The retail stock traders on the eToro platform can now not only receive dividends but also participate in voting during shareholder meetings worldwide, regardless of which company they have invested in.
This development comes after the successful launch of the feature for US stocks last year, which witnessed over 145,000 votes submitted by eToro users.
eToro Expands Proxy Voting Feature to All Stocks
The expanded proxy voting feature made possible through eToro's partnership with Broadridge Financial Solutions Inc., allows users, including those holding fractional shares, to participate in Annual General Meetings (AGMs) for stocks worldwide. Retail investors can presently cast their votes on crucial matters, such as mergers, executive compensation, and environmental, social, and governance targets.
"eToro users embraced proxy voting last year, and we are thrilled to be building out this feature to include all stocks on our platform,” Dan Moczulski, the UK Managing Director at eToro, commented. “Our users invest in companies from all over the world. Now, they can have their voice heard with these companies by having a say in big corporate decisions."
According to eToro's Retail Investor Beat survey, which polled 10,000 retail investors across 13 countries, the appetite for proxy voting is rising. The survey revealed that 29% of retail investors have voted in an AGM, up from 26% in the previous survey conducted in June. Among those who voted, the most common topics included the election or re-election of directors (47%), dividends (45%), share buybacks (34%), and executive pay (30%).
Separate research by eToro showed that 27% of retail investors are moving away from large companies, seeking investment opportunities in smaller ones where they can have a more tangible impact on building their value.
Empowering Retail Investors and Promoting Shareholder Democracy
The expansion of eToro's proxy voting feature aligns with the growing trend of retail investors seeking greater influence and engagement in the companies they invest in. Demi Derem, the General Manager of International Corporate Governance, Digital Transformation and Market Innovation at Broadridge, highlighted the importance of this development.
“We are witnessing the evolution of a new generation of retail investors - one that has expectations for more choice, convenience, and simplicity as their appetite to influence a company's direction grows,” Derem stated.
Broadridge has collaborated with eToro on proxy voting since the service's launch in the United States at the end of 2022. Due to its immense popularity, platform clients can actively participate in the lives of "their" companies worldwide.
"Proxy voting will be an increasingly important feature for our users, allowing them to exert their rights as shareholders and have a direct influence on the companies they hold in their portfolio," said Gili Wolff, the Senior Director of Product, Trading, and Dealing at eToro.
Finance Magnates learned this week that eToro is exploring opportunities to obtain a license in Singapore, and the application is "in process."
Information from a month ago indicates that eToro plans to become a public company through an IPO. Drew Niv, the Founder and former CEO of FXCM, discussed this topic with Finance Magnates.
