Not upheld: unfair account closure and position closure; misunderstanding during security call complaint against eToro (UK) Limited

Decision detail

Summary

Miss G complained that eToro unfairly threatened to close her account after misunderstanding a security call to mean her husband operated her trading account. eToro subsequently closed her open positions before reversing the account closure decision and offering to reinstate her trades. Miss G claimed a £2,500 loss from the position closures and rejected eToro's compensation offer of £300. The ombudsman found that eToro's offer to reinstate positions at 16 June prices with a top-up payment fairly compensated Miss G, and that her claimed loss was not supported by evidence, as the closed positions collectively generated approximately $1,500 profit. The ombudsman upheld the investigator's recommendation of £500 compensation for distress and inconvenience but rejected the financial loss claim.

The Ombudsman's reasoning

The ombudsman found that while eToro should not have threatened account closure, its subsequent offer to reinstate positions at 16 June prices with a top-up payment fairly compensated Miss G for any lost opportunity. The ombudsman noted that Miss G's claimed £2,500 loss was not supported by evidence, as eToro's records showed the closed positions collectively generated approximately $1,500 profit. The ombudsman reasoned that Miss G had the opportunity to reopen trades using the closure proceeds plus eToro's top-up, which would have left her in an identical financial position as if the trades had never been closed. Therefore, no financial loss compensation was warranted, but £500 was appropriate for the stress and frustration caused by the misunderstanding.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website