The Italian Competition Authority, AGCM, recently imposed a fine of 1.3 million euros on the European subsidiary of retail FX and CFD provider eToro. The penalty comes in response to allegations of eToro providing misleading information about its stock service fees. This announcement follows an investigation initiated by the authorities into eToro's business practices.

AGCM's statement explicitly states that the eToro trading platform has violated Consumer Code Articles 20, 21, and 21 due to its failure to adequately disclose monetary terms and technical aspects of its products and services. The European subsidiary of eToro is accused of lacking transparency in disclosing exchange rate fees and imposing restrictions on transferring portfolios to other trading platforms.

According to AGCM, eToro's website provides information suggesting that users can execute share transactions without incurring transaction fees, but it fails to mention other associated fees. Furthermore, the authority points out that foreign exchange risks and limitations on user rights, particularly those involving the transfer of shares to other brokerage firms, were not adequately disclosed.

In response to these allegations, eToro, an Israeli-based broker, stated via email, denying any lack of transparency in its communications with customers regarding its products.

"We strongly believe in the importance of consumer protection and strive to provide consumers with comprehensive information. We are carefully considering AGCM's decision and evaluating our options," the company added.

This fine underscores the ongoing efforts of regulatory authorities to ensure transparency and consumer protection in the financial industry.