What do I purchase when I buy stocks on eToro?
Buying a stock on eToro by opening a “buy” (long), non-leveraged position means you are investing in the underlying asset*, and the stock is purchased and held in your name. However, eToro also offers additional functions using CFD trading. With CFDs, you can open “sell” (short) positions, use leverage, and buy fractional shares. For example, on eToro you can invest as little as $50 in a stock that actually costs $1,000.
*Please note: All trades performed by clients trading under the Australian Securities and Investments Commission (ASIC) are executed as CFDs, with no ownership of the underlying assets.