eToro announces new features on its crypto platform

EToro is upgrading its crypto trading platform to better suit institutional investors' needs and help bring crypto trading into the mainstream.

By · Jul 24, 2020 . 6min read

eToro’s multi-asset platform has added some significant changes for its users. These changes are centred around trading and risk management with respect to its crypto exchange, eToroX. Changes include an advanced FIX API, cold storage custody solution, Credit Line, special order types, and a high-performance matching engine. Perhaps most significantly, the changes also include an inverted fee model for its 13 million users.

Most other platforms have a traditional fee model where users have to pay to conduct transactions. With the inverted fee model, eToroX essentially gives its users a rebate if they trade above a certain volume. According to research from the University of Melbourne, platforms that adopted an inverted fee model exhibited less volatility, higher liquidity, and increased price efficiency.

eToroX has also responded to the needs of institutional investors by upgrading the risk management tools that they offer. They have added a range of new order types. The platform also now offers a highly secure cold storage custody solution. The introduction of a credit line program will now allow users to trade at volumes 10x higher than normal. Thus, granting users access to eToroX deep liquidity markets.

Crypto investors need better tools

The US SEC and the Aite Group are of the opinion that crypto traders need access to better tools. This will help bring digital currencies to the mainstream. eToroX has published a paper that highlights the main barriers that investors face. It points out how its platform is making changes to bring down those barriers.

Doron Rosenblum, VP of Business Solutions at eToro, had the following to say. “Institutional investors have not been able to enjoy a similar quality of trading tools in the crypto industry as those they rely on in traditional asset classes. We want to address these concerns directly, as outlined in our position paper, in a bid to open up the crypto ecosystem to both institutional participants as well as pro traders. Institutions are now much more aware of how a 24×7 risk management mechanism allows the management of risks on a constant basis, which is only possible via the crypto ecosystem. We are seeing this in eToroX’s data, where the most traded crypto assets on our platform by institutional investors are stable coins pegged to commodities and Fiat currencies. We have launched these initiatives today to give these types of traders access to deep order books at a competitive price.”

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