Trading platform eToro, a rival to Robinhood Markets, plans to go public via a merger with a blank-cheque company led by serial dealmaker Betsy Cohen.
The agreement with FinTech Acquisition Corp V values the combined company at about $10.4 billion, according to a statement on Tuesday. The companies are raising about $650 million in equity to support the deal.
Investors in the equity transaction included ION Investment Group, Softbank Vision Fund II, Third Point, Fidelity Management & Research and Wellington Management, the statement shows.
The company became a member of the US Financial Industry Regulatory Authority, or Finra, in the last year and is expected to start providing stock-trading services in the US in the second half of 2021, according to the statement.
Founded in Israel in 2007, eToro has 20 million registered users in dozens of countries, according to its website. It expanded into the US in 2018.
In the past year, brokerages have seen a surge in retail investors, who made up about 20 per cent of US equity trading in 2020, according to Bloomberg Intelligence data. One of the major beneficiaries has been Robinhood, the California-based brokerage that eToro will compete against as it seeks to grow in the US.
Robinhood has attracted increased scrutiny from watchdogs and politicians over the past year, including for how it attracts users and for its customer service practices.
“As we grow our business I think we understand the level of responsibility that we have for customers to understand the importance of risk management and education on the platform,” eToro chief executive Yoni Assia said in an interview.
Mr Assia also said that the company will consider adding options trading to its platform.
Like its rivals, eToro offers zero-commission trading. Unlike US firms, eToro doesn’t make money by customer orders to trading firms that fulfill them in a business called payment-for-order flow, a practice that is prohibited in Europe. Instead, eToro primarily pockets a spread between the price its pays for securities and the price it passes along to customers.
Mr Assia said the company will keep its options open on new revenue streams as it expands its US presence.
It also brands itself as a social trading network, where investors can share their opinions and market exploits, and copy bets made by the best performers on the system.
“eToro is a social investment and social trading company where people actually learn, not a game where you trade as much as you can and then go – bingo,” said Ms Cohen, chairman of Fintech Acquisition Corp V.
The special purpose acquisition company raised $250 million in December. Ms Cohen, its chairman, has been involved with several blank-cheque companies, including one taking boutique investment bank Perella Weinberg Partners public.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
- Sellers should focus on providing high-quality used goods at attractive prices to buyers.
- It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
- Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
- Be creative and look around your home for valuable items that you no longer need but might be useful to others.
The specs: 2018 Audi Q5/SQ5
Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder / 3.0L, turbocharged V6
Gearbox: Seven-speed automatic / Eight-speed automatic
Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
Torque: 370Nm @ 1,600rpm / 500Nm @ 1,370rpm
Fuel economy: combined 7.2L / 100km / 8.3L / 100km
MATCH INFO
Manchester United 1 (Fernandes pen 2') Tottenham Hotspur 6 (Ndombele 4', Son 7' & 37' Kane (30' & pen 79, Aurier 51')
Man of the match Son Heung-min (Tottenham)
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MATCH DETAILS
Barcelona 0
Slavia Prague 0
Match info
Bournemouth 0
Liverpool 4 (Salah 25', 48', 76', Cook 68' OG)
Man of the match: Andrew Robertson (Liverpool)
Company%20Profile
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