eToro vs eToroX

Individual investors who need an online trading platform they can rely on for their crypto trades should consider the differences in eToro or eTorox, two platforms owned by the same founder that serve different needs.

At a Glance: eToro vs eTorox

For investors searching for a safe and reliable online trading platform for crypto trades, both eToro and eTorox are good choices. But the abundance of investment tools and resources make eToro the best choice between the two. eToro offers features, pricing and a more user-friendly platform that makes it overall a better option. eToro’s unique features, such as a trade copy tool and diversified portfolios, give users more support for their investment decisions. The trading platform also promotes social interaction and engagement among its more than 20 million users as a way to make crypto trading more accessible to a greater number of people all over the world.

eTorox has features that make it more attractive to established investors who only need a secure and affordable platform to trade cryptocurrency. Its simple platform and easy sign up feature appeals to investors who are not seeking more bells and whistles from their trading platform. 

Depending on an investor’s experience level and interest in guidance about investment strategy, there are pros and cons about eToro and eTorox that potential users must consider. Here are some basic points about both eToro and eTorox, and how the two platforms compete when it comes to certain features.

eToro Overview

The global trading platform eToro, established in 2007, provides comprehensive brokerage services throughout the world and crypto trading in most of the U.S. eToro gives traders access to 27 cryptocurrencies. The platform serves more than 20 million users in more than 140 countries. The eToro platform offers unique social engagement features, including a chat platform for users to discuss insights and experiences and tools that help beginners learn from other investors.

Next: eToroX exchange platform review

eToro Pros and Cons

One advantage of eToro is its large investor community on a platform that supports social interaction among users through a process known as social trading. The site allows users to chat online about their investment experiences, trends and strategies. eToro also offers unique tools for users to imitate the investment strategies of others. Through the platform’s CopyTrader or Smart Portfolio tools, users can benefit from the experience of more experienced or larger traders. The eToro platform also offers a full range of educational resources to tutor investors and help with investment research. Another advantage of the eToro platform is its risk-free trading practice feature that allows investors to try investment strategies on paper before they actually use their own money to buy or attempt to sell an asset.

eToro’s platform does have some limitations, including its limited access in some parts of the world. For example, there are a few states in the U.S. where eToro is not supported, including New York, Nevada and Tennessee. The platform also has limited access to customer service through email, although an online chat option is available as a premium membership feature. Users of eToro also face limits on how they can move cryptocurrency once it is transferred to the site’s crypto wallet. It cannot be moved back onto the trading platform once it is transferred to the eToro wallet. 

eTorox Overview

The founders of eToro created eTorox in 2019 to deal with increased demand for trade in cryptocurrencies. This online trading platform is a subsidiary created for the sole purpose of crypto trades, including Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Stellar and more than 120 other digital assets. It is part of an operation, eToro Group, that has been running for more than a dozen years. Although still a relatively new platform, eTorox counts more than 10 million users from all over the world, offering basic crypto trading services and limited fees. 

Next: Read our full eToro review

eTorox Pros and Cons

The main advantage of eTorox is the greater number of cryptocurrencies available to investors. The sole purpose of this platform is to provide trading opportunities for investors interested in cryptocurrency. Although it is a relatively new platform, eTorox is part of a larger, more established company with a global reach. The eTorox platform interface is simple and easy to use, particularly for beginners who are looking for a basic option to start their crypto trading experience. The eTorox platform uses the eToro crypto wallet feature that offers users secure storage.  

A main disadvantage of eTorox is it is a relatively new exchange with fewer users than other platforms and without support from some countries. The platform also focuses on providing crypto trading services only, so there are none of the unique tools offered that help investors imitate the trading strategies of others and there is no ability to trade in other assets. Users also have limited options to access customer service, primarily through email. 

CopyTrader Feature

For newcomers to crypto trading, it is always a good idea to have some help navigating the investment opportunities. The CopyTrader feature, one of eToro’s tools for investment strategy development, allows users to copy the trades of other users, typically more experienced or larger investors. The CopyTrader tool allows users to imitate the strategies of other investors, resulting in similar gains or losses in those trades to those experienced by the initial investor. Although eTorox offers educational resources to users, it does not have a copy trading feature similar to eToro’s CopyTrader.

The winner of the CopyTrader feature: eToro.

Smart Portfolio Feature

Another tool that investors find useful when considering ways to allocate their holdings is the Smart Portfolio feature that eToro offers. This is a tool that can provide guidance to investors who want to invest in a specific industry or with a group of others, but don’t know a specific asset to buy. Some of eToro’s proprietary Smart Portfolios follow the market or indices, some Smart Portfolios invest in a group of elite traders, and some are promoted by professional traders. The idea behind these portfolios is to diversify investments, reduce risk, hold these positions for longer periods, and broaden the range of your own investment portfolio. Again, because eTorox offers a more scaled down, basic trading platform, it does not offer this special feature.

The winner of the Smart Portfolio feature: eToro.

Risk-free Trading Practice

An inexperienced investor who does not understand the crypto market could easily become overwhelmed by the investment choices. The eToro trading platform caters to traders of all experience levels, but offers a number of features that provide guidance to less experienced investors. For example, eToro offers risk-free trading at no charge for those who want to learn more about crypto trading without using their own money. This free paper trading account available to all eToro users allows inexperienced investors to practice trading strategies without actually buying crypto with their own money. The more basic eTorox trading platform does not offer this feature to its users.

The winner of the risk-free trading practice feature: eToro.

The Overall Winner

Both eToro and eTorox offer investors an easy to use trading platform on their websites and mobile app tools, and both offer security features that offer traders the confidence they need to invest in this evolving crypto market. But eToro offers more support and tools that investors of any experience level can use. The eToro platform is easy to access and supports the development of investment strategies with various tools and comprehensive resources available to its users. Several significant features offered by eToro help investors with less experience learn more about crypto. The platform facilitates engagement among a large community of investors. eToro offers users more bang for their buck on a platform that is growing in popularity among global investors.

There is a growing market for eTorox, as well, among investors who are looking for a solid, reliable, reasonable platform for crypto trading. It offers the same site security and crypto wallet protection that is offered by its sister platform, eToro. It offers fees that are slightly less than eToro for some trades and a greater number of crypto offerings than eToro. The eTorox platform is best for crypto traders who know what they want, who appreciate a basic and easy-to-use platform and who don’t need lots of extras from their online trading platform. 

eToro is best for the novice crypto trader who will benefit from a robust offering of educational resources, tools to learn from other investors and features that allow diversification of a portfolio. The platform is suited to serve users as they gain experience from their trading activities over time, even rewarding more experienced traders whose trades are copied by other users. This allows a beginner to benefit from the experience of a seasoned investor and then later share that trading knowledge they’ve acquired as they become an experienced investor with other users.

Join more than 20 million investors around the world who have already become eToro users. The platform offers an easy registration process online that requires a user’s email, a username and a password. The company takes the security of an account seriously, offering secure procedures for clients’ verification and two-factor authentication to secure the account.

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