Why I Sold My Last Stock & Switched to eToro

🟢 ETORO
One Stock Broker For Everything You Need. Very user-friendly
med.etoro.com/...
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation. This video should not be construed as investment advice.
🔵 INTERACTIVE BROKERS
My personal broker of choice where I hold the majority of my investments
smartmoneywith...
After years of investing, I'm finally saying goodbye to my last individual stock-Pfizer-and transitioning to a more diversified strategy. In this video, I’ll share why I decided to move away from individual stocks like Pfizer and switch to the S&P 500 ETF. Plus, I’m taking you through my journey of transferring brokers from Interactive Brokers to eToro.
This video isn't just about my choices-it's about the thought process behind them, the lessons learned, and how you can decide if individual stock picking or ETF investing makes the most sense for your portfolio. If you’re considering moving brokers or changing your investment strategy, this might be the nudge you need.
What You’ll Learn:
Why I chose to sell Pfizer and why now is the right time for me.
The benefits of switching from individual stocks to ETFs like the S&P 500.
My experience with transferring brokers, from Interactive Brokers to eToro.
Disclaimer: I am not a financial advisor. This video, and the ideas presented in it, are for entertainment/educational purposes only and should not be construed as financial or legal advice. You, and only you, are responsible for your investment decisions. This video, post & article should not be construed as investment advice. Capital at risk.
Affiliate Disclosure: This description contains some affiliate links, meaning that I may earn a small commission if you click through and use these links, at no additional cost to you.

[@SmartMoneywithKai]

🟢 ETORO One Stock Broker For Everything You Need. Very user-friendly med.etoro.com/B12087_A122937_TClick_Syt.aspx eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation. This video should not be construed as investment advice. 🔵 INTERACTIVE BROKERS My personal broker of choice where I hold the majority of my investments smartmoneywithkai.com/ibkr

[@majax518]

Is this April Fool’s?

[@SmartMoneywithKai]

Why would it be? That I sell Pfizer or started adding eToro to my list of brokers? 😉

[@majax518]

i’d say Etoro, my friend had a big position on BTC and Etoro sold his position after a 100% of gains 😅

[@SmartMoneywithKai]

I see, so your friend used it and not you, ok. And also, this would most likely be because he placed a take profit order inside the app which is very easy so the broker sells the position to realise the gains. Otherwise they would not be able to sell it automatically without any instructions. Or he used margin and traded CFD on another position where he got liquidated in which case they can take an investors other assets to protect their downside as it is leverage, i.e. they loanded him money, but that's normal practice and they make it very clear that CFD trading is very risky and I don't do that. I buy the actual asset in the case an S&P 500 ETF. So yeah, struggling to see where the issue with this broker is 😉 But hey, obviously there are many other great options out there if you prefer them, that's the beauty of investing and I like to review a lot of them and choose the brokers that benefit me the most. Hope this helps. Cheers

[@vedransk5451]

Before I watch the video or read any comments...let me guess. It's either that he is getting sponsored by eToro or this is just plain click-bait.

[@SmartMoneywithKai]

Well it's not sponsored by eToro, I would clearly announce that also legally needed, I do however have an affiliate link for it like for all the other brokers and tools I use, but this should hardly come as a surprise to you if you been on KZbin for a while, ultimately creators make gotta make a living too and I personally only talk about tools I also use myself. And clickbait? I did exactly what it said on the tin 😉 Cheers ✌️

[@Novartus]

…clickbait 😂 he not moving to etoro he just will use it on the side like trade121. He’s not trusting them with the big bag 😅

[@SmartMoneywithKai]

@@Novartus Haha. Good point. I always like to start building a small position and then over time build it up if I like it…or not. Just sharing my own experience as I go along 🙌

[@cryptounicn9542]

I just closed my etoro account last month 😅 was my first. I like the social aspect to it but I’m All in IBK now. Only buy FTCE wholeworld. Still don’t get why people would choose S&P over FTCE.

[@SmartMoneywithKai]

Indeed, IBKR is great for long-term investing, and FTSE All-World (which is I guess what you meant) is a strong pick for global exposure. The S&P 500, on the other hand, focuses more on the biggest U.S. companies, which some people prefer for its performance track record and exposure to key industries. It really depends on whether you want more global diversification or are bullish on the U.S. market. Both are solid choices-it just comes down to personal strategy, in the past the S&P was stronger, but nobody knows what the future will bring 😉 Why did you close your eToro account?

[@redSTORM_]

Worst broker app so far

[@SmartMoneywithKai]

Have you tried them yourself? What don't you like about them?

[@albertolopez1223]

Kai, I respect your videos and your knowledge sharing. But let’s be honest, I would never recommend eToro. The fact you don't own the shares and you cannot migrate to another broker… is a no go for me.

[@SmartMoneywithKai]

Hi Albert, thanks for sharing your opinion, appreciate that, but you might have the wrong facts here. You might be talking about CFD trading. When you open a non-leveraged buy (long) position on a stock or ETF, which is what I do, you are investing in the underlying asset and the stock is purchased and held by eToro on your behalf. This also applies to fractional shares. As for the transfer to another broker, that's correct, for now they don't, but many don't sadly. If that's a red flag then for sure, don't use it, but as I am spreading across different brokers it's fine for me given all the benefits and perks I get in return 👌 Cheers

[@lawrencer25]

You have no idea what your taking about 🤦🏽‍♂️🤦🏽‍♂️🤦🏽‍♂️🤦🏽‍♂️ Been with Etoro a very very long time Diamond member.. Brilliant company 🎉🎉🎉🎉🎉❤❤❤❤

[@SmartMoneywithKai]

Hi Lawrence, that's amazing to hear and wow, Diamond member? You Sir have an impressive portfolio 👏 Hope to get there eventually 😉 Did you get the airport lounge access and invited to any cool events? Super excited to get to this level eventually 🙌 Thanks for sharing.

[@NightElff88]

@@SmartMoneywithKai That's the thing, they intentionally mix CFDs with real stocks in the same account. There are so many pitfalls, I'm speaking from experience. For a long time the had the following trap: you buy a stock - so far so good. Then you decide to sell it - oops, instead of selling the stock, you have opened a cfd SHORT position. All of my friends that have used eToro report that they have accidentally opened a CFD position. I regret I used them in the past, but I've learned my lesson.

[@SmartMoneywithKai]

Hi and I agree, this could be a potential pitfall, so I will surely mention this in my review, but if you don't use leverage you will not open a CFD position, not sure when you last used the app, but now it's very clearly indicated if it's a CFD or not.

[@salomejalutsyk3540]

Hey, what is your opinion about Lightyear? You talked about it, but it seems you don't use it? And why SPY5 and not VUSA?

[@JoystickQuebradooficial]

VUSA includes SP500 actually it’s the best way for EU to get them. Vanguard +s&p500 is vusa

[@SmartMoneywithKai]

Hi and I like Lightyear as a broker I think they are great, but they only operate in Europe for now so for me does not really work now having my residency in the UAE plus for now they don't offer SPY5 only VUSA. I made a video about why I switched from VUSA to SPY5 in the past, mostly due to lower fees 0.03% vs 0.07%, that's it, but I still recommend Lightyear for many as it has arguably one of the cleanest interface and app experience 👌

[@salomejalutsyk3540]

@@SmartMoneywithKai Thank You for your answer! ♥️

[@SmartMoneywithKai]

My pleasure, anytime 🙌

[@rokpajk2571]

If you sell stocks on a broker and buy a different stock do you still pay tax even if the money stayed on the app/broker?

[@SmartMoneywithKai]

Hi and yes, technically that's a taxable event so you would need to pay taxes on that. Not of course if you sold it with losses like I did on the video, those you can even use against your gains to reduce your tax bill 👌

[@oscartbow2]

For you is there any difference between accumulating or distributing etf? Why should you get the distributing one with it is taxed more?

[@SmartMoneywithKai]

Hi & great question. The main difference between accumulating and distributing ETFs is how they handle dividends. Accumulating ETFs automatically reinvest dividends back into the fund, while distributing ETFs pay dividends out to you. Many countries though do not differentiate between the two taxation wise, meaning even if it's reinvested, it counts as dividends and you need to pay tax on it same as if it was paid out to you. If you are however living in a country where one has better tax treatment than the other, then definitely go for that one. In my case there is no difference and I like the feeling of getting paid 😉 It really depends on your personal situation and investment strategy, there is no right or wrong, otherwise everyone would invest only in one and not the other, but that's clearly not the case. Hope this helps. Cheers

[@NightElff88]

You deserve better. We deserve better. I find it hard to believe you are switching to eToro, can't imagine there's worst option. Have you noticed that all KZbin creators that promoted eToro in 2021 no longer create content?

[@SmartMoneywithKai]

Hi, no I haven't noticed and haven't followed them. I am happy with them so far, but of course will keep using my others as well. Same way how I have 3 banks and 2 crypto exchanges, as I am always preaching, all about diversification 😉 What don't you like about eToro?

[@harddrive6603]

@@SmartMoneywithKai a little counterparty risk in Israel can't be that bad right?

[@SmartMoneywithKai]

While a bit of sarcasm is always appreciated, let’s clear things up. eToro safeguards client funds by holding them in segregated accounts, separate from the company’s assets, ensuring your money isn’t used for anything else. They operate under strict regulations from financial authorities in the UK, Australia, and Cyprus, which means your funds are protected by some of the world’s top regulators, not geography. So, whether eToro was founded in Israel or Mars, your money is as safe as with any other solid broker. Full details on their fund protection are here www.etoro.com/customer-service/account-and-money-protection/

[@doh35]

I tried etoro as my first ”no comission” broker back in 2021 just to notice their spread was huge. And no I didn’t buy CFDs but real shares like Apple and some other very liquid stocks.

[@SmartMoneywithKai]

Hi, every broker has spreads, and that’s pretty standard. Last time I checked, eToro’s spreads weren’t significant, especially for real shares, and they actually offer no spread fee on ETFs, which is a big plus if you're into passive investing. For me, it was still cheaper than the commissions I paid with IBKR. You can check out their transparent fee structure here www.etoro.com/trading/fees/ Cheers

[@doh35]

@@SmartMoneywithKai ​​⁠looks like their fees have gone in a right direction, just like you told. But hey, that’s why I’m following your channel to get all this information easily 😊. Thanks again Kai!

[@SmartMoneywithKai]

Very happy to hear that, cheers 🙌

[@panoskanelis4870]

How do u track your portfolio having so many brokers?

[@SmartMoneywithKai]

Great question. 2 ways. One using getquin portfolio tracker. And two using my own net worth tracker, where every month I write down the total value of all my various portfolios. I don't like checking daily anyways. Cheers

[@MigueliTO0ooo]

eToro ? No not you Kai, you deserve way better ! Curious to see your next video about them. All the best, I hope you enjoy your best life in Dubai ! Grtz

[@SmartMoneywithKai]

Hi mate, thanks a lot and I will of course continue to use my regular other brokers as well, but so far been really loving the experience and not paid any fees on ETF buys nor on deposits via card which I have instantly, what's not to like:) Did you try them yourself? What did you not like about them? Cheers and greetings back from still hot but amazing Dubai 👋

[@MigueliTO0ooo]

I initially started investing with eToro. After educating myself further, I discovered other brokers that were more reputable. At that time, I recall that eToro was registered and regulated in Cyprus, with a focus on copy trading and CFD's. Also, stock transfer to another broker was impossible at the time. I'm not saying it's bad, just that there's many other better and more serious brokers. Grtz from Belgium with less sun 🤣

[@SmartMoneywithKai]

Thanks for sharing your experience. It’s true that eToro has a strong focus on CFDs and copy trading, but I don't use those features myself and while they are regulated in multiple jurisdictions, including Cyprus, they’ve expanded quite a bit since then. Stock transfers are still a challenge, which can be a downside for some. That said, they’ve become more competitive with real stocks and ETFs, and their no-commission offering appeals to a lot of investors. But I agree, depending on what you’re looking for, there are other brokers that might suit your needs better. Cheers 👋

[@VerticalBytes]

Etoro is fine..was my first real broker and I still have primary portfolio on it ... I dont get it but only on Etoro the dividends from US, Europe companies are landed in your account on morning pay day.

[@SmartMoneywithKai]

Great to hear and yes so far I am also very happy with them. Haven't received any dividends through them yet, but sounds good to me 😉 Cheers mate

[@rzslo9084]

Can also add that you receive your dividend into your account for etfs on the ex dividend date not the payout date. So often i get my schd dividend a week before us investors haha

[@SmartMoneywithKai]

Love it 👌 Thanks for sharing 👋

[@arnaudborrens93]

Hi @smartmoneywithkai, I'm a fairly new watcher of your videos and I like them especially describing in detail the different platforms out there etc. However, for e-Toro it would be good to warn viewers on how to buy real ETFs (apparently you found a way) and not end up buying some CFDs of the ETF in question. Hopefully you'll go over this part in your dedicated video on e-Toro. Thank you again for all the time invested in testing brokers and teaching others about investing!

[@SmartMoneywithKai]

Hi Arnaud, thanks a lot for your kind words and for pointing this out. Absolutely, that's a great point which I will definitely mention in the review. In general though, unless you use leverage, you will buy the underlying asset, otherwise it's clearly indicated that it's a CFD, but I will make sure to point it out in the review 👌 Cheers

[@Lyricalink]

Why just DCA a little amount on Pfizer to low your Average buy price ?

[@SmartMoneywithKai]

Smart idea, but I just wanted to have it out of my portfolio and move on to be fair. Was this the best move, maybe not, DCA out maybe better, but it works for me 😉 Cheers

[@manon999stir]

Video that compering trading212 and etoro would be useful

[@SmartMoneywithKai]

Great idea 👌 Will keep that in mind for a future video, thanks. Seems people have a lot of wrong ideas & understandings about eToro, which I had initially as well, but now started seeing the perks & benefits it offers. Cheers

[@brunoreis3]

I would like this too, and compare the fees

[@SmartMoneywithKai]

Well noted mate 👌

[@Nobody-e6e]

Why not Lightyear with 0% commission on ETFS? Or Trade Republic?

[@SmartMoneywithKai]

Great options as well, but I moved to UAE and sadly they don't legally operate there :( Plus as I mentioned depositing for free & instantly via credit is awesome and the club membership perks are attractive too, but in Europe Lightyear & TR are great options 👌

[@Novartus]

I wouldn’t touch etoro…

[@SmartMoneywithKai]

You don’t need to, plenty of other options 😉 I really love the experience so far. Looking forward to grow my holdings there and get my own €1m portfolio insurance after certain club level. No fees. Easy interface. Very happy with it. But the great thing these days there are a lot of great brokers to choose from 👌

[@Novartus]

@@SmartMoneywithKai I believe that serious investors should opt for a reputable broker, such as your main broker IBKR, rather than being swayed by gimmicks like “club levels” or flashy marketing perks. If you’re serious about your money and investing for the long term, choosing a solid platform is key. The credit card direct deposit feature is a nice benefit, but it’s important to also address the downsides, like fees when withdrawing funds. I think your viewers would appreciate hearing both the pros and cons when you review something.

[@SmartMoneywithKai]

Hi and absolutely, I am all for pro's and con's which I have always given for all the platforms, there is no perfect one out there sadly:) And as I said the review will still follow where I go into all those aspects for sure. As for serious platform, they have been around over 14 years and have over 35 million users globally, makes it serious to me. They do have a lot of gimmicks which I don't use, but having those does not automatically make them 'less' serious it just gives different options. As for the club levels, I disagree, I think it's actually a very smart way to bind your investors long-term and reward those with larger portfolios, just like banks do as well for their top clients and the benefits are really nice. In Revolut I need to pay to get perks, here just invest, so win win. And you also get free withdrawals on higher levels, but I leave that for future videos 😉

[@harddrive6603]

The real question here is how much you got from eToro for that

[@SmartMoneywithKai]

As I mentioned before, I got nothing for it, except for the affiliate links which is common practice on KZbin and I do that with all the tools I use and I only talk about things I use myself and you will see how I will build up my portfolio there going forward so I literally walk the talk 😉 My question is, have you used the platform yourself? If so, what don’t you like about it?

[@SaifAli96]

You buy SPY5 on LSE, but UK charges Stamp Duty of 0.5% or?

[@SmartMoneywithKai]

Hi, actually, there’s no stamp duty on ETFs like SPY5 traded on the London Stock Exchange. Stamp duty typically applies to UK-listed shares, but ETFs are exempt. So when you buy SPY5, you won’t be charged the 0.5% stamp duty. Always good to double-check with your broker, but that’s the general rule. Cheers

[@ekaterina1793]

8:12 can you really use a credit card for top up? or did you mean debit?

[@SmartMoneywithKai]

Hi and yes you can, I used it myself. That’s why I said I really enjoy the platform, one of the many perks 👌

[@BlackGhostNL]

Partnership with eToro? ;)

[@SmartMoneywithKai]

Affiliate link yes, same as I have with all the brokers and tools I use yes, and I guess that’s not a surprise on KZbin 😉 But I only work with partners I use myself and would not put my own money there if I didn’t think it was a good platform 👌Cheers

[@Vidhal]

Great Video Kai!!!

[@SmartMoneywithKai]

Thank you my friend 🙌

[@ciko75]

Kai, you are bored:-)))

[@SmartMoneywithKai]

😂 Quite the opposite I would say 😉 Thanks for watching ✌️