eToro Partners with DLT Finance to Enhance Crypto Trading

eToro has announced a strategic partnership with DLT Finance to deliver enhanced cryptocurrency trading services directly to its clients in Germany. This collaboration marks a significant step for eToro as it seeks to improve its offerings in the growing digital asset market.

In the coming weeks, eToro will enable its German clientele to access DLT Finance’s crypto trading services while maintaining the familiar eToro trading experience. Clients can expect to trade crypto assets with DLT Finance as the counterparty directly on the eToro platform. To ensure the safety of these digital assets, Tangany GmbH, a custodian supervised by the Federal Financial Supervisory Authority (BaFin), will securely hold all crypto assets in custody.

As part of the transition, traders will receive notifications via their eToro app, prompting them to review and accept updated Terms & Conditions and Privacy Policies. For verification, users may need to undergo a video identification process.

eToro Partners with DLT Finance to Enhance Crypto Trading

However, this partnership comes with some caveats. Notably, certain trading functionalities will be limited. Traders will not have access to limit orders, stop losses, or take profit limits for crypto trading with DLT Finance. Any existing limits associated with open crypto positions will no longer apply. Nonetheless, limit orders and other risk management tools on open crypto CFD positions will remain in effect.

Once the partnership is fully operational, DLT Finance will impose a 1% fee on purchasing and selling crypto assets, which may be subject to future adjustments. Under this new arrangement, eToro will discontinue offering non-leveraged crypto CFDs.

Moreover, the company will implement changes to CopyTrading services. If users copy investors who hold crypto assets in their portfolios, the platform will copy those positions as CFDs. Importantly, if a user holds crypto assets, they will not be eligible for copying. Additionally, currently copied users cannot open new crypto asset trades with DLT Finance, meaning their new crypto positions will be classified as CFDs.

This partnership between eToro and DLT Finance highlights a growing trend in the financial services industry as brokers seek to adapt to the evolving landscape of cryptocurrency trading while enhancing their service offerings for clients.

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