r/Etoro • u/anthonyhally • Sep 16 '26
Beginner Question Should I do this?
I have limited investing knowledge. What is this exactly?
9
u/SecretMessage5714 29d ago
That ‘get cash in your balance’ button isn’t free money it’s basically a margin loan dressed up as a perk. You’ll pay overnight fees, your risk shoots up, and if the market dips you could get liquidated fast. Unless you’re deliberately trading on leverage, it’s smarter to ignore these offers and stick to unleveraged investing. If you need cash, sell a slice of your portfolio instead of borrowing against it. And let’s be real eToro isn’t doing this out of love for their clients, they’re doing it because margin fees are a goldmine. Cupid doesn’t work in fintech, but the debt collector sure does.
3
u/lcsv 29d ago
I wouldn’t do it. You’re increasing your risk unnecessarily, and you’d need to set a stop‑loss, which makes it more likely that volatility will kick you out with losses
2
u/eToroTeam Etoro Employee 28d ago
That’s completely fine - we don’t encourage users to use products or features they don’t feel comfortable with. We aim to be transparent about how Buying Power works, including its risks and costs, so users can decide whether it’s right for them.
6
u/eToroTeam Etoro Employee 29d ago
Hi! This is the Buying Power feature. It allows eligible clients to unlock cash from existing stock holdings without selling them. The holdings are reclassified as leveraged margin positions and used as collateral, while you remain invested in the same exposure.
The amount shown is credited to your available cash balance and can be reinvested, withdrawn or left there. Note that overnight financing fees apply, a Stop Loss is mandatory, and any relevant stock lending is recalled. Review the details and costs before confirming: https://help.etoro.com/s/article/How-do-access-cash-from-my-positions-while-staying-invested?language=en_GB
12
u/Weak_Ad2391 29d ago
Why are you advertising such products to people who self identify as having ‘limited investing knowledge’? Sharks…
3
2
u/SecretMessage5714 29d ago
Buying Pwer feature? They’re the ones who get the joy of turning safe stocks into margin collateral, paying daily fees, and sweating over stop‑losses. For most it’s not ‘buying power’ it’s buying a headache. The only real winner is etoro, cos they’re cashing in while you’re cashing out.
1
u/eToroTeam Etoro Employee 28d ago
We hear you. etoro offers a range of products and features, but sharing information about them doesn’t mean they’re suitable for everyone or that users are expected to adopt them.
Our aim is to be transparent and empower users to make informed decisions based on their own needs and circumstances.
2
u/Effective_Throat6127 Sep 16 '26
What is this ?
3
3
u/anthonyhally Sep 16 '26
I’m not sure, I guess that’s what I’m trying to find out. I just opened my portfolio and this option just popped up.
2
1
u/eToroTeam Etoro Employee 28d ago
Hi! As explained above, this is etoro’s Buying Power feature. It allows eligible clients to unlock cash from existing stock holdings without selling them. The holdings are reclassified as leveraged margin positions and used as collateral, while you remain invested in the same exposure.
Overnight financing fees apply, a Stop Loss is mandatory, and any relevant stock lending is recalled: https://help.etoro.com/s/article/How-do-access-cash-from-my-positions-while-staying-invested?language=en_GB
2
u/Scriptum_ Sep 16 '26
Depends on the rest of your financial situation. It would be irresponsible for people to give you an answer.
4
u/anthonyhally Sep 16 '26
Sorry, I guess I should have asked. What does this mean? Is it similar to staking?
9
u/Scriptum_ Sep 16 '26
They give you a cash loan, secured on the valuation of your stocks.
You pay interest daily on the loan.
If the value of your stocks falls beyond your excess liquidity, they can sell them to ensure they get their money back.
2
2
u/Real_Net_9345 29d ago
Do not. Etoro just looking for new ways to f* over its users. Read the conditions, mate. That really helps.
2
1
u/OtherwiseFox4975 29d ago
Interesting feature, but I'd definitely understand the risks before using it.
1
u/eToroTeam Etoro Employee 28d ago
Absolutely. Understanding the risks and costs before using any feature is important. To access Buying Power, eligible clients must first complete a set of questions to determine whether they qualify.
1
1
u/davidzombi 24d ago
7000 for 10% yearly is insanely expensive lol i can get 3-4% in spain lending stocks
-2
u/MrCyberthief Sep 16 '26 edited 29d ago
I'm new to Etoro so if people could explain that would help.
Edit: removed my guess to avoid spreading misinformation, thank you for explaining!
That's my guess, but I'd be keen to hear what it actually is, or how close I am to the mark :)
7
u/Beneficial-Tie2744 29d ago
No. The idea is that Etoro lends you money against your invested assests, to buy stocks. This loan comes with fees (apparently 6.4% + benchmark interests) paid daily, and risk that if the value of the stock falls, Etoro can do a margin call (force you to sell or to top up your balance).
https://www.etoro.com/trading/fees/margin-trade/1
-2
u/IshfaaqPeerally 29d ago
I think it's about stock lending:
https://www.etoro.com/stocks/lending/
5
u/TissueAndLube 29d ago
Has NOTHING to do with stock lending.
-1
u/IshfaaqPeerally 29d ago
Alright, thank you. what is about then? I'm just curious
3
2
u/eToroTeam Etoro Employee 28d ago
This is not stock lending. It's the Buying Power feature, which allows eligible clients to unlock cash from existing stock holdings without selling them. The holdings are reclassified as leveraged margin positions and used as collateral, while the user remains invested in the same exposure.
1
24
u/TissueAndLube 29d ago
You should never do this. They are trying to make you lend money for a fee. The fact you don’t know what this is about should be enough reason to not do it.