The eToro trading platform is a product offered by International Capital Markets Pty Ltd (ABN 12 123 289 109, AFSL 335 692).
eToro’s brokering services are provided by eToro (Europe) Ltd. which is a registered Cypriot Investment Firm (CIF) (company registration number: HE200585) regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 109/10 is obliged Instruments Directive (MiFID).
eToro (Europe) Ltd. (eToro Europe), having its registered office at 7 Omirou Street, Limassol, Cyprus, is licensed to provide the investment services of reception and transmission of orders, execution of orders on behalf of clients, dealing on own account in relation to one or more financial instruments, and portfolio management. It is also licensed to provide the ancillary service of safekeeping and administration of financial instruments, including custodianship and related services.
The Markets in Financial Instruments Directive (MiFID) requires the categorization of clients as Retail Clients, Professional Clients or Eligible Counter Parties. eToro Europe and eToro UK categorize all clients as Retail Clients when opening a trading account, which have the highest level of protection (such as eligibility to the Investor Compensation Fund, Best Execution, and Safeguarding Clients Assets etc). Clients are allowed to request to be reclassified, in writing to eToro Europe/eToro UK, as applicable, who may recategorize you according to the specifications, conditions, and procedures of MiFID. “Retail Client” is a client who is not a professional client or an eligible counter party. Eligible Counter party is a professional client or legal entity who provides investment services that involve the reception and transmission or the execution of orders. Clients under this category have the lowest level of protection. Professional Client is a client who possesses the experience, knowledge and expertise to make their own investment decisions and properly assess the risks that they incur and must comply with the following criteria: Α. Categories of clients who may be considered to be professionals: The following shall be regarded as professionals in relation to all investment services and activities and financial instruments:
Β. Clients who may be treated as professionals on request: Clients other than those mentioned above, including public sector bodies and private individual investors, may also be allowed to waive some of the protections afforded by the conduct of business rules of eToro Europe/eToro UK, as applicable. Both eToro Europe and eToro UK are therefore allowed to treat any of the above clients as professionals provided the relevant criteria and procedures are fulfilled. Such as that the client is capable of making his own investment decisions and understanding the risks involved (fitness test). The company reserves the right to decline any of the above requests for different categorization Requests for more information and re-categorization shall be submitted to https://www.etoro.com/support
Both the UK and Cyprus have enacted the appropriate legislation and taken effective regulatory and other measures by putting in place suitable mechanisms for the prevention and suppression of money laundering, terrorist financing activities, and financial crime. Moreover, both countries are committed to apply all the requirements of international treaties and standards in this area and, specifically, those deriving from the European Union Directives. UK and Cyprus legislation has been harmonized with the Third European Union Directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (Directive 2005/60/ΕC). As regulated firms, eToro Europe and eToro UK are both committed to follow the relevant regulations and to ensure that appropriate measures are taken to combat money laundering, terrorist financing activities, and financial crime.
In accordance with the applicable regulations, both eToro Europe and eToro UK need to have own funds, which are at all times satisfy the minimum capital adequacy ratios of the European Capital Requirements Regulation. An investment firm must have in place sound, effective and complete strategies and processes to assess and maintain on an ongoing basis the amounts, types and distribution of internal capital that they consider adequate to cover the nature and level of the risks to which they might be exposed. These strategies and processes are subject to regular internal review, to ensure that they remain comprehensive and proportionate to the nature, scale and complexity of the activities of the Firm.
We keep our clients’ funds in a segregated account, such that the clients’ funds will be separated from our own assets. Such separation of accounts is being supervised both internally and externally. We operate only with reputable payment institutions and payment providers such as Barclays Bank, Coutts and other first tier banks.