Just got my eToro account regulation changed from ASIC to CySEC, in layman's term, the regulation changed from australia to Cyprus so that I can perform non CFD trades. For now I will be able to buy stocks like VOO ETF, Apple, Amazon, any US stocks you name it, and "own" the stocks without overnight fees, etc, because it's not CFD trade, and it's actually us who own the underlying asset.

By "own" I mean there's a nominee that will hold your stocks on your behalf, just like how Rakuten Trade does in Malaysia, then you'll be able to get dividend, ( go AGM? probably not ), but at least it's very similar to like owning a US stock without those bullshit like create oversea bank account, go through so many middlemen and etc, at least that's what I understand.

So far I know there's like 0.8-0.9% spread fee when buying/selling, and 5 USD withdrawal to bank account, that's it.

Ok, here's the question, anyone bought non CFD stocks in eToro before and hold for long term? Any experience to share?

https://www.etoro.com/trading/market-hours-...category=stocks

https://imgur.com/a/mUp4kh8

PS: I've been using eToro for half a way for CFD trades, but never on non CFD stocks.

This post has been edited by Ivan113: May 20 2020, 10:11 AM

How is the exchange rate charge when deposit money?

based on my experience, not great, slightly expensive, yesterday deposited RM2046, when when on XE, it shows RM2010. So it's a bit more expensive.

can buy fractional shares?

yup, can

interesting. been looking at this for a while. let us know after deducing all the tax and fees how much u earn

withdrawal 35 USD

This is an interesting platform but read this recently :

Securities Commission: eToro is Not Licensed to Operate in Malaysia
by Vincent Fong May 19, 2020

In a press statement announcing the extension of their commission-free stocks offering to clients in Asia-Pacific, eToro shared that 11% of their customers in Malaysia.

In response to Fintech News Malaysia’s clarification of the eToro’s legality to operate in Malaysia, the platform said that investors in Asia are “regulated under eToro’s Australian Securities and Investments Commission (ASIC) license” and “therefore investors can trade through the ASIC license”

To verify this we reached out to Securities Commission Malaysia, a spokesperson then replied with this official statement.

“eToro is not licensed or registered by the Securities Commission Malaysia (SC) to carry out any regulated activities in Malaysia including operating a recognised market through an on-line platform. Any person carrying out regulated activity in Malaysia without a licence or registration from/by the SC may, if convicted be liable to a fine not exceeding RM10 million or imprisonment not exceeding ten years or both.

Malaysian investors who deal with unlicensed persons, especially entities operating offshore are not protected under Malaysian securities laws. They are also exposed to various risks including fraud and money laundering and may not have access to legal recourse in the event of a dispute.”

https://fintechnews.my/23800/various/securi...te-in-malaysia/

Basically trade at your own risk but so have not heard anything very negative yet.

5usd withdrawal fee to bank account? i tot got variable charge base on the amount, and the min charge is not usd5.

This post has been edited by Zhik: May 20 2020, 01:10 PM

I'm using eToro but I wouldn't trust Grade C regulators (such as Cysec).

Luckily ASIC eToro changed just a few days ago. You can now buy underlying assets in eToro while under ASIC.

By the way, there's no difference between owning CFD and underlying asset if you choose x1 leverage in the platform.

Dividends are given on ex-date for CFD and payout date for underlying asset, less 30% withholding tax.

This post has been edited by Icehart: May 20 2020, 01:19 PM

"eToro charges a flat $5 fee on all withdrawals. The minimum withdrawal amount is $30." no?

https://www.etoro.com/trading/market-hours-...category=stocks

yup, thanks for sharing, I heard of this, but then, there are so many malaysian trading on unlicensed platform in Malaysia, like Binance, Etoro and etc, so far I've not seen or heard any people get fined anywhere, which makes me wonder does this only apply to those big players?

website there says flat 5 usd though

got difference, the reason why last time I wouldn't trade stock or ETF CFD in etoro it's because of the overnight and weekend fees, it's ridiculously high if you plan to keep it for long term, now no more if it's non CFD trade.

Thanks for sharing about the Grade C regulator thing, didn't know that.

Why so many people open US trading account recently?

Malaysia market cannot cari makan?

I haven't buy though on Etoro, so far I've been focusing on buying Bursa stocks and stashaway, but I am highly interested in owning US stocks. Saw the other websites recommend using Ameritrade, IBR or things like that, but it's really a hassle for me to go through all those, maybe someday I will if I am desperate enough.

This post has been edited by Ivan113: May 20 2020, 02:57 PM

look at the price chart of KLSE for the past 10 years, plus the mentality of Malaysian people, plus our government, I kinda lost faith, it either goes down or stagnant for many years to come in my opinion, but I really hope I am wrong.

Where did you get that information?
There is no fees for CFD stock if you choose x1 leverage.
I've been trading on eToro for 6 months holding CFD stocks and I've not paid a single cent for overnight fees (under x1 leverage).

If you choose x2, you are using margin to trade and for that, you have to pay the margin rate.

oh really? then it must be my mistake then because I've never really bother to check the 1x in CFD trade, because my assumptions was as long as it's CFD, there'll be overnight fees.

But how come you'll get dividend since technically no stocks were own? Where did the dividend money comes from?

Overnight fees are only applicable if you're utilizing leverage to trade.
Or buying commodity CFDs.

When it comes to stock CFD and ETF, there is no associated cost to ownership. In fact IMO CFD is better because you get the dividends faster.

Dividends are paid because you own the assets indirectly.

When you perform trades in eToro Australia (and this is only for Australia, other regions I'm not sure), eToro will hedge by doing a similar exact transaction with another third party broker. This is covered in their PDS.

Hmm, I found the info about getting dividend in Etoro, thanks alot for your advice

https://www.etoro.com/customer-service/help...-pay-dividends/

You're welcome. All the best to your investing in eToro.
One big tip is to always reload using BigPay. Instant deposit and very good exchange rate.

thanks again!!