We Help You To Discover The Social Media Aspect Of Forex Trading In This eToro review
eToro is at the peak of its game when it comes to offering innovative trading products and graphically advanced trading platforms that put the joy back into trading. Although eToro has a visually pleasing platform that leaves other platforms in its dust, the entertaining nature of eToro trading may have adverse effects on a trader’s capital. It is easy to get into a gambling mentality without having a real-life perspective on trading, and such a problem is rampant among amateur traders that start their trading careers with eToro. Nevertheless, eToro does provide some fantastic products and intriguing account options that can be profitable for the informed trader.
eToro is more popular as a social investment platform that deviates from the current norm of Forex brokerages. Social trading strategies are becoming incredibly popular among different categories of traders, regardless of their account equity or trading experience. Both small, as well as larger Forex traders, are looking for new ways to improve their trading performance, which is achieved through managed funds and copy trade strategies offered by brokers and third-party service providers. eToro is one of popular mainstream brokers that have an excellent social trading platform. In this eToro Forex review, we offer our traders more information on the various social media trading features of the broker and how you can use their brokerage account for improving your trading performance.
Trading The Markets With The Unique eToro Trading Platform
eToro only provides a single type of trading interface, unlike other Forex brokers that offer different varieties of desktop and mobile apps. Traders can log into their trading accounts using the eToro web interface, which is accessible on all types of desktop and mobile operating systems. The Web Trader is simplistic in its design but offers a powerful trading interface that has all the necessary trading tools built into the platform for the best convenience to the trader. Every individual trading account can be customized according to personal preferences, which also allows an eToro client to choose different charting options, add indicators to charts, and customize their trader dashboard to choose the instruments of their choice. Apart from Forex currency pairs, eToro also offers a broad range of other financial instruments such as commodities, shares, indices, and ETFs, which helps traders to enjoy a truly globalized financial trading platform for a diverse investment portfolio.
Traders can also the OpenBook social trading platform that allows investors to choose the best performing traders and copy their live trades without any additional fees or subscriptions. Of course, as with every other social trading platform in the market, you will have to pay a small percentage fee as a share of the profits. Overall, the OpenBook is a good option for traders that are aware of all the money management rules to apply copy trading strategies without losing a significant chunk of their trading capital.
eToro is also available as mobile trading apps for the iOS and Android devices. Traders can alternatively point their device’s browser to the WebTrader if they do not wish to download or install any dedicated applications. Desktop traders might feel at a disadvantage due to the lack of any other trading platform such as MT4, which may prevent professional traders from investing their money with eToro.
- Support: +44 (0) 203 150 0308
- Leverage: 400:1
- Min. Deposit: 50 USD
- Spreads: Fixed & Floating
- Easy to navigate
- Free $100,000 Practice Account
- No commission on trades
- Islamic account
- No VPS services
- Does not allow scalping
- Deposit & withdrawal fees
- No ECN Account
A Detailed Social Trading eToro OpenBook Review
The OpenBook platform (also known as the CopyTrader) in an intuitive program that allows investors to browse through different traders and find a profitable system that suits their trading goals. There are tons of profitable traders on eToro, and the broker actively promotes its successful traders by offering great revenue and visibility for immense profits. According to eToro’s internal statistics, more than 124 million trades have been performed with the OpenBook platform, of which more than 80% have been winning trades. Such incredible statistics mean that eToro has been successful in implementing the best social trading platform in the market, but things may not seem too impressive if we take some other factors into consideration. eToro has gone ahead and rebranded its OpenBook platform as the CopyFund platform, which is essentially the same underneath, albeit with a few modifications and some additional features.
eToro is a market maker broker that matches its clients’ orders internally. Therefore, even if they claim to have positive results for a majority of their customers, they will have to offset their losses by other means. Therefore, the company might offset its losses by taking the opposite side of losing traders’ orders, or they might be earning an incredible amount of money from their losing clients. Therefore, direct market access traders will not choose eToro due to the lack of an ECN account.
Beginner traders may benefit from the OpenBook platform that provides a broad range of options for customizing trades, following different successful traders, and manually editing trades to suit their risk appetite. If you are beginner trader, it is advisable to open an eToro demo account before moving to a live social trading eToro account or even a regular trading account. Demo trading can help you to make the best trading decisions by getting a fair idea of how the market dynamics work.
eToro Regulation & Account Options
eToro is regulated by the CySEC through its local office in Limassol, Cyprus. The Cyprus Securities and Exchange Commission is a responsible regulatory organization that takes care of investors according to the guidelines issued by the European MiFID. Further, eToro also has an office in the UK and is subsequently regulated by the Financial Conduct Authority (FCA). Both European regulators ensure that eToro acts in the best interest of a client, and prevents the company from indulging in any financial malpractices. Traders are also protected by the Investor Compensation Fund (ICF) from the CySEC and the Financial Services Compensation Scheme (FSCS) from the FCA, which guarantees the safety of funds against broker insolvency or liquidation.
eToro stipulates a minimum deposit of $100, while traders can opt for a VIP account for $20,000 made as an initial investment. The broker offers a maximum eToro leverage of 1:400 for Forex markets, while the leverage is reduced to 1:200 for commodities and 1:100 for indices. Stock traders will only have access to 1:5 leverage at eToro, which is significantly smaller than traditional stock brokerages that offer up to 1:20 leverage. Regarding the cost of trading, eToro spreads start from 3 pips, which are prone to increase during highly volatile market sessions. eToro is certainly one of the most expensive brokers in the market, and we are frankly worried about the usage of leverage during volatile sessions where spreads can rise as high as 20 to 30 pips. Be careful of the eToro spreads while opening and closing your trades.
eToro bonus is one of the main advantages of the broker, which is available for almost all traders that open an account with the broker. There is a standard deposit bonus of 10-15% on the initial deposit, which may be increased according to particular client deposits. You can always contact their customer service department for additional bonuses, albeit, the company determines the exact amount of bonus relative to the deposit amount. Other bonuses include seasonal offers, no deposit bonuses, and other benefits that are designed to satisfy the trader monetarily.
Our Final eToro Broker Review
eToro introduced its brokerage service in 2007 and was the first broker to have launched an amazingly beautiful and functional desktop trading interface among its direct competitors. The eToro desktop software was used to be widely adopted by countless traders, which quickly led to a tremendous rise in eToro’s global appeal. However, numerous platform errors and inconsistent performance led to the broker dropping its desktop-based platform that was replaced by a standalone WebTrader for all future clients.
There were a few problems that riddled the company during its initial years in the industry, which may have harmed its reputation for a short while. But eToro continued to develop their products to ensure that they had the best services in the industry. The company was highly proactive in its efforts to keep abreast of the requirements of the new traders by introducing innovative social trading platforms such as the OpenBook and CopyTrader, which helped in improving the popularity of eToro among major financial markets. Regardless of the few drawbacks, eToro is certainly an excellent broker that has a sound regulatory status and the products that are designed for the new age trader.
- AvaTrade Review
- Country: Ireland
- Regulations: CBI, ASIC, FSA
- Up to $15,000