eToro offers you the ability to trade stock CFDs or buy company shares. Or both.
Buying Shares (Stocks) on eToro
The eToro platform offers a unique opportunity for investors from all over the world to add company shares to their portfolio. Starting early 2018, every non-leveraged BUY order, will result in the purchase of the underlying asset by eToro and subsequently held under the client’s name. The principal also applies in case you invest in a CopyPortfolio or copy a trader: If the copied trader buys stocks, you will automatically own a portion of his holdings.
Trading Stock CFD on eToro
Investing in your favourite brands on eToro is as easy as it gets. Simply select a company, choose the kind of position you want to enter (Buy/Sell), enter the investment amount and leverage (up to X10), set your Take Profit and Stop Loss orders, and click on “Open Trade.” Your Trade will be immediately executed unless you’ve set it to open at a certain future market rate, in which case it will open only should the stock’s price hit your order’s rate.
Note that when you buy a stock with leverage or short a stock, the trade is subject to a small overnight rollover fee, details of which you can see listed on our fees page.
Any order other than BUY at 1X leverage, such as shorting or leveraging, means you are purchasing a Contract For Difference (CFD). When you enter such a contract, the seller (eToro) is obligated to pay the buyer (you – the investor) the difference between the current value of a stock and its value when you decide to end the contract, i.e. close the position. If the difference is negative (i.e. the value of the stock went down), the buyer is obligated to pay the difference to the seller and vice versa. You do not actually own the underlying stock when buy a stock CFD.
Advantages of Trading and Holding Stocks on eToro
- Trust – Your stocks are held under your name by an EU regulated company.
- Insurance – Your funds are insured according to CySEC terms and conditions.
- Dividends – Should the company issue dividends, your balance will be updated in accordance with your holdings.
- No Fees – Buying stocks on eToro means you will not be paying any ticket fees or holding fees.
- Ease of Use – Access your portfolio and manage its content from any device.
- Diversification – Create a portfolio of Stocks, Cryptocurrencies, Commodities and more.