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Is eToro banned in France? Quick answer and key points
No, eToro is not banned in France. On the contrary, this broker is registered as a Digital Asset Service Provider ( DASP ) with the AMF (French Financial Markets Authority). This approval means it can provide trading services, including cryptocurrency trading , to French residents. However, despite its reputation as a platform , its costs, particularly spreads eToro 's offering less competitive for cryptocurrencies than other marketplaces. We will examine in detail why better alternatives exist for cryptocurrency traders and eToro operates in France.
Table of Contents
Why ask if eToro is banned in France?
In some forums or discussion groups, you sometimes see people asking if eToro is banned in France . This question stems from misconceptions, rumors, or incomplete information. Several reasons could explain this:
- The fact that eToro is based in Cyprus and regulated by CySEC a concern, as some users fear that Cypriot regulation is less strict than French regulation.
- The nature of the broker , which includes stocks , CFDs , and cryptocurrencies . CFDs sometimes arouse suspicion, especially among those who have already been victims of online scams.
- The existence of unregulated brokers who usurp the names of platforms in order to deceive investors.
In reality, there is no evidence that eToro is operating illegally. Financial authorities confirm that the platform is not only legitimate but also registered since June 9, 2022 (registration number E2022-038) for its crypto-asset . To verify this, consult the official AMF list .
Fees and spreads: why eToro isn't the most advantageous for cryptocurrencies
The main criticism leveled against eToro concerns its fees, which are often considered uncompetitive. Several costs are added for each transaction:
- Spreads : This refers to the difference between the buy (ask) and sell (bid) prices of an asset, as defined by the platform itself, and not directly aligned with the actual market price. In other words, eToro applies its own margins, creating an artificial gap between the two values. For cryptocurrencies , this spread can be significant and varies depending on the asset.
- Conversion fees : as the platform uses USD as its reference currency, any deposit in euros automatically results in a currency conversion with associated fees.
- Fixed commissions : When directly purchasing certain cryptocurrencies (without leverage), a commission of approximately 1% is applied to each order, according to the latest fee schedules published by eToro.
Comparison with other alternatives
You can buy Bitcoin and other cryptocurrencies with OKX.
OKX offers:
- Strict regulatory compliance, OKX being one of the first platforms to have held the European license ( MiCA ). It is on the AMF whitelist.
- A dual interface: a simplified application for beginners and an advanced platform offering tiered pricing based on volume.
- Very competitive fees on the market: 1% on the simplified platform and a maximum of 0.35% on the advanced platform .
- Access to several hundred cryptocurrencies to potentially diversify your portfolio in addition to Bitcoin.
- Additional services such as staking to generate returns on these cryptocurrencies.
OKX has one of the richest offerings on the market.
More information about the rewards can be found here.
We invite you to discover our complete comparison of cryptocurrency platform fees for a more detailed overview.
To gain a deeper understanding of how the monetary system and Bitcoin work, and to develop a more complete mastery of the tools, finance and legal constraints (taxation, inheritance, etc.) , we invite you to discover the BSM program .
It includes detailed video tutorials on centralized exchanges, software wallets, hardware wallets, and best practices. The program can be accessed from the header or the link above.
What services does eToro offer?
The eToro platform is often associated with social trading and copy trading. However, its offering is extensive:
- Shares: More than 2000 shares of major international groups, with the possibility of buying them on cash (without commission) or via CFD.
- ETF: Several hundred trackers allowing diversification across various segments (technology, emerging markets, etc.).
- CFDs on commodities, stock indices and forex.
- Cryptocurrencies: the ability to trade or buy approximately 70 crypto assets outright. Note that eToro offers fewerltcthan some competing platforms.
In the eyes of investors, eToro has become a major broker, both for stocks and cryptocurrencies. Its popularity is growing primarily thanks to two specific features:
- Copy Trading: automatically copying the positions of other users. The past returns of certain "Top Traders" attract many beginners.
- A very intuitive interface, both for buying stocks and cryptocurrencies. The dashboard, tracking tools, and virtual portfolio (with $100,000 in virtual funds) allow you to practice without risk.
However, all these characteristics do not necessarily compensate for the importance of fees in the world of crypto assets.
Advantages and disadvantages of eToro for crypto
For those interested in the crypto world, let's recap the essentials:
Benefits :
- Social trading and copy trading: ideal for learning or being inspired by the strategies of more experienced traders.
- Simple interface, suitable for beginners, with a demo account.
- Registration with the AMF guarantees a certain level of regulatory security.
- Possibility of buying certain shares without commission, which may interest hybrid investors (crypto and stock market).
Disadvantages:
- Higher spreads and conversion fees are penalizing, which can quickly become a disadvantage.
- A limited list of cryptocurrencies compared to the major crypto exchanges.
- Withdrawal fees ($5) and sometimes “hidden” fees via conversion rates.
What is eToro's position in France?
To clearly determine whether eToro is banned in France or not, the following facts must be known:
- The company is registered with the AMF, which means that it is authorized to offer the purchase and sale of digital assets .
- eToro has a European passport , stemming from its primary regulation in Cyprus by CySEC . This passport, by extension, allows the company to operate freely in European Union member states, including France.
- Since its registration as a PSAN , eToro can offer its services on crypto assets in a fully regulated manner.
In short, eToro has a solid status under French law and is in no way prohibited. The purpose of its PSAN is to protect investors by imposing legal and security obligations on the company: compliance with AML/CFT (anti-money laundering and counter-terrorist financing) regulations, customer identity verification procedures, clear risk information, among others.
How is eToro regulated by the AMF?
Since it is not prohibited in France , eToro must comply with the rules of the AMF and the ACPR :
- Obligation to collect personal data on its customers, in order to meet KYC ( Know Your Customer ) and AML/CFT ( Anti-Money Laundering and Counter-Terrorist Financing ) requirements.
- Transparent information on fees , market volatility, risks associated with leverage , etc.
- Notification to the French authorities in case of suspected irregularity.
Furthermore, eToro Europe Ltd is subject to CySEC , in addition to its Digital Asset Service Provider (DASP) crypto offering . Specifically, funds deposited by users are held in bank accounts , which limits the risk of misappropriation of funds.
Why does eToro have a bad reputation among some investors?
Despite its legitimacy and international reach, eToro sometimes suffers from a mixed reputation. Several reasons justify this viewpoint:
- Some novice investors believe that copy trading guarantees success. When they experience losses, they may blame the platform itself rather than their investment choices.
- Confusion surrounds CFDs : historically, eToro offered many contracts for difference, providing leverage . This also increases risk and sometimes leads to criticism accusing the company of "pushing consumption."
- Cyprus-based domiciliation is often associated with unscrupulous brokers eToro is among the regulated companies that comply with European directives (MiFID II).
- Its fees can accumulate, and the spreads applied are not always transparent.
In reality, the platform isn't perfect, but it's reputable, certified, and known worldwide. Hence the importance of emphasizing that eToro has never been "banned" in France.
Practical tips for using eToro in France
If you still decide to use eToro in France, here are some best practices to limit your costs and optimize your experience:
- Compare spreads : always check the spread before opening a cryptocurrency . In a highly volatile market, the spread can widen significantly.
- Check the conversion fees : if possible, fund your account directly in USD . Several neobanks allow you to convert euros to dollars at a lower cost.
- Take advantage of the demo account : before spending real money, test your strategies on the $100,000 account
- Limit the number of withdrawals : each withdrawal costs you $5. Try to group your withdrawals to avoid paying this amount multiple times.
- Avoid high leverage : Whether you're trading Bitcoin , Ethereum Ethereum or any other asset, leverage significantly increases your risk. While the temptation for quick profits is strong, volatility can quickly wipe out your capital.
Could eToro be banned one day?
As long as eToro continues to comply with the legal obligations imposed by the AMF ), there is no reason for it to be banned. Since 2022, the broker has been taking numerous steps to comply and expand its catalog of crypto assets . Its global reputation (more than 30 million users worldwide) also works in its favor.
Conversely, if the company were to fail to comply with security and transparency standards, the AMF could sanction it, or even blacklist it. This is the case, for example, with Bitget, KuCoin, and MEXC. While this scenario remains unlikely given its history, it illustrates the importance of the French regulatory framework: any cryptocurrency Bitget that does not meet the AMF 's requirements risks being banned and delisted in France.
Conclusion: eToro is not banned in France
There is no longer any doubt: eToro is not prohibited in France and holds the status of Digital Asset Service Provider (DASP) , granted by the AMF ). You can therefore legally create an account, deposit funds, buy stocks or cryptocurrencies , and take advantage of social trading . However, this broker is not necessarily the most profitable for cryptocurrencies due to higher fees platforms such as Binance , Bitvavo , or OKX .
If your priority is minimizing costs and having a wide range of DeFi services, it's best to turn to specialized providers. eToro is particularly appealing for the " social " aspect of its Copy Trading , the simplicity of its tools, and the ability to manage a portfolio within a single account. It's up to you to decide if these advantages are worthwhile or if it's better to choose a platform truly optimized for cryptocurrencies .
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Yoann
Trained as an engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future, I am participating in its democratization by developing Crypternon.