eToro Adds Insolvency Insurance Policy

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Nov 2, 2020 at 13:36 UTCUpdated Nov 2, 2020 at 15:00 UTC.Investment platform eToro is now providing a free insurance scheme that will pay its customers holding traditional assets up to £1 million if the firm should ever become insolvent.

In an emailed announcement on Monday, eToro said the new policy is underwritten by Lloyd's of London and would apply in "The unlikely event that eToro were to enter a state of insolvency."

If it goes bust, the firm said the policy would "Cover clients for losses above the relevant financial compensation schemes to a value of £1 million, and in accordance with the purchased policy."

In the U.K., the Financial Services Compensation Scheme would cover up to £85,000 held in investments.

The policy also covers both cash held on eToro's platform and open accounts but cryptocurrencies are not included because they are "Unregulated assets," the firm stated.

eToro said the insurance would bring its millions of global users "Additional peace of mind."

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