Multi-asset investment platform eToro has announced that it will extend its commission-free stocks offering to clients in Asia-Pacific, effective immediately.
The zero-commission offering for Asia Pacific clients applies to all stocks on its platform that are traded on the Nasdaq and NYSE exchanges. The company believes this makes eToro the first platform to offer commission-free stocks and fractional shares globally
In an email to Fintech News Malaysia, the platform claims that in Malaysia alone the number of people investing for the first time in on eToro grew over 200% in the first for months this year compared to the same period last year. They also shared they 11% of their users in Asia-Pacific are from Malaysia.
When seeking comment on their legality to operate in Malaysia, they clarified that investors in Asia are “regulated under eToro’s Australian Securities and Investments Commission (ASIC) license” and “therefore investors can trade through the ASIC license”
We’ve also reached out to Securities Commission Malaysia to seek further clarification and will update this once we get an official response.
UPDATE: Securities Commission Malaysia has issued an official statement that eToro is not licensed to operate in Malaysia, the full statement can be read here.
Yoni Assia, Co-Founder and CEO of eToro, said:
“eToro was founded with the goal of opening up financial markets to all. We hope that by offering commission-free investing for the most frequently bought stocks on eToro more people will start investing. We are on a mission to get more people passionate about investing.”
The move to zero-commission on all stocks on eToro that are traded on the Nasdaq and NYSE exchanges removes one of the main barriers to entry for many investors – costs. By offering fractional shares the eToro platform allows investors to buy as little as 0.001 of a share, enabling users to diversify their portfolio with stocks that they otherwise might not be able to afford. People can open a position in the most popular stocks without commission from as little as $50.
Stocks traded on the Nasdaq and NYSE exchanges are the most popular stocks on the eToro platform. They currently represent 82% of all stocks traded on eToro globally.
Asia Pacific is one of eToro’s fast-growing markets. In the first four months of this year, the platform has seen over a 400% increase in users from APAC, investing for the first time compared to the same period last year.
Commenting on the move, Jasper Lee, Managing Director of Asia, eToro, said:
“A commission-free stocks offering is the next step in eToro’s expansion in Asia Pacific. We’re committed to growing our footprint here and are therefore continually enhancing our proposition to deliver value to our users. By reducing the cost of entry, we also want to encourage more people to start investing.”