Popular brokerage eToro has announced the introduction of a new feature on the trading platform that will allow customers to use its platform to invest directly in shares in the U.K without stamp duty payments.
The exchange which provides cryptocurrency trading services on a global scale announced that traders using the service will finally be able to invest in UK shares directly using the service. The option was previously not available and users could only trade exchange-traded funds (CFDs). However, the new feature means they can now trade UK shares, CFDs, cryptocurrencies and other financial assets available on the platform.
eToro has also been committed to eliminating management fees or ticket fees on its platform for clients buying shares. Any other fees included in the spread are calculated at 0.09% for each side and UK shares will not include stamp duty. This is interesting news for traders who use the platform because their expenses on the platform will be reduced. It is also a move aimed at encouraging more people to join the platform.
?eToro enables people to invest in the assets they want to own, from newly available assets such as cryptocurrencies to more traditional options like shares or commodities. We want investors to be able to hold all these assets in a single portfolio,” stated eToro founder and CEO, Yoni Assia.
Prior to offering direct investments in UK shares, the eToro trading platform allowed customers to invest in shares using a contract for difference (CFD) basis. The latter allows users to take short positions and also provides them with leverage to investments. The new announcement means users on the platform will now be able to buy and own the actual asset.
Some of the advantages that come with direct investment in a stock on the platform include dividends, no stamp duty, instant execution, and settlement. Investors will also benefit from the ability to open short positions or apply leverage. Stamp duty in the UK usually attracts a 0.5 percent charge and eToro estimates an average charge of ?21 GBP for investing. It is currently not clear how long the exchange platform will keep the UK stamp duty at bay and the situation might change in the future.
Disclaimer: Nothing in this article should be construed as financial advice in any way, nor as an encouragement to engage in cryptocurrency trading activity. This article was not sponsored by any entities or companies mentioned in the article. The only purpose of this article is to inform/educate on the topics discussed in the article.
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