Etoro is an online Forex broker with more than 1.5 million users from 130 different countries around the world. Etoro.com makes it easy to get started in online Forex trading.
Min deposit: $50
Max leverage: 1:400
Pip spread: 3-6 pips for common pairs
As with most online forex brokers, eToro offers a free demo account that lets you practice with $10,000 of virtual currency. Testing out a forex broker before you deposit is vital, and this is a great way to do it.
Etoro offers four options for online forex trading. The first, eToro Desktop, is a downloadable online forex platform that offers speed and sophistication. If you don’t want to install any software, you have the option of using eToro WebTrader. This is a no-download client that still offers plenty of features. An innovative feature of eToro is their OpenBook – a social trading network that allows you to see, follow, and even copy the trades of any eToro OpenBook trader. There is no fee for that service.
Finally, eToro MobileTrader makes it easy to trade on the move. You can use Mobile Trader with the iPhone, iPad, Blackberry, and most smartphones. This puts eToro at the forefront of the market for mobile support. Continuing their dedication to mobile technology, eToro recently launched an Android version of their mobile application, ensuring that the vast majority of the smartphone and tablet market is supported by their trading platforms. If the ability to trade on the move is important to you, and you change devices regularly, then this could be the killer app that persuades you to choose eToro over other, less flexible brokers.
The desktop software has several benefits – it is responsive, fast, sophisticated, customizable, and easy to use. If you are an experienced daytrader or online forex trader who does most of their trades from one PC (or a couple of PCs) then you will love the software. Granted, browser based software has its benefits – trading from anywhere is incredibly convenient if you do a lot of travelling, but standalone apps tend to run much better and are usually more stable. If you will be spending a lot of time using the software then this is something that cannot be overlooked.
Etoro offers low minimum deposits, and competitive spreads. Depending on the currency pair that you choose to trade, the spreads can go as low as 2 pips.
The leverage options on eToro are broad, so you can trade at a level that suits your own budget and risk tolerance. Trading is open 24/7, and customer support is available all day, every day too.
Depositing options include credit cards, wire transfers, Western Union, Neteller and Paypal. Withdrawing your funds is easy, although the speedy withdrawal options (such as pre-paid cards) offered by some other brokers aren’t available on eToro.
In addition to the usual signup bonuses, there’s also a referral program that gives existing customers a chance to earn $100 for each friend they refer that becomes an active, depositing member of the site. Each referred friend gets a $50 bonus, making this one of the more generous refer-a-friend bonuses available at the time of writing. There are some limitations on the countries that can take advantage of the refer a friend bonus – unfortunately, USA based traders cannot take advantage of the offer. The person being referred must be a new customer, and must not have visited the eToro site prior to clicking on the referral link.
.Where eToro really comes into its own as a forex broker is the learning opportunities. Between the OpenBook social trading network and the wealth of tutorials and guides on the site, eToro manages to offer value for both forex novices and experienced traders.
In 2010, eToro won the World Finance Award for Most Innovative Trading Platform. The philosophy of the site means that they will continue to innovate.
Gurus are carefully selected based on their trading skill and their past record, and users can see a lot of information about gurus, allowing them to make an informed decision before they decide to copy or follow a gurus trades. eToro recently expanded their OpenBook platform by launching Copy.Me, which allows gurus to offer their expertise in a friendly, easy to use “online shopping” style environment.
Gurus benefit from the copy.me service by earning a share of the spread on trades that were made through people that have signed up to follow their trades. Users of the Copy.me service benefit by having a wide range of gurus to choose from.
This keeps the OpenBook service busy and active, and ensures that it will always have a lot of traders and trading styles available for people to follow.
eToro’s borkering services are provided by a company based in Cyprus. This company is a registered Cypriot Investment Firm called RetailFX. It is registerd with the Cypriot Securities and Exchange Commission and operates under the Markets in Financial Instruments Directive. It is also reistered with the Commodity Futures Trading Commision and the National Futures Association in the USA, and several other authorities in other parts of the world.
It is always worthwhile to perform extensive research before registering with a new forex broker. The forex market does not have one central regulator, so due diligence is vital. That being said, eToro is a respected site that has a good reputation and that as won many awards in recent years for its innovative and exciting online currency trading facilities.
Etoro is popular because of its low spread, fast software, and 24/7 trading options.
The eToro online forex broker is great for novice forex traders and hardened, experienced daytraders. The community aspect of the site is something that you will not see at many other sites. As a broker, eToro has done a great job of catering to a wide range of clients. Novice brokers will enjoy the learning opportunities, and experienced brokers can experiment, broaden their horizons, and enjoy the good spreads and margins that are on offer.
It would be nice to see a browser-based client, but this is something that could well be added in the future, but the community focused aspects of the site do make up for it.
It’s well worth signing up to the practice account to test out the website. You can enjoy all the features of the site with virtual money, and you’ll quickly decide whether or not you like the site. Due diligence is always advisable, so before you deposit don’t forget to check online forex trading communities for recent comments on the status of the site – companies can change, and it pays to check before spending money online.
Areas of Activity
eToro is a thoroughly regulated broker with clients in 130 countries. Primarily based in Cypriot, it gets its regulation there through Cypriot Securities and Exchange Commission. USA speculators can avail the fledgling eToro USA, made legible by Commodities Future Trading Commission and National Futures Association. Australian traders get strength from Australian Securities and Investment Commission. Markets in Financial Instruments Directive (MIFID) are instrumental in ensuring security and client protection through member states of EU. Each major country here has its typical regulating body. For instance, UK is layered through by Financial Esrvices Authority and France by Banque De France. It provides both investment and ancillary services through specific regulations in 130 countries.