In this article we will not evaluate the goodness of the eToro broker but we will study what the trend of the share price could be and compare it with other cfd brokers already listed for some years on the stock exchange.
A few weeks ago there was news of the listing on the stock exchange for eToro. With a direct message to his clients, the CFD broker famous for his copy trading system, wrote the following text with a spirit of success:
I would like to update it on an epochal moment in eToro’s history.
I am thrilled to share that we plan to become a publicly traded company. We have signed a business combination agreement with FinTech Acquisition Corp V. which is a Special Purpose Acquisition Vehicle (SPAC) listed on the Nasdaq stock exchange under the symbol FTCV. The Company is expected to have an estimated implicit equity value of approximately $ 10.4 billion at close.
Since our foundation, eToro’s vision has been to open up global markets so that everyone can trade and invest in a simple and transparent way. We always imagined that one day investors on eToro would be able to invest in eToro stocks, and today we have taken a huge step towards achieving that goal.
I would like to personally thank all of our users for the role they have played in creating eToro over the past 14 years.
Today eToro is an investment social network with over 20 million registered users from more than 100 countries. Becoming a publicly traded company will support our continued expansion as a company. It will enable us to continue to expand our business, enter new markets and further expand our innovative product offering to meet the needs of our ever-changing customers. And as a public company, we will continue to focus on our mission to empower people around the world to become better investors by providing them with the best possible tools to make informed and responsible investment decisions.
As an investment social network that promotes and supports greater retail participation, it is especially important to us that investors can participate in the next phase of our journey every day.
I would like to thank you once again for your trust, continuity and support.
CEO and Co-founder, eToro
eToro is listed through SPAC
eToro is listed on the Nasdaq through a special and technical vehicle recognized with the acronym SPAC (read below the specification). The merger between eToro and FinTech Acquisition Corp V. (NASDAQ: FTCV) allows you to be on the stock exchange faster and with strong shareholders already willing to make business deals.
eToro comes to this choice after having had the green light to enter the US market with its subsidiary eToro USA LLC, which is registered with FinCEN as a Money Services Business.
What are SPACs
Here is a translation of the introduction of an interesting article from The Wall Street Journal [original text here].
The most interesting thing in finance in 2020-2021 is four letters long. Former NBA star Shaquille O’Neal has one. So does former House Speaker Paul Ryan. The same goes for silver-haired hedge fund billionaire William Ackman.
It is called SPAC and is increasingly the preferred source of financing for private companies seeking to go public (i.e. go public). Richard Branson’s space exploration company, Virgin Galactic Holdings Inc., went public via an SPAC in 2019, and sports betting company DraftKings Inc. did so last year. Nearly 300 SPACs are now seeking deals, armed with around $ 90 billion in cash. And others are coming out in a furious clip: so far this year, an average of five new SPACs launched every working day.
“If you don’t have your SPAC, you are nobody,” said Peter Atwater, founder of the research firm Financial Insyghts.
SPACs, which stand for special purpose acquisition companies, are essentially large, publicly traded cash pools. Their aim is to find a private company, buy it and make it public quickly. Some on Wall Street call them “blank check companies” because investors backing SPAC put their money in months before an acquisition target is identified, trusting the people running the show to find a good deal.
Charts of listed CFD brokers
Is it worth investing in shares of listed CFD brokers? Is it better to be a member and not a customer?
In the video above we will analyze the graphs of:
- FinTech Acquisition Corp V. (hereafter eToro)
- PlayTech (Markets brand)
- XTB X-Trade Brokers Dom Maklerski S.A.
- IG Group Holdings PLC
- CMC Market PLC
but I also add the analysis of major American brokers (CFDs and others) and platforms for studying and analyzing trends in financial instruments such as:
- The Charles Schwab Corporation (NYSE: SCHW) which recently acquired TDAmeritrade
- Fidelity Investments
- Interactive Brokers Group, Inc. (IBKR)
Being a partner of CFD Broker has probably been a good business up to now. These brokers have had difficult times not only for the Covid Pandemic but also for the regulations that have followed over time and which have restricted their field of action and consequently also their ability to create profits. The latest ESMA intervention with the reduction of financial levers is an important example. Some brokers also lost money, others had to relocate to new markets.
However, the prices today reflect a healthy industrial sector.