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How to buy eToro stock in Australia

Here's everything we know so far about eToro's SPAC merger deal.

Buy eToro shares with a broker Compare online brokers

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.

Compare trading platforms to buy eToro shares

Name Product Standard brokerage for US shares Currency conversion fee Asset class
eToro
Finder AwardExclusive
eToro
US$0
50-150 pips
ASX shares, Global shares, US shares, ETFs
Finder exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account (T&Cs apply).
CFD service. Capital at risk.
Join the world's biggest social trading network when you trade stocks, commodities and currencies from the one account.
Moomoo Share Trading
US$0.99
55 pips or 0.0055 AUD/USD
ASX shares, Global shares, US shares, ETFs
Finder exclusive: Get an additional 30 days on top of the regular brokerage-free period for new accounts. T&Cs apply.
Trade shares on the ASX, the US markets and buy ETFs with Moomoo. Plus join a community over 20 million investors.
Spaceship US Investing
US$0
0.70%
US shares, ETFs
Dive into US markets with $0 brokerage, starting with just a $10 investment.
Unlock US stocks and ETFs with minimal entry barriers, offering straightforward, low-cost options for new and seasoned investors.
Tiger Brokers
Exclusive
Tiger Brokers
US$2
37 pips
ASX shares, Global shares, US shares, ETFs
Finder exclusive: 10 no-brokerage US or ASX market trades in the first 180 days + 7% p.a. on uninvested cash with first deposit of any amount, plus US$30 TSLA + US$30 NVDA shares with deposits up to AU$2000. T&Cs apply.
Trade Australian, US and Asian stocks with no minimum deposit on Tiger Broker’s feature-packed platform.
CMC Invest
Finder Award
CMC Invest
US$0
0.60%
ASX shares, Global shares, Options trading, US shares, ETFs
$0 brokerage on US, UK, Canadian and Japanese markets (FX spreads apply).
Trade over 45,000 shares and ETFs from Australia and 15 major global markets. Plus, buy Aussie shares or ETFs for $0 brokerage up to $1,000 (First buy order of each security, each day - excludes margin loan settled trades).
Webull
US$0.25
0.50% (50 pips)
ASX shares, Global shares, Options trading, US shares, ETFs
Sign up & deposit $200 to get $100 of rewards value, or deposit $1,000 to get $200 worth. Up to $5,450 value available. T&Cs apply.
Trade ASX and US stocks and US options, plus gain access to inbuilt news platforms and educational resources. You can also start trading for less with fractional shares.
Saxo Invested
Saxo Invested
US$1
0.25%
ASX shares, Global shares, Options trading, US shares, ETFs
Access 22,000+ stocks on 50+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
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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.

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