eToro has implemented modifications to the trading of Contract for Difference (CFD) on Cryptocurrencies for users in Australia. Effective February 19, 2024, the platform will cease supporting non-leveraged long CFD positions on Cryptocurrencies.
For traders in Australia, all existing long CFD positions in Crypto assets without leverage will be automatically closed at their market value after the specified deadline, as announced by eToro.
eToro emphasizes that traders have the option to either maintain or initiate an equivalent position in actual Cryptocurrency after February 19, and no charges will be incurred for this transition. The decision is rooted in the fact that overnight fees are exclusively applicable to CFD positions.
Furthermore, if a new trade in real Cryptocurrency is initiated within 30 minutes of closing the CFD position, eToro will reimburse the spread cost associated with opening the position. The credited amount will be directly deposited into the trader’s account within 8 business days.
It is important to note that in the event of reopening a position in real Cryptocurrency, the fee refund will not surpass the original trade size. eToro cautions traders that real Cryptocurrency is an unregulated product, and therefore, it does not offer any investor protection.