What is eToro
eToro is a trading platform that most traders and investors are already familiar with as it is nearing its 15th anniversary, and hardly a day goes by on YouTube without seeing one of their adverts. They’ve become a staple of modern trading from the rise of their copy trading functionalities to their massive expansion of tradeable assets.
eToro has managed to garner a whopping 9 million clients from over 140 countries, illustrating the vast scale of their operations.
Here is our full eToro review.
What is eToroX
Due to their expansion into other tradeable assets such as Bitcoin and cryptocurrencies, they’ve seen a surge of new traders; young, gen-X investors who have flooded the market in search of trading wealth. To deal with this sudden influx, Etoro has founded their subsidiary, a crypto-only exchange dubbed eToro X. This platform was devised solely for cryptocurrencies, trading Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Stellar and 120 other digital assets.
Here is a full eToroX review.
As previously mentioned, the eToro organisation trades globally. Mainly specializing in CFDs and in asset trading. This is all possible through the array of licenses and legislation they follow: they are regulated by numerous institutions including the FCA, ASIC and CySEC.
Most of eToro’s licenses have been applied before the early 2010s and they’ve been operating under them smoothly ever since. They have obtained ASIC licenses in the UK and Australia. eToro USA LLC is a registered money services business with FinCEN.
However, due to eToroX solely facilitating cryptocurrency transactions as opposed to other common assets, they are subject to different legislation as most countries have no cryptocurrency regulations, or at-most, rather primitive ones.
The company did manage to become licensed in Gibraltar and functions as a cryptocurrency exchange under the Gibraltar Financial Services Commision (GFSC). This is a common practice among the crypto exchanges as many of them are registered on small, off-shore islands with loose financial regulations.
However, considering that eToroX is a part of the eToro groupation that has an impeccable legal record, there should be no worries when it comes to your funds safety.
eToro has quite a high minimum deposit, sitting at $200 for a first-time deposit, and $50 for any deposits after this. eToro USA does allow a smaller threshold and you can start by depositing only $50 into your account.
Fortunately, eToroX works with the cryptocurrency institution Simplex, in order to facilitate deposits on to their service, removing any minimum deposit. This is especially helpful and lets smaller investors get into the market with minimum risks. This is a small advantage over eToro.
eToro and eToroX are fairly similar in this regard. Neither of the platforms are downloadable onto a PC or Mac and you can access them only via web-browsers or mobile apps.
Moreover, both of the platforms are available for users on mobile devices, with both options having downloadable apps for both android and apple devices. These are helpful as it means you can trade on the go, not having to worry about missing a certain price point or opportunity.
eToro is a multi-asset platform with a vast range of assets available for trade. Their assets available range from currency pairs such as EUR/USD, GBP/USD etc. ETFs, Stocks, CFDs commodities and indices. They do also support a few cryptocurrencies such as Bitcoin, Ethereum and 13 other, bigger coins.
eToro allows also leveraged trading on some of the assets from their platform (currently not on cryptocurrencies).
On the other hand, eToroX has a much larger range of cryptoassets available for trade as they list a lot of ERC-20 tokens as well.
You can store your coins on either of these platforms or on a separate eToro wallet. All of these services require only one registered account (best to do it on the main platform eToro) and you can access all of them with one set of credentials.
There are no charges on deposits to eToroX. Trading fees work on a maker-taker model. Makers, people who add limit orders to the order book are charged with a fee between 0.1%-0.03% depending on their order size.
eToro offers free stock and ETF trading. The forex and CFD fees are low as well. The fees on eToro are structured differently and are built into the spread, 0.7 points is the average spread cost during peak trading hours.
eToro is one of the leading social trading platforms thanks to its CopyFunds and CopyPortfolio services. You can follow and copy trading moves of high-level traders that are active on the eToro platform.
On the other hand, eToroX has no such feature as of now and it is purely a spot crypto exchange.
Conclusion – eToroX vs eToro
eToro is definitely a better place to be as of right now as it offers much more to its users. eToroX does have more crypto assets listed but it lacks liquidity and social trading features that eToro has.
If you are not fond of either of these, there are plenty of alternatives we suggest below:
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
eToroX is incorporated in Gibraltar with company number 116348 and its registered office is at 57/63 Line Wall Road, Gibraltar. It’s distributed ledger technology (DLT) provider licence was granted by the Gibraltar Financial Services Commission in December 2018 (licence number FSC1333B).
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com