Nikolas Sargeant
Online investment platform eToro has unveiled a strategic alliance with DLT Finance, aiming to provide enhanced cryptocurrency trading services directly to its German clientele. This collaboration is set to roll out in the coming weeks, allowing Germany-based eToro users to access DLT Finance's crypto trading capabilities while maintaining their familiar eToro interface.
In the near future, German eToro clients will be able to trade digital assets with DLT Finance serving as their counterparty, all within the eToro ecosystem. For added security, cryptoassets will be held in custody by Tangany GmbH, a firm under BaFin supervision.
To facilitate this transition, users will receive in-app notifications prompting them to review and accept updated terms and conditions, as well as privacy policies. Some clients may need to complete a video identification process for verification purposes.
It's important to note that certain trading features, including limit orders, stop losses, and take profit limits, will not be available for cryptocurrency trading through DLT Finance. Existing orders of this type on open crypto positions will no longer apply, though they will remain active for open crypto CFD positions.
Once the partnership goes live, DLT Finance will implement a 1% fee on both the purchase and sale of cryptoassets, replacing the current charge. Users should be aware that fee structures may evolve in the future.
Under this new arrangement, cryptoasset purchases will be facilitated through DLT Finance, and eToro will discontinue offering non-leveraged crypto CFDs.
The partnership will also bring about changes to eToro's CopyTrading service. Notably, if an investor begins copying another user with cryptoassets in their portfolio, these positions will be replicated as CFDs. Additionally, users holding cryptoassets will not be eligible to be copied, and those currently being copied will be unable to open new cryptoasset trades through DLT Finance, instead using CFDs for new crypto positions.
