Not upheld: account closure and position liquidation without consent; currency conversion charges complaint against eToro (UK) Ltd

Decision detail

Summary

Mr G complained that eToro liquidated his investment positions without consent, causing losses of £5,703.36, and that currency conversion charges exacerbated his losses. eToro had requested source of funds information as part of regulatory due diligence obligations following Mr G's £28,000 deposits in January 2025. After Mr G failed to provide the requested information despite multiple requests and extensions, eToro restricted his account on 27 March 2025 and subsequently liquidated his positions on 19 May 2025 and closed his account. The ombudsman found that eToro acted within their contractual terms and regulatory obligations, that Mr G was given sufficient opportunity to comply, and that currency conversion charges were clearly disclosed. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that eToro had regulatory obligations under anti-money laundering regulations to request source of funds information following large deposits. The account terms clearly permitted eToro to close the account and liquidate positions if customers failed to provide required information. Mr G was given multiple opportunities to respond, including requests on two separate occasions, a 28-day extension, and additional time after his own request. The communications were clear, fair, and not misleading. Mr G had from 14 February to 16 May 2025 to respond but failed to do so, placing him in breach of the terms. The currency conversion charges were clearly disclosed in the terms and risk disclosure notice, and Mr G should have been aware of these. eToro therefore acted within their contractual and regulatory obligations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website