eToro broker has implied overnight fees for all non-leverage crypto CFD positions since August 1st, which also applied for copy trading users.
Since August 1, 2022, eToro has started charging buyers overnight fees on all non-leverage crypto CFD positions at a rate of 20% per year. The overnight fee also applies to copy trading positions.
The trading platform says that these fees reflect the forces of supply and demand that drive financial markets to cover the costs associated with your position. Previously, eToro had made an exception for non-leveraged BUY CFD positions on crypto assets so that overnight fees were not charged.
Since eToro now offers investments in "real" crypto assets, the broker will inevitably have to close your non-leverage BUY crypto CFD positions and reopen equivalent "real" crypto positions (meaning you own ownership of the underlying crypto asset).
That way, your new crypto positions won't be charged overnight as eToro will credit you for any spread fees incurred, provided that crypto CFD positions are closed and reopened as "real" crypto within a certain timeframe.
To convert a non-leveraged BUY crypto CFD position and open a "real" crypto position, you must close and then reopen your investment immediately:
- Go to your eToro portfolio. Any non-leveraged BUY CFD positions you hold will be marked 'CFD' in your portfolio.
- Make a note of the value of the position in units. You will need this information in order to reopen the position.
- Click Close Trade to manually close the position.
- Immediately open a new position with the same value in units of the closed position.
Keep in mind, that opening a position with units rather than dollar amounts ensures an identical value to the closed position.