eToro is an Israeli trading platform that rivals Robinhood Markets Inc. (NASDAQ: HOOD) and Coinbase Global Inc. (NASDAQ: COIN). The company announced its plans to go public in 2021 through a special-purpose acquisition company (SPAC), but those efforts have stalled. Investors may have to wait a few years before eToro becomes a publicly traded company. Preparing for a possible initial public offering (IPO) now will leave you better prepared if eToro decides to go public. This guide will cover some insights that can put you in a good position if the popular trading platform goes public.
When Is the eToro IPO Date?
eToro announced its plans to go public through a special-purpose acquisition company rather than an IPO. The company announced its planned merger with FinTech Acquisition Corp. V (NASDAQ: FTCV), a SPAC backed by investment firm Cohen Circle Co-Founder and CEO Betsy Cohen. The SPAC deal fell flat so Wall Street and retail investors will have to wait a bit longer before buying into an IPO.
eToro Financial History
eToro was founded in 2007 in Tel Aviv, Israel, originally under the name RetailFX. Here’s a quick rundown of the company’s progress:
- By 2013, eToro had raised over $30 million.
- In 2013, eToro added stock and contract for difference (CFD) trading services.
- In 2014, the fintech company added cryptocurrency, as well as over 100 British and German stocks.
- In 2018, the company raised an additional $100 million, launched its cryptocurrency wallet for iOS and Android and entered the U.S. market.
- By 2020, the investment platform surpassed 13 million users.
- By 2023, eToro surpassed 33 million users.
eToro Potential
eToro is in a great position to benefit from the growing popularity of stocks and crypto. In 2020, the company added 5 million users and increased revenue by nearly 150%.
eToro crypto trading services and stock trading services are available in the United States. The U.S. is one of the 140 countries that eToro serves. If these trends continue, eToro may be going public at the perfect time to reap the benefits.
How to Buy eToro IPO Stock
The stock market and all things crypto-related seemed to be heading to the moon in 2021. Both markets declined considerably in 2022 and experienced a resurgence at the start of 2023. Throughout the market volatility, eToro has quickly become a top choice for investors in the crypto space around the world.
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.
Pick a Brokerage
The first step to complete before buying shares of eToro is to pick a brokerage to invest with. Most online stock brokers have adopted the commission-free model, so you should be able to purchase shares of eToro. Fees may apply.
To make the brokerage selection process easier, define what your investing goals are. If you have never traded stocks, consider choosing a brokerage that offers paper trading, which will allow you to practice with fake money. Be sure to keep abreast of any promotional offers brokerages are offering. By doing this, you may find yourself with free stocks or free money to trade with.
Decide How Many Shares You Want
Once you have opened your brokerage account, you must decide how many shares of eToro you want to buy. To help make this decision easier, keep your risk tolerance and investing time horizon in mind. Never invest more money into a company than you can afford to lose. Building a cash position now can help you capitalize on eToro shares if the company goes public. Knowing the stock price and assessing an attractive entry point can help you determine how many shares to buy.
Choose Your Order Type
Now that you know how many shares of eToro you want to buy, you need to choose an order type to use. Some orders are better for speed, while others are better used for efficiency. If you use a market order to purchase shares, your broker will fill the order immediately at the National Best Bid and Offer (NBBO) price. In contrast, a limit order will only be filled once it can be executed at your preset price or better. Limit orders can help you save money, but the order can only go through if the stock price reaches your designated limit price.
Execute Your Trade
Last but not least, you must execute your trade to become an owner of eToro stock. Once you have all of your order parameters to your liking, hit the buy button and take a deep breath while your broker does the rest. Once the order is filled, your shares of eToro will appear in your brokerage account. Saving for the day eToro goes public can help you accumulate more shares.
Best Online Brokers
Below is a list of the best brokers for your consideration.
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
- Best For:Experienced TradersVIEW PROS & CONS:securely through Freedom Finance's website
Are You Buying eToro Stock if it Goes Public?
Robinhood stock attracted many investors during its initial public offering. Coinbase also performed well in the beginning, but both stocks are far from their all-time highs. The dampened environment allows investors to purchase an innovative brokerage/social trading company at a lower share price.
While eToro offers would-be investors an enticing opportunity, it is important to do your due diligence before buying any stock.
Frequently Asked Questions
When will eToro become a publicly traded company?
eToro’s SPAC deal fell through before it could become a publicly traded company. The IPO date is still up in the air.
Should I invest in eToro stock?
eToro gives investors exposure to trading activity from stocks, crypto and other assets. Investors who are bullish on the industry may want to consider exposure to eToro stock when it becomes public.
Is eToro legal in the U.S.?
Yes. eToro is legal in the U.S. The trading platform follows Securities and Exchange Commission and Financial Industry Regulatory Authority regulations.