eToro revenue jumps 531% as Britons embrace stock trading
Rading app eToro has seen a surge in registrations across the UK in 2021 as pandemic shutdowns have sparked increased interest in buying and selling stocks and shares.
The business saw revenue jump by more than $200m to $264m (£238m) in 2021, according to filings with Companies House, while pre-tax profits stood at a just under $4 million.
eToro UK managing director Dan Mosculski told Standard: “The UK seems to have really taken control of investing and trading over the last couple of years compared to other parts of the world. Europe.”
“People want to go online and talk about their investments and what they’re buying, and online English is the dominant language for those discussions.”
Stocks have been on a downward trajectory since the start of 2022, with the Nasdaq-100 tech sector index down 39% since January — but that hasn’t deterred eToro users from trading, according to Mosculski. Instead, it has prompted some users to branch out into other types of assets such as cryptocurrencies and commodities.
“If I see a spike in a particular asset class, I can see UK citizens investing in that asset class,” Mosculski said.
“We wouldn’t have had people selling natural gas for example, but they’re doing it now because it’s making headlines.”
Registered users in the UK have grown to over 3.2 million in August 2022, representing over 10% of the company’s global membership. One in five of eToro’s funded accounts are based in the UK.
Although it encourages users to trade stocks of publicly traded companies, the company won’t let you buy and sell eToro stocks on the app. Indeed, the Tel Aviv-based company scrapped plans to go public through a SPAC or special purpose acquisition company in July, saying it would remain a private company for the foreseeable future due to “the current market environment.