Quick Guide for Future Investors: Essentials of eToro from Chile

Today I have some real tips that might interest you if you’re planning to start investing from Chile 🇨🇱.

I started timidly, investing just 50 USD per month; now, with more confidence, I use three brokers — eToro, Interactive Brokers, and Racional. However, I focus on eToro because there my profile is public and anyone can check my results. In investing, words only matter when backed by numbers.

Focusing specifically on eToro: if you want to start your investor journey there, here are a few things you should know:

What You Should Know Before Investing with eToro

1. 1️⃣ You’ll be trading via CFDs:
   The Chilean CMF still does not authorize eToro to offer direct custody of foreign stocks, so you’ll buy CFDs instead of real shares.
   Pros: no overnight commission and no extra risk (unless using leverage or shorting). You’ll still receive dividends if the underlying stock pays them.
   Cons: slightly higher spreads and no voting rights.
2. 2️⃣ CLP ↔ USD Conversion:
   Depositing Chilean pesos (CLP) costs about 1.5 %; withdrawals add a fixed 5 USD fee.
   Tip: deposit larger amounts or use cards with USD credit to minimize costs.
3. 3️⃣ Invest for the Long Term:
   If your horizon is less than 3 years, fees could eat up your profits. My portfolio is designed for the long term — trust me, it works better that way.
4. 4️⃣ CopyTrading:
   You can copy public portfolios (or be copied). If your copied investor buys real stocks, you’ll receive CFDs (due to local regulation). Likewise, if someone from Europe copies your portfolio, they’ll get real stocks replicating your CFDs.
5. 5️⃣ W-8BEN Form:
   Fill it out to reduce U.S. dividend withholding tax from 30 % to 15 %. It’s fast and totally worth it.
6. 6️⃣ Be Careful with Crypto and Shorts:
   Spreads on BTC/ETH are higher than on specialized exchanges. Shorts or leverage = overnight fees.
   My style: zero leverage = better sleep.
7. 7️⃣ Record Everything for the SII:
   eToro provides an annual report in USD. Convert your profits to CLP using the official exchange rate and keep those records — you’ll need them for tax season.

🔍 Regulatory Framework: Who Oversees eToro?

Even if you’re operating from Chile, your eToro account is supervised by a foreign regulator depending on the subsidiary providing the service. This defines how protected you are and which authority to contact in case of a dispute.

1. Entities and Active Licenses

2. Investor Protection

• FSCS (UK): If your account is with eToro UK, you’re covered up to £85,000 in case the broker collapses.
• ICF (Cyprus): eToro Europe clients are covered up to €20,000.
• Lloyd’s Insurance: eToro holds a private policy that extends coverage up to 1M USD/EUR/AUD per client once public schemes are exhausted.
• Segregated Accounts: Client funds are held in top-tier banks and not mixed with company funds.

3. Particular Notes for Chilean Investors

The CMF has not registered eToro; under current regulations, all your positions in foreign stocks are executed as CFDs, with no voting rights or direct custody, but identical price exposure.

Also, don’t forget to fill out the W-8BEN form so U.S. dividends are withheld at just 15 % instead of 30 %.

4. Regulatory Changes on the Radar

• MiCA (EU): eToro is now registered to offer crypto services in Spain, reinforcing its position across the EU.
• Chile Fintech II: A draft law may soon allow foreign custody of assets — potentially opening the door to real stocks instead of CFDs.

Moral of the story: know which entity holds your account, save your annual reports in USD, and declare your gains to the SII so you can sleep as peacefully as you invest.

eToro is an excellent gateway for investing outside Chile, as long as you understand its particularities. With strategy and discipline, good results will follow.

Have you already invested through eToro?

If so, share your experience in the comments.

📈 Register on eToro with my referral link:
https://etoro.tw/43FDAcQ

🔎 View my real results or copy my strategy:
https://etoro.tw/3WpJM7a