eToro, one of the largest international brokerage platforms, has reduced the leverage for new trading positions in the banking sector to X1.
The company took such action after the collapse of Silicon Valley Bank (SVB), a US lender that targeted early companies. Another US bank, Signature Bank, was shut down by regulators as a result of the development. In addition, prior to SVB’s bankruptcy, cryptocurrency-friendly Silvergate Bank suspended banking operations.
Shares of American banks began to lose value. However, eToro has limited leverage to future positions only, and existing positions will be retained.
Learn how to trade stocks, ETFs, and CFDs on popular assets with Top Forex broker eToro
With its financial services in 140 countries including Cyprus, the UK, the US, and Australia, eToro allows clients to trade stocks, commodities, and CFDs. The broker’s asset list also includes shares of US banks such as Bank of America, Citi, Goldman Sachs, and JPMorgan Chase & Co, as well as other global banks.
However, recent events in the banking sector have forced the company to introduce restrictions on the use of leverage.
Risk disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.