eToro ups min first deposit to $1K to stem flow of crypto traders

ReviewBrokers Exclusive… ReviewBrokers has learned that Retail FX and CFDs broker eToro has seen a flood of new client signups in recent weeks, with a large number of the new and potential clients being smaller retail traders looking to get in on the Bitcoin and crypto trading surge.

In response – both to deal with what the company called “unprecedented demand” from new users, as well as to protect less sophisticated investors – eToro has upped the minimum initial deposit for new clients to USD $1,000. The company’s previous minimum deposit to open a new account varied by location, from $200 in the UK and Europe to just $50 for US-based traders.

eToro’s minimum account opening amount remains higher in certain jurisdictions, such as its home base of Israel where for regulatory reasons it stays at $10,000, and $5,000 for residents of Algeria.

The company tweeted out the following via its service and support arm:

eToro has seen an unprecedented demand for our services from new users. To manage demand & ensure our existing community of 17M registered users can continue to access our services uninterrupted, we have temporarily increased the minimum deposit amount for new users to $1,000.

eToro has been most adept of all Retail FX brokers at using and integrating social media into its offering and indeed labels itself as a social trading platform. It also leads most FX brokers at offering trading in various cryptocurrencies to retail traders.

eToro was valued at more than $2.5 billion in a recent secondary share sale between shareholders. The company has been rumored to be pursuing an IPO or SPAC public exit at a valuation approaching $5 billion.