Online Forex Broker eToro to go Public in a $10bn Business Deal with SPAC.

Businesses have been there for years and they apply different survival tactics to remain relevant. We have at some point seen companies merging to run as a single entity. Others have gone into making a business deal where they contribute funds to run an external enterprise and share the profits later.

Among the most popular online business, today is the forex trading brokerage firm that is trusted by millions of forex traders. The company has agreed to go public after merging with a renowned blank Cheques company. eToro is going public at a $10.4bn valuation and they are targeting to major their operations on digital trading that are increasing in popularity every day.

eToro has over twenty million registered and is planning to merge with Fintech Acquisition Corp V a company owned by one of the most successful banking tycoons, Betsy Cohen. The merger will be one of the largest SPAC deals experienced in 2021 to date.

The deal is guided by clear terms and conditions to control the business flow. eToro is set to receive $250m from the amount raised by Cohen’s SPAC in December last year and a cool $650 from some institutions willing to invest with them. Among these institutional investors include Fidelity and SoftBank Vision Fund 2. These funds will help it to grow and expand its operations across the globe.

This gigantic business deal comes at a time when the SPAC fundraising in the United States is closing having attained a $78bn mark last year. SPACs are targeting to work with big businesses at an amazing rate but keen to make deals with a lame light of success. 

eToro is a successful Israeli spread betting and stockbroking platform with more than 20 million satisfied users. In 2020, the company reported more than 275% growth in its funded accounts. Despite the world economic challenges in the past months, the company received more than one million new customers in January 2021. The platform receives an influx of youthful investors because it allows clients to buy fractional shares. Young people with little savings can invest their money on this platform by buying stocks. The average age of eToro customers is 34 years which tells you that most of them are youths who ate ambitious to make money with their “little wealth.”

Funny enough, this platform is male-dominated with about 85% of the total number being males. However, the company a reported miraculous 360% increase in the number of females with accounts using the platform in 2020.

eToro isn’t a monopoly company but receives competition from other stock/forex brokers like Robinhood. The company took advantage of retail investing because locked-down youths spent a lot of time accessing stock markets with zero trading commission. There has been an influx of retail traders on this platform since the outbreak of the Covid-19 pandemic. Over 20% of the trading volumes in the market are retail. According to the UBS Equity Research, this figure is more than double the figure that was there before the pandemic.

Unfortunately, the eToro stockbroking platform is facing discouragement for positioning itself as a retail stock-trading website in the United Kingdom bearing in mind that the company is known to offer highly risky trading products. More than 60% of CFD traders lose money and over 80 percent of their assets under administration were real assets according to the company management.

Cohen is a very successful female in the banking industry. She is a serial SPAC investor for the last year. We have to accept that she is among the earliest female entrepreneurs in banking. Cohen is the founder of Jefferson Bank (1974) and is recently using blank Cheques companies in buying and listing several private companies including CardConnect, Intermex Wire Transfer, and Perella Weinberg Partners.

With that in mind, you can now make a better investment decision regarding retail stock trading in the UK with eToro. All you need is to find out all the necessary information including eToro fees UK and other important aspects. Every coin you get out of your pocket or account is important and should be invested wisely. Don’t risk investing more than you can afford to lose because stock markets are highly volatile and promising at the same time.