eToro, founded in 2007, is a leading social trading and multi-asset investment platform. Initially launched as RetailFX, eToro has grown into a global wealthtech powerhouse, with a mission to make financial markets accessible to everyone through a user-friendly interface and innovative social trading features. Investing used to be exclusive to traditional financial institutions, serving experienced investors with substantial funds. Retail investors struggled with complex platforms, high fees, and limited educational resources. The aim was to leverage technology to democratize access and enable everyone to engage in the financial markets.
The company operates in 75 countries with 40 million registered users and over 3.5 million funded accounts. For context, on a reported basis, eToro generated a whopping $12.6 billion in gross sales last year and was modestly profitable. On a net basis, sales were $217 million last year with $80 million in adjusted EBITDA or a healthy 37% margin. The company has filed for an IPO on the Nasdaq under the ETOR symbol with an expected pricing date in May 2025. 10 million shares (5 million by the company and 5 million by selling shareholders) will be offered in the $46 – $50 range.
eToro believes knowledge should be shared. This drives their social investing features and educational resources like eToro Academy. The company offers a platform for users to learn together, share experiences, and transform investing into a collaborative journey. As such, eToro is renowned for its social trading capabilities, particularly the CopyTrader feature, which allows users to automatically replicate the trades of top-performing investors. This makes it an attractive platform for beginners and those seeking passive investment strategies. The platform offers access to over 7,000 financial instruments, including stocks, cryptocurrencies, ETFs, commodities, indices, and forex, with Contracts for Difference (CFDs) available for advanced trading.
Furthermore, eToro integrates AI and blockchain technologies, acquiring Firmo and Delta to enhance its services. Its 2023 partnership with Twitter (now X) provides real-time asset prices, while a 2024 collaboration focuses on financial education. Sponsorships of Premier League clubs and Bayer 04 Leverkusen boost its brand visibility. eToro offers commission-free trading for stocks, ETFs, and options, but spreads and a 1% crypto fee apply. The minimum deposit is $50-$200 by region, $500 for portfolios, and $200 for copy trading. Deposits and withdrawals via bank transfer, credit/debit cards, PayPal, and Skrill are fee-free if in the same currency. While the platform’s low minimum deposits and unified fees increase accessibility, active traders might find spreads higher than some competitors.
Most Americans and the rest of the world are under invested in securities. As such, eToro offers an easily accessible and trustworthy medium to rectify this inequality. Everyone should have a chance for financial independence and eToro has an idea which sounds like a great place to start.
