eToro is a leading social trading and multi asset brokerage company that allows its users to trade in Forex, CFDs, stocks and shares, and commodities.
The platform expanded its operations last year by adding a number of digital assets to its list of tradable products, and followed this up by launching eToroX, the blockchain subsidiary of their more traditional investing platform earlier this year.
The crypto to crypto exchange aims to cater more specifically to digital currency enthusiasts and also incorporates many of the features from their popular social trading platform.
Wallet and Exchange services provided by eToro X Limited (‘eToro X’), a limited liability company incorporated in Gibraltar with company number 116348 and with its registered office at 57/63 Line Wall Road, Gibraltar. eToro X is a regulated DLT provider licensed by the Gibraltar Financial Services Commission under the Investments and Financial Fiduciary Services Act with licence number FSC1333B.
eToro originally started out as RetailFX and was founded in Tel Aviv, Israel in 2006 by brothers Yoni and Ronen Assia. The company still retains an office in Tel Aviv, as well as other offices in the UK, Australia, Cyprus, and China.
eToro continues to grow in stature and has raised over $150m since 2007 across a number of different fund raising rounds. After developing a range of trading products involving traditional stocks and shares, commodities, Forex, and CFDs, the company added a Bitcoin CFD to its investment instruments in January 2018.
This was followed up by the announcement in May 2018, that eToro would begin offering ten cryptocurrencies to users in its US market, and Bitcoin, Ethereum, Litecoin, XRP, Bitcoin Cash, Dash, EOS, Ethereum Classic, Stellar, and NEO were all made available.
The platform has opened over 8 million accounts, and is regulated by the CySEC authority in Europe, the FCA in the UK.
Sister platform eToroX officially launched in April 2019, and is being regulated by the Gibraltar Financial Services Commission (GFSC). The company retains a registered office at 57/63 Line Wall Road, Gibraltar, and a registration number of 116348, and is a regulated DLT provider licensed by the GFSC under the FSC1333B license number.
eToroX currently provides access to around 70 trading pairs and 20 digital currencies with over 100 ERC-20 tokens set to be added over the coming weeks and months.
eToroX Key Features
- Functionality – eToroX makes use of a web-based trading platform, and incorporates a relatively easy to use and intuitive user interface that contains all the expected functions. Users can keep a track of the order book, order depth charts, and trading history, as well as comprehensive charts with a full range of technical analysis indicators. The exchange can also be accessed via its mobile app which is available for both Android and i0S users, and provides also various trading integrations via API.
- Security – The exchange’s security protocols include two factor authentication (2FA), login attempt limits, and whitelisting attribution models to prevent automation attacks. eToroX also enforces data encryption by default, and user accounts require Level 3 Identity Verification, and the completion of a dual-process verification when making any changes. Furthermore, cold storage solutions are also used on top of a three level military grade FIPS140 custodian process which involves multi separation between the various secured environments.
- Trading Options – The site provides access to over 70 trading pairs based around more than 20 digital currencies including popular options such as Bitcoin, Ethereum, XRP, Litecoin, and XLM. A number of digital assets pegged to the prices of fiat currencies and commodities are also available such as GOLDX, SLVRX, USDEX, CADX, and GBPX. A transparent tiered fee system based on the platform’s monthly trading volume sees fees range from 0.10% to 0.03% for market makers, and 0.24% to 0.12% for market takers.
- Customer Support – A support team is on hand to deal with any issues and users can contact the team via their firstname.lastname@example.org email address. The team can also be contacted via their Twitter account, Telegram group, and Facebook page, and also address the most common questions in their Help Section. In addition, eToroX also provides resources such as its Blockchain Academy and Glossary Section which help users to navigate the platform and develop a better understanding of the blockchain world.
How to Get Started on eToroX
1) Create an Account
An email will be sent to your address, and after clicking the link in the confirmation email you will be prompting to sign into your account.
2) Verify your Account
You can navigate your account settings by clicking on your avatar and you can proceed to complete your personal information.
You will also be prompted to complete your account verification from the main exchange dashboard.
You can begin the process by verifying your phone number and moving on to fully confirm your account which involves uploading all the necessary documentation. From here you can also adjust your account settings including enabling two factor authentication.
Anyone aiming to use eToroX that is already an eToro customer can simply login using their existing eToro login credentials.
3) Deposit Funds into your Account
You can make a deposit, by opening the Balance page, and choosing your preferred coin to deposit and clicking “Deposit”
4) Customize your Trading Screen
The user interface loads in a default mode but can be customized to suit your particular preferences.
eToroX Supported Currencies
The platform currently supports around 20 digital currencies with over 100 ERC-20 tokens scheduled to be incorporated in the near future.
There are also 71 trading pairs currently available, and eToroX also incorporates ten branded stablecoins that allow traders to protect themselves from the volatility of the market without having to “cash out” into fiat.
The branded tokens pegged to fiat currencies include the eToro United States Dollar (USDEX), eToro Japanese Yen (JPYX), eToro Euro (EURX), eToro Pound Sterling (GPBX), eToro Australian Dollar (AUDX), eToro Canadian Dollar (CADX), eToro New Zealand Dollar (NZDX), eToro Russian Ruble(RUBX), eToro Chinese Yuan (CNYX), and the eToro Swiss Franc (CHFX). In addition, digital assets pegged to the price of commodities are also provided and the GOLDX and SLVRX coins remain pegged to the prices of gold and silver respectively.
The incorporation of these digital assets helps eToroX to remain a crypto to crypto exchange, and they sit alongside popular cryptocurrencies such as Bitcoin (BTC), Bitcoin cash (BCH), Ether (ETH), Litecoin (LTC), Stellar (XLM), and XRP with further digital assets scheduled to be added in the coming weeks.
eToroX Fees and Limits
While eToroX doesn’t charge for deposits, the withdrawal fees are as follows:
||Quick withdraw limit
Trading fees are administered via a tiered approach and the fees for all transactions (under a monthly volume of $100,000) are calculated according to Tier 1.
When the monthly trading volume grows beyond Tier 1 (over $100,000), a rebate will be applied during the first week of the month, and depending on the Tier Level, the rebate will be calculated based on the percentages in the following table.
- The calculation will be done for each calendar month.
- The Rebate will be given during the 1st week of the month.
Both Maker and Taker fees are also applied with Maker fees being charged for trades where Maker orders add liquidity to the exchange.
Taker orders conversely remove liquidity from the order book and incur higher charges. Maker fees remain lower in comparison as these orders help the exchange to remain liquid.
An example of a Maker trader order includes placing an order for pending execution, such as a limit order which is not automatically filled (partially or fully).
This action helps “make” the market and adds liquidity to the order book, while a Taker order can take the form of placing an immediate order that doesn’t go on the order book, by being filled partially or fully for example. This type of activity “takes” liquidity off of the order book.
The eToro Crypto Wallet
The platform’s mobile crypto wallet currently supports six cryptocurrencies including Bitcoin (BTC), Bitcoin cash (BCH), Ethereum (ETH), Litecoin (LTC), Stellar (XLM) and XRP with more currencies on the way, and both iOS and Android device users are able to store their cryptocurrencies, make in-wallet crypto to crypto asset conversions as well as purchase cryptos by using a credit card.
How to Buy Crypto with a Credit Card
As eToro has partnered with third-party payment provider Simplex, eToroX users can make purchases via their Visa and MasterCard credit cards, here’s how it works:
- Open your eToro Wallet
- Click on the “BUY CRYPTO” section of the wallet and select your preferred coin and amount that you would like to buy
- Enter your payment details into Simplex’s billing form.
Once you have successfully completed the process, your purchased coins will be transferred to your eToro wallet. It’s important to note that as a third party service provider, Simplex can choose to approve or decline your request, or request further documentation or proof of identity.
These may take the form of an official government issued documentation or a selfie photo. This service is also subject to the following fees and limitations.
eToroX Wallet Fees
Crypto-to-Crypto conversion fees
A conversion fee of 0.1% is charged, and conversion rates are set according to eToro market rates.
Fiat to Crypto Conversion Fees
- eToroX fee 1%
- Simplex fee 4%
||Max / Day
||Max / Month
Once the transaction has been approved by Simplex the actual market rate is determined by eToroX and in addition to the above fees, blockchain fees are also deducted from the crypto purchased and are applied to every crypto transaction.
In addition, you bank or credit card issuer may also apply further charges, and these may include cash advance or foreign transaction fees to your card transactions.
Also, any processed transactions will appear on your credit card or banking statement as eToroX LTD, with the credit card descriptor being Simplex_eToroX. When using the service, Simplex sends out a conformation email containing all the important details.
In the event of any issues, customers are advised to open a ticket directly on the Simplex website or to use the Live Chat feature on the bottom right side of the Simplex.com website.
Also, when using the service, once a payment has been approved it can’t be cancelled, and the approval process is actually authorised by Simplex.
Therefore, any questions about the transaction process should be first directed to the Simplex customer service team, although the eToroX customer service team is also available to handle any issues.
Is eToroX Safe?
eToroX is part of the eToro group which has been operation since 2006 and is one of the more reputable and regulated organisations currently active in the crypto space. eToro is regulated by the CySEC authority in Europe, the FCA in the UK.
eToroX remains equally as transparent and is being regulated by the Gibraltar Financial Services Commission (GFSC), and retains a registered office at 57/63 Line Wall Road, Gibraltar, and a registration number of 116348,. eToroX is also a regulated Distributed Ledger Technology (DLT) provider under the Financial Services (Investment and Fiduciary Services) Act and licensed by the GFSC under the FSC1333B license number.
The exchange places a priority on security and incorporates a range of innovative and cutting edge security protocols designed to ensure the highest levels of resilience against malicious attacks and to limit the amount of potential weak spots in their system.
These include using data encryption by default, with a dedicated secured mechanism being used to prevent CSRF attacks. In addition, the team have developed their own backlog analytic mechanism, based on N.N machine learning algorithm which assists in decision making, and incorporate multiple PT and Code reviews as well as a bug bounty program.
User accounts are further secured as all eToroX customers are required to complete Level 3 Identity Verification, and updating financial account information requires dual-process verification. Furthermore, the platform makes use of two factor authentication (2FA), limits login attempts and uses whitelisting attribution models to prevent automation attacks.
As part of their comprehensive approach to maintaining security all eToroX employees are required to pass security clearance before being hired, and all employee workstations are protected and verified based on multiple security mechanisms that include deception and traps.
Furthermore, the exchange’s custody solution is based on a three level military grade FIPS140 custodian process with multi separation between the different environments.
These include a warm environment, or process engine secured solution, a cold, secured isolated gap environment, and a deep, military grade secured isolated environment. In addition, the exchange’s security operation centre works 24/7 to detect and identify all significant events and pushes notifications and alerts in real time.
Gibraltar’s regulatory requirements ensure that each new account must be verified as part of the registration process, and the exchange aims to simplify the verification process as much as possible.
After submitting all your information and uploading all the necessary documents, it can take up to two business days to verify your account. New users are required to upload documents to help prove their identity and residence, and the following documentation will be asked for.
- Proof of Identity (POI) Document This POI document must include your name, date of birth, a clear photo, the issue date and expiry date of the document. Accepted forms of POI documents include a passport, a government-issued ID or driving license.
- Proof of Identity and Selfie (POIS) It’s necessary to upload a selfie that includes you holding the proof of identity document you have uploaded.
- Proof of Address (POA) Document The POA document must include your full name, address and issue date, and also feature the name or logo of the company that issued the document. The POA documents must be no older than 6 months and all four corners of the document must be visible.
Your POA document can be one of the following:
- Bank Statement
- Utility Bill: Electricity, Water or Gas
- Tax: Council, State or Country Tax Bill
The last step in the verification process involves completing a financial questionnaire which covers your financial suitability for investing. The questionnaire is made up of nine 9 questions and takes just a few minutes to complete.
How beginner friendly in eToroX?
While eToroX incorporates a quite intuitive User Interface, and well laid out dashboard, similar to any trading platform, it will still take some to get used to. For anyone completely new to the world of cryptocurrency trading, the team have a Help Section which aims to answer the most common questions, and can be contacted by email as well as across their various social media accounts.
eToroX also aims to educate its users and incorporates a Blockchain Academy and Glossary Section which include a range of clearly written guides and definitions that help users to both navigate the platform and gain more in depth understanding of blockchain technology.
There are also consistent product updates and service announcements on their news page which helps to simplify keeping up with all the latest developments.
Depending on your background, the more limited selection of digital assets on offer should make it easier for new entrants to the market to start trading on the platform, while the unique selection of stablecoins should also help newer traders to gain an understanding of how to make profitable trades when dealing with digital assets.
However, the platform is still expanding with a wide range of digital currencies set to be added in the near future.
Also, in order to incentivize new users to recommend the exchange to their friends, eToroX is running a Referral Program. Here, each time a friend of yours who has registered as an eToroX Exchange user by clicking on your individual referral link, and begun trading, you are rewarded with 50% of their trading fee. The program details are as follows:
eToroX Referral Program
- Payments are made once a month.
- The money will be credited to your eToroX account, in the same currency in which the fees were paid.
- You gain revenue share for a period of six months for every friend.
- The number of friends you can refer is unlimited.
If the monthly program payment does not total $25 or above, then the accumulated revenue share will be paid the following month.
The GoodDollar Experiment
The team behind eToro are committed to tackling the issue of the misdistribution of global wealth, and announced the GoodDollar experiment in November 2018. GoodDollar is a non-profit, open-source blockchain-powered initiative aiming to reduce global wealth inequality by using principles of universal basic income (UBI), and eToro is donating $1 million to support the GoodDollar experiment.
The project aims to create a global cryptocurrency and economic framework that allows money and resources to be distributed to those most in need. Blockchain technology will be used to provide all human beings with a guaranteed basic income, and allow people everywhere to be granted a minimum wage, with no strings attached.
The team have aligned with the OpenUBI movement, which is a voluntary, open-source evolution of the UBI idea, and the economic models are based on blockchain technology, and do not require the need for government intervention and/or any taxation. The process is democratised through decentralised governance, and all currency data is saved on a transparent, distributed ledger.
Some of the features of GoodDollar are:
- Accessible to anyone, anywhere on the planet
- Fairly distributed to combat inequality
- Exchangeable for any other currency
- Low transaction fees to ensure no barriers
The GoodDollar initiative is currently looking for experts in identity and privacy, governance, the local and global adoption of financial products, and wealth distribution. As well as ambassadors, philanthropists, NGO partners and anyone interested in making a contribution can email the team at email@example.com.
- Backed by a Highly Established Company
- Fully Regulated Exchange
- Transparent Trading/Wallet Fees
- Comprehensive Security Protocols
- Wide Range of Fiat/Commodity Pegged Assets
- New Exchange Still Growing its User Base
- Limited Choice of Digital Currencies
- Users Must Pass KYC Verification
eToroX includes many of the features expected of a high level crypto exchange such as an intuitive user interface, comprehensive charting tools and a mobile app.
In addition, the exchange is supported by an established and innovative team, and can take advantage of being part of the eToro group which has been on the forefront of the growing FinTech movement for over ten years.
This level of experience is rare in the rapidly emerging crypto exchange space and this translates into an exchange that makes use of cutting edge security protocols, and aims to provide crypto to crypto traders around the globe with access to a securely enhanced, transparent, and regulatory compliant trading platform.
In keeping with this ethos, eToroX is certified as a DLT provider by the Gibraltar Financial Services Commission, and protects the integrity of its service through enforcing stringent KYC verification for all its users.
As a result, the platform will suit anyone coming from a more traditional trading background who is used to a certain level of trust and guarantees, and the digital assets on offer will also suit traders looking to engage with more established currencies such as Bitcoin, Ethereum, Litecoin, and XRP.
The fiat and gold/silver pegged assets will also suit traders used to operating in traditional currency and/or commodity markets, and while the range of trading pairs is currently growing, it is not as overwhelming as some other crypto to crypto exchanges.
The mobile wallet and ability to make crypto purchases also make eToroX a good option for anyone looking for convenience, however, the platform may not be the best choice for anyone looking for an exchange that has more lenient KYC restrictions while also providing access to hundreds of digital currencies.
While there are a number of organizations that fit that description, eToroX is a good choice for anyone looking for a mix of convenience, security, and transparency.
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Source: Beginners Guide to eToroX: Complete Review