The
publicly traded retail investment platform eToro (NASDAQ: ETOR) has introduced a
recurring investments feature for users in the UK, Europe and the UAE, allowing
customers to automate regular asset purchases as part of the company’s expanded
long-term investing toolkit.
eToro Launches Recurring
Investments Feature for Long-Term Investors
According
to the press release sent to FinanceMagnates.com today (Tuesday), the new
functionality enables users to schedule automated purchases of stocks, ETFs,
and cryptocurrencies at predetermined intervals, removing the need for manual
order placement.
This new
offering comes as eToro’s Retail Investor Beat survey found that 45% of retail
investors use recurring investments to maintain consistent, smaller contributions
to their portfolios.
“By
setting up regular buy orders as part of their budget, investors can
consistently contribute towards their investment goals,” said Tuval
Chomut, Chief Solutions Officer at eToro. “The feature is designed to help investors reduce
the impact of volatility by maintaining a consistent investment strategy, regardless
of market fluctuations.”
How Recurring Investments Work
The feature
starts with a minimum investment of $25, while capping transactions at $5,000
per purchase and $25,000 monthly. Positions opened through recurring plans will
be exempt from commission fees, though closing fees still apply for stock
positions.
“Automating
a contribution is the simplest way to stay invested, but the real magic happens
when you can marry dollar-cost averaging with fractional investing,” added Dan
Moczulski, Managing Director at eToro UK. “The feature is designed to help
investors reduce the impact of volatility by maintaining a consistent
investment strategy, regardless of market fluctuations.”
According
to eToro’s market research, investors value recurring investments for their
time-saving benefits (41%), reduced concerns about market timing (29%), and
dollar-cost averaging advantages (25%).
The feature
is available in 19 European markets, the UK, and the UAE, with some regional
restrictions. Netherlands users currently have access for stocks and ETFs only,
with cryptocurrency options coming soon, while the feature isn’t available for
ETFs in Switzerland or cryptocurrencies in Belgium and the UAE.
“Passive” Revolution
The
recurring investments feature is part of a broader enhancement of eToro’s
platform, which recently added new portfolio tools and local currency accounts
for UK and European users to invest directly in their regional markets.
The passive
investing revolution is in full swing, and today’s move comes just days after
eToro announced the opening of a new office in France, an essential step to
offer local clients access to savings, retirement, and insurance accounts.
eToro is
introducing a service in the French market similar to the one it launched in
the UK several years ago, following the lead of other brokers like XTB, who
have recently focused heavily on expanding their offerings of long-term and
more passive financial instruments.
It’s also worth noting that eToro is a newly listed member of NASDAQ, following a successful IPO that took place last week. One of the early investors netted $530 million from an initial $19 million investment, marking a 29-fold return.
This article was written by Damian Chmiel at www.financemagnates.com.
Source link
