Global investment platform and cryptocurrency exchange eToro has today announced that users can invest directly in shares on the platform where previously only CFDs were available. Users can now buy UK shares, hold shares, cryptocurrencies, exchange-traded funds (ETFs), and thousands of other financial assets on one platform and in one portfolio.
The investment platform has committed to zero ticket or management fees for users buying shares and fees are included in the spread at just 0.09% per side. For UK shares, eToro will absorb the stamp duty.
“eToro enables people to invest in the assets they want to own, from newly available assets such as cryptocurrencies, to more traditional options like shares or commodities. We want investors to be able to hold all these assets in a single portfolio,” said Yoni Assia, Founder and CEO of eToro.
Assia believes that price matters, and he and eToro think ticket and management fees are “old world” practices that put people off investing:
“That’s why we’re not charging them, and absorbing stamp duty to boot. We’re making it easy to invest, and that means rethinking some of the outdated practices investors might be used to from other investment providers. It also means we’ll continue to expand the range of assets we make available to our 10 million users.”
Up to now, eToro has allowed users to invest in shares on a contract for difference (CFD) basis which lets users apply leverage to investments and take short positions. Today’s development means that users will now be able to own and buy the underlying asset.
Buying underlying assets, or shares, rather than investing via a CFD, will mean that eToro users can:
- Buy shares with the cost of stamp duty excluded from the price
- Receive dividends on the ex-dividend date rather than waiting for issuance
- Enjoy instant execution and settlement at a fixed price
- Copy hundreds of Popular Investors and match their performance in the markets
- Invest in eToro’s specially curated CopyFund portfolios
- Apply leverage or open a short position to trade stocks via CFD.
In the UK, stamp duty is charged at 0.5% on transactions over £1000 GBP. With other investment platforms a £10,000 GBP investment would incur a £50 GBP charge in stamp duty in addition to the platform’s own fees and charges.
eToro will absorb the UK stamp duty, meaning the 0.5% charge will not be paid by users. eToro estimates a total fee for investing of £21 GBP. The platform has not committed to how long it will absorb the UK stamp duty for, so this could be subject to change in the future.
Right now, eToro’s ability to provide a broad portfolio and very competitive fees may well provide an edge against other investment platforms.
For reference, eToro can also charge a $25 USD fee for withdrawals from the platform, a conversion fee when depositing and withdrawing from the platform, and a monthly fee to inactive user accounts on the platform.
The thousands of shares currently available on eToro are across European, Asian, and US markets, and eToro is gradually expanding the range of assets, both traditional and cryptocurrency based. There are currently 10 cryptocurrencies available with more planned for 2018.
eToro offers users the ability to invest in shares, cryptocurrencies, and commodities, buying, holding, selling, and monitoring all in real time. eToro has a growing global community where users can follow the investment strategies of others who have been successful.
“Over the last 12 months we’ve seen our investment community grow to over 10 million people around the world,” continues Assia. “Many of our customers are investing for the first time and they’re investing in cryptocurrencies. They’ve told us that they want to invest in other things, just as easily as eToro allows them to buy into cryptocurrencies, and to be able to have everything in one portfolio. Now, people can invest in shares with the same ease they enjoy when investing in cryptocurrencies.”