Israeli
fintech eToro has established a local subsidiary in France, following a similar
strategy to competitor XTB which recently expanded into the local long-term
investment market. The move confirms the industry-wide shift toward capturing
passive investors beyond traditional trading services.
eToro Moves to France, Opens
Subsidiary Called “Wealth”
eToro
announced that it has opened a physical office in France. This move coincides
with the establishment of a local branch, eToro Patrimoine, which can be
translated as “eToro Wealth,” located on Boulevard Malesherbes in
Paris. The new entity has its own website
and was created to provide French retail investors with access to retirement
savings plans, Plan d’Épargne Retraite (PER), and life insurance contracts
developed in collaboration with Generali, a major player in the French
insurance market with €19.2 billion in revenue last year.
“Introducing
saving solutions for eToro’s users in France and opening a local subsidiary
underscore our commitment to strengthen our footprint in a key market for the
business,” said Julien Nebenzahl, President of eToro Patrimoine.
The new
offerings allow users to choose between managed portfolios with varying risk
profiles or self-directed options where investors can build their own
allocations from over 500 investment vehicles including euro funds, mutual
funds, ETFs, stocks, and dated bond funds.
“We
are delighted to support eToro, a globally recognized investment player, in the
launch of its subsidiary in France and its savings offering,” Corentin
Favennec, Partnerships Director at Generali Patrimoine, added.
Industry Expands Beyond
Active Trading
This move
represents eToro’s continued push into more passive, long-term investment
products across Europe. In
March 2023, the company partnered with Moneyfarm to provide UK clients with
tax-efficient Individual Savings Accounts (ISAs), targeting the same segment of
retail investors seeking long-term wealth building options.
The
strategy mirrors that of competitor XTB, which
recently launched French PEA (Plan d’Épargne en Actions) accounts in April
2025, following similar tax-advantaged account offerings in
the UK and Poland.
The PEA market in France is substantial, with over 7 million active accounts as
of late 2023, compared to fewer than 30,000 active CFD traders in the country.
Although
eToro offers a different product than XTB (PER vs. PEA), they are very similar.
The goal is to support retirement savings, with differences in tax benefits,
investment options, withdrawal conditions, and contribution limits.
In May, IG
Group (LSE: IGG) also introduced
a new “passive” feature for its UK customers, offering an interest rate of up
to 8.5% on deposited cash. This rate is more than double the current 4.25%
base rate set by the Bank of England.
Recent French Market
Developments
The launch
follows several recent product updates for eToro users in France. Last year,
the platform enabled trading in local currency for eToro Money EUR accounts and
expanded its offering of French-listed stocks from Euronext Paris. French users
also received access to a French IBAN for more localized service.
For both
the PER and life insurance products, initial investments start at €300, with
scheduled payment options available. As part of a launch promotion, management
fees (normally 0.5-0.8% for PER and 0.75% for life insurance) will be waived
for 2025.
eToro,
founded in 2007, currently serves 40 million registered users across 75
countries. The company debuted on the U.S. stock exchange last week and
was met with a warm reception from investors. According to analysts, it has
sparked hope that the IPO market can still be active.
This article was written by Damian Chmiel at www.financemagnates.com.
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