How to buy eToro IPO stock
eToro, an Israeli commission-free trading platform that rivals Robinhood, announced its plans to go public. They are combining with a special purpose acquisition company (SPAC) named FinTech Acquisition Corp. V (NASDAQ: FTCV), with the merger valued at around $10 billion. The 14-year-old Israeli company has already received backing from ION Investment Group, Softbank, Fidelity Management and Research Co, and Wellington Management. The companies are predicted to inject $650 million into the merged company.
Should you buy eToro stock?
eToro is an online broker that offers both investing in stocks and crypto assets as well as trading CFD assets. It was founded in 2007 in Israel, later launching its European offering in 2013, and US offering in 2019. As of May 2020, it had 13 million registered accounts.
By the end of 2020, eToro was rumoured to have been valued at $2.5 billion following an undisclosed sale of shares to a US-based firm. This was a big step up from the company’s last funding round in 2018, which valued eToro at £800 million.
While many businesses have suffered due to Covid-19, online trading platforms such as eToro have seen increasing profits caused by volatility on financial markets. In fact, in 2020 alone, the company added 5 million users and increased revenue by nearly 150%. Most recently, in Q2 2021, eToro earned $264 million from crypto trading commissions. They is now competing with the likes of Robinhood, Vanguard, E-Trade in the US after it secured the membership of Financial Industry Regulatory Authority, Inc. (FINRA).
One benefit many eToro users love is the copy trading feature, which allows users to replicate their favorite traders moves. Unique tools such as this make a strong case for the future of eToro, which will be listed on the Nasdaq exchange.
How to buy shares in eToro when it goes public
The first step to complete before buying shares of eToro is to pick a brokerage to invest with. With most online stock brokers having adopted the commission-free model, you should be able to purchase shares of eToro without paying any added fees. Robinhood and SoFi are some of the best stock brokers for beginners. If you are a non-US citizen, you can still be able to invest in eToro stock via the eToro platform.
While eToro certainly offers would-be investors an enticing opportunity, be sure to do your own due diligence before buying any stock. Remember, never invest more money into a company than you can afford to lose. Since eToro is going public through a SPAC deal, there is sure to be above-average volatility.
