eToro expands the list of assets that Brazilian users can invest in
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eToro has expanded the list of available assets to investors in Brazil. The users of the social trading network that joined the platform on or after February 28, 2022, were only allowed access to cryptocurrency trades priced against the Brazilian real.
eToro expands the list of assets available to Brazilian users
eToro is a social trading network based in Israel. The platform has become increasingly popular with copy trading, allowing new traders to copy the trading strategies used by expert traders. eToro supports a wide range of crypto assets, but last year, it limited Brazilian users to cryptocurrency positions.
Under the newly updated policy, eToro will allow its Brazilian clients to invest in other financial assets such as stocks, exchange-traded funds (ETFs), and contracts for difference (CFDs). However, these users will not access forex CFDs.
The platform published the update on its website, saying that “all products and services in Brazil are now open.” However, the copy trading platform noted that there would be an exemption for some currency pairs.
The company further noted that it would not support forex CFDs in compliance with the regulatory requirements in the country. However, it added that if the regulatory framework changed, it would be onboarding the product.
“All products and services in Brazil are now open (the only exception is currency pairs, which are disabled for this region. Also, now you’ll be able to use the amazing CopyTrading functionality and invest in our great Smart Portfolios if you wish to,” the statement said.
While the copy trading feature will be available to Brazilian users investing in the growing list of financial assets, they will not be using the tool to copy the forex positions of other traders. The exemption is also in a bid to comply with the regulatory framework in the country.
The expansion of services available in Brazil comes a few days after the social trading platform launched a smart trading portfolio for its customers in the United States. This portfolio is powered by artificial intelligence, and it is also labeled as the “InvestorAI-US. The tool allows retail investors in the country to have exposure to the stocks of 12 of the largest growing companies in the US.
Global regulatory framework for CFD trading
The exemption of forex CFDs trading in Brazil by eToro sheds light on the different global regulatory frameworks for CFDs. CFD trading is banned in several countries, such as Belgium. However, it is approved in most European countries but under strict regulations.
The UK supports CFD trading on a variety of assets. However, in 2021, the Financial Conduct Authority banned CFD trading for crypto assets. In the US, CFD trading is not permitted, but forex trading is allowed.
In Australia, CFD trading is legal, but the market is under heavy restrictions by regulators. In 2021, the Australian Securities and Investments Commission downgraded the allowed leverage from 500:1 to $30:1.
