FTCV - eToro pressed on concerns of 'conflict of interest' with retail clients article says

Marcela Vieira/iStock via Getty Images Ahead of eToro's (ETORO) combination with Betsy Cohen SPAC Fintech Acquisition V ([[FTCV]] +2.1%), The Times of Israel publishes a detailed report on the online trading firm's business model, digging into whether it has a conflict of interest with its retail customers. Specifically, the report hones in on the a complex financial product called a Contract for Difference, or CFD, an instrument that's illegal in some countries including the U.S. About 67% of eToro's retail investor accounts lose money on CFDs, the company warns on its website. And the company told The Times of Israel that most of its customers don't trade CFDs. While eToro started out as a forex trading platform, it eventually emphasized CFD trading, the article said. Elad Lavi, eToro's vice president of corporate development, said there's a conflict of interest related to leveraged CFDs, but told The Times of Israel that

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eToro pressed on concerns of 'conflict of interest' with retail clients, article says