Is eToro considering a withdrawal from Africa?
In the world of online trading, eToro, an Israeli social trading company, has been a popular choice for many. Over the years, it has grown in popularity, offering a unique feature called copy-trading that allows novices to mimic the trades of experts, promising the same results. However, recent developments have raised questions about its future in Africa.
Before now, eToro accepted traders from Nigeria, one of the most populous countries on the continent. But, in a recent move, eToro has added Nigeria and several other African countries to a list of countries where its services aren't available. This decision comes as a result of regulatory requirements and risk management considerations.
The rise of trading platforms accessible to Africans offers many alternatives to eToro. Yet, eToro's decision to bar an increasing number of African countries, leaving not much of Africa's 54 countries available for its services, has sparked concerns. It's unclear if Kenya or South Africa, two other significant markets, have also been added to the list.
eToro was last valued at $2.5 billion as of May 2020. Despite its popularity and high valuation, the platform has been criticised for its relatively higher trading fees compared to other platforms. There are also complaints about the lack of local deposit and withdrawal methods for Nigeria on eToro.
The minimum deposit required to open a live account on eToro was $200. As of now, eToro has 13 million registered accounts. However, the list on eToro's website has not been updated to reflect the new changes, showing that previously Nigeria, Kenya, and South Africa were not barred.
It's important to note that 75% of retail investor accounts lose money when trading with eToro. Despite this, the platform has been praised for its safety and ease of use in user reviews.
The potential withdrawal of eToro from Africa remains a topic of discussion. As the landscape of online trading continues to evolve, it will be interesting to see how this development unfolds and what alternatives emerge for African traders.
Read also:
- Industrial robots in China are being installed at a faster rate than in both the United States and the European Union, as the global market for these robots faces a downturn.
- Hyundai N affirms transition to hybrid performance-centric models, initiating with Tucson N
- EAFO Research Uncovers Crucial Elements in Electric Vehicle Adoption within the EU
- Stock markets in India anticipated a moderate opening, influenced by mixed signals from global markets.
