Buying a stock on eToro by opening a “buy” (long), non-leveraged position means you are investing in the underlying asset* (real stocks), and the stock is purchased and held in your name. This also applies to fractional shares: for example, on eToro, you can invest as little as $50 to purchase part of a share whose price per unit is $1,000.
However, eToro also offers additional functions using CFD trading. With CFDs, you can open “sell” (short) positions and use leverage.
*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, Copenhagen and Oslo Stock Exchanges 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.