eToro IPO: How to buy eToro shares from Australia
You'll soon have the option to buy shares both on and in eToro, with the online brokerage set to go public.
Online stock brokerage firm eToro is in the spotlight this week, with the Israel-based company announcing that it's set to go public via a merger with special purpose acquisition company (SPAC) FinTech Acquisition Corp. It's a deal that is touted to be worth around US$10.4 billion.
It's worth noting that over the last couple of years eToro’s market presence has increased quite considerably, with the firm having added 5 million new users during 2020 as well as generating a gross revenue total of US$605 million over the same time window. The firm has also witnessed a staggering growth of nearly 150% during the last financial year.
Additionally, during the month of January 2021, the trading platform registered 1.2 million new users and facilitated a total of 75 million trades. Not only that, since 2019, eToro’s monthly registrations have more than doubled, thereby showcasing the company’s ever-growing market clout.
As things stand, eToro competes with the likes of US brokerages Robinhood, WeBull and TD Ameritrade. These apps have gained a massive following among budding amateur investors thanks to their easy-to-use interfaces and streamlined trading.
How to buy eToro shares
Since eToro’s stock has not been made public there is no way for investors to buy its shares yet. However, you'll be able to invest in eToro after the company completes its above-stated SPAC merger.
In the wake of this news, FinTech Acquisition Corp V, the company facilitating the eToro acquisition, has already seen its shares surge by more than 15%.
As a quick refresher, SPACs are “shell entities” whose sole purpose is to help in the purchase of a private company while completely bypassing the need for an initial public offering (IPO).
Once the acquisition process is completed the combined company will operate as eToro Group Ltd. and will subsequently be listed on Nasdaq. That means you'll be able to buy shares in it through a US share trading platform, such as IG, CMC Markets, and yes, eToro.
The deal is currently backed by SoftBank’s Vision Fund 2 as well as a number of other major players including Fidelity Management & Research Co LLC, Wellington Management, ION Investment Group and Third Point LLC.
Is eToro a good investment?
Founded in 2007, eToro boasts a user base of 20 million plus. In addition to providing its customers with the ability to buy stocks, ETFs and commodities, the platform also allows investors to invest in cryptocurrencies along with a host of unique crypto-related offerings. This is another possible reason why the firm has gained so much traction in recent times.
In November 2019, eToro bought prominent crypto portfolio tracking app Delta, further cementing its reputation with the digital asset space. In fact, the company claims to be one of the first regulated platforms to offer investors streamlined access to a massive number of crypto assets. eToro is regulated in the UK, Europe, Australia, the US and Gibraltar.
Lastly, eToro’s patented and scalable technology enables users to communicate with each other, allowing them to quite easily "copy/paste" investment advice and trading strategies from successful investors operating across its ecosystem. Not only that, the platform also provides real-time financial forecasts as well as advice from a team of experts that spans multiple disciplines including online brokerage, technology, marketing and data sciences.
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