you and helping you with your trading needs.