eToro has given clients the ability to deposit funds and buy and hold assets in Great British Pounds or GBP. Historically eToro accounts and assets were denominated in US Dollars, but the firm is launching a sterling eToro money account to provide its clients with what it calls a:
“Truly localised trading experience”
Using the new GBP trading facility, eToro clients will now have the ability to deposit funds in GBP or US dollars. They will only need to convert their GBP funds, as and when they buy a dollar-denominated asset, and even then, only the amount required to settle the trade.
eToro clients will need to update their app to access the new facility, but once that’s done, they can deposit sterling into their account if required and start trading and investing using the UK currency.
eToro hinted that there are other innovations on the way without saying exactly what they were.
Dollar supremacy
FX and other margin trading are often dollar-denominated for historical and practical reasons.
The US dollar is the global reserve currency, and all FX transactions, regardless of whether they are between pairs or crosses, have a direct relationship to the dollar.
Brokerage PnLs, KPIs and trading platforms are usually US dollar-based for those reasons.
The supremacy of the US dollar is receding slightly, as the global economy evolves, however, it remains the principal medium of exchange in the financial and commodity markets.
Etoro was founded in early 2007 and launched its first trading platform in September of that year.
The firm now has some 35.0 million registered users, who are drawn from more than 100 countries around the world.
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