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Fast becoming a very popular way to participate in the world of Forex trading, social trading is taking the industry by storm. One of the well-known names that has emerged is eToro. Forex trading was brought to the masses in 1997, following its deregulation. However, this has meant there has been a huge influx of internet based Forex brokers. Not always a bad thing to have plenty of choice, but the sheer number to choose from can be rather daunting, particularly for those new to this particular form of investing.
In 2010, eToro introduced their Openbook social trading platform and things began to change. The innovative platform meant that traders could easily watch what other traders were doing, as well as copy those who were more successful. Even the most inexperienced traders now had the opportunity to test their metal in the Forex trading market.
eToro is a financial services company with offices in the UK, Cyprus, and Israel and is licensed and regulated by CySEC (the Cyprus Securities Exchange Commission) as well as the FCA (Financial Conduct Authority).
eToro offers a trio of trading platforms
eToro decided to make more than one platform available for clients, and offer a suite of online investment solutions that are flexible enough to suit most needs. It is claimed they are easy to use, and after experiencing them when writing this eToro Forex brokers review, we won’t be arguing. On offer are the following:
- eToro Openbook – This is the social trading platform for eToro, and can be used to follow and copy trades, as well as interact with other traders. Using this platform, it is easy to find other investors of interest, follow their trades and use the CopyTrader tool to automatically mimic their trading activity.
- eToro WebTrader – This is an all in one portfolio management platform, with lots of trading tools to help manage both manual and copy trading portfolios. The interface is smooth and easy to navigate, and includes charting software, and the option to view live rates, open positions and orders. WebTrader also allows users to edit stop loss and take profit orders, and manage their copy trading activity.
- eToro Mobile Trader – In today’s fast-paced world, it’s very much appreciated if there is a mobile option. With the eToro Mobile Trader app, it’s easy to participate in social trading using smartphones and mobile devices. The app is available for both Android and iOS, and is free to download. Wherever you might be, the eToro OpenBook app allows users to access live rates, open and close positions, edit stops, view charts and a whole lot more besides.
Standard or premium accounts with eToro
Aside from the free demo account, there are two options for new trading clients. First, there is the standard account, with a minimum deposit requirement of only $50. eToro has a strict verification process, and new traders are advised to ensure this has been successfully completed, before embarking on their Forex trading journey. We came across a number of complaints online, from current clients regarding withdrawal of their funds. But also found that problems often occurred because the verification process hadn’t been completed. The terms and conditions on the site clearly state that this process has to be completed before withdrawing any funds. So it’s no surprise that these particular users couldn’t do what they wanted, and shouldn’t be held against the good name of eToro.
The eToro Premium Program is a relatively new addition for eToro, and requires a certain level of deposits and trading activity. To become a member of the eToro Premium Club, users must have a total new deposit of $20,000, within the previous 11 months. Having total equity of $20,000 at the end of a trading day will also entitle users to Premium Club membership. Premium status entitles traders to a special eToro Forex broker deposit bonus, direct access to eToros trading room, a personal account manager, unique promotional offers, free access to the Trading Central, weekly market analysis videos, a personal Payoneer credit card, and membership to the Neteller VIP program.
Let’s not forget to mention the free demo account, as this always a great way to get a good feel for the world of trading Forex, without risking any real money.
The benefits of eToro
- A popular social trading platform that connects users to thousands of other traders
- The OpenBook platform enables users to automate their trading by copying other positions
- Educational resources are exceptional
- One-click trading and customisable settings
- Great offers and promotions, as well as eToro Forex bonuses
The downside of eToro
eToro is not the cheapest of brokers to choose, and many reviews mention the fact that the trading spreads are higher than many others. The number of currency pairs available for trading is limited, when compared to the competition. There are also fewer high-powered tools than we’d have preferred, and the charts are pop-out windows which can make things a little cumbersome. Many trading platforms can be fully customized to individual user needs, but not so with eToro.
But even with these disadvantages, we’d certainly recommend you give eToro a try.