Do you actually own the stocks bought through eToro?

Asked 3 years ago

Hello gentlemen, The topic that is bugging me since I have started investing through the eToro trading platform is the following: Do we really own the stocks that we buy through eToro? I know now that we buy the Underlying Asset when we open a Un Leveraged position, but what does this mean? Do we really buy the stock itself, or just bet on the rise of its price? If, let's say eToro, would close, how could you get hold of your assets? You do not receive any ownership certificates, not even digital? I am asking this because I want to invest for the long term, 5 - 10 years, and hold stocks for dividends. But I am questioning the security of these investments.

Andrew Moran

Tuesday, August 03, 2021

No, you do not directly own the stock you have purchased on the eToro trading platform.

Instead, when you hit the "buy" button, you are owning a contract (CFD) that mirrors the price of the asset.

For example, if you acquire shares in Tesla Motors (TSLA) or AMC Entertainment (AMC) and the prices rally, your contract will appreciate in value accordingly.

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