Online broker eToro’s Australian chief executive Robert Francis has defended the Israeli-based trading platform’s aggressive spending on marketing and predicted further consolidation in the fiercely competitive sector this year.
Just months after deal talks collapsed between two of eToro’s rivals in Australia – ASX-listed SelfWealth and prominent online broker Stake – Francis said he expects to see further corporate activity in the crowded industry as the fittest survive and the weakest falter.
“There’ll be some mergers in the coming year or so because it is a very competitive market and it’s becoming very difficult for a lot of brokers to survive,” he told Capital Brief.
eToro is one of the most visible financial services brands in Australia and boasts an annual marketing budget estimated in the industry to be north of $20 million. Its logo was previously emblazoned on the Wallabies kit and is today seen on the jerseys of every team in the A-League.
The aggressive approach has helped the firm amass 1.5 million accounts in Australia since it launched seven years ago. Yet only 124,000 of those, or 8%, are funded accounts that have executed trades, according to the company.
