eToro for crypto: what Israeli residents actually get

What eToro is, and why Israelis look it up

eToro was founded in Tel Aviv in 2007, is now listed on Nasdaq and keeps its Israeli headquarters in Bnei Brak. Most people know it as the stocks and “social trading” app where you can copy other investors’ portfolios. Crypto is a big part of the offer: Bitcoin, Ether and plenty of other coins sit in the same app as your US shares.

The catch for Israeli residents is the entry ticket. A snippet from eToro’s help centre says the first deposit for residents of Israel is $10,000. We could not open the full article, so we quote the figure as it appears in the help-centre search result, and it may well change. If you searched “eToro Israel minimum deposit” hoping to buy ₪500 of Bitcoin, this is not the place to do it.

The second thing to know is ownership. In Q2 2026 eToro completed its acquisition of Bit2C, the licensed Israeli exchange that runs the country’s only shekel order book, along with the wallet company Zengo. So eToro now owns a licensed Israeli platform. What that does and does not mean for you is the subject of the next section.

Licensing: eToro owns Bit2C, but eToro itself is not licensed here

In Israel, anyone providing a service in financial assets, crypto included, needs a licence from the Capital Market, Insurance and Savings Authority under the Supervision of Financial Services (Regulated Financial Services) Law, 2016. eToro’s main platform does not hold one. Back in 2016 the company withdrew its application to the Israel Securities Authority for a trading-platform licence, saying its offering could not yet sit within Israel’s regulatory environment. Israeli residents are onboarded by one of the group’s international entities, so the protection that applies is that of the country where that entity is registered.

The group’s Israeli licence belongs to Bit2C, whose legal name is now Bitosi eToro Ltd, holding extended licence no. 72080. That does not turn an eToro account into an Israeli-licensed account. They are two separate platforms with different terms, fees and money routes. If what matters to you is a local licence, shekel deposits and paperwork your bank recognises, look at Bit2C or Bits of Gold rather than the eToro app.

One thing worth watching: in May 2026 a bill known as Amendment 18 passed its first reading. It would let foreign regulated firms apply for a “tailored licence” from CMISA. As of October 2026 it has not been enacted. Until then eToro, like every other international platform in this guide, serves Israelis without an Israeli licence. The wider picture is in Is crypto legal in Israel?

eToro crypto fees and the real cost of getting in

eToro’s fee page lists a 1% crypto fee for the Bronze, Silver and Gold club tiers, dropping to between 0.85% and 0.10% at higher tiers and volumes. A caveat: the page was served to our checker in an international version, and we have not confirmed that it matches what a user in Israel sees. Beyond the trading fee there are two costs Israelis feel straight away: currency conversion, because the account is in dollars, and the withdrawal fee.

A quick worked example. Say you deposit the $10,000 minimum and put it all into Bitcoin. At the entry tier that is $100 in fees on the way in. When you sell, you pay 1% again on whatever the position is worth, plus $5 to withdraw the dollars. If the money started in a shekel account, add the conversion fee, which eToro does not publish as one fixed percentage. In percentage terms that still undercuts a card purchase or an Israeli broker’s entry tier at similar sizes. The entry bar itself is what filters out most small buyers.

Real crypto or CFD: know what you are opening

eToro gives you two kinds of crypto exposure. The first is actual crypto: the coin is bought and held for you, and you are exposed to its price just as on any exchange. The second is a contract for difference, a CFD: you hold no coin, only a contract on the price move, usually with leverage. Leverage magnifies gains and losses alike, and in a market as volatile as crypto it can wipe out a position within hours. eToro itself attaches risk warnings to its CFD products.

One practical habit: before every order, check on the order screen which instrument you are opening, and don’t assume every “buy Bitcoin” button buys Bitcoin. The difference matters for tax and for what you can later do with the asset. What to buy, and whether to buy at all, is your call; we don’t give investment advice.

Deposits, withdrawals and the road back to your bank

According to eToro’s deposit FAQ, the shekel is not on its list of account currencies. In practice every shekel you send in is converted to dollars, and every dollar you send back to a shekel account is converted again. We have not confirmed whether Israeli residents can fund by an ordinary shekel bank transfer, or at what conversion rate. If you already hold a foreign-currency account, say a freelancer paid in dollars into a Leumi FX account, you skip the conversion on the way in.

On the way out, money arriving in an Israeli bank from eToro comes from a foreign provider that is not licensed in Israel. Under the Bank of Israel’s Proper Conduct of Banking Business Directive 411, a bank may not refuse funds simply because crypto is involved, but it must assess risk and, above ₪100,000 a year, look closely at the source of funds. Expect to be asked for a source-of-funds declaration, the full transaction history from first purchase to sale, and proof of tax reporting. A July 2026 draft would move banks to a risk-based approach with a fast track for money from licensed firms. Until it takes effect, prepare the paperwork in advance. Our guide to crypto and Israeli banks walks through it.

Tax and the documents to keep

For the Israel Tax Authority, crypto is property, not currency (Income Tax Circular 05/2018). Every sale, and every swap of one coin for another, is a taxable event. Gains are taxed at 25% for individuals, 30% for a substantial shareholder, with a surtax on annual income above roughly ₪721,560. Losses can be offset against capital gains. Very frequent trading can tip you into business-income territory.

We found no sign that eToro withholds Israeli tax, unlike local platforms such as Bit2C, which is piloting direct tax payment from the account. So the working assumption is that you report and pay yourself. At the end of each year, download the complete transaction report and keep it for your accountant and your bank. From 2027 Israel joins the OECD’s CARF exchange of crypto-account information, so the idea that a foreign account is “invisible” no longer holds. See crypto tax in Israel, with worked examples.

Who eToro suits, and who it doesn’t

eToro makes sense if you already hold stocks there, plan to invest tens of thousands of shekels, and want crypto and equities on the same screen. It fits best if you have dollars sitting in a foreign-currency account, because the conversion then barely registers. A 1% fee in and out is competitive with most shekel routes at those sizes.

It is a weaker fit for three kinds of buyer. Anyone starting small, with hundreds or a few thousand shekels, because the first-deposit rule blocks you. Anyone who wants a clean “closed loop” with their bank, buying in shekels on a licensed Israeli platform and withdrawing to the same account. And anyone who wants to move coins to their own wallet or use them, rather than simply hold price exposure. The full comparison is in our exchange ranking.

Verdict

Frequently asked questions

Sources

1. eToro — trading fees · Checked 5 October 2026
2. eToro — deposit FAQ · Checked 5 October 2026
3. eToro — Q2 2026 results (Bit2C and Zengo acquisitions) · 11 August 2026
4. Finance Magnates — eToro gives up on regulation in Israel · 2016
5. Capital Market, Insurance and Savings Authority · Checked October 2026

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