eToro has made the decision to limit its support for non-leveraged CFD crypto trading in France and Australia.
Clients have been informed that they must close their non-leveraged long positions with these instruments before the specified deadlines: February 19th for Australia and February 21st for France.
Starting from these dates, any remaining open long non-leveraged CFD crypto asset positions will be automatically closed at market value, as stated in a notice from the Israeli broker targeted towards traders in these two countries.
However, it’s important to note that eToro will continue to offer physical non-leveraged crypto trading in both France and Australia.
In fact, the brokerage has provided instructions for traders who wish to keep their positions open on how to close their crypto CFD positions and open similar positions with real assets.
One key advantage for traders opting to hold positions against real crypto assets is that they will no longer be subject to overnight fees.
This is because overnight fees are exclusively charged on CFD positions.
In the case of France, eToro currently only offers CFDs for DASH and ZCASH. Consequently, the company will continue to provide crypto CFDs for these two digital assets.
The notice clarifies that non-leveraged long CFD DASH and ZCASH positions in France will not be included in the positions that can be closed and reopened as real crypto assets.
Therefore, these positions will remain open and unaffected.
This move comes as part of eToro’s global restructuring of its cryptocurrency offerings.
Earlier, the German branch of eToro announced its decision to terminate crypto custody services for Germany-based users at the end of January 2024.
Instead, these users will be transferred to Tangany, a Munich-based BaFin-licensed crypto custodian.
Starting from January 21, 2024, all crypto assets held by German clients will be moved from eToro Germany’s custody to Tangany.
Despite its failed attempt to go public through a merger with a blank-check company, eToro continues to strengthen its regulatory position with multiple licenses in both Europe and the Middle East.
This decision to restrict non-leveraged CFD crypto trading in France and Australia is another step in the company’s evolving strategy in response to changing market dynamics.