What do I purchase when I buy stocks on eToro?

Buying a stock on eToro by opening a “buy” (long), non-leveraged position means you are investing in the underlying asset*, and the stock is purchased and held in your name. However, eToro also offers additional functions using CFD trading. With CFDs, you can open “sell” (short) positions, use leverage, and buy fractional shares. For example, on eToro you can invest as little as $50 in a stock that actually costs $1,000.

*Please note: All trades performed by clients of eToro Australia under Australian Securities and Investments Commission (ASIC) regulation are executed as CFDs, with no ownership of the underlying assets. In addition, all stock trades made on the Milan Stock Exchange (Borsa Italiana), Helsinki Stock Exchange, Copenhagen Stock Exchange and Oslo Stock Exchange are executed as CFDs, regardless of the account regulation. All stock trades opened by users resident in the following countries are only available as CFDs: Afghanistan, Angola, Australia, Belarus, Congo Republic, Côte d'Ivoire, Democratic Republic of the Congo, Iraq, Liberia, Libya, Myanmar, North Macedonia, Nauru, New Zealand, Nigeria, Sierra Leone, Zimbabwe. 

For more information please see our Terms & Conditions and Key Information Documents.