Noascertain an important good, but it is not enough. In the 1960s, grandfather Yehuda established the Swiss Israel Trade Bank, an institution governed by Swiss law. Dad, David, a pioneer in the field ofhi-tech in Israel, where he founded Magic and Aladdin. Grandfather's bank has always been an example to think about for Roni Assia. I remember that each branch was an as world, almost impenetrable. In the evening, once the day's accounts were closed, there was an employee who went around the branches to collect the documents and receipts to take to the headquarters. He toured on a motorcycle branch by branch. When I decided to found eToro, I tried to do my grandfather's job, only with the rules of the markets of half a century later, putting my father's passion for technology into it. I have studied the opportunities that the digital world offers and I have tried to use them. Today we no longer take the motorcycle ride at the end of the day. All digital, in real time. And our reference market is no longer the Swiss cantons, but the whole world.
Yoni Assia, born in 1981, founded eToro when he was 25 years old, in 2007. When choosing the name, he was influenced by two factors. Primarily, wanted to recall the symbol of the upward movement of the Wall Street Stock Exchange. At the same time he was keen to avoid easy and vulgar puns that would have been almost immediate using the English language. So he turned to Italian, to that bull that now collects the interests of over 32 million registered users, present in more than 100 countries with approximately 7.5 billion dollars of assets under management. Young people on average between twenty and thirty years old who begin to approach the world of investments starting from 500 euros, the average first payment, with which they become part of a community, that of social investing. According to company data, eToro has a concentrated presence in Europe and Great Britain, where 73 percent of users reside, over 23 million customers, while 12% are located in the Asia and the Pacific area, 11% in the Americas and only 4% between the Middle East and Africa.
Assia was recently in Milan, where eToro participates in the Milan Fintech District, for a promotional tour that led him to sign sponsorship contracts with major sports clubs. His is a company based in Israel, with a Cyprus banking license which, he underlines, is subject to European MiFID rules. A guarantee for the 32 million people who use it. On June 28, however, the Italian Antitrust Authority fined eToro 1.3 million euros for misleading advertising. In a nutshell, it is not true that transactions on the eToro site, as the advertisement states, are free for savers. The contested slogans read Invest in stocks with 0% commissions and 100% stocks, 0% commissions. Statements that the Agcm has verified to be untrue, to the point that it has forbidden their continuation and reiteration by any means of diffusion. From London, eToro said they strongly believe in the importance of consumer protection and providing consumers with comprehensive information. We are reviewing the decision made by the AGCM and evaluating our options.
Episode of misleading advertising aside, what differentiates eToro from all competitors - says Assia - is the great openness to the markets and the educational approach, the shared investment strategies, becoming part of a community where you learn – there is also the ever-present Academy – and exchange views. Where you can copy the investment strategies of social investor or confront online with them on the various operations. The opening to the markets is a distinctive trait. The statistics prove it - says Assia -: 99 percent of investors invest in the domestic, residence market. He does it for lack of tools, because the broker he only talks about home businesses, due to lack of knowledge. Instead, the opportunities that the markets offer are extraordinary. Looking at the first quarter of 2023 over the previous three months, eToro highlights how its Italian investors clients have discovered companies engaged in the development of artificial intelligence. Open positions in AMD, Alphabet, Intel, Microsoft, Nvidia, Sentinel and various others increased in double-digit percentages. There is no shortage of cryptocurrencies, which are very tempting for newbies looking for the shot of life. There are about 80 selected ones.
We must be clear - says Assia - cryptocurrencies must not exceed 3-4% of an investor's total assets, only in some cases we can go up to 10%, depending on the risk appetite and the investor's age. EToro is a single platform, but we are the first to say it: it is not made for everyone. If someone is looking for retirement assets eToro is not the best offer. But in all other cases we offer unique services on the global scene. Partner of Twitter, eToro has a manifest ambition to grow. 2025 could be the year of landing on the stock markets, with listing in London or on Wall Street. At the moment, in addition to the Assia family and some managers, the capital of eToro is held by the Ion group, Softbank Vision fund 2, Velvet Sea ventures and Agla ventures, a venture capital owned by the Arnault group (Lvmh). The goal to grow. Also in the offer of services. One is already available in Great Britain today card physical, supported by the Visa circuit for everyday payments and to make eToro a little more similar to grandfather Yehuda's bank.
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Jul 25, 2023
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