Etoro Forex Broker Review
eToro is an innovative Forex trading brokerage firm who revolutionized the concept of online trading by introducing the investment world to social trading. Formed in 2010, eToro is based in Cyprus and licensed and regulated by the CFTC, CySEC, FCA and ASIC.
What makes trading with eToro such a unique experience? Let’s find out.
Etoro Trading Platforms
While eToro’s OpenBook social trading platform quickly became a huge hit among the investment community, the company has continued to improve the design and functionality of their platforms. Basically, there are three ways to trade with eToro, through the eToro WebTrader, the OpenBook social platform, and the eToro Mobile Trader.
Their OpenBook feature allows you to follow, connect and interact with like-minded traders. Found someone making a killing trading EUR/USD? Select “Copy Trader” and make their profits your own. It really is that simple. The eToro WebTrader is a sleek and intuitive web-based platform that’s equipped with an endless array of technical and fundamental trading tools.
Types of Accounts
Opening an account with eToro is simple. With as little as $50, you get access to over 200 stocks, indices, commodities, and of course, Forex pairs. Apart from their standard account, they also offer Premium, Islamic and Demo accounts. Etoro’s Premium accounts are a new feature which are reserved to the most elite traders within their social trading community. A minimum deposit of $20,000 is required to open a Premium account. Withdraw as little as $20 at a time, and you can even fund your account with PayPal.
Spreads and Commissions
eToro does not charge any commissions. Unfortunately, this means they have to create wider spreads to make up the difference. The spread size will vary with each currency pair. USD/JPY, for instance, comes with a minimum spread size of 2 pips, while EUR/USD and USD/CAD have a 3 pip spread minimum. Exotic pairs can go as high as 14 pips. This may be off-putting to Forex traders who regularly scalp the market for quick profits.
Pros and Cons
- Ability to automate trading
- Social Trading allows you to connect and interact with other investors
- Copy Trader puts the power of someone elses knowledge into your own trading account
- Copy Funds creates a fully automated portfolio – other traders work for you to build your own account!
- Regular promotions, discounts and bonuses
- Licensed and regulated
- Forex spreads are a little on the high side
- The eToro platforms cannot be customized