Not upheld: Investment mis-selling complaint against eToro (UK) Limited

Decision detail

Summary

Mr K, an experienced CFD trader, complained that eToro unfairly liquidated his positions causing £20,000 in losses after the platform allegedly froze on 4 April 2025 and prevented him from depositing funds and updating stop losses. He reported that a deposit of £2500 failed to process and the platform's 'Update' button was unresponsive, leaving his positions exposed. eToro's investigation found no technical problems and showed Mr K made 223 successful stop loss edits and received $3400 in deposits that day. The ombudsman found the evidence did not establish eToro's responsibility for deposit delays, which could have resulted from banking processes outside their control, and that trading records demonstrated Mr K made 631 total edits during the period, indicating he was able to manage his positions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Mr K experienced some platform issues, the evidence did not establish that eToro was responsible for the deposit delays or that system failures prevented him from managing his positions. Regarding deposits, the delays could have resulted from banking processes, network issues, or other factors outside eToro's control, which is consistent with eToro's published guidance allowing up to two working days for processing. As an experienced trader, Mr K should have been aware of the risks associated with margin trading and the need to maintain sufficient funds. Regarding stop loss amendments, the trading records demonstrated Mr K made numerous successful edits (631 total) during the complained period, indicating he was generally able to manage his positions. While Mr K may have experienced intermittent difficulties, the evidence did not establish when disruptions occurred, their duration, or what different actions he would have taken. The ombudsman noted that Mr K did not initially raise the inability to amend stop losses as a specific issue when contacting eToro, and several positions had stop losses edited shortly before closure, suggesting different outcomes were unlikely.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website