Not upheld: Account administration errors complaint against eToro (UK) Ltd
Financial Ombudsman decision DRN-6258073 of 2026-06-23T00:00:00+00:00. Account administration errors complaint against eToro (UK) Ltd. Outcome: Not upheld.
Decision detail
| Reference | DRN-6258073 |
|---|---|
| Decision date | 2026-06-23T00:00:00+00:00 |
| Firm | eToro (UK) Ltd |
| Product | Investment |
| Claim type | Account administration errors |
| Outcome | Not upheld |
| Remedy | Mr B must repay $8,005.18 to eToro. eToro may offset this amount against Mr B's account equity and close positions as necessary under the terms and conditions. eToro should write off the $15.54 loss on the 13 positions opened on 10-11 June 2025. Mr B should be paid £100 for distress and inconvenience caused, which can be offset against the repayment owed. If any balance remains outstanding after offset, eToro should consider Mr B's financial circumstances before claiming the balance. |
Summary
Mr B held a CFD trading account with eToro. On 10 June 2025, a technical error credited his account with $8,005.18 profit instead of debiting a $9.88 loss. Mr B withdrew $7,800 and opened new positions before eToro notified him of the error on 11 June 2025. When Mr B refused to repay, eToro restricted his account and demanded repayment by 22 August 2025. Mr B complained that the restrictions prevented him from trading and caused losses. The ombudsman found the error was genuine and Mr B must repay the funds, as he would otherwise be unjustly enriched. The ombudsman upheld eToro's right to offset the debt against account equity under the terms and conditions, wrote off Mr B's trading losses from the disputed funds, and awarded £100 for distress, which can be offset against the repayment owed.
The Ombudsman's reasoning
The ombudsman found that eToro's error was genuine and evidenced by trade data showing an impossible profit of over 2000% on a $400 investment. Mr B would have been unjustly enriched if allowed to keep funds that were never rightfully his. Although Mr B acted in good faith initially, he was put on notice of the error on 11 June 2025 and should have ring-fenced the withdrawn funds pending evidence. By 19 August 2025, Mr B knew with certainty the funds were not his. eToro's terms and conditions permit set-off against account equity. The account restrictions were a reasonable consequence of Mr B's refusal to repay, and Mr B's lost trading opportunities resulted from his own decision not to repay rather than eToro's error. The losses on the 13 new positions should be written off as they were made in good faith before Mr B knew of the error.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| eToro (UK) Ltd, all decisions | 99 | 15% |
| Account administration errors, all decisions | 26,544 | 25% |
| Investment, all decisions | 14,180 | 34% |
Source
Read the original decision on the Financial Ombudsman Service website