ASIC Sues eToro Over Misleading CFD Product Targeting and Screening Practices 😰
The Australian Securities and Investments Commission (#ASIC ) has sued #eToro , a trading platform, over their leveraged trading product called Contract for Difference (#CFD ).
ASIC alleges that eToro's screening test for the CFD product was ineffective in excluding unsuitable customers, leading thousands of users to lose money.
The regulator also claims that eToro's target market was too broad, allowing users with no understanding of CFD trading risks to participate.
Between October 2021 and June 2023, nearly 20,000 of eToro's clients reportedly lost money trading CFDs. In the United States, eToro had halted trading in four cryptocurrencies after they were labeled as securities in lawsuits by the #SEC .
