From a recent report by the Russian Kommersant paper, it has been announced that eToro will be opening a Russian office to penetrate the newly regulated Forex Market. eToro’s business model of combining trading, mobile and social, the brokerage has advocated an online global marketplace, where traders can even invest in portfolios of other traders. Having a client database over 4 million users in more than 140 countries, the online platform provider for trade currencies, indices, CFD stocks and commodities, will achieve another milestone soon.
The Head of eToro Russia, Mr. Paul Salas made this new development publicly through the Russian newspaper Kommersant. In his statement, Mr. Paul Salas explained the underlying motive for opening the new office in Russia: "Russians are still few - less than 5% of our client database. But the potential of the market is high, we hope to multiply the Russian audience soon with this extension."
On the outlook, eToro has reserved a substantial marketing budget for the Russian market, alongside the fact that the brokerage will be opening the new office. Reportedly, the plan entails a marketing allocation of $3 to $4 million, while it is forecasted that the new market will become profitable over a year and a half. With earnings being raised through focusing on spread, the broker plays on the volume element of the market.
Be as that it may, with the announcement of launching a new office in Russia, the timing could not be more perfect. Since the brokerage has been gained a beneficial financial injection back in November 2014. During that time, it was made publicly known that the Russian Sberbank together with the Chinese Ping An were part of a group of international investors that financed eToro with a $27 million injection. However it did not subside here, as about a month ago eToro received another funding from Commerzbank, adding to the tally a sum of $12 million.
From these financial fundings, the broker has now made it intentions clear as eToro opens Russian office for the purpose of penetrating the large market. Alongside this news, last month the brokerage also launched the new stocks trading platform. Offering its traders to execute real time full CFDs trading.