Ireland now has eToro, the largest social trading platform. More than 20 million customers can trade commodities, currencies, ETFs, equities, indices, and cryptocurrencies on this platform. It offers commission-free stock and ETF trading, a sleek and easy-to-use site, and you may emulate other investors.,On the negative, the platform only runs in USD, thus you’ll be charged currency conversion fees (unless you deposit in USD). If you don’t buy the underlying asset, you’re investing in CFDs, not genuine stocks. Using eToro in Ireland is legal and eToro can operate in Ireland without any restrictions from the Central Bank.,Most of the time, this is the first question that comes to everyone’s mind, and I entirely get that! As investors, we shared this concern.,eToro has three safety layers:,eToro holds your securities in a segregated account. When you buy a non-leveraged stock or ETF, you acquire an asset that is deposited in a custodian bank. If eToro fails, you can transfer your securities to another broker.,As an Irish investor, you open an account through eToro (Europe) Ltd, which is regulated by the CySEC (CySEC). It must maintain membership in the Cyprus Investor Compensation Fund (ICF), which covers up to €20,000 per client per account.,eToro partners with Lloyd’s of London to offer free 1 million Euro insurance. Every eToro investor is covered when they open an account.,Financial products include:,Note: Deposits and withdrawals in EUR incur a currency conversion fee. Bank transfers (from your EUR account) cost 0.50 percent. Withdrawals from eToro cost 0.50 percent. You can use Revolut to avoid these conversation fees.,eToro earnings must be taxed and you must file taxes even if you earn nothing as eToro doesn’t collect government taxes for you. IT, USC, and PRSI apply to trading income, and capital gains tax applies to selling shares.,First, I’ll discuss capital gains tax, or CGT, which is a tax on gains from selling stocks, bonds, or property.,Online stock sales are taxed like regular investments and property. You must pay capital gains tax no matter how you trade them. Profits are 33% taxed. If you sell a share through eToro and make a profit, you must pay 33% on the gain. If you buy a share for €10 and sell it for €20, you’ve made a €10 gain and must pay 33% tax.,eToro income is mostly subject to CGT. eToro dividends are subject to income tax. Normal Income Tax rules apply to this income. Rates are 20% and 40%.,Universal Social Charge applies to eToro income (USC). USC is a total-income tax. Standard USC rates for 2019 are 0.5% of the first €12,012, 2% of the next €7,862 @ 2%, 4.5% of the next €50,672, and 8% of any remaining balance.,”Reckonable income” includes trading, professional, and investment income. PRSI is 4%. Larger incomes will be taxed at the highest rate of 52 percent – Income Tax + USC + PRSI.,eToro is a solid option for any Irish investor, beginner, intermediate, or professional and the company is growing to boost its reputation and customer base.
