eToro to acquire Gatsby
On August 17, 2022, eToro announced that it had signed a definitive agreement to acquire Gatsby. According to Crunchbase, the transaction is valued at $50 billion and will be paid in cash and common stock. The acquisition is subject to regulatory approval, though TechCrunch reports that eToro has already received approval from FINRA to move forward with the acquisition.
No timeframe was provided as to when the acquisition would be completed.
|It offers commission-free options trading and account fees are on par with competitors.|
|Gatsby only offers options trading.|
|Customer support can quickly be reached in two ways.|
|The app receives slightly higher marks from Google users but is generally well-received.|
|Research and tools|
|Its research is limited and there are no charting tools.|
|No major outages or mobile glitches have been reported.|
To learn how our star ratings are calculated, read the methodology at the bottom of the page.
Gatsby keeps things simple, organizing its platform around a single investment product:
- Options. Make commission-free trades for or against companies and ETFs.
With options-focused investing and a platform exclusively for mobile, Gatsby is best suited to:
- Experienced investors. Gatsby’s lack of market research resources means the platform is best suited to experienced investors who know how and where to conduct external research.
- Options investors. Considering it’s the only thing available for trade on the platform, Gatsby is best suited to those looking to buy and sell options contracts.
- Millennial investors. Gatsby targets up-and-coming investors in the Millennial generation with its Twitter-like social feed.
Gatsby carves out a unique identity for itself in the online trading sphere through options-exclusive trading with a social media component. Its social feed feature allows you to add your fellow investors to stay up to date on trading activity. React and comment on trades in real time and follow more experienced investors to learn from their investing habits.
Gatsby also allows investors to accumulate rewards points on eligible trades through its incentive program. Typically, one reward point is awarded for each contract. Once you meet a set threshold of points, cash in your points for a gift card at a popular retailer. But it doesn’t specify which ones on the website.
Sign up for Gatsby by downloading its mobile app, available for free on both Android and iOS devices. Complete the application process in just a few minutes with $10 to get started.
Gatsby users report a sleek, user-friendly platform that’s less cluttered than many of its competitors. You’ll need to conduct in-depth market research elsewhere, but investors seem to appreciate the clean interface that’s easy to navigate when you’re ready to take action.
What does the app look like?
The app has a clean and simple interface, with just four tabs:
- Me. This is an overview of your account.
- Everyone. This social feed shows you what trades other people on the platform are making. Use it to track popular stocks to get a heads up on which companies to look into. You can also heart trades in the feed, but when we checked, no trades had more than 2 hearts, which suggests it’s not a popular feature.
- Trade. A list of trending stocks and an option to search companies by name.
- Account information. Displayed as “…” in the app, access your account information, pending orders, trading history and other documents. It’s also how you transfer money in and out of your account.
What research does it provide?
Gatsby offers a limited amount of research on its platform. At the top of each company’s page is the current stock price along with a graph showing the price over time. Under that are three tabs — Me, Everyone and News.
The only useful research is in the News tab, which contains a feed of quotes and articles about the company and its shares, mostly from Seeking Alpha and The Motley Fool.
Gatsby doesn’t charge commissions on US equities and options contracts, but standard fees from the SEC and Financial Industry Regulatory Authority (FINRA) apply. The absence of fees on options contracts is rare in the industry, but not unheard of — Robinhood offers commission-free options trading. Most providers charge an additional $0.65 per contract, as well as one-time fees if your option is exercised or assigned to you.
Commission-free options trading is certainly a perk, but you’ll want to keep an eye out for the following administrative costs:
|Minimum deposit to open||$10|
|Stock trade fee||$0|
|Option trade fee for US-listed and OTC securities||$0|
|LQT fee||$0.05 a contract|
|Account transfer fee||$75|
Gatsby charges a number of other fees that may not affect most traders, like fees for wire transfers, printed and mailed statements and paper checks. The full fee schedule is available on Gatsby’s site.
Gatsby’s securities are offered through ViewTrade Securities, Inc. — a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). ViewTrade has been registered with the SEC since 1999 and is licensed in 52 US states and territories.
How does Gatsby keep my money safe?
Through its partnership with ViewTrade Securities, Gatsby brokerage account investments are protected up to $500,000, including up to $250,000 in cash balances. Gatsby secures sensitive information through Hypertext Transfer Protocol Secure (HTTPS) and stores customer data on encrypted servers. It also offers investors the option to use PIN codes, facial recognition and fingerprinting to further secure their account.
With no Better Business Bureau page or Trustpilot presence, we turn to Google Play and the Apple App Store for customer feedback on Gatsby’s platform.
As of February 2022, Gatsby scores a favorable 4.4 out of 5 on Google Play and 4.6 out of 5 on the Apple App Store. Granted, these scores are based on collections of 499 and 516 reviews respectively, but feedback is promising for this up-and-coming trading platform.
Customers speak highly of the platform’s clean interface and responsive customer service team but complain about the platform’s lack of research and beginner resources.
|BBB customer rating||N/A|
|Google Play app||4.4/5 stars based on 499 reviews|
|Apple app store||4.6/5 stars based on 516 reviews|
|Customer reviews verified as of||February 2022|
- No commission or contract fees. Take advantage of fee-free options trading.
- Low minimum deposit. Open an account with just $10.
- Social feed. Add friends to your Gatsby social feed, see what they’re buying and make comments on trades.
- Rewards points. Earn points on each trade and cash them in for gift cards at popular retailers.
- Limited investment options. As of this writing, Gatsby’s platform only supports options trading.
- Limited research. Gatsby doesn’t offer market reports or resources, so you’ll need to conduct your own research through a third party.
- Limited customer support. Gatsby’s customer service is limited to email inquiries — a hefty drawback considering how time sensitive online trading is.
To open an account with Gatsby, you must be at least 18 years old and a US citizen. You have to sign up through a mobile device:
- Go to the Apple App Store or Google Play and download the Gatsby mobile app.
- Enter your email address and phone number.
- Confirm your email address by entering the six-digit confirmation code sent to your inbox.
- Create a password.
- Enter your full name, birth date, Social Security number, citizenship and employment status.
- Answer Gatsby’s disclosure and investment questions.
Once your application is reviewed and approved, deposit a minimum of $10 to fund your account.
You can contact Gatsby support by:
- Phone. Call 203-842-8729 weekdays from 8:30 a.m. to 5 p.m. ET.
- Email. Fill out a secure online form on Gatsby’s website for a response from the customer service team.
- In-app chat feature. Gatsby offers an in-app chat feature, though it may take a few minutes to be connected with an agent.
*Signup bonus information updated weekly.
If you’re interested in breaking into the world of options trading, Gatsby could be a viable option, offering commission-free trades, a social feed and rewards points on eligible trades. But the platform is still new and may need to expand its investment options and market research before it can compete with the offerings of some of the better-established platforms.
Before you apply, compare your options to find the trading platform that best fits your investment goals.
How do I fund my Gatsby account?
Fund your Gatsby account by ACH deposit, wire transfer, check or Plaid deposit.
What is the maximum number of option contracts I can buy or sell through Gatsby?
You can buy up to 349 option contracts and sell up to 1,500 option contracts through Gatsby.
What types of investments can I make on Gatsby?
Gatsby supports level 2 options trading, enabling the purchase of long call or long put contracts.
How do I close my Gatsby account?
Reach out to Gatsby support at firstname.lastname@example.org after you sell or transfer your account funds. Your account needs a $0 balance when you request an account closure.
What are the risks involved in trading options?
Options trading is riskier than trading stocks because options are more complex. When purchasing stocks, you decide how many shares you want and submit the order. But when trading options, you need to anticipate which direction a stock will move, how much the price will shift and how long it will take to do so. The more complex the options contract, the more research that must be carried out prior to investing.
How we rate trading platforms
★★★★★ 5/5 — Excellent
★★★★★ 4/5 — Good
★★★★★ 3/5 — Average
★★★★★ 2/5 — Subpar
★★★★★ 1/5 — Poor
We analyze top online trading platforms and rate them one to five stars based on factors that are most important to you. These factors include fees, securities available for trade, customer support, customer feedback, platform resources and overall reliability.<
For a complete breakdown of how we score each category, read the full methodology of how we rate trading platforms.