Presumably then theyâre treating you as an experienced investor (I forget the regulatory term)
You can buy these on Etoro because I understand that on etoro you are not really the owner of the stock or fund. You can check on this page:
" The eToro trading platform is not an exchange or a market. This means that you can only buy and sell stocks within the eToro trading platform. It is not possible to move open positions out of your eToro account to another broker or to another person. If you open a stock position on eToro, you are not issued a stock issuance certificate or allocated voting rights. Nonetheless, should the company issue [dividends](javascript:void(0)), your balance will be updated in accordance with your holdings."
You can read this discussion on reddit for further clarification:
Etoro is not a fraud, but itâs not the traditional broker where you can become owner of a stock. You are buying the asset, but you are not the real owner of that. Thatâs why itâs possible to buy on etoro assets normally prohibited on other EU brokers.
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or they can simply ask etoro? since they are customers right?
"dear etoro support, as far as I know these are not legal to sell to retail investors in EU, can you please explain what we are buying? Some people say I am buying CFDs but I am not literate enough to read your help documentation, instead I go post on other brokers forums.
Thanks for your help"
Eden you can not just decide to treat investors as experienced, Mifid II defines what a retail and professional investor is, and it is quoted in my above post (in yet another ARK thread)
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Donât think so, Iâve only a demo accountâŚnever sent money to etoro so far but Iâm thinking to start if Trading212 will not add Ark
Well i think they just answered that question, its a practice account. Maybe thatâs why. Or theyâve completed the required forms and forgot
Youâre missing the point, thereâs a thread of speculation.
T212 could say itâs not possible because of XYZ.
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No, thatâs not the reason. They are not buying stocks or etfs they are buying CFDs. @KanseiDorifto kindly linked the etoro documentation, I pointed out the listing says CFD. Instead of reading any one of the documents mentioned, he keeps posting âI think xxxâ
anyway this amount of ignorance gets on my nerves, gonno unfollow the thread and wish you lads all a happy new year.
I was going off his screenshot which references buying the underlaying asset, not CFDs, otherwise id completely agree with you.
the main issue is that on etoro you donât have any proof of ownership of any assetâŚ
This sentence is quite clear:
âIf you open a stock position on eToro, you are not issued a stock issuance certificate or allocated voting rightsâ
But isnât that the same here on T212? So whatâs the big deal?
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Iâm also on etoro, under european law, and yes you buy the etf no cfd! Depends on etoro some accounts buy cfd some have access to the real asset.
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Wish we could have the ARK ETFs, weird that eToro has them in some guise.
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The chat on eToro is that it was falsely advertised as non-CFD but is in fact a CFD but with x1 leverage and no overnight fees. So theyâre trying to fudge it. Not sure how legit that is.
In any case the above is just taken from their own chat threads and eToro have yet to weigh in on the conversation.
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Who cares if itâs a CFD, considering it has zero leverage and no overnight/week-end fees? To be honest, Trading212 is much more convenient (so at the time I decided to choose this one) but Etoro sounds to me much more solid than T212âŚso, if Iâll invest in ARK with Etoro, even if itâs a CFD Iâll not fell myself exposed to a bigger risk than the natural risk of investing in a very risky etf
I care. Because I have no knowledge of CFDs and wonât be investing in one unless I know that x1 leverage and no overnight fees are a legitimate way to present one and get round the red tape of UCITS eligibility and/or a KIID. Otherwise itâs just another case of a broker offering up something they shouldnât have and forcefully disinvesting people, some potentially at a loss.
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Can anyone clear this up? Are they selling a CFD version?
Or the underlying asset?
Doesnât help we have two screenshots from two different accounts.
If the account says ARKK (CFD) and then tells you own the underlying asset thatâs got to be a mistake in the set order box
@phildawson have you seen any other retailer write something like âyou are buying the underlying assetâ in a trade window? it is clarified in their forums reddit and even the help documentation they provide. It is a CFD.
And I am with @Joey_Fantana at this stage, this presentation is at best dubious if not illegal and misrepresenting.
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Iâve never seen a broker write on a CFD that buying they will own the underlying asset that wouldnât make sense.
So either they have made a mistake, and that message shouldnât be there or that there is a version that isnât CFD available on the platform.
For me, the real dealbreaker with eToro is the spread, which often seems significantly wider than others, something they can probably only get away with because youâre buying CFDs.
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My curiosity was piqued to look at eToro myself. They do indeed have ARKK (and also US domiciled ETFs such as SPY, VOO and VTI) available as CFDs with $0 overnight fee.
Nothing is said about the spread and if is the same as in the real market or not. Usually CFD spreads are significantly wider. I am curious to take a look once the market is open. Seeing as it is a CFD, eToro will have no obligation to give investors any âbest order priceâ guarantee.
ARKK has a dividend yield of about 0.29%. Since this is a CFD, UK taxpayers will need to declare this dividend payment as a capital gain, not as an ordinary dividend.
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