Any thoughts on using etoro as a platform to buy stocks? - Seedly
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Anonymous

Asked 2d ago

Any thoughts on using etoro as a platform to buy stocks?

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Jovan Lai
Jovan Lai
Level 4. Prodigy
Answered 2d ago

Hi there,

etoro is an interesting platform and looks very user friendly.

However, do take note of hidden "fees" as the spread is very large as compared to other brokers.

Also, it works a little more like a mutual fund. If you notice, on eToro you buy "units" not shares. You are not exactly purchasing from the stock exchange itself but instead trading within their fund e.g. AAPL fund instead of AAPL shares on the actual stock exchange. Thats why you only see certain stocks offered but not everything because they may not have a fund for each stock.That may be an issue with regards to spread, opportunities and liquidity.

Etoro also has a lot more control in times of extreme volatilty for example, they may restrict shorting a certain asset which can hinder your trades especially if you want to hedge your portfolio.

It also does not provide options so that's a downside.

The main feature of attractiveness is the copy trade that allows investors to use that if they enjoy it.

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Kenny Leow
Kenny Leow
Level 3. Wonderkid
Answered 2d ago

Wouldn't go for anything that is not regulated and licensed by MAS.

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Yang Teng
Yang Teng
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Answered 2d ago

There are no fees for (unleveraged) stock transactions similar to other brokerages like TD Ameritrade. However, etoro is not licensed by MAS.

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Jovan Lai
Jovan Lai

2d ago

The Spread is huge though!
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