Must-dos to avoid account to be closed on eToro

BlogJune 22, 2022

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To avoid eToro closing your trading account, we recommend that you read the article below.

Because if eToro closes your account, it means that all your open positions will be immediately closed according to the price. That leads to trading results not to your liking.

The reason why eToro closes a customer’s account

First, we need to know why eToro closed a client’s account. From there, perform the correct operations when opening an eToro account.

Because with any exchange, the more customers, the more profitable they are.

eToro is a company subject to regulatory scrutiny. Therefore, they must prevent money laundering activities through the eToro exchange. Otherwise, FCA, ASIC, or CySEC will withdraw the license to operate eToro

As a precaution, they need users to be transparent about the source of their investments and personal information. Because of the possibility of license revocation, eToro closes the accounts of customers it suspects are not transparent. They would rather close the wrong account than launder money on an exchange.

Fill in your account information accurately and honestly.

When opening an eToro account, you fill in your profile information accurately with your reality, such as occupation, industry, income, source of money, and the amount invested in eToro.

Because of randomness, eToro can check your account. eToro requires you to fill out an APU form. Does it match the information on the profile you filled out? You may then be asked to provide documentation verifying the information you filled out.

Deposits and withdrawals are not unusual.

The first time you deposit and withdraw from eToro, you should not deposit and withdraw continuously in a short time.

Usually, when you deposit a total amount of up to 50,000usd, eToro contact you and ask you to provide income documents to prove the source of the investment.

Do not deposit large amounts with e-wallets like PayPal or Neteller without verifying the source of income.

When you invest in eToro, especially with large amounts, you should prepare legal documents proving sufficient income clearly from the beginning.

Your source of income must be larger than the amount you invest in eToro.

For example: Payroll, rental agreement, etc.

A career should not be a freelance job.

When filling in your account information and filling out the APU form, you should not let freelance work. Because eToro thinks that freelance work is difficult to prove a source of income.

eToro may reject your APU form and close your eToro account.

Above are the reasons and what you need to do to avoid being locked out of your account by eToro. Being locked out of your account will take time and change your investment plan. So prepare well. It is the first step towards the investment results you expect.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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