When I logged into my eToro account, I received the following message:
They ask my consent to deposit my money into money market funds. This is a practice many brokers do to earn money on uninvested cash. What I don’t like here is that there is no compensation for the user, or at least it’s not clear to me.
I’d feel it more fair if eToro would share the interest earned on these assets with their users. I’ve just contacted them to clarify if such an option is available.
Let me know your thoughts.