UK Shares Can Be Bought Without Paying Stamp Duties Through eToto
eToro on Wednesday announced that it has expanded the services it offers customers, allowing investors to trade equities directly. The trading platform, best known for being a provider of CFD trading, has also said that it will absorb the cost of stamp duty on its customer’s share purchases in the UK.
This means that for the first time investors can hold shares, cryptocurrencies, ETFs and thousands of other financial assets all in one portfolio. eToro will charge no ticket or management fees to users buying shares. The pricing is highly competitive and transparent as fees are included in the spread which is just 0.09% per side.
In the UK, stamp duty is charged at 0.5% on transactions over £1000 GBP. With other investment platforms, a £10,000 GBP investment would incur a £50 GBP charge in stamp duty in addition to the platform’s own fees and charges. eToro will absorb the UK stamp duty, meaning the 0.5% charge will not be paid by users. They estimate a total fee for investing in £21 GBP. The platform has not committed to how long it will absorb the UK stamp duty for, so this could be subject to change in the future.
Yoni Assia, Founder and CEO of eToro said:
“Price really matters and we think ticket and management fees are exactly the kind of old world practices that put many people off investing. That's why we're not charging them, and absorbing stamp duty to boot. We're making it easy to invest, and that means rethinking some of the outdated practices investors might be used to from other investment providers. It also means we'll continue to expand the range of assets we make available to our 10 million users.”
Until now eToro has enabled users to invest in shares via a ‘contract for difference' (CFD), meaning they have the option to apply leverage to their investments, or even take short positions. Now, users also have the option to own the underlying asset.
More About eToro
eToro empowers people to invest on their own terms. The platform enables people to invest in the assets they want, from shares to cryptocurrencies to commodities. They are a global community of more than ten million people who share their investment strategies, and anyone can follow the approaches of those who have been the most successful. Over the last 10 years, eToro has been gradually expanding the range of assets it enables users to invest in. Thousands of shares are now available across European, Asian and US markets with more due to being added to the platform in the coming months. In addition, there are 10 cryptocurrencies available on eToro, and further coins will be added throughout the year.