Social investing network, eToro, has announced its partnership with the European digital wealth manager, Moneyfarm, to provide its UK customers with a stocks and shares Individual Savings Account (ISA).
Moneyfarm will provide the technology platform, it will also create and manage the investment portfolios as well as manage customer relationships. However, those who sign up will be able to see their ISA balance displayed with their eToro portfolio. The money held in the ISA will also count towards eToro’s Club programme, allowing clients to take advantage of benefits from reaching different tiers in the programme.
According to the official announcement, customers will be match with the correct portfolios, managed by experts, based on a risk rating.
eToro also noted that the launch of the ISA solution will be based on “a phased approach” and more products will be integrated in the near future.
Dan Moczulski, UK Managing Director, eToro said:
We may be a global platform but we are constantly looking for ways to evolve our local offering, and the addition of an ISA proposition is a perfect example of this dual approach. This will provide more than three million registered clients in the UK with a tax-efficient wrapper for investing, and given the significant upcoming changes to the Capital Gains Tax threshold, we felt it was more important than ever to provide this option for customers.
eToro UK clients will now have the convenience of being able to open a Stocks and Shares ISA with Moneyfarm via our app, while continuing to use the eToro app to invest in a range of assets from stocks and crypto to commodities and ETFs. We will continue to build our ISA offering over time and we look forward to seeing how our clients respond.
eToro‘s collaboration with Moneyfarm follows the launch of a new portfolio named SocialSentiment that provides retail investors with exposure to US-listed firms with strong environmental, social, and governance (ESG) practices.
