Most known for helping investors buy other shares, multi-asset broker and social trading platform eToro has announced plans to list on the NASDAQ stock exchange during the first half of 2022.
Under its current proposal eToro is becoming a publicly traded company via a merger with special purpose acquisition company (SPAC) FinTech Acquisition Corp.
This process is a long time coming for the Israeli company, having first announced plans to go public back in March 2021. However, it was unable to list in the third or fourth quarter last year and has as such touted plans to list by the first half of 2022.
As it stands, the deal is touted to be worth around US$10.4 billion, with a press release by eToro showing it is likely to trade under the ticker code FTCV.
What is eToro?
eToro is an online broker that allows investors to trade shares, ETFs and cryptocurrency. Best known for its social trading features, including copycat portfolios, the platform is aimed at helping predominantly younger investors. The company says it is helping less experienced investors get their foot into the financial markets.
eToro started in 2007 in Israel before expanding across Europe in 2013. The broker continued to expand and is now offering its services across 140 countries including Australia and the United States.
Why is eToro using a SPAC?
eToro is expected to make its IPO onto the NASDAQ by 30 June 2022, via a SPAC deal with FinTech Acquisition Corp V (FTCV).
Not taking the traditional path to listing, eToro will use a SPAC deal which is essentially a reverse merger. Under this arrangement, the SPAC has a fixed valuation and faces fewer regulations than a traditional listing. It also has the added benefit of there being no 6-month lock-up period before shareholders can sell their assets.
eToro itself has come out to say choosing the SPAC route gave it the chance to partner with another firm that has deep knowledge in the fintech industry.
The current arrangement will see eToro receive US$250 million raised in FTCV's IPO, with the rest of the capital coming from external investors.
How does eToro make money?
Like any broker, its primary source of income is through fees and charges for its services.
eToro's main fees relate to brokerage on trading. The company also charges for a range of services, including withdrawal fees, inactivity fees and currency conversion charges.
Its CFD and forex services also make money through a market maker model. When you take out a position, the market maker takes out the opposite trade. The market maker makes money should you lose money.
How to buy shares in eToro
You'll need a brokerage account with access to the US stock market in order to invest in eToro. Consider opening a brokerage account today.
For our top picks, we compared our Finder partners using a proprietary algorithm beginning in August 2022. We update the list every 3 months. Keep in mind that our top picks may not be the best for your individual circumstances and we encourage you to compare for yourself. Read our full methodology here to find out more.
Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
Open and fund your brokerage account. Complete an application with your personal and financial details, such as your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
Search for eToro. Find the stock by name or ticker symbol. As eToro is listed as a SPAC, find the ticker symbol FTCV on NASDAQ. Research its history to confirm it's a solid investment that will help you meet your financial goals.
Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until eToro stock reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
Decide on how much to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of eToro, depending on your broker.
Check on your investment. Congratulations, you own a part of eToro. Optimise your portfolio by tracking how your stock – and even the business – performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
How do similar companies perform?
It's impossible to predict how any stock will perform — and IPOs can be particularly volatile. But evaluating the performance of companies like eToro can be useful in determining how the market is performing and whether now is a good time to invest in this industry.
Select a company to learn more about what they do and how their stock performs, including market capitalisation, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.
Company summary
Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies. It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, the company offers custody, prime brokerage, securities, and margin lending services. It serves institutional and individual customers through electronic exchanges and market centers. The company was founded in 1977 and is headquartered in Greenwich, Connecticut.
Historical performance
Stock information
Market capitalization: $45472878592
P/E ratio: 38.4561
PEG ratio: 2.5817
Dividend yield: 0.0037%
Company summary
JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers deposit, investment and lending products, cash management, and payments and services; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit cards, auto loans, leases, and travel services to consumers and small businesses through bank branches, ATMs, and digital and telephone banking. The CIB segment provides investment banking products and services, including corporate strategy and structure advisory, and equity and debt market capital-raising services, as well as loan origination and syndication; payments; and cash and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The CB segment provides financial solutions, including lending, payments, investment banking, and asset management to small and midsized companies, local governments, nonprofit clients, and large corporations, as well as investors, developers, and owners of multifamily, office, retail, industrial, and affordable housing properties. The AWM segment offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; and retirement products and services, brokerage, custody, estate planning, lending, deposits, and investment management products to high net worth clients. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.
AMTD IDEA Group, an investment holding company, provides capital market solutions in China, Hong Kong, Europe, the United States, and internationally. The company operates through four segments: Capital Market Solutions; Digital Solutions and Other Services; Fashion and Luxury Media Advertising and Marketing Services; and Strategic Investment. The Capital Market Solutions segment raises funds through equity and debt financing, private placements, and debt issuances; provides financial advisory services, such as domestic and cross border advisory services for merger and acquisitions; and offers asset management products and services. The Digital Solutions and Other Services segment provides investor communication, investor relations, and corporate communication services to institutional and corporate clients, as well as digital financial solution services. The Fashion and Luxury Media Advertising and Marketing Services segment offers print and digital advertising campaigns, licensing, and value-added marketing services, such as branded content, video production, social media activation, event creation, and experiential marketing services. The Strategic Investment segment engages in proprietary investments and management of global investment portfolio, including listed and unlisted equity shares investments and movie income right investments. The company was formerly known as AMTD International Inc. AMTD IDEA Group was founded in 2003 and is based in Central, Hong Kong. AMTD IDEA Group operates as a subsidiary of AMTD Group Company Limited.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
Cameron Micallef was a utilities writer for Finder. He previously worked on titles including Smart Property Investment, nestegg and Investor Daily, reporting across superannuation, property and investments. Cameron has a Bachelor of Communication and Media Studies/ Commerce from the University of Wollongong. Outside of work Cameron is passionate about all things sports and travel.
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