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Yoni (left) and Ronen Assia, and their father, David Assia, former chairman of eToro

Key Information

eToro Group Ltd. is an Israeli multi-asset investment and social trading company focused on providing financial services.[10][11][12][13] eToro was founded in 2007 in Tel Aviv by Yoni Assia, Ronen Assia, and David Ring. The company's headquarters are located in Central Israel,[14][15][16][17] with global offices in Cyprus, United Kingdom, United States, Australia, Germany and UAE. At the beginning of 2025, the company filed for Nasdaq (U.S.) listing and went public on May 14.[18][19] In May 2025, eToro had 40 million registered users,[20] and over 3.63 million funded accounts.[9] In 2025, the company valuation was $5.64 billion.[19]

History

[edit]

eToro was founded as RetailFX in 2007[21] in Tel Aviv, by brothers Yoni Assia and Ronen Assia together with David Ring.[22][10] In 2010, the firm released the eToro OpenBook social investment platform. This included the copy trading feature, enabling users to replicate the trading strategies of top-performing investors automatically.[23] Later that year, the firm released an Android app.[24]

Between 2007 and 2013, the company raised $31.5 million across four funding rounds.[25][26] By December 2014, it had secured an additional $27 million from Russian and Chinese investors.[27]

The founder of eToro, Yoni Assia, during the eToro IPO launch event at Nasdaq

In 2013, eToro expanded its product range, allowing investments in stocks and CFDs alongside commodities and currencies, with an initial offering of 110 stocks that later grew to over 3,000 financial products.[28][29] The same year, it was authorized to provide services in the UK under its eToro UK subsidiary.[30][31] By 2014, some referred to eToro as "Israel's biggest export."[32] In January 2014, the company added cryptocurrencies to its available instruments,[33][34][35][36] and later that year, it introduced currency futures investments for the Russian ruble and Chinese yuan.[32]

In December 2017, eToro partnered with CoinDash to develop blockchain-based social trading.[37] The following year, it raised $100 million in private funding,[38] bringing total investment to over $162 million from various firms.[39]

In March 2019, eToro acquired Danish blockchain company Firmo.[40][41] In October 2019, eToro released a sentiment-based cryptocurrency portfolio that uses AI to assess Twitter's real-time sentiment on digital assets.[42] Shortly after, in November 2019, eToro acquired Delta, a crypto portfolio tracking app based in Belgium.[43][44] In March 2019, the company launched its cryptocurrency trading platform and standalone cryptocurrency wallet for US users.[45][46][47]

Financially, 2020 proved a landmark year for eToro, with a 147% year-over-year growth, a 275% increase in funded accounts, and a gross revenue of $605 million. The company reported 1.2 million funded accounts, managed by a team of 1,100 employees worldwide.[10] That year, eToro also acquired Marq Millions, its UK e-money division, rebranding it as eToro Money,[48][49] and obtained Visa's primary membership along with an electronic money institution (EMI) license from the UK's Financial Conduct Authority.[50] In December 2021, it launched the eToro Money debit card for UK residents.[51] In 2021, the company reported operating in 140 countries[52][53] and having 20 million users.[54]

In March 2021, eToro announced plans to go public via a merger with FinTech Acquisition Corp V (NASDAQ:FTCV), a special-purpose acquisition company (SPAC) backed by former Bancorp CEO Betsy Z. Cohen.[55] The combined entity was expected to operate as eToro Group Ltd with an implied enterprise value of $10.4 billion, supported by $650 million in funding from private investment funds.[56][57] However, due to market instability and internal challenges within the SPAC, including "material weaknesses" in its financial controls, the deal was canceled by mid-2022.[58][59] By that time, eToro had invested heavily in preparation for the IPO, contributing to a net loss of $265 million for 2021.[60] Following the cancellation, eToro implemented cost-cutting measures, including laying off approximately 100 employees, or around 6% of its workforce, to stabilize its finances.[61]

In August 2022, eToro signed a definitive agreement to acquire Gatsby, a fintech startup specializing in options and stock trading, for $50 million in cash and stock.[62] In April 2023, the company announced a partnership with Twitter to allow users to click on ticker symbols preceded by a dollar sign, redirecting them to an eToro trading page.[63]

In November 2022, eToro purchased a Lisbon-based portfolio management tools provider, Bulsheet, for an undisclosed sum.[64]

In April 2023, eToro became a partner for X's cashtags, providing real-time asset prices for stocks, exchange-traded funds (ETFs), commodities and cryptocurrencies.[65][66]

In 2023, eToro completed a $250 million funding round that valued the company at $3.5 billion.[67] However, eToro's financial performance in 2023 showed mixed results: eToro UK reported a 14% drop in net income and a 28% decrease in comprehensive income.[68]

In October 2023, eToro announced partnership with iShares by BlackRock on the US Exchange-Traded Fund (ETF) courses in equities and bonds.[69]

In 2024, Yoni Assia disclosed eToro’s acquisition of a content automation company Deep.[70]

In March 2024, the company announced that it is considering New York or London as potential venues for an initial public offering (IPO).[71] In December 2024, eToro hired Goldman Sachs to lead its IPO in the United States, planned for 2025. In January 2025, eToro confidentially filed documents with the U.S. Securities and Exchange Commission (SEC), aiming for a valuation exceeding $5 billion.[72][73]

In June 2024, eToro announced a financial education partnership with X for the UK, Germany, France, Italy, Spain, the UAE and the US markets.[74] The same year, the company launched the eToro Academy.[75][76][77]

In July 2024, eToro announced a partnership with the London Stock Exchange, aiming to add over 1,000 new UK stocks in the coming months. That month, it also collaborated with Bocconi University and joined the European FS Financial Services Tech Hub. In September 2024, eToro acquired the Australian app Spaceship for nearly $55 million.[78][79]

In August 2024, eToro partnered with Dubai Financial Market (DFM),[80] in September 2024 with Deutsche Börse for German stocks listed on the Frankfurt Stock Exchange,[81] in October 2024 with ARK Invest to launch a technology-focused ETF portfolio.[82] In November 2024, the company received a license to operate in New York.[83]

On March 24, 2025, it was reported that eToro officially filed for an initial public offering in the United States. On May 14, eToro completed its IPO and listed its shares on the Nasdaq under the ticker symbol "ETOR".[84][85]

Operations

[edit]

eToro's primary research and development office is based in Tel Aviv, Israel. Its other legal entities are registered in the UK, US, Australia, Cyprus and UAE. The company operates under regulatory oversight from several major authorities: CySEC in the EU,[16] FCA in the UK,[30][31] FinCEN in the United States,[14] and ASIC in Australia.[86] As of 2022, eToro maintained operations in 140 countries. In 2023, the company received an approval from Financial Services Regulatory Authority (FSRA) of ADGM[87] to launch in the UAE and added ISA offering. The company operates in 75 countries and has 40 million users.[20]

In June 2022, eToro (Europe) Ltd, a European subsidiary, was registered with the Autorité des marchés financiers (AMF) as a digital asset service provider (DASP).[88] In September 2023, eToro obtained its registration as a Crypto Asset Service Provider (CASP) with the CySEC.[89]

In July 2023, eToro secured approval from the Bank of Spain’s as a virtual currency exchange and electronic wallet custody service provider.[90]

In February 2025, eToro (Europe) Ltd received a permit from the CySEC to offer crypto services in the EU under the Markets in Crypto-Assets Regulation (MiCA).[91]

Marketing

[edit]

eToro is known for substantial investments in marketing, which include sports sponsorships and traditional advertising. In 2020, eToro released a high-profile ad starring Alec Baldwin that quickly accumulated 3 million views on YouTube.[92]

In February 2022, eToro aired its first Super Bowl commercial during Super Bowl LVI, also dubbed the "Crypto Bowl."[93][94] The 30-second ad, titled "Flying Your Way," featured a consumer seeking cryptocurrency advice while crypto enthusiasts descended from the sky, asking, "To the moon?" The commercial also highlighted a Shiba Inu dog, referencing the meme coin Shiba Inu (SHIB), and included an appearance of a Bored Ape NFT, targeting a crypto-savvy audience.[95][96][97]

As of 2024, eToro's sponsorship portfolio encompasses five English Premier League clubs (Crystal Palace, Everton, Leicester City, Southampton, and Burnley), five Bundesliga teams (Eintracht Frankfurt, FC Augsburg, 1. FC Köln, Hamburger SV in Bundesliga 2, 1. FC Union Berlin, and VfL Wolfsburg), as well as the UK's Premiership Rugby Cup, Spain's Basketball Liga ACB, and Rugby Australia. In September 2024, eToro signed a two-year sponsorship agreement with Bayer 04 Leverkusen.[98][99]

2024 Summer Olympics campaign

[edit]

In July 2024, eToro collaborated with Lightricks' LTX Studio to produce an AI-generated advertisement that broadcast during the 2024 Summer Olympics in Paris.[100][101]

Controversies

[edit]

Critics argue that eToro's business model inherently conflicts with its customers' interests, as the company directly profits when customers incur losses.[10]

CySEC, 2013

[edit]

In 2013, CySEC fined eToro €50,000 due to weaknesses identified in its organizational and operational structure, dating back to 2010.[102]

Quebec blacklist, 2015

[edit]

In 2015, Quebec authorities placed eToro on a blacklist of unauthorized foreign companies, citing its encouragement of local residents to invest in binary options through its platform.[103][104]

Leveraged crypto position closures, 2021

[edit]

On 8 January 2021, eToro informed its European clients that "due to extreme market volatility in the crypto markets," margin positions for all leveraged crypto positions needed to be converted into non-leveraged. Customers were warned that failure to comply would lead to position closures within four hours.[105][106]

Closure of customer positions in Magnit stock, 2022

[edit]

On 2 March 2022, eToro liquidated customer positions in Magnit stock (MGNTL.L), compensating customers at $0.01 per share. Prior to the Russian invasion of Ukraine in February 2022, Magnit shares were valued at $14.20 per share.[107][108][109] Investors holding Russian American (ADRs) and global depository receipts (GDRs) argued that the forced closure was unlawful and initiated a petition, which quickly garnered a thousand signatures, though media reports have not confirmed any subsequent outcomes.[110][111][112]

Misleading advertising in Italy, 2023

[edit]

In 2023, the Italian Competition Authority fined eToro €1.3 million for misleading advertising. The Authority found that eToro's Italian website promoted zero-commission share trading but did not disclose various costs and financial risks, such as currency exchange fluctuations and operational limitations on customer rights. These omissions led consumers to make choices they might not have otherwise made, in violation of Articles 20, 21, and 22 of the Italian Consumer Code.[113][114]

ASIC lawsuit, 2023

[edit]

In August 2023, the Australian Securities and Investments Commission filed a case against eToro Aus Capital Limited in Federal Court, alleging that the company of lack of compliance, more specifically, of violation of design and distribution obligations. The screening test for onboarding clients was so lax that nearly anyone could qualify. ASIC argued that eToro's target market for CFDs was overly broad for such a high-risk product. Between 5 October 5, 2021 and 14 June 14, 2023, almost 20,000 eToro clients reportedly lost money.[115]

As of November 2024, court proceedings have been postponed eight times.[115]

US SEC lawsuit for unregistered crypto trade, 2024

[edit]

An investigation by the U.S. Securities and Exchange Commission discovered that since at least 2020, eToro operated as an unregistered broker and clearing agency, facilitating crypto asset trading as securities. On 12 September 2024, eToro USA LLC agreed to pay a $1.5M penalty to settle charges, no comments had been given to admit or deny the SEC's findings. The US clients were given 180 days to liquidate other crypto positions, with only Bitcoin, Bitcoin Cash, and Ether remaining available for trade.[116][117][118]

[edit]

Malaysia

[edit]

In May 2020, eToro announced the expansion of its commission-free offering to customers in the Asia-Pacific region. In response to eToro's announcement, the Securities Commission Malaysia (SC) publicly stated that eToro was operating without proper licensing in the country.[119] The company stated that Asian investors are regulated under its ASIC license and can trade through it.[119]

Canada

[edit]

From 2008 to 2017, eToro operated in Canada without a license despite warnings from the Ontario Securities Commission (OSC).[10] In 2018, eToro agreed to pay a $550,000 fine and an additional $25,000 in costs, and to disgorge nearly US$1.8 million. The company also committed to closing Ontario accounts and blocking its site from Canadian IP addresses.[120]

India

[edit]

In September 2022, the Reserve Bank of India (RBI), India's central bank, released a list of 34 unauthorised forex trading online platforms, which included eToro.[121] It later updated the number of platforms to 88.[122]

Philippines

[edit]

On 14 March 2024, the Securities and Exchange Commission of The Philippines issued an advisory against eToro. The company was marketing its offerings to Filipinos and allowed them to open accounts without the necessary license, an act punishable in the Philippines with up to 21 years in prison.[123] The company spokesman denied active promotion of its services in the Philippines and highlighted that it has no local presence in the country. In October 2024, the company announced that it will stop operations in the Philippines citing "risk management considerations". Philippines residents' access to all accounts will be stopped on 15 February 2025.[124]

The Times of Israel investigation

[edit]

In July 2021, The Times of Israel published an investigation on eToro, exposing dozens of cases of staffing connections between eToro and Israel's largely fraudulent binary options industry.[10] For example, Shmuel Hauser, former chairman of the Israel Securities Authority (ISA), joined eToro as an advisory board member after overseeing regulatory decisions that impacted the company. During Hauser's ISA tenure from 2011 to 2017, he agreed to modify a Knesset bill that would have restricted eToro's operations, which allowed eToro to continue expanding internationally. Although eToro did not engage in binary options, a sector under heavy scrutiny for fraudulent practices, the modified bill exempted companies like eToro from stricter regulations. In the same year, he resigned from his post at ISA amidst several high-profile anti-corruption scandals. After leaving the ISA, Hauser began advising eToro on regulatory issues worldwide. In 2021, Hauser became an advisory board member at eToro.[10] At the same year, eToro announced that it had appointed Hedva Ber, former supervisor of banks at the Bank of Israel, in 2021 was appointed deputy CEO and global COO.[10]

The Times of Israel also covered the story of Nir Barkat, Likud MK and former mayor of Jerusalem. Barkat was linked to eToro in the "Pandora Papers", revealing he held shares in the company, which is registered in the Virgin Islands despite most operations being based in Israel. While mayor, Barkat claimed his assets were under a blind trust, but leaks indicated they remained in his name until he transferred them to his brother upon joining the Knesset in 2019, contrary to Knesset Ethics Committee guidelines. In 2019, Barkat's net worth was valued at $139 million.[10][125]

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia

eToro Group Ltd. is a multi-asset platform and network founded in 2007 in , , by brothers Yoni Assia, Ronen Assia, and , enabling users worldwide to trade equities, cryptocurrencies, commodities, currencies, and indices through collaborative tools like CopyTrader, which automates replication of successful investors' portfolios.
The platform emphasizes democratizing access to financial markets via social features, including real-time interaction, strategy sharing, and community-driven insights, serving over 35 million registered users across more than 75 countries as of 2025.
eToro achieved a significant milestone with its on May 14, 2025, listing Class A common shares on the under the ticker ETOR and raising approximately $310 million at a valuation targeting up to $4 billion, reflecting its growth amid retail trading surges.
However, the company has encountered regulatory challenges, including a September 2024 settlement with the U.S. Securities and Exchange Commission for $1.5 million over operating as an unregistered broker and clearing agency for certain crypto assets, leading to limitations on U.S. offerings to , , and .

History

Founding and Initial Development (2007–2010)

eToro was founded in 2007 in Tel Aviv, Israel, by brothers Yoni Assia, Ronen Assia, and David Ring, with the aim of democratizing access to financial markets through simplified and transparent trading tools. The company launched its initial platform, Visual FX, in September 2007, focusing on foreign exchange (FX) trading and featuring intuitive graphic representations to make complex market data more accessible to retail investors. This visual approach addressed the limitations of traditional text-based charting, enabling users to fund accounts via credit cards and engage in web-based FX trading without advanced expertise. During the 2008 global financial crisis, eToro experienced significant user growth as retail interest in trading surged, prompting early hires in regulation, compliance, and liquidity operations to support expansion. In 2009, the company introduced WebTrader, an advanced platform extending trading capabilities to stocks, commodities, and indices, further broadening its asset offerings beyond FX. By July 2010, eToro pioneered with the launch of OpenBook, the world's first social investing network, which incorporated CopyTrader functionality allowing users to automatically replicate the trades of successful peers in real-time. This innovation laid the foundation for eToro's signature community-driven model, emphasizing transparency through shared trade histories and performance metrics.

Growth and Product Evolution (2011–2020)

In 2011, eToro began integrating into its offerings, with founders purchasing early that year, positioning the platform ahead of mainstream adoption in digital assets. This move laid groundwork for later expansions, as the company shifted focus from primarily forex trading to broader asset classes amid growing user interest in diversified portfolios. By April 2012, eToro launched its , enabling access to WebTrader and OpenBook features on and Android devices, which facilitated on-the-go and contributed to increased user engagement. In July 2013, the platform added stock trading, expanding beyond currencies and commodities to include a selection of equities for greater diversification. These enhancements drove steady user growth, with registered accounts rising from approximately 174,000 in 2008 to millions by the mid-2010s, supported by the social features of OpenBook launched in 2010. October 2015 marked the rollout of a unified eToro platform, merging WebTrader's execution tools with OpenBook's into a single interface to streamline . In 2016, Smart Portfolios were introduced, leveraging algorithms to bundle assets by themes like or sectors, appealing to passive investors. Growth accelerated in 2017, with over $1 billion in customer deposits and one million new registrations in the fourth quarter alone, fueled by cryptocurrency trading expansions including , XRP, and alongside . In March 2018, eToro raised $100 million in funding to fuel global expansion and development, reaching a of over 9 million users and valuing the company at around $800 million. By May 2019, zero-commission trading was implemented for select markets, eliminating additional fees beyond spreads to attract cost-conscious retail traders. That same month, a U.S.-focused crypto platform debuted, initially emphasizing digital assets before broadening to . The period culminated in robust performance, with 5 million new registered users added, funded accounts surging 275% year-over-year, and gross revenues reaching $605 million—a 147% increase—driven by heightened retail trading during market volatility. These developments solidified eToro's evolution from a forex-centric broker to a multifaceted social investment network, emphasizing accessibility and community-driven strategies.

Recent Expansions and Milestones (2021–Present)

In 2022, eToro acquired U.S.-based options broker Gatsby for $50 million in cash and stock, integrating it as eToro Options to expand its derivatives offerings. In September 2024, the company acquired Australian investing app Spaceship in a deal valued at up to AUD 80 million (approximately $53 million USD), aiming to bolster long-term savings and superannuation products in the Australian market; the acquisition was completed in November 2024. Earlier in 2023, eToro raised $250 million in funding at a $3.5 billion valuation, supporting further platform development amid recovering market conditions. A pivotal milestone came in May 2025 with eToro's on the Global Select Market under the ticker ETOR, raising nearly $310 million after pricing shares at $52 each; the stock debuted at $69.69 and surged up to 43% intraday, reflecting strong investor demand in a challenging IPO environment. The IPO followed the termination of a prior SPAC merger plan in and marked eToro's transition to public markets after years of private growth. Post-IPO, eToro accelerated expansions: in July 2025, it introduced 24/5 trading for tokenized equities to enhance global access; in August 2025, partnered with to improve retail investor reach into Nordic markets, where participation had risen to 10.6% by Q1 2025. In Q2 2025, U.S. crypto offerings expanded to over 100 assets by adding 27 tokens, aligning with global coverage exceeding 130; September 2025 saw the launch of , Cardano, and Solana staking for U.S. users and MiCA-compliant crypto services in . By September 2025, eToro was added to the BMI Index, underscoring its growing market presence.

Business Model and Platform Features

Core Trading and Social Features

eToro's proprietary and intuitive trading platform supports multi-asset brokerage, enabling users to trade contracts for difference (CFDs) on over 50 currency pairs, commodities such as crude oil, global indices, and cryptocurrencies, alongside non-leveraged purchases of actual and ETFs in eligible regions like the and . For real asset holdings, dividends are automatically credited as gross cash to the account balance for US clients (with any applicable withholding taxes deducted for non-US clients) when users hold qualifying non-leveraged stock or ETF positions, including those held directly as well as through copied positions or Smart Portfolios. These dividend payments can be viewed in the Account Statement under the Dividends section, which details each payment with information such as the company, payment amount, dividend rates, and any applied withholding taxes for payments received within the selected time period. Additionally, a Dividend History Tracking feature is available in the Stats tab, providing an easier overview of dividend records including payment dates and net amounts. Leverage is available up to 30:1 for major forex pairs and varies by asset class, with trading executed on a 24/5 basis for most instruments via web and mobile applications. Key mechanisms include spot-quoted futures (SQFs) for select commodities and futures contracts, short selling capabilities, and tools such as stop-loss, take-profit, and trailing stops. For cryptocurrency positions, users can manually adjust the stop-loss order on open trades even when the position is in loss by navigating to their Portfolio, selecting the position, opening the Edit Trade window, clicking "Stop Loss," and setting a new higher price level (rate) or amount that is below the current market price to tighten the stop-loss. No restrictions prevent moving the stop-loss to a tighter level when the position is unprofitable; however, for cryptocurrency positions in profit, the minimum stop-loss amount is 10% of the initial amount invested subtracted from the current profit. Trailing stop-loss orders are also available for cryptocurrency positions, automatically adjusting the stop-loss level upward as the asset price rises to lock in gains. The platform integrates advanced charting powered by , offering technical indicators like RSI, , and , alongside fundamental analysis tools for stock screening by metrics including price-to-earnings ratios and dividend yields. Users can execute market or limit orders with real-time quotes, and the interface supports portfolio diversification across with applicable commissions and fees depending on the region and asset type, though overnight fees apply to leveraged positions. A virtual portfolio feature provides $100,000 in simulated funds for risk-free practice, allowing beginners to test strategies mirroring live conditions. eToro strongly emphasizes social trading features, distinguishing it as a network integrating community-driven insights with automated execution, including a social news feed where users post trade rationales, charts, and updates to solicit feedback and replicate ideas manually. The CopyTrader tool automates portfolio replication by enabling users to select and copy "Popular Investors"—verified traders ranked by metrics like risk score, average trade duration, and historical returns—with allocated funds proportionally mirroring their open and new positions in real-time. As of 2025, users can copy multiple traders simultaneously to diversify exposure, with automatic adjustments for dividends, splits, and risk controls like individual stop-losses on copied s. The Popular Investor Program compensates leading traders through tiered rewards, including up to 2% of assets under copy as fixed payments or spread rebates, provided they maintain consistent performance and adhere to platform guidelines on drawdown limits. This structure has facilitated over 35 million registered users engaging in social copying, democratizing access to professional strategies while exposing copiers to the copied trader's risks, as past performance does not guarantee future results.

Supported Assets and Instruments

eToro offers a mix of real stock and ETF investing, with commission fees applying to real stock trades in many jurisdictions alongside CFD trading across over 5,000 instruments spanning six primary asset classes: , exchange-traded funds (ETFs), cryptocurrencies, currencies (forex), commodities, and indices. These instruments enable leveraged positions through contracts for difference (CFDs) in many jurisdictions, without direct ownership of the underlying asset, though real asset exposure is provided for and ETFs in select regions via a managed scheme. CFD trading introduces leverage—up to 1:30 for retail clients on forex (and 1:400 for clients)—along with associated risks such as margin calls and amplified losses. Stocks represent the largest category, with over 6,000 individual equities from approximately 20 global exchanges, including major markets like NYSE, , and LSE; fractional share trading allows investments starting from small amounts. Following a phased rollout beginning in August 2024 (with some implementations in 2025), eToro introduced commission fees for real stock trades in many regions. For example, in Europe and other areas, a commission of $1 or $2 (USD) is charged per stock position when opening and closing, depending on the user's country of residence and the stock exchange ($1 for most exchanges, $2 for Australia, Hong Kong, Dubai, or Abu Dhabi). In contrast, stock trades in the United States are commission-free. No commission applies to ETFs, CFD stock positions, copy trading, or Smart Portfolios. European users may also incur additional fees, including currency conversion fees (varying by location and eToro Club tier; waived for recurring investments for Club members until the end of 2025), withdrawal fees ($5 for USD accounts, free for local EUR/GBP/DKK accounts), and UK stamp duty (0.5% on purchases of UK-listed stocks). No additional spreads are charged beyond market spreads. ETFs number around 700, tracking sectors, indices, or commodities, and are offered both as real assets and CFDs depending on the user's location and regulatory framework. Cryptocurrencies include over 100 assets such as , , and Solana, tradable via CFDs globally, with the option to transfer holdings to eToro's for self-custody; U.S. users gained access to over 50 additional tokens in June 2025, including and , amid regulatory expansions. Forex trading covers 50+ currency pairs, focusing on major, minor, and exotic pairs with tight spreads and high liquidity. Commodities encompass 50+ underlyings like gold, oil, and agricultural products, traded exclusively as CFDs with variable leverage. Indices, numbering about 35, allow exposure to benchmarks such as the S&P 500 or FTSE 100 via CFDs, facilitating broad market bets without individual stock selection. Availability varies by country due to local regulations; for instance, real crypto ownership is restricted in some areas, emphasizing the platform's CFD-centric model for non-equity assets.

Technological Innovations and Tools

eToro's platform pioneered through its CopyTrader feature, launched in 2010, which enables users to automatically replicate the trades of experienced investors in real-time, fostering a community-driven approach to decisions. This tool integrates user profiles with performance metrics, scores, and trade histories, allowing copiers to allocate funds proportionally to the copied trader's portfolio while maintaining individual controls like stop-loss settings. CopyTrader operates on eToro's proprietary matching engine, which executes trades across assets such as , cryptocurrencies, and commodities with minimal latency, though it does not constitute advice and carries inherent market . For technical analysis, eToro provides ProCharts, an advanced comparative charting tool introduced in 2017 and enhanced in 2023, supporting multi-instrument overlays, custom layouts, and integration with TradingView's engine for interactive visualizations. ProCharts includes over 100 technical indicators, such as moving averages, , and the (RSI), alongside drawing tools for trendlines and patterns, enabling users to analyze price movements across timeframes from intraday to yearly. The platform's web and mobile applications deliver these features seamlessly, with the app updated as of 2025 to include on-the-go ProCharts access and market research overlays. In August 2025, eToro introduced AI-powered innovations, including the Tori for personalized insights and Alpha Portfolios, which generate community-sourced, AI-optimized investment strategies via a new . These tools leverage to analyze user behavior, market data, and peer strategies, aiming to enhance without guaranteeing returns, as AI outputs depend on underlying and market volatility. Earlier in January 2025, eToro rolled out advanced portfolio analytics, featuring risk breakdowns, dividend yield projections, and benchmarking against indices, integrated into the dashboard for real-time monitoring. Additionally, the platform supports tokenization of assets, expanding access to of real-world assets through integration. These developments build on eToro's multi-asset , which handles diverse instruments via a unified API-driven backend for efficient order execution and data feeds.

Operations and Financial Performance

User Base and Global Reach

As of the second quarter of 2025, eToro reported 40 million registered users across 75 countries, reflecting significant growth from 35 million accounts in June 2024. However, the platform notes that the majority of these accounts are not actively used, with funded accounts—those with deposited capital—numbering over 3.6 million as of May 2025. The user base is predominantly concentrated in , where approximately 70% of funded client accounts originate, including substantial presence in the . Expansion efforts have targeted other regions, including the via zero-commission stock trading features, Asia through integrations like access to Hong Kong's in April 2025, and the , supported by offices in locations such as , the , the , , , and the UAE. This geographic distribution underscores eToro's focus on appeal in mature markets while pursuing diversification amid regulatory adaptations in emerging ones.

Revenue Streams and Key Metrics

eToro's primary consists of spreads charged on asset trades, representing the difference between the bid and ask prices, which accounts for approximately 87% of . Additional income derives from overnight and rollover fees on leveraged positions, a flat $5 withdrawal fee per transaction (excluding certain regions), currency conversion fees for non-USD deposits or trades, and inactivity fees of $10 per month after 12 months without login. In the , eToro earns interest on uninvested cash balances held in partner banks. The company also receives (PFOF) from market makers for routing stock orders, though this is subject to regulatory scrutiny and varies by . Revenue diversification occurs across , with net trading income from equities, commodities, and currencies comprising a significant portion, alongside contributions from cryptoasset trading. Key performance metrics highlight eToro's scale and growth. As of Q2 2025, the platform had 3.63 million funded accounts, a 14% year-over-year increase driven by user acquisition in core markets. Assets under administration (AUA) reached $17.5 billion in Q2 2025, up 54% from $11.3 billion in Q2 2024, reflecting heightened trading volumes and asset inflows. By August 2025, AUA further expanded to $19.7 billion, a 77% year-over-year rise. Annual totaled $931 million in 2024, marking a 47.7% increase from the prior year, primarily from elevated trading activity amid volatile markets. Quarterly net contribution in Q2 2025 stood at $210 million, a 26% improvement year-over-year, with adjusted EBITDA growing 31% in the same period, underscoring a focus on profitable expansion post-IPO.
MetricQ2 2025 ValueYoY Change
Funded Accounts3.63 million+14%
Assets Under Administration$17.5 billion+54%
Net Contribution$210 million+26%
Adjusted EBITDA GrowthN/A+31%

Strategic Partnerships and Expansions

eToro has formed several partnerships with asset managers to enhance its investment offerings. In June 2025, it collaborated with Franklin Templeton to launch six open-architecture target-date "Smart Portfolios" using UCITS ETFs, aimed at simplifying for users. In October 2024, eToro partnered with to introduce the ARK-FutureFirst portfolio, targeting high-growth technology companies in areas like AI and . Additionally, in July 2025, it teamed up with BridgeWise to offer an AI-guided portfolio focused on U.S. mid-cap stocks, leveraging for stock selection and risk management. To broaden market access, eToro secured exchange integrations. In August 2025, it expanded its agreement with to provide real-time trading access to Nordic exchanges for the first time, enabling users to trade stocks from , , , and . Earlier, in 2024, a with the Stock Exchange added over 1,000 stocks to its platform, increasing available equities to more than 5,500 across 20 global exchanges. eToro has also pursued branding partnerships with European football clubs to boost visibility. In June 2025, it renewed its deal with through 2027, building on prior sponsorships. Similar extensions occurred with for two years starting July 2025 and with in July 2025, designating eToro as the club's official trading partner with expanded branding rights. Geographically, eToro activated its Capital Markets Services license from Singapore's Monetary Authority in July 2025, marking entry into and targeting the region's growing retail investor base. Product expansions included launching staking for , Cardano, and Solana for U.S. users in September 2025, alongside a 4% cash-back rollout in . In July 2025, it announced plans to tokenize assets and extend 24/5 crypto trading to an initial 100 popular tokens, while introducing AI-powered strategy tools and French savings products. To support these initiatives, eToro secured a $250 million senior unsecured facility in July 2025 for enhanced financial flexibility.

Marketing and Public Engagement

Advertising Campaigns

eToro has invested heavily in high-profile advertising to promote its platform, often leveraging major events and innovative technologies to reach global audiences. A notable early campaign was the company's commercial titled "Imagine a World," which aired on February 13, 2022, during the event broadcast on , featuring a surreal of everyday people accessing financial markets through eToro's app. The 30-second spot emphasized democratizing investing, aligning with eToro's slogan of making trading accessible to non-professionals, and was part of a broader push into U.S. markets amid regulatory preparations. In December 2022, eToro launched the TV spot "Originality Is Overrated," which highlighted the platform's CopyTrader feature by depicting users mimicking successful traders rather than inventing strategies from scratch. This campaign underscored eToro's social investing model, where users replicate portfolios of top performers, positioning it as a tool for novice investors seeking proven paths over individual innovation. Shifting toward AI integration, eToro debuted its first fully AI-generated advertising campaign on July 24, 2024, with the 30-second spot "Be the Investor You Want to Be," featuring synthetic characters representing diverse user archetypes trading various assets. The ad aired across European channels during the Paris Olympics' 16-day coverage, produced using tools like LTX Studio for visuals and AI for voiceovers, script, and music, marking an early adoption of generative AI in mainstream financial advertising. By May 2025, eToro partnered with to create a brand campaign using Veo 2, an AI video generation model, for and ads broadcast in multiple languages across , including spots like "Invest in Your Future" that blended live-action with AI elements to illustrate investing's real-world impact. This initiative extended eToro's AI advertising strategy, producing content efficiently for targeted digital and linear distribution. In July 2025, the "eToro is Everywhere" campaign rolled out in , , and the , fully AI-produced and aired on and in 15 languages, emphasizing the platform's ubiquity in enabling users to trade global assets from anywhere. Later that year, on October 7, 2025, eToro launched an AI-powered campaign in the UAE spotlighting its premium , building on prior AI efforts to highlight user retention features. These campaigns reflect eToro's pivot to cost-effective AI production amid competitive marketing, though critics have noted potential risks in AI's creative limitations for building authentic brand trust.

Sponsorships and Events

eToro has pursued sports sponsorships as a core to build and connect with global audiences, particularly through partnerships in football and rugby. The company maintains an extensive portfolio spanning major leagues such as the English and German , alongside club-specific deals. In football, eToro renewed its partnership with through 2027, focusing on shared commitments to innovation and community engagement. It extended its deal with in July 2025, designating eToro as the club's Official Training Wear Partner. For the 2025-26 season, eToro became a principal partner of Nottingham Forest FC's men's and women's teams, with branding featured at the and digital channels to promote its "Loud Investing" campaign. Earlier, in 2021, eToro announced partnerships with eight Italian clubs, expanding its European football presence. Additionally, in June 2024, it renewed sponsorship of Operazione Nostalgia, a digital initiative highlighting positive football values like perseverance and . In rugby, eToro made history in July 2025 by becoming the first brand to sponsor both Premiership Men's Rugby and Women's Rugby (PWR), aligning with its goals of promoting equality in sports and investing. These deals emphasize eToro's strategy of leveraging sports' popularity for targeted community outreach and promotion. Beyond sponsorships, eToro hosts and participates in events to engage users, investors, and stakeholders. In July 2025, it conducted a global webinar titled "eToro Unlocked: Trade Without Boundaries," hosted by CEO Yoni Assia, to unveil product updates like expanded trading hours. The company also organized exclusive user events, such as the Diamond Event in in June 2025, featuring market panels, networking, and interactive sessions. For , eToro participated in conferences including the Citi 2025 Global TMT event in September 2025, alongside reporting business metrics. These activities support eToro's broader public engagement efforts, often tying into themes of accessible investing and market education.

Regulatory Compliance and Approvals

Key Licenses and Regulatory Achievements

eToro (Europe) Ltd. is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 109/10, enabling it to provide investment services across the European Economic Area. eToro (UK) Ltd. is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom under firm reference number 583263. In Australia, eToro AUS Capital Limited holds an Australian Financial Services License (AFSL) number 491139 from the Australian Securities and Investments Commission (ASIC). In the United States, eToro USA LLC operates as a registered Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) under registration number 31000204884179, and it maintains state-level money transmitter licenses, such as in Maryland under NMLS ID 1769299. Additionally, eToro USA Securities Inc. is registered as a broker-dealer with the Securities and Exchange Commission (SEC) under number 8-70212 and with the Financial Industry Regulatory Authority (FINRA) under CRD number 298361. eToro has expanded its regulatory footprint through several notable approvals. On February 19, 2025, CySEC granted eToro a (MiCA) license, allowing the provision of crypto-asset services under a unified framework while complying with MiFID II standards. In July 2025, eToro activated its Capital Markets Services (CMS) license from the (MAS) under CMSL number CMS101824, facilitating operations in the region. Earlier, in November 2023, eToro received Financial Services Permission number 220073 from the Financial Services Regulatory Authority (FSRA) of the (ADGM) to operate as a broker in the UAE. These approvals underscore eToro's efforts to align with jurisdiction-specific requirements for client fund protection and anti-money laundering compliance.

Compliance Initiatives and Adaptations

eToro maintains a robust framework for anti-money laundering (AML) and know-your-customer (KYC) compliance, incorporating automated screening for sanctions, politically exposed persons (PEPs), and suspicious transaction patterns to prevent illicit activities. These initiatives align with international standards, including ongoing transaction monitoring and prompt investigations of flagged activities, as outlined in its formal AML policy. Customer agreements mandate verification processes and cooperation with regulatory inquiries to ensure adherence to prevention and regulations. In 2024, eToro enhanced its operational security by attaining SOC 2 Type II certification, which independently verifies controls for , , processing integrity, , and across its platform. This certification, initially announced on May 13, 2024, was specifically extended to cryptoasset custody services on February 19, 2025, reflecting adaptations to heightened demands for verifiable security in digital asset handling. To address EU-wide crypto regulations under the Markets in Crypto-Assets (MiCA) framework, eToro (Europe) Ltd secured a permit from the Cyprus Securities and Exchange Commission (CySEC) in the first quarter of 2025, enabling standardized crypto service provision across member states with improved transparency and investor safeguards. This adaptation integrates MiCA's requirements for stablecoin oversight and custody rules, building on eToro's existing CySEC license under MiFID II for multi-asset services. By September 2025, this permit facilitated direct crypto trading authorization in jurisdictions like Germany, effective October 30, 2025, while phasing out non-compliant legacy access models. eToro has also adapted product availability to jurisdictional mandates, such as delisting non-compliant assets like Terra Classic (LUNC) in September 2025 to mitigate regulatory risks and align with evolving exchange standards. In the , post-settlement adjustments restricted crypto offerings to , , and to meet SEC and FINRA requirements for registered securities. These measures underscore eToro's prioritization of regulatory alignment amid global scrutiny of trading platforms.

Early Regulatory Actions (2013–2015)

In February 2013, the Cyprus Securities and Exchange Commission (CySEC) reached a settlement with eToro (Europe) Limited, requiring the firm to pay a €50,000 penalty for identified weaknesses in its organizational and operational structure. These deficiencies, which originated as early as 2010, involved inadequate application of provisions under the Investment Services and Activities and Regulated Markets Law, particularly in risk management and compliance procedures for its investment firm operations. The settlement addressed non-compliance in internal controls without escalating to a full revocation of eToro's CySEC investment firm license (CIF 109/10, granted in 2010), reflecting CySEC's approach to corrective measures for emerging retail forex and CFD brokers during a period of heightened scrutiny on leverage and client protection. In June 2015, Quebec's Autorité des marchés financiers (AMF) added eToro to its list of unauthorized foreign entities targeting local residents, primarily for promoting binary options trading without provincial registration or approval. The AMF highlighted eToro's marketing activities encouraging Quebec investors to engage in high-risk binary options contracts, which were not authorized for distribution in the province and lacked oversight under Canadian securities regulations. This action aligned with broader AMF warnings against unauthorized binary options platforms amid rising investor complaints about opaque practices and potential losses, though eToro continued operations elsewhere under its CySEC framework without immediate cross-border penalties. No further CySEC enforcement actions against eToro were publicly recorded in 2014 or 2015, as the regulator shifted focus toward binary options industry-wide consultations rather than firm-specific interventions at that stage.

Trading Practice Disputes (2021–2022)

In January 2021, eToro abruptly closed all leveraged positions held by European clients, citing an inability to adequately highly leveraged trades amid extreme market volatility as reached a peak price before plunging. The closures occurred around January 8–11, affecting positions in , , and other cryptocurrencies, with the platform notifying users via email that it could no longer maintain the hedges required under European regulations. Traders reported significant losses due to the timing, which coincided with the market downturn, and threatened legal action, alleging insufficient prior notice and unfair execution that disadvantaged them compared to unleveraged positions. eToro defended the move as a necessary step to comply with margin requirements and prevent broader platform , though critics among users argued it prioritized the broker's over client interests. Similar liquidity concerns prompted eToro to temporarily restrict buying of volatile stocks like (GME) during the January 2021 , halting new purchases while allowing sells, which drew user complaints of and unequal access amid surging retail interest. The platform attributed the restrictions to clearinghouse demands for additional capital amid unprecedented trading volumes, mirroring actions by other brokers, but users on forums expressed frustration over perceived barriers to participating in the rally. No formal regulatory penalties ensued specifically for these restrictions, but they fueled broader debates on retail broker obligations during squeezes. In March 2022, eToro forcibly closed client positions in Russian retailer PJSC (MGNTL.L) at a nominal of $0.01 per share, triggered by severe shortages following Russia's invasion of and subsequent Western sanctions that halted trading on international exchanges. The automatic sell-off affected real holdings, leading to near-total losses for holders, as the delisted the shares and alternative markets evaporated. Clients protested the lack of alternatives or assessments, prompting petitions and demands for compensation; eToro later reimbursed affected users in USD equivalent to their original value minus fees, citing an operational error in not intervening earlier, though some argued the platform should have anticipated geopolitical risks. This incident highlighted vulnerabilities in cross-border access and drew scrutiny over eToro's exposure management for sanctioned assets.

Advertising and Enforcement Actions (2023–2024)

In July 2023, Italy's Antitrust Authority (AGCM) imposed a €1.3 million fine on eToro Europe Ltd for misleading commercial practices in its advertising. The authority determined that eToro violated Articles 20, 21, and 22 of the Italian Consumer Code by promoting share trading as "0% commission" on its Italian website while omitting key details about associated costs, including transaction spreads that effectively charged users hidden fees. Additionally, the advertisements downplayed risks such as exchange rate fluctuations, operational limitations on certain trades, and the platform's restriction preventing users from transferring owned shares to external brokers or custodians. The AGCM's investigation, initiated based on consumer complaints and market monitoring, concluded that these omissions created a false impression of low-cost, straightforward investing, leading users to underestimate financial risks and make uninformed decisions. eToro contested the findings but complied with the ruling without appeal, as the fine represented approximately 2% of its Italian revenue during the relevant period. No similar advertising-specific actions were reported against eToro in major jurisdictions like the or during 2023–2024, though broader regulatory scrutiny on financial promotions intensified globally amid concerns over high-risk product marketing. In 2013, the Cyprus Securities and Exchange Commission (CySEC) reached a settlement with eToro (Europe) Limited, requiring payment of a €50,000 fine for structural weaknesses in applying investment firm regulations, including inadequate compliance procedures. In 2018, eToro (Europe) Limited settled with Canada's Ontario Securities Commission (OSC) over unregistered trading activities, agreeing to pay a CDN $550,000 administrative penalty, disgorge approximately US$1.8 million in commissions earned from Ontario clients, and cover $25,000 in investigation costs; the firm admitted no wrongdoing but ceased operations for Ontario residents and closed affected accounts in an orderly manner. In July 2023, Italy's Antitrust Authority (AGCM) imposed a €1.3 million fine on eToro Europe Ltd for unfair commercial practices, including misleading advertisements that promoted "zero commission" trading without adequately disclosing spreads and other costs, as well as aggressive tactics that pressured consumers into rapid investments without sufficient risk information. Australia's Securities and Investments Commission (ASIC) initiated legal action against eToro Aus Capital Limited in August 2023, alleging breaches of design and distribution obligations for cryptocurrency-related contracts for difference (CFDs) offered from 2021 to June 2023; ASIC claimed the products were inappropriately distributed to a broad retail audience unsuitable for high-risk leveraged trading, with over 19,000 clients incurring losses and the firm failing to implement effective screening or act efficiently, honestly, and fairly under its license conditions. The case, ASIC's first enforcement of design and distribution rules, proceeded toward in October 2025 before settling on undisclosed terms. In April 2024, the Securities and Exchange Commission (SEC) issued a public advisory declaring eToro unauthorized to offer or sell securities in the country, citing violations for promoting unregistered products; in response, eToro announced the closure of all Philippine-based accounts by February 7, 2025, with trading halted by December 8, 2024, and crypto wallet services ending December 15, 2024, requiring users to close positions and withdraw funds.

SEC Settlement and US Operations (2024–2025)

On September 12, 2024, eToro USA LLC agreed to settle charges brought by the U.S. Securities and Exchange Commission (SEC) by paying a civil monetary penalty of $1.5 million. The SEC alleged that, from approximately 2018 through 2024, eToro operated as an unregistered broker and clearing agency while facilitating transactions in crypto assets, including those deemed securities by the regulator, without proper registration. The settlement required eToro to cease these violations while permitting continued U.S. operations under revised terms, reflecting the SEC's determination that the penalty aligned with eToro's compliance commitments. As a direct consequence, eToro restricted cryptocurrency trading for U.S. users, allowing new purchase positions only in (BTC), (BCH), and (ETH) starting September 11, 2024. Existing open positions in other crypto assets were permitted to remain until specified closure deadlines, after which trading in those assets would be discontinued for U.S. clients. This limitation preserved access to non-security-classified major cryptocurrencies while halting offerings in approximately 80 other digital assets previously available, in line with SEC classifications of certain tokens as investment contracts requiring registration. Post-settlement, eToro maintained and expanded non-crypto U.S. offerings, including , exchange-traded funds (ETFs), and options, with enhancements such as 24/5 trading hours for U.S. equities introduced in the second quarter of 2025. The platform also launched new long-term investment portfolios in partnership with Franklin Templeton during this period. U.S. operations showed resilience, contributing to overall assets under administration reaching $17.5 billion by Q2 2025, a 54% year-over-year increase from $11.3 billion in Q2 2024. Looking toward 2025, eToro announced plans for a potential U.S. (IPO) as early as the second quarter, signaling confidence in its American market presence despite regulatory constraints on crypto. The company's 2024 revenue totaled $931 million, a 47.7% rise from the prior year, underscoring sustained growth amid the settlement's focus on compliance over expansion in unregistered assets.

References

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