Popular trading platform eToro has some big news to announce. For a price of 50 million US dollars, the Israeli company has now been able to acquire Gatsby, a newcomer in the fintech startup sector. This opens up the US market more and more.
eToro targets the US market
As TechCrunch reported, the plans to buy eToro were finally approved by the responsible US regulator, FINRA. Thus, the Israeli company is not only successful in developing the eToro brand. In addition, the trading platform is now expected to experience greater success, especially in the United States. Thus, the popular financial services provider remains true to its strategy. After all, the company has already acquired smaller Western service providers from time to time in recent years to grow steadily. As far as rumors go, there has even been speculation about a purchase of the RobinHood platform in the meantime. It was the victim of a cyber attack last November which caused a sharp drop in its value. With Gatsby, eToro has now caught a big fish with a promising concept. It is therefore mainly aimed at young investors who are interested in simple trading of shares or ETFs. The success of the app spoke for itself.
The competition for young customers
Unlike other fintech companies like Klarna, which has struggled with a miserable stock market situation for months, Gatsby is considered a flagship startup. Especially in the USA, the platform has benefited from many young customers. According to Yoni Assia, CEO of eToro, this promising market position should allow the Israeli company to grow even more. Furthermore, this purchase clearly shows that younger customers are becoming more and more sought after in the trading platform’s space. Meanwhile, competition between different service providers has become even more intense. Given the negative headlines that eToro’s competitors are currently making, the timing could hardly be better. For example, the fintech bank N26 faced serious allegations of money laundering a few months ago.