eToro Launches Options Trading in the US Months after Acquiring Gatsby

eToro, an Israeli multinational social investment and trading network, has introduced options trading to its users in the United States as part of the 'ongoing diversification' of its offerings in the country. The new offering is an addition to eToro’s existing stocks, exchange-traded funds (ETFs) and crypto assets offerings on its trading platform.

The network announced the launch of eToro Options by eToro USA Securities Inc. on Tuesday in a statement seen by Finance Magnates. The launch of the new social options trading platform comes three months after the trading network entered into a definitive agreement to acquire Gatsby, a commission-free options and stocks trading firm, for $50 million.

Buying an options contract gives the buyer the right to purchase or sell stocks (usually representing 100 shares of the underlying stock per option contract) at a predetermined price.

This gives investors the opportunity to benefit from up and down market movements.

🧵👇 pic.twitter.com/a7LPkijG8a

— eToro US (@eToroUS) November 15, 2022

eToro noted that it integrated Gatsby into its ecosystem in order to open up its users to the “exciting world of options trading.” The network further said its goal is to “continue growing its social investing network” by enabling simple access to the assets, information and tools people want.

‘Modern Investor’

Lule Demmissie, eToro's U.S. CEO, explained that the firm is seeking to further its mission “to democratize access to the tools that can help people reach their financial goals" by launching eToro Options.

"The modern investor wants to interact with the market in more ways and under all conditions, while still feeling empowered in their investment choices," Demmissie noted.

Also speaking on the new platform, Jeff Myers, the Co-Founder of Gatsby, noted that options trading has not always been accessible to the everyday investor although they have been around for a while.

"When retail investors have regular access to educational resources, intuitive trading platforms and more ways to trade, they are better equipped to find the market opportunities that are right for them,” explained Myers.

Proxy Voting in eToro

In another development, eToro said on Tuesday investors that trade shares on its platform can now vote by proxy during the annual general meetings of the firms they invest in. This is possible through eToro's new partnership with New York-headquartered Broadridge Financial Solutions, a provider of investor communication solutions.

Through the partnership, eToro explained, shareholders can vote on corporate decisions such as mergers, executive pay, environmental decisions as well as social and governance proposals. However, the network noted that the voting by proxy feature will first be made available for US-listed stocks before it is extended to listings on other global exchanges.

Meanwhile, in late October, eToro acquired BullSheet to integrate the portfolio management tool into its platform although the tool was previously exclusively available only on its trading network. BullSheet enables eToro users to manage their investments by analyzing and diversifying their portfolios, the company said.