How to Buy Bitcoin with PayPal in 2021 – Cheapest Providers Revealed

Learn how to buy Bitcoin with Paypal - all without paying any fees or commissions.
Author: John Ladeluca
Last Updated: 24 May 2021

With Bitcoin reaching all-time highs just over a month ago, the cryptocurrency has gained unprecedented exposure in social media and financial reports. More and more investors are looking to get involved with cryptocurrency trading – and buying Bitcoin with PayPal is one of the most popular methods of doing so.

In this guide, we’ll show you How to Buy Bitcoin with PayPal in 2021, showing you the best trading platforms to utilise and providing you with all the information you need to trade safely.

How to Buy Bitcoin with PayPal – Step by Step Guide 2021

If you’re looking to buy Bitcoin with PayPal right now, then look no further. By following the four steps below, you’ll be able to buy Bitcoin with PayPal in under ten minutes – all without paying a penny in commissions.

1. Open an account with eToro – Head to the eToro homepage and click ‘Join Now’. Provide your email address and choose a username and password.

2. Upload ID – Verify your account by uploading proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill).

3. Deposit via PayPal – Choose PayPal as your deposit method – minimum initial deposit of $200 (around £142).

4. Buy Bitcoin – Type ‘BTC’ into the search bar at the top of the screen and click ‘Trade’ next to the first option. Enter the amount you’d like to invest, double-check everything is correct, and click ‘Open Trade’.

How to Buy Bitcoin with PayPal Today – eToro Tutorial

When you decide to buy Bitcoin, most brokers and trading platforms will offer various ways to fund your account. However, one of the most popular and safe methods is through PayPal, due to their stellar reputation worldwide as a reliable digital payments platform.

In this section, we’ll show you how to buy Bitcoin with PayPal with FCA-regulated broker eToro – all without paying a penny in fees or commissions.

Step 1: Open an eToro Account

The first thing you need to do is open an eToro account. We recommend using eToro in this guide as they offer commission-free cryptocurrency trading and are regulated by some of the world’s most trusted regulatory bodies. To open your account, head to eToro’s homepage and click ‘Join Now’ in the top right. On the page that follows, provide your email address and choose a username and password.

etoro sign up

Step 2: Verify your ID and Address

Due to eToro’s strict security policies, new users must verify themselves before being able to invest. Luckily, this process is very straightforward and can be completed in minutes. Simply upload proof of ID (a copy of your passport or driver’s license) and proof of address (a copy of a bank statement or utility bill). eToro will then verify these documents; once verified, you can move on to step 3.

Step 3: Fund your eToro Account

eToro offers a wide variety of deposit methods, including credit/debit card, bank transfer, and a selection of e-wallets. Included in this selection is PayPal, so choose that option in the drop-down menu of the deposit screen. Notably, eToro does not charge any fees when you make a deposit.

etoro deposit via paypal

Step 4: Search for Bitcoin

Once you have funded your account, click into the search bar at the top of the screen and type in ‘Bitcoin’ or ‘BTC’. Click on the first option in the drop-down menu, and then click the ‘Trade’ button on the next screen.

Step 5: Buy Bitcoin with PayPal

In the order box that follows, enter the amount you’d like to invest – eToro only requires a minimum investment of $50, equating to around £35. After this, double-check everything is correct, and click ‘Open Trade’.

etoro buy bitcoin with paypal

And that’s it! You’ve just bought Bitcoin using PayPal – all without paying any fees or commissions!

Where to Buy Bitcoin with PayPal

When you decide to purchase Bitcoin with PayPal, it’s crucial to choose a licensed platform with a track record of allowing users to trade safely. There is a wide variety of options on the market, ranging from brokers to cryptocurrency exchanges, so it can seem challenging to decide which is best for you.

Not to worry – in this section, we discuss three of the best trading platforms when it comes to buying Bitcoin with PayPal in 2021.

1. eToro – Overall Best Broker to Buy Bitcoin with PayPal in 2021etoro logo

Our recommended broker to purchase Bitcoin with PayPal is eToro. With over 20 million users worldwide, eToro is widely regarded as one of the safest and easiest trading platforms to invest with. Importantly, they are regulated in the UK by the FCA and in the USA by FinCEN – ensuring your capital and personal details are afforded the highest levels of protection.

One of the best things about eToro is that they allow you to purchase Bitcoin with PayPal without paying any commissions. This contrasts with many other brokers and exchanges who tend to add on a commission of 0.1% to 3% of your position size. eToro also offers this 0% commission structure on all other cryptos they offer, including when you buy Ethereum, Ripple, and more.

etoro buy bitcoin with paypal

Aside from their attractive fee structure, eToro also offers some handy features. Notably, they provide a practical and safe digital wallet that will store your Bitcoin holdings. This wallet is available on the App Store and Google Play and allows you to manage your holdings on the go. eToro also offers an innovative ‘CopyPortfolio’ feature, which will enable you to invest in funds managed by eToro’s professional investors – all without paying any management fees.

Finally, eToro allows you to fund your account via PayPal without having to pay any hidden fees or charges. The minimum deposit for new users is $200; however, this falls to $50 for subsequent deposits. If you’d like, you can also fund your account with FIAT currency via credit card, debit card, bank transfer, and various e-wallets.


  • 0% commission on crypto trading
  • Supports debit/credit cards and Paypal
  • No deposit fees
  • Over 2,400 shares and 250 ETFs
  • CFD markets also offered
  • Social network with copy trading
  • Regulated by the FCA, ASIC, and CySEC
  • Approved by the SEC and FINRA


  • Small withdrawal and inactivity fees

67% of retail investor accounts lose money when trading CFDs with this provider.

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.


2. Libertex – Zero Spread Broker to Buy Bitcoin with PayPallibertex logo

Our second favourite broker when it comes to buying Bitcoin with PayPal in Libertex. Having been in operation for nearly 25 years, Libertex offers around 250 different markets to trade, including forex, stocks, commodities, and cryptocurrency. It’s important to note, Libertex operates as a CFD broker – meaning that you will be investing in a CFD rather than the underlying asset.

This allows Libertex to offer leverage when you buy Bitcoin with PayPal and currently offer 1:2 leverage on digital currencies. Put simply, this means that you can ‘double’ your position size – if you invest £1000 in Bitcoin and use 2x leverage, your position size will equate to £2000. Inevitably, this will increase potential profits; however, it will also increase potential losses, so be wary when using leverage.

buy bitcoin with paypal libertex

When it comes to PayPal Bitcoin fees, Libertex operates under a ‘zero spread’ structure, meaning there is no difference between their bid and ask prices. This allows traders to receive the best rates on the market when buying Bitcoin. However, Libertex does charge a commission when opening a trade, which can fluctuate depending on market conditions and the asset’s popularity.

Much like eToro, Libertex allows you to fund your account with PayPal and then buy Bitcoin. The minimum deposit when opening your account is $100, and this drops to only $10 for subsequent deposits. In addition to PayPal, Libertex also accepts credit/debit card, bank transfer, and various e-wallets such as Trustly and Neteller.


  • Zero spreads when buying Bitcoin
  • Fund your account via PayPal for free
  • Also supports debit/credit cards and bank transfers
  • 1:2 leverage when crypto trading
  • Been in operation for 25 years


  • Commissions can rack up
  • Only offers CFDs

83% of retail investor accounts lose money when trading CFDs with this provider.

3. Binance – Best Crypto Exchange to Buy Bitcoin with PayPalBinance Logo

Although not technically a Bitcoin broker, Binance is one of the most popular cryptocurrency exchanges in the world when it comes to investing in Bitcoin. With over 13.5 million active users, and over $55 trillion in trading volume in the past 24 hours alone, Binance has solidified itself as the top crypto exchange in the world at the time of writing.

Much of this has to do with its user-friendly platform and low-cost crypto trading. Binance offers 0.1% commissions when you buy Bitcoin with them – meaning that if you invested £1000, you’d only have to pay £1 in commissions! You can reduce these fees even further if you use Binance’s native token, Binance Coin (BNB).

buy bitcoin with paypal binance

When it comes to buying Bitcoin with PayPal, it works slightly differently with Binance. As they are a Bitcoin exchange rather than a broker, you cannot instantly buy Bitcoin with PayPal. Instead, you’ll need to use Binance’s P2P service, which basically means buying and selling cryptos directly with other users or verified merchants.

So, if you were looking to buy 1 BTC using PayPal, you could go onto Binance’s P2P service and find someone who is selling 1 BTC. You could then use PayPal to purchase the Bitcoin from the other user. Although this is a different method to other brokers, it essentially achieves the same thing. The great thing is, there are no fees when buying Bitcoin in this way.


  • Largest cryptocurrency exchange in terms of trading volume
  • Hundreds of crypto pairs supported
  • Commissions of just 0.1%
  • Supports debit/credit cards and bank transfers
  • P2P trading through PayPal
  • Ideal for advanced traders that seek sophisticated tools and features


  • Not great for newbie investors
  • Debit/credit card fees can be costly

Your capital is at risk.

PayPal Bitcoin Brokers Fees Comparison

One of the most important things to look out for when choosing a broker is the PayPal Bitcoin fees that they charge. These fees could come in various forms, including deposit fees, commissions, withdrawal fees, and even monthly account fees. Often, these fees might not be as transparent with some brokers and exchanges – making the process of determining how much it’ll actually cost to buy Bitcoin with PayPal quite challenging.

To make this process easier, the table below presents a comparison of the PayPal Bitcoin fees charged by the three brokers we recommended earlier in the guide. This will allow you to get an idea of how much it’ll cost you to buy Bitcoin with PayPal and which trading platform represents the best value for money.

Commissions0%0.47% to 2.5%0.1%
Deposit Fees$0$0Varies
Monthly Fees$0$0$0
Withdrawal Fees$5$0Varies

Benefits of Buying Bitcoin with PayPal

paypal logoAccording to data gathered from Statista, PayPal had approximately 392 million active accounts as of Q1 2021. This is a staggering number and highlights just how popular the platform is for making digital payments. This section explores some of the main benefits of using PayPal to facilitate your Bitcoin purchases.

Level of Security

One of the main reasons to use PayPal to buy Bitcoin is the high level of security offered by the platform. When you fund your broker account with PayPal, you do not have to enter any personal details or card details when making the transaction. Instead, all you need to do is link your PayPal account to your broker and then make a deposit through the online platform.

paypal security benefits bitcoin

This ability to deposit without using card details means that you’re always under an additional layer of protection when using PayPal. Furthermore, PayPal monitors every transaction 24/7 to help prevent hacking and fraud. PayPal utilises high-level encryption on its platform, ensuring users’ data is protected. Finally, PayPal customer support is always on hand to help you if you ever have any security concerns – and will also step in to resolve any issues that may arise when you make transactions.

Ease of Use

Another great benefit of using PayPal is how simple it is to use. Linking your PayPal account to your chosen broker is usually just a case of logging in on the broker’s platform and confirming the account link. Once this is complete, it’s then just a few clicks before you can instantly deposit into your broker account.

Furthermore, you don’t even have to have your card to hand when using PayPal to buy Bitcoin. PayPal store your card details in their encrypted online platform – meaning that all you need to make transactions is your email address and password. Any transfers that occur will either come directly from your PayPal balance (if you have one) or will come from a credit/debit card you have linked to your PayPal account.


When buying Bitcoin, most of us do not want to jump through hoops and instead want to buy as quickly as possible. PayPal ensures this is doable, as they offer instant deposits into your broker account. This is in contrast to some other deposits methods such as wire transfer, which can often take days to arrive – and sometimes come accompanied with additional fees.

paypal active users

In addition to this, withdrawals are super easy too. Once you have withdrawn from your broker account to your PayPal account, you can opt to leave the funds in your PayPal balance or withdraw them to one of your linked bank accounts. PayPal offers both instant withdrawals (which will go into your account right away) or withdrawals which can take 2-3 working days. However, the former method comes accompanied by a 1% fee, so do be aware of this.

Efficient Digital Method

Finally, aside from all of the speed and security, using PayPal is simply much more efficient than most other payment methods. With the technology we have at our disposal these days, depositing via credit/debit card or wire transfer is not as streamlined as using a digital payments platform like PayPal.

TechRadar recently reported that more than 61 billion people will use digital payments by 2023. This highlights just how popular platforms such as the PayPal app are becoming, as they offer all-in-one security features and speedy transactions. Also, more and more people are moving away from traditional retail banks and are looking to use digital methods as their chosen payment option. If you fall into this category, then PayPal certainly fit the bill.

Buy Bitcoin with PayPal No ID – Is It Recommended?

bitcoin logoWhen you decide to buy cryptocurrency, as you can imagine, it’s essential to use a trading platform that has a reputation for being safe and reliable. Trading platforms such as these tend to require users to supply ID before they can invest; this ensures that all users are verified, which helps to prevent scams and hacking.

Due to this, we would highly recommend that you do not buy Bitcoin or any other digital assets with PayPal without providing ID. Trading platforms that allow you to buy Bitcoin without ID are much more likely to be unregulated and unsafe, thus jeopardising your capital and crypto holdings.

Instead, we’d suggest using a licensed trading platform like eToro. Although eToro does require ID to verify your account, they make this process super easy, and users can complete it in minutes. Once verified, you’re able to buy Bitcoin with PayPal under the protection of both the FCA and the FSCS. These regulatory bodies provide oversight to eToro, ensuring that they abide by the strictest guidelines and policies to protect users.

How to Transfer Bitcoin to PayPal

If you are wondering how to buy Bitcoin with PayPal, you’re probably interested to know whether you can transfer your Bitcoin holdings back to PayPal after purchase. Unfortunately, at the time of writing, this feature is only available to US residents. PayPal’s crypto service, which launched recently in the states, allows users to buy, hold, or sell Bitcoin directly within the online platform.

If you are in the states, certain Bitcoin accounts such as Coinbase will provide the functionality to transfer your crypto assets directly to your PayPal account. Usually, it involves going to the withdrawal screen and choosing your PayPal account as the destination. Your holdings will then be transferred to your PayPal account for storage.

How to Send Bitcoin From PayPal

Much like the previous section, this feature is only available to users in the US. PayPal’s crypto feature is relatively new and currently only offers support for Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.

paypal crypto service

You can buy Bitcoin through the platform and then send it elsewhere. This could be to another crypto wallet, another person, or even use it to fund a purchase. If PayPal’s crypto feature continues to expand in popularity, there’s every chance it could be offered in other countries around the world, allowing users within these countries to buy and sell cryptocurrencies directly through the online platform.

eToro – Best Broker to Buy Bitcoin with PayPal

With Bitcoin’s popularity increasing week-on-week due to the recent all-time highs, more and more investors are entering the crypto market for the first time. If you are one of them, this guide has discussed how to buy Bitcoin with PayPal safely and securely. Using PayPal is one of the quickest and best ways to invest in the crypto market – and is the favoured method of many crypto traders worldwide.

If you would like to buy Bitcoin with PayPal, we’d recommend opening an account with eToro. eToro has a stellar reputation for security and is regulated by top organisations, including the FCA and the FSCS. Furthermore, eToro does not charge any fees when you fund your account via PayPal – and they also let you buy Bitcoin without paying any commissions whatsoever!

etoro logo

67% of retail investor accounts lose money when trading CFDs with this provider.

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.


How can I buy Bitcoin with PayPal?

Certain brokers, such as eToro, will allow users to fund their account via PayPal. Once the account has been funded, it's easy to buy Bitcoin through the online trading platform.

How do I buy Bitcoin with PayPal with no ID?

Buying Bitcoin with PayPal without ID is not something you will be able to do. Trustworthy and reliable brokers such as eToro will always require you to verify yourself before being able to buy Bitcoin – this is a sign that they use strict security processes. If you use a trading platform that does not require ID, it’s likely this platform isn’t regulated, and therefore your capital may be at risk.

Where can I buy Bitcoin with PayPal?

In our experience, the best place to buy Bitcoin with PayPal is with eToro. This is because eToro allows fee-free PayPal deposits to fund your account and also do not charge any commissions when you buy Bitcoin.

How do I withdraw Bitcoin to PayPal?

PayPal now allows users in the US to buy, sell, and store Bitcoin (and some other cryptos) using their online platform. However, this feature is only available to US residents, so currently you cannot directly withdraw Bitcoin to PayPal if you don't live in the US.

How much does it cost to buy Bitcoin with PayPal?

This depends on which trading platform you use. If you go with eToro, you will not have to pay any commissions or transaction fees when buying Bitcoin. What's more, PayPal deposits do not come with any charges attached, meaning you can cost-effectively invest in Bitcoin.

Remember, all trading carries risk. Past performance is no guarantee of future results.

John Iadeluca is the founder of the Wall Street hedge fund Banz Capital. He's a blockchain developer, quant, and consultant that specializes in the digital asset sector. He is an authority on blockchain and has written for a number of publications including

27 thoughts on “How to Buy Bitcoin with PayPal in 2021 – Cheapest Providers Revealed

  1. Hello. Thank you for this review. I was wondering, is PayPal centralised or decentralised? I don’t really get the difference between the two.

    1. Hello Elena. Thank you for your question. While Bitcoin is a perfect example of a decentralised currency, PayPal is a centralised system. The difference is that PayPal is affiliated with centralised financial institutions and it shares information with banks and other regulated institutions. With decentralised systems like the ones used by cryptocurrencies, everything can be dealt with anonymously and can thus be more dangerous.

    1. Hello Olly. Thank you for getting in touch. There are quite a few things to look at to help you decide whether a PayPal exchange is reliable. The first thing is of course whether or not PayPal is available as a payment method. That will help you exclude quite a few cryptocurrency exchanges because PayPal is not available on many of them at the moment. Once you’ve done that, we recommend excluding unregulated platforms because they are not monitored by agencies working to protect customers. We also suggest looking for well-reputed exchanges, with user-friendly interfaces, a sufficient asset variety and low fees. I hope that helps. Good luck!

  2. I have never heard about phishing links. What are they, and what do they have to do with buying Bitcoin with Paypal?

    1. Hello Juliette. Thank you for your question. We recommend to always look out for phishing links. They are basically fake pages that copy actual PayPal login portals making users think that they have to type in their PayPal credentials in order to proceed. The purpose of that is for scammers to get your PayPal login details and potentially steal your funds. That is why we recommend to always look for Google Chrome warnings on whether the web page is secure or not, it might save you from sharing your bank details with thieves.

  3. Hello, I was thinking about signing up on instead of eToro just because I know they allow a lower minimum deposit. The thing is that I can’t afford to spend $250 without making profits first. Do you think that is a good idea?

    1. Hello Anders. Thank you for your question. We always recommend investing amounts that you can afford to lose because of the risks associated with online trading. That is why we believe that if you cannot afford to lose $250, it is definitely a good idea to go for cheaper exchanges instead. Other than LocalBitcoins you can also have a look at Paxful, it requires a much lower minimum deposit. We do believe that eToro is a more valid option though, so if you get the chance to wait a bit longer to save up some more to be able to afford a higher deposit we would definitely recommend doing that. I hope that helps.

    1. Hello Peter. Thank you for getting in touch. You can definitely sign up on Paxful even though PayPal is not a payment option. However, please keep in mind that an exchange loses in terms of security if portals like PayPal are not available, because it forces you to share your bank details with third parties. With PayPal, that is not required, you only have to share your bank details with PayPal once and you never have to do it again. That is why we recommend eToro over Paxful. You can check out our eToro review to find out more about the platform.

    1. Hello Evan. Thank you for your question. I would say that the best exchange to buy Bitcoin if you are based in Austria will have to be Bitpanda. That is not only for Bitcoin but for several other popular cryptocurrencies you might be interested in trading. The exchange was developed in Austria and is now available in several countries. Unfortunately, you will not be able to buy Bitcoin with PayPal on this platform because their partnership was broken in 2017. We still consider Bitpanda to be a reliable and trustworthy exchange though. If you want to buy Bitcoin with PayPal you can always sign up on eToro instead. It is available in Austria and it is one of the most well-reputed platforms out there. You can look through our eToro review to find out more about it.

  4. Hello there. I’ve heard before that PayPal really adds security to payments but I feel like I may have missed something. How is it possible that you do not have to share your bank or card details with the exchange if you use PayPal as a payment method?

    1. Hello Ron. Thank you for getting in touch. Yes, the PayPal system definitely adds security to payments and part of the reason is exactly that you are not required to share bank or card details not only with brokers but with third parties in general. How this works is that when you create a PayPal account, you will have to create some login details and then insert your bank details connected to your payment card(s). As soon as you’ve done that, you will never have to share these details again because when you select PayPal as a payment method on the broker, you will be redirected to the PayPal portal and you will only have to provide the login details to PayPal to be able to make the payment. It is as simple as that!

  5. What is Bitcoin and what is PayPal? I know that they can both be used as payment methods so I am not sure how you would be buying Bitcoin with PayPal.

    1. Hello Mark. Thank you for your question. Yes, you are absolutely right, they are both payment methods. I definitely understand your concern. The difference between the two is that while you should see PayPal as some sort of gateway to deposit or withdraw your money, Bitcoin can be that, but it is also a cryptocurrency in itself. There are also some differences between Bitcoin and PayPal as payment methods. One of the most important ones is that while Bitcoin does not allow you to cancel a payment once it’s been authorised, PayPal does, thanks to its chargeback feature. I hope this answers your question.

  6. Hi there. You definitely convinced me about buying Bitcoin with PayPal, but what would you say is the best platform to do that?

    1. Hello Al4761, thanks for your question. Giving you a definite answer is quite difficult considering that all platforms have their strength and weaknesses. I suggest having a look at our cryptocurrency exchange comparison page, it has a table suggesting some of the best platforms offering PayPal as a payment method. In general, I would say that eToro is one of the best platforms on the market. It is regulated, reliable and well-reputed so it is definitely a safe investment.

    1. Hello Jerico8361. Thank you for your question. We recommend buying Bitcoin with PayPal because it is safer. One of the great things about making payments with PayPal is that once you’ve entered your bank details in the PayPal portal, you will no longer have to share your details with third parties.

      For example, if you decide to deposit funds in a trading platform that turned out to be a scam, you do not have to worry about having shared with them your bank details because whenever you pay with PayPal, you are connected to your account and all you need to confirm the payment are your PayPal account login details. That means that not only it is safer but it is also faster to make a payment, especially if you’ve saved your PayPal login details on your computer.

      On top of this, you can save as many credit or debit cards as you want on your PayPal account, meaning that if you run out of money on one card, you don’t have to take any action to move on to the next one.

      PayPal also has some features aimed at protecting customers. It has a “know your customer” procedure to prevent customers from being money laundering victims, and it has a chargeback feature and a Purchase Protection Policy. The first one provides that in case someone steals your identity or in case you get charged for a service you did not receive, you will get refunded. The second one guarantees a refund if you pay for a service that was not as described. We can guarantee that buying Bitcoin with PayPal will definitely be a great addition to your safety while trading online.

    1. Hello Meddy7009, yes, you can buy Bitcoins with PayPal through Wirex. In order to do so, you will have to add some funds to your new Wirex account by linking the account to your PayPal account. A simple tutorial is present in the link mentioned in this comment.

    1. Hello Alex, it is not possible to buy Bitcoin with PayPal without at least some form of verification. If you think verifications are a hassle, eToro is the way to go for you. This platform does not require verification until you want to withdraw funds. So, you can buy Bitcoin with PayPal on eToro without the lengthy hassle of verifications. eToro uses quick yet very effective verification methods which you can complete when you register on the platform or when you are about to withdraw your funds. Also, you only need to verify your identity once and your information will be registered for the future when you decide to withdraw again.
      Verification is extremely important when withdrawing funds because they are your hard-earned funds and eToro cannot let anyone else take them away from you without you knowing. So, to keep your funds secure and protected, eToro needs to make sure that it is you who wishes to withdraw funds and not someone else.

    1. Hi Mathew, if you are looking for an easy way to buy Bitcoin with PayPal, eToro is the better option when compared to LocalBitcoins. In LocalBitcoins, you have to go through the process of conversing with the seller, settling and negotiating details of the transactions, and not every seller on LocalBitcoins will be willing to accept payment through PayPal.
      We would highly recommend you to use eToro for buying and trading cryptocurrencies with Paypal. eToro gives you more interesting features, its user interface is friendly and easy to use and it’s regulated.

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eToro: Buy Bitcoin

eToro: Buy Bitcoin

eToro: Buy Bitcoin

Visit eToro

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

eToro: Buy Bitcoin
Visit eToro

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.