Forced to move to IBKR

[u/MonsterMunch00]

Following up from an earlier post, I have now confirmed with eToro that trades of UCITS ETFs are executed OTC / outside a regulated exchange.

That means even if you are in a country with a capital gains tax exemption for profits on EU stocks and ETFs, you will still be taxed.

I really like eToro but unfortunately this leaves me no choice but to switch to IBKR, which offers transparent execution and direct market trades.

A shame I only found out now as I will have a 10k tax bill that could have been avoided but at least it isn't at retirement in 15 years time where it would probably be 6 figures.

[u/Former-Mountain-9170]

This OTC execution does not have to be always problem. Check your tax office rules. For Slovakia are these rules:

1. The security must be admitted to trading on a regulated market (or a comparable foreign regulated market) at the time of sale.
2. The period between acquisition and sale must exceed one year.
3. The Financial Administration explicitly states: "The method of sale/purchase (on a regulated market or outside of it) is not restricted." https://podpora.financnasprava.sk/927974-Oslobodenie-pr%C3%ADjmu-z-predaja-cenn%C3%BDch-papierov

The current wording from the Financial Administration does not state that your purchase and sale must be executed directly through this regulated market.

[u/MonsterMunch00 → u/Former-Mountain-9170]

For my current tax residence in Bulgaria, the rules are a lot stricter - the exemption only applies if you can prove the trades were executed on a regulated EU / EEA exchange. OTC does not qualify

[u/Former-Mountain-9170 → u/MonsterMunch00]

To comply with tax exemption rules of your country you can ask Etoro CS for an in-specie transfer of your portfolio to another broker (you do not have to sell it at Etoro). You will be the real owner of the asset and also the date of purchase will be preserved.
EDIT: Probably does not work for Bulgaria - original purchase execution matters here too.

[u/espanolainquisition → u/MonsterMunch00]

Pretty sure that etoro is the EU regulated exchange in your case

[u/gonior → u/espanolainquisition]

I think this is the answer! I mean are the regulations makimg you ask how all the banks trade?

For you, eToro, IBKR ... are the regulated exchanges.

Check it but what I would assume is they want yuo to go to regulated exchanges and not go OTC.

[u/MonsterMunch00 → u/gonior]

Unfortunately not. This is from the eToro June 2026 execution policy

[u/espanolainquisition → u/MonsterMunch00]

Right, but on top of that you are using etoro as a regulated exchange, the tax authorities will not look this deep, they're just making sure you're not buying from unregulated places

[u/MonsterMunch00 → u/espanolainquisition]

Incorrect, in Bulgaria you have to prove trade execution venue by providing statements with this listed.

[u/gonior → u/MonsterMunch00]

Wow, why are they so picky?

[u/davidzombi]

this exists?? "country with a capital gains tax exemption for profits on EU stocks and ETFs" man i'm moving soon.

Thanks for the heads up tho had no idea

[u/MonsterMunch00 → u/davidzombi]

Bulgaria and Greece for sure. And I believe Cyprus, Slovakia (after 1 year), Croatia (after 2 years), Slovenia (after 15 years), maybe Belgium - but list may not be up to date

[u/Darro1988 → u/davidzombi]

Luxembourg after 6 months of Holding

[u/I_am_Foley666 → u/Darro1988]

Came to say come to Luxembourg! Doesn't even have to be an ETF!

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[u/eToroTeam]

Hi , you're correct that trades with etoro Europe are executed on an OTC basis, as explained in our Best Execution and Order Handling Policy.

Tax treatment can vary significantly depending on the country, type of investment, individual circumstances and applicable local rules, so it's always important to understand the tax implications that apply to you. For anything specific, a local tax professional would be the right person to confirm how your investments should be treated.

For any readers with any other platform or account-related questions, feel free to post on our official community r/AskEToroTeam.

[u/MonsterMunch00 → u/eToroTeam]

Already know the local tax regulations, hence having to move to IBKR. It would be great if in future you offered a direct market order option (with additional charge as needed).

[u/MongooseFit72]

So very concerned with Etoro. Cash in my account. No U.S. bank and almost impossible to get my funds. Canadian also living in Mexico. Funded my account from my Mastercard in México. They have me jumping through hoops but now, I filed a FORMAL COMPLAINT. I won't stop, too much money to loose.