Renowned eToro Inflicted Heavy Losses on Investor

Exposed broker: eToro

Regulatory status: regulated

Complainant: anonymous

Cause of complaint: losses due to irregularity of broker

Most investors will agree that its impossible to either make profit or lose money all the time in forex trading. However, some losses may be due to the unfair terms and policies of the broker that deliberately disadvantage the investor. A forex broker found to have such unjustified policies against investors is bound to lose its credit, no matter how reputable it used to be. Recently, an investor reported to WikiFX how eToro, a rather well established broker, had defrauded him through a series of unfair practices

Event recap

The complainant is an investor with years of forex trading experience, and early in 2018 he had some unpleasant encounter with the broker eToro, when the latter made him lost 12,000 USD due to some “mistakes”. And though the customer service admitted it was their fault, the investor never managed to get any compensation.

At the end of this February, eToro again experienced some “system failure” which made many investors unable to decrease holdings and execute stop-loss during the recent market slump. As a result the broker was bombarded with complaints from those investors who suffered great losses.

In addition, the complainant also noticed other irregularities of eToro while trading. For instance, the broker would raise its spread during less volatile trading sessions without notifying investors in advance, and this, the investor believed, was against the principle of transparency.

Currently, the complainant has applied for the regulation authority CySEC to investigate the matter, but the investigation process is complicated and takes a long time.

Investors in many countries have complained against eToro

About eToro

Through investigation, WikiFX found that besides European investors, many Asian investors such as those from China, Thailand and Malaysia have also complained against eToro. WikiFX App shows that eToro is a pretty well-known forex broker holding licenses from multiple regulation authorities, but the broker uses non-MT4/5 software, bearing considerable risks.

Conclusion

In today's forex market, investors still faces a complex environment as brokers qualifications are mixed, so they need to be very careful about their choices. As a leading forex media, WikiFX allows investors to comprehensively learn about a broker. If you are scammed by illegal broker, you may report it at the exposure forum on WikiFX App or contact WikiFX customer service for assistance to defend your rights.