This article will try to cover some critical information that is needed by potential traders or investors before getting financially engaged to this broker. I will however will pay special interest with anything related to eToro and how it will impact to those residing in Malaysia.
This article will be updated from time to tome according to the information available from my fact findings.
eToro is not licenced to operate in Malaysia. According to a report by TheEdgeMarkets on 20 May 2020 Etoro is not licensed or registered by the SC to carry out any regulated activities in Malaysia, including operating a recognized market through an online platform.
This means that investors from Malaysia is not protected by any laws in Malaysia should anything happen to eToro. What can it be? Well taking it to the extreme there is possibility eToro cease business one day and under this circumstances Malaysian regulator will not be able to assist getting our money back.
So this come to another question, such that if Malaysian regulator will not intervene, then what protection do we have as an alternative? Well based on review article by BrokerChooser there is a safety measure at eToro such as;
It is regulated by the Cyprus Securities and Exchange Commission (CySEC), the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC).
Here are some facts you may want to know about eToro:-
Perhaps 2 unique features of eToro as below are the best reason why we ant to know more:-
Who are the investors in eToro company?
Based on Wikipedia, eToro has received more than $162 million investment from investment companies such as Spark Capital, SBI Holdings, CommerzVentures, Korea Investment Partners, and China Minsheng Financial Holdings.
Let’s take a closer look on who are they.
Spark Capital is a venture capital from United States having been involved with numerous startups such as Twitter, Tumblr, Oculus, Warby Parker, Cruise, Slack etc.
SBI Holdings is public listed company on Tokyo Stock Exchange (TYO:8473). It has acquired 25% stake in PT BNI Securities, a subsidiary of Bank Negara Indonesia.
CommerzVentures is a return-driven, non-strategic venture capital investor. They invest in the very best startups in a given sector.