eToro is proud to announce the launch of an insurance program for its clients. Starting on 01.11.2020, all eToro users will enjoy an extra layer of protection at no extra cost, that will cover their losses in case of insolvency — up to 1 million Euro.
This insurance policy is another indication of eToro’s commitment to its users and their well-being.
About eToro’s Client Insurance:
The insurance is offered to all eToro clients absolutely free — no need to register or apply to receive it.
The policy serves as an additional layer of protection, in addition to those given by a liquidator and CySec.
The insurance is provided by Lloyd’s of London, one of the world’s leading providers of specialist insurance.
The policy covers up to 1 million Euro per client (subject to the applicable Clients’ Disclosure).
IBKR is also moving to European licenced brokers for it’s EU customers and would need to do something similar for it customers to bump up the EU average insurance of 20.000 EUR
No eToro is not linked with IBKR, I just mentioned that on the side. Because T212 custodian is IBKR. And they sent an email saying EU clients will be moved to their new EU broker licenses. Which will limit insurance to only 20.000 EUR.
@CavanHaganInvesting haha I feel you man, but definitely would be nice to see increases.
So if I see this correct as someone who is using trading 212 in the Netherlands. I’m already on the Bulgarian entity so the Brexit won’t affect my account because they already separated it and most of the EU clients?
And I’m only protected up to €20000. I thought that everyone was protected up to £85000. Which is kind of a bumper for me.
Well is a bumper for everyone, i thought that as well that all the clients are covered up to £85000 and the country doesn’t matter.
I can’t find on their site that only clients from Germany and Uk are covered that amount and the rest much less…
I don’t know what to think and if this is true…
@wouter1182 I believe all their clients in the EU are under the Trading212 UK entity, hence they are protected up to 85.000 GBP or roughly 100.000 EUR.
@laguiar haha I wish it was per month, but it’s per user (note: not per account).
As @Vedran said all EU users are covered upto 85.000 GBP.
Yes, hard to find anyone who would keep more than 85k in cash in his/her broker account so no need to worry, all your shares are protected either their worth is 1k or 1M doesn’t matter. If company go in some kind of problem, debt collectors won’t be able to cover any debt using your shares. You will just have to move your shares to different broker
Exactly. ÂŁ85,000 is only for cash in the account and all share are kept in seperate AC. And I also do not think anyone here would want to have so much cash in the Trading AC, earning nothing. If they have they would have invested majority of them in stocks, not to be held in cash ac.
but would be nice to see it increase
I thought you received an email from T212.