What is Insolvency and Counterparty Risk in Stock Margin Trading?

If a right of use has been exercised and etoro or the relevant third-party broker becomes insolvent, your shares may not be treated as your assets. In such circumstances, U.S. client asset protection rules and regulations will apply.

These laws and regulations are designed to ensure that U.S. broker-dealers maintain and segregate sufficient assets to meet their outstanding liabilities and participate in the U.S. statutory investor protection scheme.