Company:eToro

From HandWiki
Short description: Multi-asset brokerage company

eToro
TypePrivate
IndustryFinancial services
Investing online
Social investment
Founded2007; 17 years ago (2007)
FounderYoni Assia, Ronen Assia, David Ring
HeadquartersTel Aviv, Israel
Area served
Worldwide
Key people
Yoni Assia, CEO
ProductsElectronic trading platform, stocks, copy trading, social trading
ServicesInvestment management
RevenueIncreaseUS$1.2 billion (2021)[1]
DecreaseUS$240.6 million (2021)[2]
DecreaseUS$265.7 million (2021)[2]
Number of employees
1700[3]
Websitewww.etoro.com

eToro is a social trading and multi-asset investment company that focuses on providing financial services.[4] Its headquarters are located in Central Israel, and the company has registered offices in Cyprus, the United Kingdom , the United States , and Australia .[5][6][7][8]

History

eToro was founded as RetailFX in 2007[9] in Tel Aviv, by brothers Yoni Assia and Ronen Assia together with David Ring.[10] In 2010, the firm released the eToro OpenBook social investment platform, along with its CopyTrader feature, that enables investors to copy the network's top traders automatically.[11] Later that year, the firm released an Android app.[12]

Between 2007 and 2013, the company raised $31.5 million in four rounds of funding.[13][14] In December 2014, it raised $27 million from Russian and Chinese investors.[15] In December 2017, it joined CoinDash to develop Blockchain-based social trading.[16] In 2018, it raised a further $100 million in a private funding round.[17] Overall, more than $162 million has been invested in the company by investment firms.[18]

In 2013, the firm introduced the capability to invest in stocks and CFDs, alongside commodities and currencies, with an initial offering of 110 stock products (which later grew to 3000 financial products).[19][20] The same year, it was authorized to offer services in the United Kingdom , under the subsidiary eToro UK.[21][22] In January 2014, the firm added cryptocurrencies to its investment instruments.[23][24][25][26]

In March 2019, eToro acquired Danish blockchain company Firmo for an undisclosed sum.[27][28] In October 2019, eToro released a sentiment-based crypto portfolio using AI technology to evaluate Twitter's current positive or negative impressions of digital assets.[29] In November 2019, the firm acquired Delta, a crypto portfolio tracker application company, based in Belgium.[30][31] In March 2019, the company launched its cryptocurrency trading platform and its standalone cryptocurrency wallet to US users.[32][33][34]

In 2021, the company reported operating in 140 countries[35][36] and having 20 million users.[37] In March 2021, it announced that it is planning to become a publicly traded company through a reverse subsidiary merger with FinTech Acquisition Corp V (NASDAQ:FTCV), a Special Purpose Acquisition Company (SPAC) backed by former Bancorp CEO Betsy Z. Cohen.[38] The combined company will operate as eToro Group Ltd and have an implied estimated enterprise value of $10.4 billion at closing with $650 million in funding coming from private investment in public equity (PIPE) from Softbank Vision Fund 2, Third Point, Fidelity Management, Wellington Management, ION Investment Group and Research Co.[39][40]

In 2020, the company acquired Marq Millions, the UK division of e-money, which was then renamed to eToro Money.[41][42] The company also obtained a primary membership of Visa and an electronic money institution (EMI) license from the Financial Conduct Authority.[43] In December 2021, the company launched the eToro Money debit card for UK residents.[44]

In February 2022, eToro released its first Super Bowl ad during Super Bowl LVI, also nicknamed as "Crypto Bowl”.[45][46] Called “Flying your way”, the 30-seconds commercial featured a consumer seeking cryptocurrency advice and crypto enthusiasts falling from the sky to offer him guidance and assistance, asking “to the moon?” The advertisement also featured a Shiba Inu dog addressing meme coin Shiba Inu (SHIB)[47] and Bored Ape.[48][49]

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 common equity.[50] In September 2022, the Reserve Bank of India (RBI), India's central bank, released a list of 34 forex trading online platforms, in which eToro was also listed as an illegal platform in India.[51]

Operations

eToro's main research and development office is located in Tel Aviv, Israel. Its other legal entities are registered in the United Kingdom , United States , Australia and Cyprus. The firm is regulated by the CySEC authority in the EU;[7] it is authorized by the FCA in the UK,[21][22] and by FinCEN in the United States,[5] and by the ASIC in Australia.[52] In 2013, it was fined €50.000 by CySEC due to detected weaknesses which concerned its organisation and operation structure back to 2010.[53] In 2015, eToro was added to Quebec blacklist as an unauthorized foreign company that encouraged residents to invest in binary options via its trading platform.[54] The company operates in 140 countries.[55]

Marketing and expansion

In August 2018, eToro announced a sponsorship deal with seven UK Premier League teams including Tottenham Hotspur, Brighton & Hove Albion F.C., Cardiff City F.C., Crystal Palace F.C., Leicester City F.C., Newcastle United F.C., and Southampton F.C.[56][57][58][59][60][61] On Thursday 13 Apr 2023, Twitter announced a partnership with eToro that would give users the option to buy and sell stocks and other assets from eToro, the company told CNBC exclusively.[62]

Controversies

2022 closure of stock positions in Magnit PJSC

On March 2, 2022, eToro triggered a stop-loss closure of investor positions in Magnit stock (MGNTL.L) at $0.01 per share.[63][64][65][66] On March 7 2022, eToro reimbursed clients for the total initial invested amounts of MGNTL.L.[67]

2021 closure of leveraged positions

On January 8, 2021, eToro notified its European clients that "due to extreme market volatility in the crypto markets, margin positions for all leveraged crypto positions" should be changed to nonleveraged, or they would be closed within four hours.[68][69][70][71]

References

  1. ↑ "eToro doubles revenue in 2021, but posts $84Mmln Q4 loss". https://financefeeds.com/etoro-doubles-revenue-2021-posts-84mln-q4-loss/. 
  2. ↑ 2.0 2.1 "Investor Update". https://www.etoro.com/about/investors/. 
  3. ↑ "eToro SPAC merger delayed again. Is the trading platform still worth $10 billion?". 12 December 2021. https://www.calcalistech.com/ctech/articles/0,7340,L-3924769,00.html. 
  4. ↑ "Israeli social trading firm eToro raises $100 million in private funding" (in en). Reuters. 2018-03-23. https://www.reuters.com/article/us-tech-etoro-fundraising-idUSKBN1GZ15S. 
  5. ↑ 5.0 5.1 Russo, Camila (15 May 2018). "U.S. Crypto Trading Platforms Are About to Get More Competition". Bloomberg. https://www.bloomberg.com/news/articles/2018-05-15/u-s-crypto-trading-platforms-are-about-to-get-more-competition. 
  6. ↑ Williams-Grut, Oscar. "A trading company with 10 million customers is setting up a crypto desk for hedge funds and banks". https://www.businessinsider.com/etoro-crypto-trading-desk-otc-hedge-funds-banks-2018-6. 
  7. ↑ 7.0 7.1 "Etoro (Europe) Limited - CySEC". CySEC. http://www.cysec.gov.cy/en-GB/entities/investment-firms/cypriot/37683/. 
  8. ↑ "ETORO USA LLC - NFA". NFA. http://www.nfa.futures.org/basicnet/Details.aspx?entityid=45NH%2b2Upfr0%3d. 
  9. ↑ Levy, Dotan (2019-10-28). "Social Trading Company eToro Expands Offices". https://www.calcalistech.com/ctech/articles/0,7340,L-3772561,00.html. 
  10. ↑ Rust, Donnie (7 November 2013). "eToro. Seriously? Is It That Easy?". Littlegate Publishing. http://www.littlegatepublishing.com/2013/11/etoro/. 
  11. ↑ Greenberg, Michael (12 July 2010). "eToro launches its own Forex Social Community – OpenBook". Finance Magnates. http://www.financemagnates.com/forex/brokers/etoro-launches-its-own-forex-social-community-openbook/. 
  12. ↑ Greenberg, Michael (7 October 2010). "eToro's OpenBook goes mobile". http://www.financemagnates.com/forex/brokers/etoros-openbook-goes-mobile/. 
  13. ↑ Arrington, Michael (8 June 2010). "eToro Adds $2.4 Million to the Coffers: "Zynga For Real Men"". TechCrunch. https://techcrunch.com/2010/06/08/etoro-adds-2-4-million-to-the-coffers-zynga-for-real-men/. 
  14. ↑ Lunden, Ingrid (13 March 2012). "Social Investment Network eToro Is Picking Up Another $15 Million From Spark, Others". TechCrunch. https://techcrunch.com/2012/03/13/social-investment-network-etoro-is-picking-up-another-15-million-from-spark-others. 
  15. ↑ Williams-Grut, Oscar (12 December 2014). "Silicon Round-Up: eToro plans UK push after snagging $27m from Russians and Chinese". https://www.standard.co.uk/business/markets/silicon-roundup-etoro-plans-uk-push-after-snagging-27m-from-russians-and-chinese-9921635.html. 
  16. ↑ "eToro Partners CoinDash to Develop Blockchain-Based Social Trading | Finance Magnates" (in en-US). Finance Magnates | Financial and business news. 2017-12-14. https://www.financemagnates.com/forex/brokers/etoro-partners-coindash-develop-blockchain-based-social-trading/. 
  17. ↑ "eToro raises $100 million from investors". TheCashDiaries. 27 March 2018. https://thecashdiaries.com/2018/03/27/etoro-raises-100-from-investors/. 
  18. ↑ Orbach, Meir (2020-12-08). "eToro joins Israeli unicorn club by tripling valuation in two years to reach $2.5 billion". https://www.calcalistech.com/ctech/articles/0,7340,L-3879974,00.html. 
  19. ↑ Finberg, Ron (25 July 2013). "eToro Adds Stocks on its Social Trading Network as Operations Evolve". Finance Magnates. http://www.financemagnates.com/forex/brokers/etoro-adds-stocks-on-its-social-trading-network-as-operations-evolve/. 
  20. ↑ "A Beginner's Guide to Trading with eToro" (in en-US). 2022-04-27. https://alphanewscall.com/2022/04/27/a-beginners-guide-to-trading-with-etoro/. 
  21. ↑ 21.0 21.1 "583263 - eToro (UK) Ltd - FCA". FCA. http://www.fsa.gov.uk/register/firmRegulator.do?sid=301524. 
  22. ↑ 22.0 22.1 Reddan, Fiona. "Looking to boost your income? eToro is looking for Irish freelance fund managers" (in en). The Irish Times. https://www.irishtimes.com/business/personal-finance/looking-to-boost-your-income-etoro-is-looking-for-irish-freelance-fund-managers-1.3534865. 
  23. ↑ "Breaking: eToro Enters the US Market by Offering Cryptocurrency Trading" (in en). 2018-05-16. https://www.financemagnates.com/forex/brokers/breaking-etoro-enters-us-market-offering-cryptocurrency-trading/. 
  24. ↑ Doshi, Vidhi (13 January 2014). "eToro launches Bitcoin trade". http://techcitynews.com/2014/01/13/etoro-launches-bitcoin-trade/. 
  25. ↑ "German and British Stocks Now Available for Investment". 14 April 2014. http://www.forexbrokernews.com/etoro/german-and-british-stocks-now-available-for-investment/. 
  26. ↑ "eToro rolls out its cryptocurrency wallet for Android and iOS" (in en-us). 2018-11-08. https://thenextweb.com/hardfork/2018/11/08/etoro-cryptocurrency-wallet-trading/. 
  27. ↑ Manuel Baigorri, Alastair Marsh (25 March 2019). "Trading Platform EToro to Buy Danish Blockchain Company Firmo". Bloomberg. https://www.bloomberg.com/news/articles/2019-03-25/trading-platform-etoro-is-said-close-to-buying-denmark-s-firmo. 
  28. ↑ "Social investment platform eToro acquires smart contract startup Firmo" (in en-US). 25 March 2019. http://social.techcrunch.com/2019/03/25/social-investment-platform-etoro-acquires-smart-contract-startup-firmo/. 
  29. ↑ Ballentine, Claire (2019-10-15). "Crypto Portfolio Will Analyze Twitter to Gauge Trader Sentiment". https://www.bloomberg.com/news/articles/2019-10-15/crypto-portfolio-will-analyze-twitter-to-gauge-trader-sentiment. 
  30. ↑ "Investment platform eToro acquires crypto portfolio tracker app Delta" (in en-US). 6 November 2019. http://social.techcrunch.com/2019/11/06/investment-platform-etoro-acquires-crypto-portfolio-tracker-app-delta/. 
  31. ↑ "Currency Revolution Series: What Does M&A Deal of eToro and Delta Mean For?" (in en). 2019-11-08. https://www.econotimes.com/Currency-Revolution-Series-What-Does-MA-Deal-of-eToro-and-Delta-Mean-For-1567404. 
  32. ↑ "EToro bringing crypto trading and wallet to the US" (in en-US). 7 March 2019. http://social.techcrunch.com/2019/03/07/etoro-bringing-crypto-trading-and-wallet-to-the-us/. 
  33. ↑ Digalaki, Eleni. "eToro has launched in the US". https://www.businessinsider.com/etoro-launches-in-us-2019-3. 
  34. ↑ "A 32-Year-Old Trader Is Driving 21,000 Amateur Stock Investors" (in en). Bloomberg.com. 2020-10-02. https://www.bloomberg.com/news/articles/2020-10-02/robinhood-versus-etoro-brokerage-showdown-looming-in-stock-market-investing. 
  35. ↑ "Sogar Aktienhandel zum Nulltarif" (in de). 9 August 2019. https://www.platow.de/archiv/der-platow-brief/der-platow-brief-ausgabe-vom-12.08.2019/2019/08/09/sogar-aktienhandel-zum-nulltarif/. 
  36. ↑ "Facebook announces launch of Libra cryptocurrency to take on bitcoin" (in en). 2019-06-18. https://www.express.co.uk/finance/city/1141853/facebook-libra-cryptocurrency-bitcoin-mark-zuckerberg-crv. 
  37. ↑ Chatenay, Victor. "Trading app eToro goes public via $10.4 billion SPAC deal" (in en-US). https://www.businessinsider.com/etoro-looking-toward-us-expansion-with-spac-deal-2021-3. 
  38. ↑ La Monica, Paul (2021-03-16). "Online trading firm eToro going public in more than $10 billion SPAC deal". https://edition.cnn.com/2021/03/16/investing/etoro-spac-robinhood/. 
  39. ↑ "Trading platform eToro to go public via SPAC merger in $10B deal" (in en-US). 16 March 2021. https://social.techcrunch.com/2021/03/16/trading-platform-etoro-to-go-public-via-spac-merger-in-10b-deal/. 
  40. ↑ Hussain, Noor Zainab (2021-03-16). "Israel's eToro to go public through $10.4 billion SPAC deal backed by SoftBank, others" (in en). Reuters. https://www.reuters.com/article/etoro-m-a-fintech-acquisit-int-idUSKBN2B81MQ. 
  41. ↑ "eToro Acquires Marq Millions to Support Debit Card Launch". 30 July 2020. https://www.financemagnates.com/forex/brokers/etoro-acquires-marq-millions-to-support-debit-card-launch/. 
  42. ↑ "With Robinhood's UK launch delayed, eToro to bring out UK debit card following acquisition" (in en-US). 29 July 2020. https://social.techcrunch.com/2020/07/29/with-robinhoods-uk-launch-delayed-etoro-to-bring-out-uk-debit-card-following-acquisition/. 
  43. ↑ "eToro plans debit card launch ahead of rival's entry to UK". 29 July 2020. https://www.siliconrepublic.com/business/etoro-debit-card-instant-cash-in-cash-out. 
  44. ↑ "eToro is launching its first debit card in the UK". https://www.businessinsider.com/etoro-launches-debit-card-in-uk-2020-7. 
  45. ↑ Locke, Taylor (2022-02-14). "'To the moon': You probably saw the crypto Super Bowl ads—here's what to know before buying in on the hype" (in en). https://www.cnbc.com/2022/02/14/what-to-know-about-crypto-before-buying-into-super-bowl-ads.html. 
  46. ↑ Roach, Sarah (2022-02-14). "Coinbase's Super Bowl ad hooked 20 million people in one minute" (in en). https://www.protocol.com/bulletins/coinbase-super-bowl-results. 
  47. ↑ Agarwal, Reshab (2022-02-14). "eToro Super Bowl ad doesn't compare well with FTX or Coinbase" (in en-US). https://techstory.in/etoro-super-bowl-ad-doesnt-compare-well-with-ftx-or-coinbase/. 
  48. ↑ Beer, Jeff (2022-02-14). "How crypto brands failed to hijack the Super Bowl" (in en-US). https://www.fastcompany.com/90720707/how-crypto-brands-failed-to-hijack-the-super-bowl. 
  49. ↑ "Did you see it: A Bored Ape Made Its Way Into eToro's Super Bowl Ad". 14 February 2022. https://www.theboredapegazette.com/post/did-you-see-it-a-bored-ape-made-its-way-into-etoro-s-super-bowl-ad. 
  50. ↑ Azevedo, Mary Ann (2022-08-17). "eToro gets the great Gatsby on its horns for $50M" (in en-US). https://techcrunch.com/2022/08/17/fintech-etoro-to-acquire-startup-gatsby-for-50m/. 
  51. ↑ "RBI issues alert list: Declares these 34 forex trading online platforms as illegal". The Times of India. September 11, 2022. https://timesofindia.indiatimes.com/gadgets-news/rbi-issues-alert-list-declares-these-34-forex-trading-online-platforms-as-illegal/articleshow/94126965.cms. 
  52. ↑ "Gen Y investors bank on disruption". https://www.theaustralian.com.au/business/technology/gen-y-investors-bank-on-disruption/news-story/3a807be7465278f93cbe8d93046a4440. 
  53. ↑ "CySEC Reaches Settlement With eToro at €50,000 for Undisclosed Violations". 2 February 2012. http://www.financemagnates.com/forex/brokers/cysec-reaches-settlement-with-etoro-for-e50000-for-undisclosed-violations/. 
  54. ↑ "FXTM and eToro Added to Québec Blacklist by Local Watchdog". 23 June 2013. http://www.financemagnates.com/binary-options/regulation/fxtm-and-etoro-added-to-quebec-blacklist-by-local-watchdog/. 
  55. ↑ Burroughs, Callum. "Robinhood rival eToro says it added 5 million users in 2020 as millennials piled into unicorn stock-trading apps" (in en-US). https://www.businessinsider.com/stock-trading-app-etoro-adds-5-million-users-2020-12. 
  56. ↑ Parker, Ian (2019-10-08). "James Maddison can emerge as a gamechanger for England – Matt Le Tissier" (in en-GB). https://uk.sports.yahoo.com/news/james-maddison-emerge-gamechanger-england-080043672.html. 
  57. ↑ "eToro Signs Six-Month Sponsorship Deal with UFC" (in en). 2019-10-04. https://www.financemagnates.com/forex/brokers/etoro-signs-six-month-sponsorship-deal-with-ufc/. 
  58. ↑ "eToro Confirms Sponsorship of MotoGP Team American Racing KTM" (in en). 2019-05-31. https://www.financemagnates.com/forex/brokers/etoro-confirms-sponsorship-of-motogp-team-american-racing-ktm/. 
  59. ↑ "eToro Becomes AS Monaco Esports' Sleeve Sponsor" (in en). 2020-08-24. https://www.financemagnates.com/forex/brokers/etoro-becomes-as-monaco-esports-sleeve-sponsor/. 
  60. ↑ "Rugby Australia inks three-year deal with eToro" (in en-GB). 2021-05-07. https://www.sportspromedia.com/news/rugby-australia-etoro-sponsorship-wallabies/. 
  61. ↑ "Rugby Australia announce eToro as Presenting Partner for 2020 Tri Nations" (in en). 29 October 2020. https://www.rugby.com.au/news/2020/10/28/wallabies-tri-nations-el-toro-partnership. 
  62. ↑ Browne, Ryan (2023-04-13). "Twitter partners with eToro to let users trade stocks, crypto as Musk pushes app into finance" (in en). https://www.cnbc.com/2023/04/13/twitter-to-let-users-access-stocks-crypto-via-etoro-in-finance-push.html. 
  63. ↑ Hussain, Ali (18 September 2021). "My Ryanair shares were flying high — then someone sold them". The Times. https://www.thetimes.co.uk/article/my-ryanair-shares-were-flying-high-then-someone-sold-them-n8k9d8r5n. 
  64. ↑ Wells, Charlie (5 March 2022). "Russian Stock Dumped for 1 Cent Shocks Retail Investors on EToro". Bloomberg. https://www.bloomberg.com/news/articles/2022-03-05/russia-stock-market-controversy-etoro-blindsides-traders-with-magnit-sale. 
  65. ↑ Williamson, Matti (7 March 2022). "eToro Announced Forced Liquidation in Magnit Holdings, Petition Launched against the Move". Finance Magnates. https://www.financemagnates.com/forex/etoro-announced-forced-liquidation-in-magnit-holdings-petition-launched-against-the-move/. 
  66. ↑ Paz, Javier (4 March 2022). "EToro Clients Up In Arms Over Forced Exit From Russian Investments". Forbes. https://www.forbes.com/sites/javierpaz/2022/03/04/etoro-clients-up-in-arms-over-forced-exit-from-russian-investments/?sh=59053f2d1f8b. 
  67. ↑ Gyftopoulou, Loukia (7 March 2022). "Robinhood Rival EToro Reimburses Users After Dumping Russia's Magnit". Bloomberg. https://www.bloomberg.com/news/articles/2022-03-07/etoro-reimburses-clients-after-dumping-magnit-at-a-penny-a-share. 
  68. ↑ Hirtenstein, Anna (2021-01-11). "Online Platform eToro Called in Leveraged Crypto Trades When Bitcoin Price Peaked" (in en-US). Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/online-platform-etoro-called-in-leveraged-crypto-trades-when-bitcoin-price-peaked-11610389892. 
  69. ↑ Hirtenstein, Anna (2021-01-11). "Online Platform eToro Called in Leveraged Crypto Trades When Bitcoin Price Peaked" (in en-US). Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/online-platform-etoro-called-in-leveraged-crypto-trades-when-bitcoin-price-peaked-11610389892. 
  70. ↑ "Trading App Offers $500 to Lure Investors to Open $5,000 Crypto Accounts" (in en). Bloomberg.com. 2021-01-12. https://www.bloomberg.com/news/articles/2021-01-12/bitcoin-btc-usd-buying-etoro-offers-500-reward-to-new-crypto-investors-in-us. 
  71. ↑ Charlie Roberts (February 2, 2021). "Traders claim eToro forced stop-loss against their consent". Forex News Now. https://www.forexnewsnow.com/top-stories/traders-claim-etoro-forced-stop-loss-against-their-consent/. Retrieved March 3, 2021. 



Retrieved from "https://handwiki.org/wiki/index.php?title=Company:EToro&oldid=3483559"