Warning! Etoro trading/FX broker www.etoro.com is not safe, not trust worthy, not fully FCA regulated, you are NOT in control of your long positions (can be terminated any moment) and in Jan`21 they breached contracts, ignored all regulations and within 4 hours unlawfully closed positions of estimated 250k users.
All traders of cryptocurrencies in bull run of 2017-2018 – there is proof Etoro OWE you compensation too (for manipulating account statements which they admitted to in my case and paid out $4,700, there is a queue of users who already contacted us with the same problem).
If your leveraged crypto trades were unlawfully closed by Etoro on 08.01.2021, even if in profit, you have right to compensation for unrealised profits that you`d have if you held positions open in 2021 as the CFD contracts had no expiration date and you could sell e.g. BTC in mid 2021 for even $60,000.
Details in compensation. Important, save a copy of your statements now before Etoro is potentially audited by FCA and CySEC and ASIC.
This is my story of Etoro liquidating my positions without consent (profiting $150k+$70k commission, terminating account without fair trail or chance to appeal (I would have $85k more profit today), closing my copy trades without consent, attempting to appropriate coins in EtoroX wallet, offering Waiver to keep quiet about their major problem putting at estimated $5.6 mln loss their crypto traders, lying about Crypto being FULLY regulated then covering tracks on their WWW, unjust and pre-mature account termination which few months later would be over $100,000 more, and my other damages due to their:
negligence, unjust termination, false advertising (misrepresentation), account manipulation, grooming with membership titles and dumping.
I`ve been scammed with more style by others, than Etoro`s recent malicious actions leading to me parting with over 150,000$.
All I wanted was one more year to close positions as it was just a start of confirmed by Adam (Etoro) crypto bull run (right after BTC having). Just in one month after termination, my account would today (04.12.2020) be worth 72,000$ more! Had they given me 1 year, it could be 140% more!
Etoro`s Profiteering tactics/strategy are explained at the end of this page, which in my opinion fall under definition of SCAM. There are also 4 questions as Open Letter giving them change to prove I`m wrong.
Update 27/11/2020, since my account was Terminated on 04/10/2020 my lawyers and accountants uncovered “major discrepancies” and Etoro admitted knew about these problems and are offering me 4,700 hush money to sign a Waiver. See COMPENSATION tab in this site.
They also Tried to appropriate my Bitcoin in EtoroX wallet! They had over 100 days to tell me I must withdraw from wallet, as access will be blocked after my account will be terminated, but they didn`t say a word! The FILE on Etoro big and growing, not all is yet published, but all is evidenced and available on request.
Read carefully and BE WARNED.
An open letter to Etoro asking to explain inconsistences in their T&C, ignorance of uncovered problems with platform, liquidation of positions without Stop Loss, management etc.
To Etoro Public Relations, Customer Service, and Yonni Assia.
On 08/10/2020 all my positions will be liquidater (without my consent) and account closed, resulting in over -150,000 loss, despite bull run and all time high coming next year. It`s my life savings and there is no reason to damage me like this.
ve decided to publish an open letter to Etoro, post it and multiply all over world wide web, asking you to formally answer my questions and explain discrepancies, incosistances claims of misrepresentation and neglegance, found by me and fellow traders. Everyone must be legally informed the hidden risks and powers that Etoro holds, that users dont have control over their trades as Etoro reserves right to limit, block and terminate account, in particullar if it is at more than 50% loss or user has financial difficulties.
I believed in Yonni Assias ethos of social trading, long term investment, and just access to trading for everyone, but was deeply dissapointed that he in fact doesn
t care about users and they dont get a fair chance to wait till return on their investments. Etoro seemed to be a platform to buy stocks and hold till retirement, but it was all false advertising as they platform reguarly closes accounts without even warning that they can do it.
In 2 letters to customer service and Simon Peters, my lawers pointed out all damages Etoro can be held responsible for if you unjustly liquidate all my positions on 08.10.2020, while some are at over 80% loss. Etoro confirmed start of bull ran in crypto market and possible all time high 2 years after Bitcoin halving. My equity is higher every month with peak predicted by mid 2021, yet Etoro know about it and decide to liquidate me now.
Through dedicated groups and forums I have found other users mistreated by Etoro, with more coming every day, and together we are collating evidence of:
-misrepresentation, neglegance, acting against clients interest, not following industry guidance, liquidating positions without notification, unjust account management, etc.
Simon Peters (firstname.lastname@example.org)
Tejinder Kumar (email@example.com)
Ira Morstyn (firstname.lastname@example.org)
to name a few were oblivious to my lawers
requests to continue trading on etoro, (or at least have access for 18 months to close positions when at good rate) if I withdraw my complaints and claims and dontt publish my findings. Another year or so, That
s all Im asking in return for not sharing my story with the world and group with others to seek legal justice.
I`m reaching to all current and future victims of Etoro to provide detailed evidence, proof that Etoro may be scam ing people. Story how a Gold member was groomed into depositing more and more, becoming Platinum and Diamond (over $250k) member and then was dumped, high and dry, without even a phone call, for pointing out problems with Etoros management and platform.
My story, told herein with link at the end to videos, prinscreens, letters and voice recordings, will be published, to let poeple know true risks of Etoro, far worse than CFD trading, and point out that FCA does not regulate cryptoassets so in fact all your crypto trades and losses are at risk, not protected and are in sole control and good will of Etoro. You can loose money even if etoro doesnt`t bankrupt.
Of course, should Etoro wish to engage in meaningful communication and don`t force me to close account while over -150$ at loss, I can withdraw all publishing’s of my story. However, the further this letter reaches, the more supporters I will find and eventually funds to start a class action suit against Etoro, giving example how David can defend his rights against Goliath. The main aim will not be compensation for financial damages for all involved, but being heard and making Etoro a public example of abusing T&C and trying to scam people without consequences.
Questions to Etoro:
If Etoro is not a scam why did You to close my account while at over -$150,000 loss, without warning that you have power to do it, instead of keeping it open but with limitations?
Why closed my 1x, not CFD crypto positions which had 100% stop loss, not stating that it
s actually 98% as there the spread is hidden to the user and that misinformation was designed to lure customers into automartic liquidation. If Etoro is legit then why do you terminate users accounts at worst time for them, like a ponzi investment scheme. Why is Etoro different than gambling, betting sites and if not, why you allow clients to trade more than their experience should allow. Why customer services treat you like nothing. Why you terminate account before third party ruling like Ombudsman. Why you advertise commission free trading when you in fact dynamically increase spreads by 2-3% (more than some commision) without prior notification Why in Covid times you dont respect peoples financial situations and remove users who seem not going to invest for a while? Why your customer service and account managers dont call but pass life devastiting information without any pre-warning in an email?
IMPORTANT QUESTION, to the OBUDSMAN, CySEC, and community:
Who gives companies like Etoro right to decide if a trader can or cannot afford the money he is investing? Do they know that he drives a Ferrari, lives in LA mansion, has multiple sources of revenue, real estate, inheritance, and perhaps just pretends to be worse of, to complaint about something to make even more money? Ethos should be “I`
m responsible for my money, my trades, my investment strategy". Trading platforms cannot just assume that $100,000 is too much for someone. The secret millionaire will always say he is poor and that something was too expensive for him and will bargain for every dollar. Point is, only trader should be in charge of his money and decisions, unless he is medically diagnosed not fit. But a healthy person can pretend to be poor or sad to exaggerate his situation and claim more money. Companies should be objective and let traders manage their accounts, don`t terminate them if losses appear big (but are actually smaller every week during a bull run).They took profits and run, as all SCAM companies do when users ask too many questions or say they will contact authorities.
Etoro had no right to my "Termination Money" by saying I could not loose anymore. All it took was limit deposits and trading and in fact let me ride the bull run and take out the profits growing every week. My positions were not leveraged by x1, no fees, so should be allowed to be open indefinitely. Etoros only interest was to remove the whistle blower and take termination money, not least concerned or bothered to check actual financial situation or offered help, support to improve it (e.g. by keeping accent blocked but open for 1, 3, 5 years, as long as it`d take to break even (evidence as of 24 Nov, 2 months after termination, my account would be 70% higher))! .
From latest to earliest, below are all documents that I already issued or will use in further proceedings. At the End is Etoro
s mail stating account termination, because I complained how they dont monitor customers finance.
October 2020 Cover letter to be issued to Ombudsman
Please find attached documents 1-7 stating grounds of my appeal to Etoro against their decission to terminate my account (resulting in loss of over $100,000 due to bad market timing to sell stocks/currencies/assets) I will elaborate more in my full letter.
This is main appeal but, just to higlight inacuuraces with this company, there are other two complaints (which resulted in financial lossess) which I will separetly appeal against.
Draft letter to Ombudsman, not issued yet
To begin, Etoro is believed to have commit at least 3 breaches of law. See attachement 2 with 14 supporting arguments.
False illusion of being FCA and FCSA regulated.
False illusiin of being UK regulated, however the Malta Obudsmen has to be contacted, not UK.
False illusion of being safe crypto currencies trading platform whereas:
- FCA don`t cover losses of unregulated assets like cryptocurrencies
Illusion of Etoro being a company withut risk of closure of account and allowing long term investments and holding of owned, not CFD, assets for years until return from investition. The risk of having account closed (like a scam company would do) was never highlihted or stressed out.
- False advertising (warning about risk of CFD trades only, ommiting fact that sell value of x1 unleveraged, owned stocks, assets depends not on the market but Etoro can force user to sell assets at any time, without them being able to decide market conditions. This is fundamentally wrong and will put of milions of users from trading on Etoro.
Grooming with rewards, memberhip statuses and gig tickets to encourage investing more money. Enticing with daily market news and “confirmation of bull market” emails, encouraging more investments, but not mentioning to the user even once, not warning, not hinting of possibility, that Etoro is in control and can close account any moment, essentially making any long term investments pointless as Etoro will not even give year to await their return or not to say that markets cycle is usually 4 years. Enticing me to invest over $250,000 dollars and become Diamon Member was not adequate to care, support I received in return, in particullar when I complained to Etoro that they should have not allowed be to invest that much, without checking by background. They only asked me for source of my money, which I revealed and it didn
t bother them that some of it was borrowed, credit money. They havennt given me adequate warning that account can be closed at any time, so any investments must me short time. Instead they allowed me to trade and ecnouraged to invest long term in crtptocurrencies, sending emails that bull market happens every 4 years after bitcoins supply is reduced in process called halving. Being lured with that information from newsletters, Etoros market analysts, vide advertisments, I kept investing awaiting next bull cycle within 4 years. What Etoro neglected to say is, you we have control over your positions, not you, we can close them and terminate your account, so any longer investments are pointles and dont have long term strategy. In fact, for every open position that is making loss, they should send warning that “you dont have years to await market recovery, your money is at risk because we can decide to close your account at any time”. This is the main neglegance claim that I have!, and one obudsman, court and public will understand.
MISREPRESENTATION without AFFIRMATION
During nearly 3 years of trading on Etoro I was not aware of real, hidden risks of trading with Etoro of:
- crypto assets not covered by FCA,
- my account can be closed at any point without reason.
These problems only came to light in August 2020 when Etoro threatend they will terminate my account and I had my solicitors to read the terms and conditions and explain them to me. Only at that point I realised I was misrepresented and all these years trusted Etoro as safe, long term investing platform where I can hold open positions and decide when to close them, not be suddenly forced to close them. I believed whole point of FCA is that my investments are my investments, and cannot be managed, changed, diluted or closed by Etoro. Etoro advertises themselves as safe, legal, regulated crupto trading platform, wheres in fact crypto are not regulated by any legislation, therefore investing big sums is actually not protected by FCA, the least if Etoro decides to change T&C of contract or control users asssets and automatically sell them to close account. These are fundamental problems that I will raise to Obudsman/Court and make public opinion aware of.
UNJUST Termination of account
Without breach of T&C and at worst time possible.
Summary of claims and arguments to be judged by Ombudsman
“SUMMARY OF 14 ARGUMENTS and explanation of evidence, supporting case of MISREPRESNTATION, NEGLEGANCE, and intitiating claim for actuall and lifelong DAMAGES. Draft attachement to Ombudsman letter considering Etoro.
Should I need to stop trading and accept termination of Etoros account, I believe I will have extermly strong appeal case supported by a dozen arguments, many of material matter relating to T&C, that I can submit one by one to Ombudsman for individual consideration. Please note, below is just summary, headlines, I have a long version of each argument with relevant references to documents, print screens etc. Please note, I do not intend to use any of these arguments if Etoro can offer better conditions of closing the account (min. one year for each year on the platform) or in fact retain me as trader. I just wish to carry with my life as normal and remain a happy trading customer with open account. At the least, I expect not to have to close positions ideally for at least 3 years, one year for each year of trading.
BELOW 14 points, not in order of importance, are for Etoros information, to understand aresnal of my arguments which will be developed in legal claims. Please don`t comment on them but acknowledge that they will be used and publicised shuld I need to appeal further to keep Etoro Account live or to extend termination time by 1-3 years.
1 Argument. Time Etoro gave be for appeal was not adequate to specialised nature of the case, and I didn`t have enough time to find appropriate solicitors to take the case and protect over 150,000$ of my money at loss at the time.
30 days was not enough to find a an attorney/solicitor with speciality/qualifications required for this case and was also on family holiday. I
ve contacted over 20 specialised law firms and only were available at such short notice but most of them stated that 30 days is not enough to study the case and present adequate appeal. Etoro basicaly didnt give me a change to find laywers do defend me, very unnfair, speciali given the holiday time and my full time work/life commitments.
2 Argument. I
m educated, trained, rational, long term, trader, "Profficient in using Etoro and trading" so I knew and I know what Im doing, and my use of word gambling was exagaratted and not true.
3 Argument – Terminating account will damage my financial future due to lost trust in financial institutions and missed investment or business opportunities.
4 Argument for Etoros poor conduct or even neglegance
Etoro staff, managers and customer services don
t have basic skills to pass bad, life destroying news to their clients. Writting a short email stating that your account will be closed and 150,000$ will vanish can induce a heart attack, in particullar if its read at bad time on top of other life/business stress. Regional manager responsible for diamond members havent even responded to my email.
- Etoro is providing misleading claims that its FCA regulated Crypto trading platform, where in fact (it turns out in T&C that) FCA does not protect crypto assets. This would have lured thousands of customers beliving the platform is audited, monitored and regulated by FCA and therefore trading crypto is safe and capital is protected. In truth of law it should say it`s FCA regulated Crypto Platform but excluding crypto trades.
6 Relevant risks are not mentioned in Etoro`s misleading advertisements.
Etoro warns that “75% of retail investor accounts lose money when trading CFDs with this Platform”
(but the main risk, is in fact that “we can terminate your account at any time” (opposed to 5 other leading brokers who give you more rights and conditions befere they can stop services to you))- I strongly believe that should be stated in all advertisements, in fact with bold print at the beginning of terms and conditions!) I will start a kickstarted project to fund a campaing that will rise awarenes of this (based on Etoros example) and find 100,000 signatures under petition to stop misleading advertising and ask users to separately confirm that they read and understood that they are not in control of their assets but Etoro is and can close positions and account at any time!
Secondly I was risk aware and my investments were not CFD but stock purchases when, quoting text from Etoros users interface, “you are buying the asset” and “own the asset” and “etoro holds the asset on your behalf, without any leverage.
7 Another misleading advertising. FCA and FCSA regulated company. But in fat T&C state that cryptoassets are not covered by the FCA. This was not mentioned to me when I spoke with Simon Peters about money protection and he didn
t state that in his email following our conversation, leading me to believe that if I buy Bitcoin and alike I can appeal to FCA and be protected if Etoro causes any problems. I was mis-sold, misrepresented and have voice and email correspondence as evidence. I was informed that FCA covers op to £85,000 and some clients invested more than $250,000. Simon didnt mention that this protection does not apply to my Etoro account which is over 90% in crypto assets. All this time (until I read the T&C last week) I was led to believe my money was safe.
8 Custody extract from T&C does not explain why in some casese when buying crypto it says next to buy button “you will own the asset”, not CFD.
IT WAS my understanding that purchased cryptos will be mine, hold in Etoros custody for me, and cannot be sold without my permission.
I based all my crypto trades on that believe, that I decide what to do witm my crypto, and when to sell or transfer it and that I cannot be forced to sell it.
- Unethical complaint handling, not ” on the basis of good faith and fairness” as required in T&C.
The way my complaint was handled (no phone call, no discussion, no offer of help, support, counceling due to Covid financial stress, not warning that account can be limited or terminated), just outright – BANG, we kick you out/terminate and make you accept -150,000 loss on sell!
When I read their message my heart stoped and legs gave in. Recipe for heart attack. See my argument about poor staff training with considering clients health and pre-conditions and adding extra stress, not recognising mental health issues etc, adding fire to possibly self destructive thoughts etc.
- Initial decision to terminate my account appears to be on grounds to “silence inconvenient, nuissance customer who dares to say what the thinks and complains loud”. Etoro has no proof of my suggestions that I was in poor financial situation or that I`ve invested too much. This were exegarrated statements and are no reason for drastic and devastating measure of account termination. Termination or even limitation of account shoudl always be on proven grounds, evidence, not on tossing a dice and deciding faith of customer, without any mediation, discussion, phone call or understanding situation, acting in good faith and fairness, all which are required by law and covered in T&C. I can prove to Obudsman that My net value is of such high magnitude, that deposits on Etoro, although relatively high, are in fact well within my comfort zone.
11.If Etoro teminates my account I will start doubting and trusting other platforms I
m currently using and as a consequence start stressing out that other plarforms/companies can also terminate my account without just reason, and hence my other assets and savings will now be in danger. Constant stress and mental anxiety but also loss in ability to invest elsewhere, now or in the future and therefore not having a change to invest, trade or improve my wealth. Ive estiamated my lifetime financial loss as result of that in excess of 1 mln $.
- Discuss, understand, find sollutions, warn or limit, not out-right terminate services stright away.
T&C of all similar trading platforms and exchanges state that, if certain conditions are met like breach of contract, account can be limited or suspended.
I think I`m speaking on behalf of other users, here, I would insist to put on Etoro EUROPE a lifetime INCJUNCTION to alwasy start with limiting the account (i.e. restricting some of services, which allow Etoro to have more control over the account but not force user to sell long term positions in a bear market, at major loss), which will act as a warning that further actions can be taken if user makes any complaints in the future.
Terminating without even a phone call from account or regional manager reponsible for diamond member is no sign of trying to understand the customer or allowing to discuss and seek soulition, help, rather than making destructive decission without chance to see and hear the whole story. English courts require evidence of discussions and negotiations to prove good faith and fairness, but Etoro failed in any constructive or client understanding discussions.
- Wrong Market Timing to close account. Etoro confirmed Bulll market started, bull markets dont last 30 days but years so forcing me to close now will destroy my chance of recovery.
30 days to close the account is not enough to manage nearly 100 positions that I have worth $100,000 at todays sell price, which was only $85,000 at begining of my dispute with Etoro. There are signs that markets are active and “execution of orders” in that time would not be “to best clients interest” something that is required my unwritten and written terms.
Most importantly, Etoro (Adam from Etoro) in his daily newsletters, CONFIRMED on 04.08.2020, that crypto currencies bull run has started, due to interst in Decentralised Finance and recent Bitcoin halving. Adam used word “confirmed bull run” in email subject and within the email. This is strongest evidence that bull market has started and will continue untile trend reversal and another bear market which might be 2-4 yars from now. It is obvious and logical, even to unexperienced Obudsman or third party, that It makes no sense to sell asset which is rising in price, and all media including Etoro confirm that it will continue rising in price, as per definition of bull run. Therefore best solution for me, the client will be to hold asssets and decide to sell when bull run shows signs of exhaustion (like a hear and shoulder formation or double top) and bear market is anticipated, which might be 2-4 years from now. I dont
t need expert opinion on this, its laman terms logic, therefore terminating account in 30 days is worst outcome for customer me. Forcing client (me) to sell assets while their price predicted to rise appears a straight forward viilation of customers best interest and could be ground for claim for material damages. I do not mean to argue with Etoro ever again, just am saying as a fellow trader to a trading platform that closing my account now would be irresponsible and damaging (in view of any European jurisdiction) therefore please dont do it.
Bull markets last longer than 30 days, equally bear markets last longer and there are clear signs when trend reversal can happen, and I am prepared to sell assets at least half way through bull market and before next bear, but not at the begining. I`ve been depressed over 2.5 years waiting for this moment and It cannot be taken away from me, not now.
The crypto assets (like Bitcoin and XRP) I
m holding have been in bear market for 3 years and have now entered a bull market, which might last another 3 years in which the price of assets will keep rising until they reach their All Time High Prices and beyond. There are sings and proof of market recovery and early bull run (there are articles, reports available, I have printscreens of my account showing its gone up 30% in last 30 days) all proving that within 30 days is not right time to sell, but in fact next 3-5 years will show continiuoued usage, interest and, quotine a filed specialist "equipotentially higher levels of investments" in the assets thand during last bull run. Ive been studying the markets, learning to recognise trend reversals etc and have right to use that knowledge and close my positions/sell assets when I see fit.
- Etoro`s T&C state that they can terminate users the account simply if they decide to stop providing services, in addition to breach of contract or force majoure.
My solicitor have reviewed T&C of alternative online brokarage/trading platforms, including leading cryptocurrency trading platforms like:
The review shown that none of above companies allows for unconditional termination of account but the provide a list of conditions, instances or events that have to happen to be able to close account, or in fact even to ammend terms and conditions. Thus, those platforms provide users with more rights and cannot terminate the account without a good reason, unlike Etoro.
This proves Etoro has less regard to protecting users interest and safeguarding their account and deposited funds, compared to other platforms. In such instance, it seems fair that Etoro respects higher standards set out by other platforms and adheres to similar or even more client benefitting terms and conditions. Ultimately, competition, some FCA regulated too, grants users more rights for defending and appeal, so Financial Ombudsman or other Third Party have to treat Etoros customers as Alternative platforms customers.
In addition T&C of other companies provide more detail of their obligations to FCA. The ammendment of T&C is often allowed within set out limits, unlike Etoro who can ammend parts or whole T&C.
I trust Etoro can appreciate my work put into e”finding justice, fairness and ensuring customer
s interest important". Im sure Obudsman will understand, and I even consider an open public survey, raising all points on forums and relying responsed to Ombudsman as “the voice of fellow traders and potential future victims”. Should Etoro not change your mind, for simplicity I could make each argument a separate complaint with Etoro, meaning that each argument could be separaterly appealed to the Ombudsman/Third Parties/court, and having a couple successfull appeals would open way to whole case being overturned, or appealed in EU. Please understand, I don`t mean to fight or argue, and want to avoid disputes at all cost. Just want to carry on using the platform for at least another year so I can chose better timing for closing the positions currently in loss.”
Draft, requested actions from Obmbdsman
“1. Expected consequences for Etoro.
One result that I will at all cost insist on achieving from Ombudsman or court is this:
To warn everyone about actuall risks of using Etoro Company, and protect others from situation like mine, the EU Court has to enforce injunction on Etoro, effective in all Europe, that Terms and Conditions cannot be accepted with single click of a button but important, hidden risks have to be accepted separaterl.
Therefore before signing up online contract, users attention has to be specifically drawn to 4 facts below, and each fact has to pop up as separate information window that has to be ticket by user meaning that he read it and understands it:
- Etoro can close you account at any time without any reason, even if you are a Diamond Member and account is making loss of over -150,000$ they may not give you adequate time to wait for market to recover. Your money is at RISK!
- Crypto currencies are not regulated and not protected by FCA and FCSA so you cannot claim losses against those assets. Etoro can terminate your account at any time. Your money is at RISK!
- Subsequent complaints will result in termination of your account. You will not even be Warned!
- You are NOT in full controll of your assets. Etoro can tell you to close positions and close account at any time.
Had such information been provided to me, I would never entrust even a fraction of money with this Platform, so others have to be legally warned.
Notwisthanding legal obligation on Etoro to disclose those facts, Etoro will also have to publically apologise and publish an open letter, stating above risks and warning existing and potential customers. Etoro will have to put adequate money aside to provide Europena Media coverage in all countries they act. If Ombudsman will not legaly require that thant a Kickstrated fundrising campaing or similar can be used to inform public and sign petitions.”
Petition and fundrisign campaign
“2 Possible further consequences for Etoro.
Start petition to change law for Etoro to change terms and conditions to safeguard customers investments and give them more control over open positions by allowing customer to keep any trading position/stock for at least a year, even if Etoro decides to terminate account, it cannot happen until one year since opening of last position, thus enabling users long term investments without threat that Etoro can close the account at any time.
Start Kickstarter, fundrising campaing to raise money for a spreding awareness that any customer (David) has legal right and powers to protect from Etoro and big companies alike (Goliath). Big part of funds will be used for media campaing to raise awarenes of risks associated with trading and how to avoid misrepresentaion by companies like Etoro.”
IMPORTANT. My draft background and letter to Etoro, not issued but parts were used by lawers to write to Etoro
“NOTE to Ombudsman. This draft letter was never publically issued to Etoro but only to my solicitors, which relied only a fragment of it to Etoro in request to keep my account open.
Dear Simon Peters, Etoro
I owe you a big apology for being a difficult, pretentious client. I was trying to understand why I though I can openly talk to you about my conerns, findings or discrepancies, and realised that it was because Etoro gave me a title of Diamond Membership which gave me a false feeling of superiority and right to ask about everything and anything and complain because I
m a high valuable customer. Without that Diamond Title I would just be a humble me, but having that title, and managing so much money, made me a demanding customer, who believed can get special tratment, access to consultants, analysts, personal resolution of problems etc. Im sorry for tone of my emails, my behaviour. I promise to respect you and Etoro, I never meant to think bad of the platform or affect reputation of the brand.
Dear Customer Services and Everyone and Etoro,
Please accept my depest apologies for any nuissance my emails might have caused and please see a summary of what this important email is about.
- Deepest apologies for all my correspondence.
- Apologies for empotional and exegarrated response to coustomer services reply
- I withdraw all my previous complaints, with apologies
- My net worht is higher than it would seem, but Etoro investments are still big part of my life and I cannot give them up/close without physical, mental, socialogical and future negative effect on my life.
- My background is poor and I dont take losses lightly.
- Etoro is a change to prove succsessul in foreing country, trading is also permanent skill for life
- Invested in my skills and intend to continue trading (though not CFD, not on margin) and would be honoured to carry on as Etoro customer, promissing many manual trades/spreads and no more complaints
- Reasons for my complaints related to my poor backround and sudden false sense of superiority and right to special treatment/service when Etoro made me a Diamond Member.
- Profficient trader who earned over 60,000 for Etoro and I want to continue trading.
- withdraw complaint, and promise not to submit 14 other complaints, please allow me to continue trading, and using the platform.
To Simon, Customer Services and Yoni Assia,
I deeply apologise for pretentious tone and content of my emails. I
m a good person and did not mean to discrespect, offend, upset anyone in person or Etoro as a brand. Ive been reflecting on my behaviour and tried to understand why I was complaining. (…)
As Etoro conirmed, I was Profficient in using the platform and in trading. I studied trading, followed markets, read books, and knew the risks I was taking. (...) I accept that the process is automated and I am profficient in using. (...)
(..) My desperate response and talking about live savings was partly true, as I have other money, but the fact remains that I worked extremely to save the money I used on Etoro, and I am cannot give up years of my work by closing account and selling off positions at loss because now its not the right time to do it but in next 5 years and another bull runs is.
So, to highlight how much that money mean for me please understand my background. I
m not rich, and I cannot give up/close what I worked for so hard. Ita also about hounour, respect in family, proving that I can successd in foreing country. Taking Etoro account and clossing at loss takes away my dream of better life.
I`ve made a list of 14 arguments why I stongly believe I should continue to be a respected Etoro member and use the Account and platform, and how much it means to me physically, mentally, and sociologically and permanent damages in those areas that account termination would cause.
Please see a short summary of my key points attached, however I trust there is no need to dwell deeper and formally use any of those arguments, and I request to continue your services for me based mainly on this simple letter.
I come from a poor background, born in small village
My dad is a brick-layer and my mum was a housewife for most of her life. Higher education in Poland is free so I got a Master of Engineering Degree and came to England, where I
ve had to learn the language and then after many jobs, eventually started working as electrical design engineer. Ive been working very hard, having a humble life, to save deposit money for a flat. I had no inheritance, not family support, I
ve earned evereything from scratch. I was frugal kept saving money. (...) I discovered cryptocurrencies at the beginning of 2017 bull ran, and any money I invested I doubled, so I kept investing in Bitcoin, investing on various platforms and buying it off the counter. Then I discovered Etoro which seemed an established platform and as it was FCA approved it seemed safe. I kept depositing money to trade cryptocurrencies (while in a bull market) and I was making more money monthly than in my day job. Etoro kept giving me "titles", gold, then platinum membership. I started feling like a a very important person, respected and (on paper rich). I thought that Platinum (and eventually Diamond Membership which meant I invested over $250,000) gave me the highest privilleges on the platform. Etoro kept saying that I am valued, respected member with access to special managers, analysts, consultants, I knew I was valuable to them as Ive turbned over 1.2 mln in crypto, closed over 1700 profit trades and earned Etoro over 60,000 in fees and spreads. I thought we have a mutal relationnship and that my money is safe on the platform as Etoro earned a fortune on my spreads (compared to other traders who didn
t trade as actively and perhaps had only 300 trades in 3 years) and Etoro still continued profiting from my trades. I saw this as a long term relationship which will get me out to next market cycle, (which after BTC halving in 2020 is historically proven to happen 2-3 years after). But my point here is that I felt as special, Diamond customer, and therefore I felt I had special right to help and assistane with trading and us of the platform. For that reason I felt I could complain about everything I found not to be right, just or clear, even when it might have been not convenient for Etoro, but I thought I had more rights to complain, and ask for help or favours, than a regular Joe with 10,000 deposit. For that I spoke directly to Etoro and expressed what I thought of certain discrepancies. Ive heard of rude private jet customers who got away with smoking on the plane because they had money and were respected. I never meant to be arrogant or disrespectful and expect better treatment or support only because I invested so much. Etoros membership status gave me false feeling of imortance, superiority. I also thought I can talk with then about any issues as they would benefit other users of platform. I do understand that I should have been more respectful in tone of my complaints, regardless of Diamond status. I sincerely and from depth of my heart apologise if my emails were a nuissance or upset anyone.
It was the volume of money I was turning over and the VIP/Diamond status giiven to me by Etoro that affected tone of my correspondence.
Secondly, please understand that I
m an engineer and my brain is wired to analyse and scutinise details and look for logical and alternative sollutions. Thats probably why I was pointing out things that others would ingnore.
Lastly, I`m a humble, decent, honest person, perhaps naive too, and I Trusted that Etoro will treat me with the same respect. I also thought that Yoni Asia, a family man from Israel, must me a rightous person and my money will be safe with him.
Can I just remind that IF in 3 years I become Profficient trader who earned over 60,000 for Etoro, please IMAGINE what I can achieve in next 3 years. Ive invested time, effort and hardware and this is my skill for life. Please restore my faith in companies, institutions and humans, accept my deepest apologies and allow me to continue as Diamond Member of Etoro, actively (though carefully) trading and using the platfornm as Yoni Assia intedned to be used, in a friendly, social environment, giving everyone a chance to forge their own success. (..)
Personally, I see no reason to go to Ombudsmen, Etoro community or higher and flood them with my arguments. We
d have to prove that we tried to discuss, and exhausted all avenues of communication, considered every argument, exchanged correspondence, received perspnal phone calls from account managers etc. Please, lets make it simple. I just want to keep my positions open until another bull market (or min 3 years) and trade in the meantime.(..)
AGAIN, ABOVE LETTER, document 6, was never sent to Etoro just to my lawyers who used a fraction of it, paraphrased in own words, to negotiate with Etoro to keep the account open (which as of 24.11.2020 would be 70% higher in profit than when Etoro finally closed my account, ignoring that my profits were rising amidst crypto bull run confirmed by technical and fundamental evidence). At the end Etoro forcefully and without consent closed ALL positions on 04.10.2020, resulting in over $150k loss!
T&C ETORO – My findings 29/07/2020.
FIRST Major potential claim
Etoro is providing misleading claims that its FCA regulated Crypto trading platform, where in fact FCA does not protect crypto assets. This would have lured thousands of customers beliving the platform is audited, monitored and regulated by FCA and therefore trading crypto is safe.
Etoro advertises as being FCA regulated. That is main reason I chose this platform. They also brag to most popular crypto assets trading platform so it made sense to trade cryptos with them, as they claim in all pop-up online ads and reviews that they are FCA regulated.
However, this is misleading and in fact not fully accurate or true as terms and conditions state that
15.3 The Services include trading in cryptoassets. Cryptoassets are not regulated products and therefore any money held in relation to a cryptoasset trade or copy trade will not be subject to the FCA rules, unless otherwise stated. However, we will endeavour to protect your money in accordance with best market practice.
This implies that trading crypto assets is not subject to FCA rules, although the ad banners claim “best crypto trading FCA regulated”. In the advertisements or third party reviews there should be a clear explanation that FCA does not apply or protect crypto trading. This would make everyone think twice between depositing large amounts of money on this seemingly regulated platform. Had I known It I
d be more careful with funds. Its Etoros fault to provide misleading claims!!
2 ARGUMENT. Etoro warns that
75% of retail investor accounts lose money when trading CFDs with this Platform
(but the main risk, is in fact that “we can terminate your account at any time, don`t hold loosing trades open”- I strongly believe that should be stated in all advertisements, in fact with bold print at the beginning of terms and conditions!)
I was risk aware and my investments were not CFD but stock purchases when “you are buying the asset” and “own the asset” and “etoro holds the asset on your behalf, without any leverage. CFD proportion of my assets are less than 5%, and the remaining I own the remaining 95%. If I do not own it then Etoro
s Terms and conditions are not clear and misleading and make people believe that Etoro holds their stocks and currencies for them, so its not contract for difference. Etoros customer services stated that I proved PROFFICIENCY in using the platform and trading, I agree, I studied and practiced 3 years and was no ordinary risk taker.
3 DIFFERENT SPREADS, as high as 5% sometimes, on BUY ORDERS, without notification of change. Covered in T&C but still not clear what spread is paid, which is not always what it says on website.
21.2 The spreads which we charge can change due to market conditions. For example, there may be instances when market conditions cause spreads to widen beyond the typical spreads displayed on our website and/or platform.
4 Etoro`s GROSS NEGLIGENCE, how to prove it to ETORO?
Extract from T&C
eToro UK will be liable for your losses only to the extent your loss is due to eToro UK’s gross negligence, wilful default, and/or fraud; and
26.4 We may also freeze, block, or terminate our Services and/or your eToro account if: (a) we decide to stop providing you with Services;
More information and conditions is required as to why Etoro can decide to stop providing services.
5 ETORO IS MAKING INTEREST ON MY DEPOSITS. CAN I have It back to cover my damages if I win the claim/case?
15.13 You expressly consent to us putting your money into a qualifying money market fund. Your agreement is a necessary condition for us to provide you with our Services. If you do not agree, or change your mind, please let us know in writing and we will help you close your eToro account.
T&C ETORO p.22
- Complaints procedures
IM NOT SURE Financial Obudsman Service (FOS) is applicable to unregulated crypto assets, but in general must be to GENERAL SERVICE COMPLAINTS.
If you’re still not happy with how we’ve dealt with your complaint, you can refer it to the Financial
Ombudsman Service (“FOS”) within six months of receiving our final response to your complaint. The FOS is an independent organisation in the Malta that helps resolve complaints.
- Applicable Law and regulation
41.1 These Terms and Conditions and any orders and trades are subject to all Applicable Law and regulation,
including (but not limited to), the FCA rules, the CySEC rules, articles, by-laws, rules, regulations,
policies, procedures and interpretations of any relevant exchanges, markets and clearing houses in
which eToro may elect to hedge any trades; and any other applicable regulatory, self-regulatory or
governmental authority requirements (“Applicable Law”).
7, Client classification
11.1 We will classify you as a retail client for the purposes of the Services. Retail clients are given the highest level of protection under Applicable Law.
I think Etoro failed this point. Whatever that protection might be it does not seem to apply to situation when Etoro forces users to close positions which are making loss (as opposed to situation when Etoro could only terminate account after adequate time to see returns or breaking even for the positions/stocks. Accoridng to Etoro, how can Applicable Law protect me if Etors T&C appear to override any requlations and simply terminate account without fair trail or verdict from Applicable Adjucicatros first?
- How your money is protected
BELOW STATES NOT PROTECTION FOR CRYPTOASSETS opposed to 85,000£ protection of other assets if Etoro fails.
8.3 Importantly, the FSCS protection and the Fund protection are only applicable to regulated products.
This means that any cryptoasset trades, including cryptoasset copy trades, are not protected, but
security trades and security copy trades, and CFD trades and CFD copy trades, are protected.
When I spoke with Simon Peters from Etoro, asking how much other Clients deposit and what how my investments are protected, we mentioned 85,000£ protection if Etoro fails, folds, etc, but Simon Failed to state that any cryptoassets are in fact not protected. At that time 80% of my portofolio were cryptoassets, yet Simon didn`t state that these will not be protected and in fact any subsequent deposits and purchases of cryptoassets will not be protected. I have a recording of that telephone conversation and an email which followed, also hiding fact that cryptassets are not regulated. Had I know this or were told this by Simon when I asked how safe my account is, I would have not deposited more money!
- Investor protection and compensation
2.2 As cryptoassets are unregulated, when you use our cryptoassets trading service you will not benefit from the protections available to clients receiving regulated investment services. For example, you will not have access to the Financial Services Compensation Scheme (“FSCS”) and the Financial Ombudsman Service (“FOS”) for dispute resolution in the United Kingdom or the Cyprus Investor Compensation Fund (“Fund”) in Cyprus.
That was never brought to my attention, despite being in T&C small print, again, that delicate border between regulated and unregulated assets should be under separate T&C pop up window that makes people aware of it and accept. I was not made aware of it, nor warned by Etoro, despite failing several minor complaints in the past. Another misrepresentation?
Cryptoassets are not regulated products and, therefore, trades or copy trades related to cryptoassets
are not subject to Applicable Law on custody. However, we will endeavour to protect your assets in
accordance with best market practice. In particular
(a) eToro Europe may appoint an affiliate or third party to hold cryptoassets on your behalf, and
they will exercise reasonable skill and care in the selection, appointment and periodic review of
the firm that they appoint. In this circumstance, the cryptoassets may be held in the affiliate
or third party’s ‘wallet’, or in another appropriate manner;
(b) eToro Europe, an appointed affiliate, or an appointed third party, may hold the cryptoassets
which you’ve bought on our platform, until we receive further instructions from you to sell or
transfer that cryptoasset, to the extent we support such transfer functionality;
(c) where eToro Europe, its appointed affiliate or appointed third party holds your cryptoassets,
those cryptoassets will be pooled with the cryptoassets of other eToro clients (we call this an
“Omnibus Account”). There is a risk of loss from the use of an omnibus account. However,
detailed records of all your cryptoassets held by eToro Europe, its appointed affiliate, or the
appointed third party, will be kept at all times to show that your cryptoassets are held on your
behalf in order to mitigate that loss; and
(d) as your cryptoassets are held in an Omnibus Account, if eToro Europe, its appointed affiliate,
or the appointed third party become insolvent, you may not have a legal claim against a specific
amount of money, or a specific amount of cryptoasset. Instead, any claim will be generally
against the Omnibus Account. If there is an unreconciled shortfall, you may not receive your
full entitlement to the cryptoasset, or the value of the cryptoasset in fiat money (e.g. currencies
such as US Dollars or Sterling) and you may share the shortfall proportionately with other
THE ABOVE does not explain why in some casese when buying crypto it says next to buy button “you will own the asset”, not CFD.
IT WAS my understanding that purchased cryptos will be mine, hold in Etoros custody for me, and cannot be sold without my permission.
I based all my crypto trades on that believe, that I decide what to do with MY crypto, and when to sell or transfer it and that I cannot be forced to sell it.
ITS NOT CLEAR WHO HAS CUSTODY OF WHICH CRYPTO ASSET IN MY ACCOUNT, BUT IF THEY ARE CUSTODIAN THEN THEY HAVE TO KEEP MY ASSET UNTIL I ASK TO TRANSFER OR SELL IT?
IF MY CRYPTO IS IN omnibus account, and was transfered to it, surerlu it can be trasfered back to my private crypto wallet, as I dont agree to sell the asset but in fact want it to stay in third party custody until I decide to sell it.??
MUCH OF THE Terms and Conditions is not clear and is obscured with misleading information in the user interface like “not CFD, you will own the asset” or “100% stop loss set”, not mentioning that this not mean that position can drop to 100% but in fact, apparently, spread is included (something I found out only after I querried why my position was closed althouth STOP loss was set to 100%)
PARAGRAPH WITH ETORO`s OBLIGATIONS
11.10 In the event that a situation arises that is not covered under Schedule, or the General Terms and Conditions, we will resolve the matter on the basis of good faith and fairness and, where appropriate, by taking such action as is consistent with market practice.
MT – how Etoro handled my complaints and decided to terminate my account where was no evidence of good fait and no fairness (as fairness means I traded 3 years on platform so deserve at least a year to await return on investment), good faith is if they look at my welfare and respect my long term investment strategy, not when they try to get rid of me because I`ve uncovered neglegance of their customers (e.g. by letting investint more than annual income) etc.
ANOTHER CONFIRMATION THAT ETORO HOLDS ASSETS ON OUR BEHALF and holds assets in third party wallets is below:
- We may loan, hold, and utilise your cryptoassets
You acknowledge, accept, and consent to us lending any cryptoassets held on your behalf to any third party (including ourselves), holding any cryptoassets held on your behalf in third party ‘wallets’, and/or utilising any cryptoassets held on your behalf or any rights arising from or related to such cryptoassets for our benefit, unless prohibited by Applicable Law, all subject to your right to sell such cryptoassets at any time. If we receive income or benefits for such cryptoassets, we are not obliged to pass on such income or benefits to you.
Extract parahraph from CRYPTOCURRENCIES T&C addendum
17.6 Adverse financial situation as reason for account termination.
So, while you are rich you can trade but as soon as youre poor or have financial problems, they kick you out and take your money (liquidating positions in loss)!! In particular cryptos which are may take couple of years to recover.!
2nd Lette to Etoro from Solicitors
24th Floor One Canada Square
Dear Sirs or Mesdames
Our Client: Mr……
Re: Our Client’s Trading Account
We write further to your emails dated 4 and 9 September 2020 in respect of your decision of closing our client’s account, we acknowledge your decision to schedule closure of our clients account on the 18th of September. However, we would like to re-iterate our client’s desire and need to maintain his account for the reasons set out within this letter. Nonetheless, our client would like to preface his sentiments with the overarching desire to reach a mutual understanding reached with cooperation on your behalf.
As a comprised stance between the desires of our client and your statements within your email of the 18th of September, we would like to propose an open account of 18 months. Further to this, our client agrees to simply keep the account open in order to see final maturation of his current investments meaning that no further market investments will take place other than selling his current holdings at the moment of his choosing. Such a position ensures Etoro’s comfort with our client’s presence on its platform due to the tight restrictions on his actions and the inevitability of his departure due to his ability to only sell assets.
Our client bases his stance on his unhappiness towards Etoro’s management of his standing on the platform. Namely, our client would like to expand on the following 2 initial remarks from our letter dated 3rd of September 2020.
- Unjust termination
Principally, upon review of the T&C’s governing our client’s relationship with Etoro, the apparent reason for terminating our clients account seems unfounded.
We note the precondition setting out Etoro’s ability to terminate an account at any time, nevertheless we strongly emphasise the unfair nature of the contractual statement due to the inherent nature of investments and the element of time attached to them. To this end, we not only contest the manner in which Etoro can take immediate action over our client’s account but we would like to outline our intention to push for damages based on the lack of an actual breach that can lead to termination of an account. Within your correspondence with our client and us, you have yet to isolate an explanation as to your decision to allow our client a week to settle his account and withdraw his assets.
As a result of this we re-iterate our client’s desire to hold his current assets only until such a time that he deems suitable for their sale. Should such a request not be granted our client will be pushing for damages to adequately finance his entry into another platform and costs associated with setting himself up on an alternative site. Additionally, we will push for compensation from the loss between the initial price of stock purchase and the price where it currently stands due to the projected gains such assets stand to make which even exceed our client’s initial investment.
Our client’s primary investment within his portfolio was centred around cryptocurrencies counting at 80% of his holdings. To this end, our client had a call with Mr. Simon Peters who walked him through the elements of protection associated with various investments. However, knowing how our client’s assets were distributed and following from our client’s queries regarding the security of his account, Mr. Peters failed to impart the adequate level of knowledge upon our client regarding how his assets are protected and such an omission was negligent in assisting our client make thorough decisions.
To this end our client lost £XXX,XXX.XX amount of money as a result of such negligence and the false sense of security created in investing within cryptocurrencies. Again our client reiterates that such claims are completely founded due to his possession of recordings of this conversation which provide him with the means to seek recourse through evidence.
In the alternative, or in conjunction with our client’s claim, our client seeks to take his complaints through to the financial ombudsman as a means to come to an amicable resolution whilst providing E-Toro the time to adjust its approach to his account and hopefully recommence amicable relations. To this end, our client also reserves the right to seek recourse through alternative channels.
In summary our client would like to continue to push for an amicable resolution to this dispute. Namely, allowing him to keep limited access to his account under the conditions that no further trades are made with the exception of selling his current assets at the moment the client deems fit between now and 2022. Our client agrees to release any and all claims he may have against the company and his rights to pursue such claims with the relevant authorities.
Our client’s position remains reserved.
Original PDFs available on request
First solicitors letter to Etoro.
24th Floor One Canada Square
Our Client: Mr …
Re: Our Client’s Trading Account
We write on behalf of our client Mr. xxxx, who currently holds account number XXXX with Etoro.
We are expanding upon the zoom conference that took place between our own XXX and your own Ira M and Avi XXX on 24 August 2020. Since the zoom conference we have taken instruction from our client accordingly and we would like to kindly present the following proposal on behalf of our client with regard to keeping his trading account open.
Our client approached us in early August outlining his trading history and existing relationship with Etoro as well as the degree and content of his email communications with the support staff. We are aware of the concerning content contained in an email dated XXXX and have discussed the matter with our client to ascertain his intentions with regard to his account. To this end, our client has outlined his desire to keep his account open and continue being a consistent and valuable trader on the Etoro platform where he currently stands as a Diamond member.
Our client has gathered and reviewed his trading history since joining Etoro as well as his feelings towards the deterioration of the relationship as a result of his actions. After a period of reflection, our client would like to re-iterate that he had no mal-intentions towards Etoro or any negative feelings towards the reputation of the brand. Specifically, he has informed us of the emotional nature of the communications and though we understand your cause for concern. Our client has highlighted his regret over the circumstances and for his emotional and exaggerated response within his correspondence.
Nevertheless, our client has indicated his unhappiness over the manner in which the core issue of misrepresentation (held within his emails) was dealt with. Such claims on his behalf were the initial cause for his dissatisfaction, however he has now reflected upon the unprofessional manner he communicated those issues. Our client has stated that given his Diamond status on the platform, pre-existing uncertainties regarding the viability of online platforms such as Etoro as well as the difficult financial background he came from prior to attaining wealth through his career and investments, he unjustly rushed to rash conclusions and acted in a manner not coinciding with his regular character.
With regard to our client’s financial history with Etoro, he has strongly emphasised the platforms ability to use his expertise and knowledge to gain access to greater wealth and a better standard of life. Though our client holds a master’s degree in Engineering the value of the monetary gains made through his trading activities make our client particularly motivated on consistently improving his portfolio and developing his trading ability. To this end, throughout the 3 years of trading using Etoro, our client has made in excess of £60,000 and sees the platform as a fundamental piece to his ability to provide himself and those around him to a better life than he had prior to his entry to the trading world. From Etoro’s perspective, our client’s trading profits as well as the consistent year on year improvement in yielding’s, make him a valuable and reliable customer.
Though we are mindful of the nature of our client’s complaints regarding mispresentation and have indicated his right to pursue legal action, our client has been particularly forthcoming and willing to mend bridges between himself and the platform in order to resume his high standard of trading. To this extent he will be willing to waive such rights provided he can return to his account.
Given the current state of the coronavirus economy as well as our client’s understandable concern over the long-term financial well-being of his affairs, we kindly reiterate that the short-term detriment of having to quickly sell held assets when their projected gains are tremendously enticing would result in a severely underwhelming return. Having had a look at the general policy of account cancellation and the 30-day cut-off point, it is undeniable that such a conclusion is not unfounded.
Such an immediate and direct financial impact amidst the current climate would certainly be reason for concern given that his current investments were made with a long-term visualisation that they would come to fruition. Regardless of whether the merits of an argument made around potential profit, our client feels entitled to seeing out such investments whether they succeed as planned or not. Such a willingness to see his investments potentially materialise is rooted in his family’s precarious financial background and as a result of conversing about his long-term desires we fully support our client’s desire to seek a means to return to his pre-existing standing with Etoro as a means to solidify his financial standing in the near and distant future.
Our client is willing to start and/or continue an open dialogue between him and yourselves – should this be something that would make the Etoro customer service team feel comfortable with our client’s situation.
Our client has indicated his willingness to examine the matter openly and with the vision of finding the right condition for a return for both parties. Bearing this in mind, our client is fully willing and intends to let set aside any and all past issues and return to a state of professionalism as existed prior to his discrepancy. Furthermore, our client will agree to formally resolve and annul any prior complaints and waive his rights to pursue them either through the channels afforded to him by Etoro’s complaints system or by the relevant authorities provided a guarantee of a return to his pre-existing position is met.
Though we understand your fundamental concerns regarding the comments made by our client and the same concerns of allowing our client to continue to trade, we are not in a position to comment on his wellbeing. However, our client provides his personal assurances and immediate regrets over the nature of his comments as well as his immediate attempts to rectify his standing with Etoro as a gesture to demonstrate his sound mind as well as his repeated apologies and assurances regarding his mental state.
If you are not willing or mindful to entertain our clients wishes we do retain the right to advise our client to pursue legal remedies regarding Etoro’s alleged material misrepresentation as well as potential negligence. Nevertheless, we fully support our clients wish to overcome such issues and reach an amicable agreement to agree to terms of a return to his diamond membership at Etoro.
DOCUMENT 10 – My original complaint email that upset Etoro and Etoros decission to terminate account
“Dear Tejinder Kumar
Below is a copy of my replay to Etoro`s email, that I have mentioned to you in my other email a minute ago.
sorry for sending the same email, but I didn`t realise that Tejinder Kumar was my regional account manager and he has to be involved.
Thank you all for understanding.
Attached is a photo of my baby, he is only 13 months, and his dad
s livelihood is on Etoro. please, DONTt DESTROY my FAMILY, DON
T KILL ME, dont terminate my account.
Dear Etoro, Simon,
My whole life just flashed in front of my eyes when I read your email.
Etoro have just written that they are planning to terminate my account in 30 days (…) the only chance for me to live normally is to wait for markets to recover and close my positions when convenient and with profit or less loss. This is the ultimate principle of trading, trusting the broker and having power over opened, owned (x1 leverage) positions, and only reason I decided to trade with Etoro is that the platform is not a scam and will not go bankrupt or will not run away with my money, or will not close or terminate the account without my permission.
I almost had a heart attack when I read your email (..) If you terminate my account I will have to take a loss of over 80% on $250,000 (..)
Please, come to your senses and let me use the account as before. You can put restrictions on opening new positions if you like, but I cannot close the positions withing 30 days or when Etoro tells me to (..) You cannot expect anyone to close all positions with such major loss, bearing in mind that the Bitcoin Halving just occurred and next bull run is within next few years, AND THE WHOLE POINT OF TRADING WITH ETORO IS BECAUSE OF TRADING CRYPTOS, WHICH TAKE LONG TIME TO RECOVER.
I will not elaborate on this more but am asking you one thing, please understand that closing all positions or closing, terminating account, and not letting me to manage my account for as long as Etoro exists (..) The only way to keep me going, and not violate any terms, conditions and basic human rights, is to leave my account open, don`t force me to close any positions, and let me wait for a time when markets recover and I take decisions then. You cannot just “close the shop”/terminate users account and $250,000 of deposited money.
Surely, a trading platform cannot ban, or kick out a user or terminate his account while he is clearly at over 80% loss, with assets that are his own, not CFD, or just for trading cryptos because paltform is made for it. I
m sure that goes against Etoros core values, and the Founders and CEOs would not wanted to “take advantage”, and terminating their accounts and taking their money.
From now on I promise to be a quiet, humble Etoro member, (..) but, please (..) write to me soon, within 3 days, stating that the account cannot and will not be terminated and none of positions will be liquidated but my account and membership will carry on as usual, perhaps with temporarily restrictions in the future on deposits.
I trust this will be resolved sensibly and amicably without involvement of lawyers and court proceedings. (..) please save me from heart attack and write to me soon that everything is going to be ok, and that was just a warning.
W dniu 2020-07-22 21:33:57 użytkownik eToro Customer Service email@example.com napisał:
My name is Ira, I am a team manager in eToro’s customer service team.
Your letter was raised to me by your account manager as I deal with all escalated customer complaints. Please let me reassure you that we treat these matters with severity and with full management review of the matter at hand.
The two main points that were raised in this letter is the notion that eToro EU has allowed you to gamble with your life savings and the request for a 2,802.82 USD compensation due to trading results on March 12th for extended stop losses.
The request for the compensation, as written in the letter, is due to a decision made, without eToro’s advice or influence in any way and carried out by you, to extend stop losses which ultimately led to higher losses due to a movement in the market opposing the open positions at the time. This is a market event in which eToro had no part, the losses not due to any technical event, the platform was functioning normally and therefore the request for compensation is rejected.
(..) it seems that you cannot afford to lose the funds currently held at eToro EU and therefore, the management decision is to terminate your account to safeguard existing funds.
The account will remain open for 30 days to allow for the management of closure of all positions. The account will be limited immediately, no new deposits or opening of new trades will be allowed, only the management and closure of open positions allowed. On August 22nd, any open positions will be closed on your behalf at market rates at that time, all remaining funds refunded and the account will be closed. We request that no further accounts will be opened with the eToro group.
The losses during the lifetime of the account were due to the ultimate movement of the market against open positions held until now. In the account 1,700 manual positions were closed in profits of 186,595.11 USD over the course of 3 years showing proficiency with the platform and trading. All risk disclosures were available publicly ahead of start of trading and all considerations could have been taken at any point of handling of the account.
As per the above summary, eToro EU sees no justification to a compensation in this matter.
(..) Please consider this letter to be our final response.
Should you feel that your complaint was not resolved satisfactorily by us, as a client of eToro (Europe) Ltd, regulated by CySEC, you have the option to refer your complaint to the Cyprus Financial Ombudsman Service within four (4) months of our final response letter.
Your unique complaint reference number is – RX_20200023
The Financial Ombudsman Service is an independent organization that was established to resolve disputes between financial institutions and their customers. The Financial Ombudsman will not consider a complaint until we have had the opportunity to address it.
The address of the Financial Ombudsman Service is:
13 Lordou Vironos Avenue, 1096, Nicosia, Cyprus
P.O. Box 25735, 1311, Nicosia, Cyprus
eToro Customer Service Department
My first loss at Etoros fault and failed resolution of complaint
This is bulshit and you know it. Please Speak to your management and offer professional solution to Etoros fundamental problem, or i will blow the whistle and reveal breach of FCA standards and other regulations.
This is serious. I will not accept any crypto position to be closed without my consent unless it drops to the full value of opened position, ie 100%. Please disable all stop losses on my crypto positions (set to SL) regardless when they were open.
Your calculations system is not publically available anywhere in terms and conditions and is illogical. You cannot be making rules without clarity and customers consent.
Why not set SL as low as the spread, e.g. 500$ position could drop to not more than 3% i.e. 15$ value or -485$ profit. No, Etoro shows it can drop to -500 which means 100%. That’s where the Jury, common people can agree with me in court.
I could sue Etoro for not clear and transparent rules and leading people to believe that crypto trading with etoro is safe because a position has to drop to 100% to close. Even more misleading is when You show position of e.g. 500$ That has SL at -500.
I really thought you have more respect for your clients, Not to mention platinum plus clients.
I Will Not accept your excuses and calculatios which i havent agreed to.
Before You answer Please Consult your management and Come with a propisition that Will Not destroy Etoros public image.
I’ve entrusted lifetime savings and remortgaged flat plus took loans, trusting that Etoro cannot close unleveraged positions unless they drop to zero, which your platform clearly suggests.
If that is not the case then can o worms Will open and Etoro Will be liable to pay my damages and return every crypto investment I made (over 200,000$)not understanding and not being informed that Etoro can manipulate formulas and close positions although they were not leveraged and not dropped to full invested amount.
Again, please prove that I am treated with respect as platinum member. As you can imagine, being down over 85% on my lifetime savings and debts, I’m very upset, willing to fight the system, and capable of bringing this to highest authorities and media.
I will stay calm for now until you offer me a civilised professional resolution.
Since then another BCH has closed and today 1000$ of NEO. This is outrageous.
I’m waiting for Etoros formal response in 7 days (before 13 December).
Thanks for your email.
Yes looking at your BCH position #274273851 it closed at a rate of 187.6500 which represents -100% of your invested amount. The reason for this has to do with the way units were calculated on the platform for BUY cryptoasset positions opened before 21st Feb 2018.
Crypto positions that were opened on the platform before February 21st, 2018, they were opened with a Stop Loss higher than the minimum (0.01 or 0.0001, depending on the cryptoasset).
This occurred because at the time the position was opened, the calculation of units traded was based on the SELL (bid) price, regardless of whether the trade was a BUY or a SELL position.
As a result, any BUY trade opened before February 21st 2018 received a higher number of units because the unit calculation was based on the SELL (bid) price, which is always lower. For this reason, you had an SL rate that, despite being greater than 0.01 or 0.0001, represents 100% of the invested amount.
For your other cryptoasset positions, you can see in your portfolio which currently have the Stop Loss at a rate higher than (0.01, 0.0001) by going to: https://www.etoro.com/portfolio/manual-t rades.
To move your Stop Loss on these positions to the lowest possible rate, an amount (units x current Stop Loss rate) will need to be added to the overall position invested amount from your Available Balance. You would have been sent an email communication about this last week?
UK Platinum Account Manager
_ MT comment on above, I lost over 10,000 on several crypto positions despite my SL at 100% and owing the position, Etoro didn’t write to say “your stop loss is on your 5,000 is set at 5000 but it will close as soon as it hits 4850, so ignore what we are showing as this setting will not work and your SL will be closed at some random, only known to us rate/value which we will later blame on spread.”
Normal broker would just say add 10$ to your stop and it will reflect the 5000 you deposited, meaning 100% of your money is protected, making stop loss effetivelydisabled, no, they let the 100% hit at 98% !!!
WARNING, if you HAD your STOP LOSS CLOSED despite 100% get in touch. We believe this AFFECTED over 200,000 active crypto traders who now may be due a compensation!
On Fri, 30 Nov 2018 at 18:15
I hope you are well.
Can you please resolve the following situation.
As on the attached print screen, Etoro has closed incorrectly my BCH position although,
- it was x1 long, not leveraged
- stop loss was disabled
- it closed at 187,65$ which wasn`t 100% of open position (100% would be if it went down to zero). It clearly is a system error as the value of position didn
t go down 100%, BCH didnt even fall to 1$ but 187,65$.
I was expecting Etoro to pick up on this and contact me.
Please make sure my position is reinstated, i.e. I should have 1,339158 BTC bought for 5000$
I`m concerned that sophisticated platform as Etoro allows such errors.
Secondly, Can you please request that stop losses on all my crypto positions are disabled (no SL) to ensure this will not happen again, even if position reduces to 99,9999%. Otherwise, if there is a risk that Etoro will close positions when they drop to couple of dollars or 99,9999% of invested amount, then the whole concept of investing on Etoro will not make any sense, is too risky, and I will not invest again, and make sure others are aware of the this.
I trust it`s only a small misunderstanding which will be swiftly corrected.
Thank you in advance.
LINK TO ATTACHEMENTS and ORIGINAL DOCUMENTATION
So, I would not
trust people at Etoro, abusing its Terms and Conditions and unconditionally removing you if you discover any problems. Is Etoro a scam ? Can you trust the management and customer service? Is your crypto funds safe if the company goes bust? (No it its crypto), Can your open positions be closed when when you decide? (Not quite, Etoro has the ultimate control of long term positions), Does platinum or diamond memebership status provide you with better, personal service? Are the Stop Lossess clear and protect your position? Is Etoro Legit. Can you appeal to FCA, FCSA or Obudsman before your positions are liquidated? Etoro newsletter full of enticing information, start of bull market, yet Etoro dont hesitate to shut you down despite making gains every week. Does FCA regulated mean your funds can stay on the platform until you decide to sell them (No). Is investing long term safe (No, Etoro can decide when to liquidate your positions).
Tag lines: Etoro is not safe, is Etoro Safe, is Etoro Scam, is etoro legal, is etoro regulated, problems with Etoro – www.etoroisnotsafe.com
Etoro, let me keep account open for 18 months and close positiosn in next bull run, not this year. It
s only fair, given Ive earned you over $70,000 in spread and fees. Should you not, This letter will circulate in the WWW indefinitely.
Despite -150,000$ loss they decided to close my account without a phone call…
FCA regulation not fully applicable to Etoro ( don`t cover Crypto Assets ). Extortionate fees and spreads (made 60k on me)
“I`ve been groomed with gig tickets and membership titles to keep depositing and then dumped with -150k loss, with just one email. ”Etoro 3 years Diamond Member
Gathering evidence for a group action case against Etoro. If you had any bad experience, contact me and we can seek justice and file for damages. Crowdfunding project coming soon.
Etoro, just share with the CySEC, FCA and WORLD one statistic (I will Tweet Yonni Assia to confirm this):
- Out of 13 mln users how many accounts have you terminated?
- Was there at least one that broke the Terms and Conditions, how many?
- What was the average profit/loss of each account when terminated? I assume it was major loss
- What was the total LOSS of all accounts you TERMINATED, turning all users` loss into your PROFIT? How much have you cashed in on all Terminations?
In last 10 years how much have you PROFIT-ered from Terminating Users Accounts (for not breaking T&C)? I bet it`
s more than any big SCAM website. I bet it`s over a million $!. You made $150,000 on me, one user! I think Etoro is a quasi legal SCAM machine, grooming users like me and TERMINATING their account, taking their profits, just for stating obvious problems! Is that not the definition of SCAM- grooming, looking after, building sense of safety and running away with users money when he wants to complain to authorities, without appeal or hearing. That`s what SCAM companies do. I have evidence of Etoro using that SCAM tactic on my account!
Any expressions and statements deemed critical, sarcastic, abusive, ironic or truthful, are just reflections of my own personal experiences and are protected by
UNITED NATIONS CHARTER (Freedom of Speech) & EUROPEAN UNION CHARTER (Article 11) & THE UNIVERSAL DECLARATION OF HUMAN RIGHTS (Article 19).