The trading and investing platform eToro, announced today (Thursday) an expansion of its UK stock offerings through a new partnership with the London Stock Exchange (LSE). The collaboration will more than double the number of LSE-listed shares available to eToro's users, including its 3.8 million registered British investors.

eToro Expands UK Stock Offerings Through London Stock Exchange Partnership

The platform plans to add over 1,000 new UK stocks in the coming months, supplementing the 400-plus UK companies already accessible. This expansion aims to provide users with a broader range of investment options, including smaller stocks previously unavailable on the platform.

“Our new relationship with the London Stock Exchange allows us to offer more than twice as many UK stocks,” Dan Moczulski, UK Managing Director at eToro, commented. “As we continue to enhance the local trading and investing experience for our users around the world, relationships with exchanges such as the London Stock Exchange will be crucial.”

The partnership also promises to deliver higher-quality pricing data to eToro users, potentially enhancing their ability to make informed investment decisions. This improvement aligns with eToro's recent efforts to localize its offerings for the UK market, including the launch of an ISA product last year and the gradual rollout of direct investments from GBP eToro Money accounts.

“We are delighted that eToro has chosen London Stock Exchange data to power their trading and investing platform, delivering better outcomes for eToro users looking to invest in UK-listed companies,” Geoff Hammond, Head of Market Data at the London Stock Exchange, added. “We continue to invest in our market data products to ensure investors have access to the best information available when investing in our markets.”

This is another product change following the introduction in May of the “Live Trades” feature, designed to provide valuable insights into transactions made by experienced traders using the platform.

Investors Want to Grow Capital Locally

The expansion comes at a time when UK retail investors are showing strong interest in locally-listed equities. According to eToro's latest Retail Investor Beat survey, UK-listed stocks are the second most-held asset class among UK retail investors, surpassed only by cash holdings. The survey also revealed that UK retail investors are more likely to favor the UK market for long-term returns compared to other global markets.

“For a long time we’ve offered leading global market coverage but we are now adding more depth in local markets,” added Moczulski.

A previous study by eToro revealed that retail investors are moving away from tech giants and diversifying their portfolios with other companies. The study found that 27% of retail investors plan to decrease their investments in the “Magnificent 7,” a group that comprises leading tech companies such as Amazon, Apple, Microsoft, Meta, Tesla, Nvidia, and Alphabet.

Meanwhile, eToro has entered into a collaboration with SDA Bocconi. This alliance is designed to enhance eToro's role in Italy and Europe's fintech landscape.