Most traders are familiar with eToro, a financial broker currently with over 9 million clients from over 140 countries around the world, but now so much with eToroX. What these traders don’t realize is that well-known eToro launched a subsidiary to handle the ever increasing crypto trades on their platform named eToroX. This post should guide any trader on what eToroX is, how it differs from eToro and the differences between the two.
eToro is primarily a CFDs provider, although it also offers real asset trading as well. The company is able to do this thanks to regulation from various financial regulators including CySEC, the FCA and ASIC. After being incorporated in 2007, eToro got license number 109/10 from CySEC in 2010. Later on in 2013 the FCA would license the broker with reference number (FRN) 583263 to operate in the UK. In an effort toward global expansion, ASIC in Australia also licensed eToro AUS to operate in the country under services license 491139. Today, these licenses allow eToro to operate in most countries around the world with the exception of the United States and Japan.
On the other hand, eToroX was created to handle mainly crypto trades. Since most countries around the world do not have regulations around cryptocurrencies, eToroX sought a license from one of the few countries that did, Gibraltar, under license number FSC1333B. All the above licenses were acquired through eToro’s subsidiaries, so it wasn’t too difficult to create another one. As a result, eToroX functions as a cryptocurrency exchange licensed by the Gibraltar Financial Services Commission (GFSC). Although some crypto enthusiasts may be against crypto regulation, it also helps to keep clients of eToroX safe from any unscrupulous activity. Just like with CFDs, crypto traders also need to feel safe when making deposits into an exchange, and the regulation by GFSC guarantees this for its clients.
The minimum deposit for an account with eToro is $200 for new users and $50 for subsequent deposits. Meanwhile, eToroX works with Simplex to provide deposits in fiat into the crypto wallet, and there is no minimum deposit required beforehand. This means that eToroX has an advantage over eToro, even though by a small margin.
Neither eToro nor eToroX have downloadable apps for PC or Mac, instead relying on a WebTrader for their trading facilities. Furthermore, both subsidiaries have apps for download on both iOS and Android to allow for trading while on the go.
Being an all-round provider of CFDs and real assets for trade, eToro has a lot of assets for trade. These include currency pairs (EUR/USD, GBP/USD, etc.), ETFs (iShares MSCI, SPDR, etc.), stocks (Cronos, Aphria, etc.), commodities (wheat, cocoa, etc.), indices (UK100, Dow Jones, etc.) and even some cryptocurrencies (Bitcoin, Ethereum, etc..
However, eToro’s crypto assets pale in comparison to those offered by eToroX. The latter has a lot more cryptocurrencies on offer because it is primarily a crypto exchange. Basically, every crypto asset available on eToro is also available on eToroX plus several more.
Besides, eToroX also offers a crypto wallet for storing cryptocurrencies while eToro does not. Inasmuch as a trader can buy real crypto while not using leverage, the wallet by eToroX allows them to store a lot more coins, thus making it handy for even more coins not available on the eToroX platform.