Our top pick for
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.
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.
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.
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.
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.
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.
What you need to know about investing in Shein from Australia.
Looking for the best performing stocks in Australia? We update this list weekly.
If you're thinking of trading stocks with Tiger Brokers, check out our review of this online broker's fees, safety and pros and cons first.
Steps to owning and managing Gol Linhas Aéreas Inteligentes SA shares from Australia.
Steps to owning and managing Caltex Australia shares from .
Looking for alternative investments? With a ROI of up to 3,593% lego may be worth considering. Read on to find out which lego sets are worth the investment.
Find cheap stock brokerage in Australia when buying and selling shares on the ASX and other international exchanges.
Learn about the money market and everyday consumer money market products.
Equity crowdfunding offers a unique opportunity for investors and for Australian startups, but Australia’s regulatory framework surrounding crowdfunding still lags behind the rest of the world.
Follow these tips to find the best share trading platform for you.