Forex for a trader
El toro forex review

El toro forex revieweToro Review – Our Opinion. Please note that while our review of eToro was first published in 2012, we regularly update it based on the introduction of new features to the eToro platform and our continued experience as a customer (both of which may change our view). As with our other social trading network reviews, this one is also based on using a live real money account. In our review we also focus more on the social trading and trade copying features than on eToro as a broker. 5m+ Professional Traders to Copy from $5k CryptoFund $100,000 Demo Account! *All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results. This post is for educational purposes and should not be considered as investment advice. What’s clear when using them is the simplicity and ease of use of the eToro social trading platform.

This has always been the case, but even more so since “The New eToro” launched on November 5th 2015. The new platform is also fully mobile response, giving you the same seamless experience across all devices (PC, tablet or mobile phone). Their aim is to make the financial markets accessible to more people and they achieve this by offering a fully integrated solution. Because eToro is both managing the social investment network and acting as a broker, investors can manage everything through the same interface (i. e. no need to sign up with a different broker). eToro “Popular Investors” The traders you can follow andor copy are currently referred to as “Popular Investors”. The amount of them available is large and by joining the eToro social trading network, anyone becomes a potential “Popular Investor” (i. e. even people who only follow other people can become “Popular Investors”, and likewise, so can you). As such, eToro stays true to their vision to create a completely open network where everyone can share, learn, copy, interact and compete with one another. It’s also worth noting that eToro introduced a “verified” status icon for “Popular Investors”. They can obtain this by displaying their real name and photo in their profile (as verified by eToro customer services). This obviously adds some level of trust that you’re following real people and not computer robots. In addition all traders on eToro risk their own money as well. This is obviously good, though the actual balance of their accounts is unfortunately not shared and can can range from $200 (the minimum deposit value) to many thousands. When “Popular Traders” get copied they get awarded, and eToro made a notable improvement in relation to the reward structure last year. Before traders with live copiers used to get rewarded with “eToro bonuses” which they could only partially convert to real money, while the rest had to be used for trading purposes (leading many to use this to offset large drawdowns, which was not good for copiers who obviously didn’t have those bonuses). Now the structure is more straightforward.

Depending on the amount of copiers they have, they get fixed monthly commission payments, while the top “elite” traders get 2% annually of the funds under their management plus commission free trading (i. e. no spreads). In July 2016 eToro also revamped the ‘Popular Investor Dashboard’ which now includes a customer relationship management (CRM) system that enables greater interactions between the Popular Investors and their copiers. This, together with the fact the there are now over 5 million users on the network, only helps in attracting more professional traders wanting to make some extra money from their trading skills. Many now manage over $300K in funds on the eToro platform giving them some great earnings potential. Finding Traders to Copy. The tools to help you find the traders you want to follow and copy have also evolved over time. The old ‘People Rankings’ used to rank by default the best performing traders by win ratio, meaning traders with 100% winning trades (i. e. high risk because they never close a losing trade) would be near the top. In March 2014, eToro released the ‘Discover People’ tool which allows you to filter through their traders using a wider range of parameters, such as Gain Percentage, Profitable Weeks, Country, assets traded and many more. This tool is a significant improvement to the search capability on offer before, though there’s certainly still some room for improvement too. E. g. some of the parameters are not clearly explained and indicators like maximum open trades or average gain per trade would be useful additions. The information made available about the past performance of the traders you may consider following andor copying is also kept basic, making it easy for novice investors to use, though lacking the depth more serious investors may look for. Since February 2015, eToro displays past performance as gainslosses per calender month and year . Before that time eToro was using the modified Dietz formula to calculate historic gains.

This formula was complex and confusing, meaning it was impossible to replicate and verify the gains figures. The current formula is very simple and takes into account monthly deposits and withdrawals by the traders too, in addition to the monthly differential of their account balance. In addition you can view a proprietary 1 year risk score table, a graph with the number of eToro copiers over time, total amount of trades and profit ratio, as well as the 3 most traded instruments. You also have access to the current open trades and portfolio distribution of the trader (i. e. how much % of their balance they’ve got invested in each instrument). Hence changing the formula and display has been a positive move from eToro, making it much easier for investors to review past performance. The full trader’s trade history is now available too, in theory at least, because it’s pretty difficult to retrieve it if the trader made many trades before (and you cannot download it for off-line analysis). This is a small negative point in our view because it means you can only verify recent P&L figure. You therefore also cannot evaluate all previous trades to get a better understanding of the trader’s strategy and trading behavior at some critical past trading cycles. E. g. if I notice a trader who posted a large loss in a past month, I like to look at the actual trades which led to that loss to get an understanding of whether they were just lucky to move back into profits or whether they used a rational trading strategy. A useful recent 2016 addition to the eToro platform are the Trader Charts. These help you visualise the past performance of the traders and let you perform “What If” copy simulations. E. g. “what if I started copying Trader ABC with $10,000 6 months ago?”. You can also compare the trader’s performance on the chart with other traders or with other investment instruments (because copying a trader is in essence the same like buying a stock). E. g. “how did this trader compare against the performance of GOOG Alphabet or the GER30 index over the past year. Once you’ve decided on the traders you want to copy on eToro you have to select how much to invest and risk. You can invest up to 40% of your realized equity in a single trader with a minimum of $100 (i. e. you cannot risk everything in 1 trader).

You can also limit your risk by entering a “stop loss”, i. e. the maximum loss before you automatically stop copying this trader. While basic (i. e. you cannot specify to only copy a certain asset class per trader), the eToro money and risk management features are straightforward and easy to comprehend for novices. Your trades are also copied proportionally, meaning that if the trader risks $1,000 of their $10,000 account (1%) on a trade, only $1 will be risked in your account if you allocated $100. In addition, eToro allows you to try the trade copying with a free fully functioning demo account too (click here to try). This allows you to follow “Popular Investors” using virtual money to evaluate and review their performance in $ gain terms. This will give you a realistic view of what you can expect when you allocated say $100 or $1000 to a certain “Popular Investor”. I. e. it’s positive that you can “try before you buy”. In November 2016 eToro introduced CopyFunds, their next generation investment product. There are 2 types of funds you can now invest in: “Market CopyFunds” which bundle together a range of financial instrument based on a certain strategy or theme. While some of them are similar to normal exchange traded funds (e. g. invest in tech stocks) some such as “PanicMode” are more unique since they combine buying commodities (gold & silver) with selling indices. “Top Trader CopyFunds” comprise of the best performing traders on eToro. These will obviously be appealing to investors who’re too busy (or lazy) to do their own research. E. g. instead of building your own portfolio, you just pick a fund with the traders who performed best over the past quarter. I still prefer to do my own research when building my portfolio of traders to copy. However the Index fund of traders I invested in with another social trading service is currently outperforming my own portfolio of traders with them.

This obviously shows the potential of this. Since these funds have only just been launched we cannot make an opinion yet on the performance (we should know more in one of the next review updates). However as a concept we really like it and it’s a nice additional investment option for eToro clients. eToro is still free to join and use (no annual fees or commissions). The only costs you incur are the broker spreads and overnight rollover fees. The eToro spreads on each trade are arguably slightly higher than with most brokers (e. g. 3 pips for EURUSD). However, when you automatically copy trades from other traders you’ll notice (in WebTrader) that in most cases (>90%) there’s no slippage, which makes up for the higher spread. (Slippage is the difference in price the trader you copy gets and you get, and with networks that use other brokers this is normally 1-2 pips per trade.) The overnight rollover fees charged by eToro are arguably also a bit higher than with most brokers. This should be taken into consideration since most of the traders you can copy have a tendency to keep positions open for weeks or months, meaning over time these rollover fees can add up if open trades aren’t managed carefully. But eToro clearly display the display the rollover fees on their site and before you execute a trade yourself. You also have to consider that accounts can only be opened in $ USD , so if that’s not your normal base currency you also have to take into account the USD currency fluctuation risk (unless you hedge). If you do consider investing using real money, make sure you check the eToro welcome bonus deposit offer here (please note that they don’t always offer this, but when I last updated this they still were). If you’re a novice trader there’s a wide range of training materials available to get you up to speed (targeted at any level). There are also weekly webcasts, reviews and daily news to keep you informed on current events.

eToro’s social network is also very active and any questions you might have are normally answered very quickly by your fellow investors. Can you make money with eToro? The simple answer is yes, but it’s not easy. Obviously all will depend on your risk level and targets. If you expect to double your account in 1 week, then you have to accept the risk of losing all your equity in that period as well. Our personal preference is to find low risk but profitable “Popular Investors” to copy, though these are not always easy to find. Many of them also have the tendency to leave some trades open for months with wide stop levels which means your equity will fluctuate over time and you have to see this as a longer term investment opportunity. However over the past 4 years in our opinion the average level of their top ranked traders has certainly improved. No doubt this has been aided by the improvements to the platform, as well as the increased popularity of eToro and exposure of social trading in general. Is it as easy as ‘sit back and relax’?

No, as some serious consideration is required to select the traders you want to copy and which meet your risk reward level. Just selecting the most popular “Professional Investors” will not be enough. Once you’ve built your ‘people based’ portfolio you’ll have to regularly monitor the progress and re-evaluate your allocations since even traders ranked in the top 10 can get you into trouble. E. g. investing $10,000 evenly across the top 10 eToro Gurus on May 1st 2012 would have left you with $8,778 by April 1st 2013. Doing the same with the top 10 eToro traders at the beginning of June would have left you with $9,367 by this date. However, as you can see from our 1 year eToro performance comparison tables most traders were actually profitable, and overall losses were attributed to only two traders losing their full allocation. You may also find our eToro tips section with info on how to find the best traders that meet your risk profile. Of course if you’re a great trader yourself the opportunities of making money increase since you’ll get paid for everyone who starts copying you. And with the large eToro customer base this can quickly add up to a nice extra income. More than just trade copying. And here we come to our final review point and that is that eToro is actually more than just a social trade copying service .

They want to create an environment where traders share ideas, learn from each other, trade themselves AND copy others. You can create WatchLists of the instruments andor People you’re interested in. Your personalised News Feed includes real-time market data as well as comments and trade execution notices from other people on everything you’re interested in. And trades can be executed easily from pretty much any screen. eToro also offers the widest diversity of instruments for you to trade on compared to other social trading platforms. In addition to the usual currencies and commodities you can also trade major indices, stocks and since recently ETFs (exchange traded funds). The benefit of this is the potential diversification of your portfolio. How you want to use eToro (copy others or trade yourself or both) is not for us to decide. But especially since their latest platform release, eToro makes it pretty easy and simple whichever option you want to try. eToro Review: Pros. simple interface integrated social trading network, trade execution interface and broker free, fully functional demo account integrated risk and money management features trades copied proportionally convenient display of historic performance figures can tradecopy currencies AND major indices AND commodities (oil, gold and silver) AND shares AND ETFs very active social network and excellent training materials low slippage most “Popular Investors” you can copy all display their real and verified full name & photo traders you copy risk their own money advanced ‘Popular Investor’ dashboard and large customer base which helps in attracting ‘real professional traders’ CopyFunds – i. e. copy a basked of other traders or financial instruments. eToro Review: Cons. unable to easily view the full history of all the previous trades by the “Popular Investors” actual account balance of the “Popular Investors” is not shared for every good performing trader to choose from, there are still plenty of poor ones (most are also longer term traders) Trader FinderDiscover People functionality can still be improved (though currently much better than what it was) higher eToro spreads than with some discount brokers (but if you become a top “Popular Investor” you can get spread rebates of 100%) higher overnight rollover fees than most brokers currently only able to manage your account in $ USD. Over the next 7 pages we’re reviewing each of the eToro features discussed above in more detail with screenprints too (please note they’ve not yet been updated to reflect the latest platform release, but the concepts and opinions are still valid). Your views are always welcome below and if you thought this review was helpful please feel free to share. The Best Forex Trading. The sheer size of the forex, or foreign exchange, market dominates all others — even the stock market. Every payment that crosses currencies contributes to its fluctuations and its momentum. And without a centralized marketplace, forex activity buzzes practically without cease, with traders waking up and doing business everywhere, in every time zone.

To get a piece of the action, you need a forex brokerage with best-in-class trading technology and stellar support. We gathered a list of 65 forex trading brokers and narrowed it down to the best 5 by analyzing research features, customizability options, and trading platforms. Thinkorswim is the best option for U. S. traders looking to trade forex and multiple other products. Its robust and powerful platform puts every imaginable forex trading tool at your fingertips, but the level of advanced features may not be ideal for beginners. January 19, 2018 - Increased regulation coupled with higher capital requirements have forced several forex brokers to leave the playing field, making it in some ways easier to find the very best. We’ve revisited our top picks, eliminating old contenders and evaluating the stand-out strengths of the remaining firms. The Best Forex Trading. Other to consider. Other to consider.

Other to consider. Other to consider. How We Found the Best Forex Trading. All good forex brokers update account information in real time, display balances, and provide history reports and statements. But exceptional brokers offer trading technology boasting a broader spectrum of features — from alerts to automated trading — helping you to execute simple and advanced trades strategically. To make it to the top of our list, forex brokers needed to provide customizable interfaces and interactive charts. We also wanted technology that’s not desktop-bound. As mobile trading continues to grow, the best brokerages make high-performance, on-the-go research and trading tools as powerful as traditional platforms. We prioritized brokers staying ahead of the curve with dedicated, well-functioning apps compatible with a variety of devices. On top of those basics, we kept an eye out for responsive client support (how easy is it to get help and guidance when you need it) as well as introductory incentives (things like special offers, free demos, and referral programs).

Both are attractive reasons to start trading with a given firm, especially when you’re first getting started. But the standard practices of the brokerage outweigh any first-timer perks in the long run. Here are a couple of key features we looked for. Major Currency Pairs are the most important, most traded worldwide currency pairs available through a forex broker. They consist of currencies from the world’s most developed economies including Europe, Japan, Canada, and Australia. A major currency pair is created when one of these currencies is traded against the U. S. dollar. Examples include Euro vs. the US Dollar (EURUSD) and the US Dollar vs. the Canadian Dollar (USDCAD). Major Currency Pairs is an important category because these pairs represent the most heavily traded and liquid currency markets for any forex trader. Cross Currency Pairs includes secondary currencies traded against each other and not against the U. S. dollar. Examples include Euro vs. the Japanese Yen (EURJPY) or the British Pound vs. Swiss Franc (GBPCHF). Most reputable brokers offer this category of trades, and it’s especially important for a forex trading account denominated in a currency other than the U. S. dollar, or for more advanced traders exploiting discrepancies between other economies. Research is an important category for traders looking for assistance or seeking confirmation on a trade. Forex brokers provide clients with the resources to understand market activity and make fast, informed choices, with advanced charting capabilities, third-party research, research reports, and market commentary. Some forex brokers also offer access to historical data so traders can back-test strategies before allocating real money. (Experimenting with virtual trading, if it’s available, is another good way of getting your feet wet.) We also wanted to see educational resources — opportunities to learn more about forex trading and platform navigation via articles, videos, and webinars.

Additionally, the best forex brokers provide a superb trading community to facilitate the exchange of trading ideas. Support should be available during all trading hours through multiple channels including live chat, email, and phone. Our Picks for the Best Forex Trading. thinkorswim A full-service brokerage for savvy investors - trade forex alongside other investment products all from the same account. Part of TD Ameritrade, that vast online brokerage, thinkorswim enables you to trade forex, stocks, futures, and options all from one account. Save time and keep abreast of your diverse portfolio without the hassle of switching between windows and platforms. Even better, these combined tools are available through just about any device. You can even customize alerts for on-the-go trading. One trading perk we’re not seeing: automated trading. That feature is only available if you subscribe to their newsletters, which are focused on options trading.

Thinkorswim sits among the top forex brokers in terms of tradable currency pairs, allowing experienced traders or international traders to get a part of currency fluctuations in more obscure economies. While thinkorswim provides a ton of virtual and in-person support (unique amongst online firms), the complexity of its trading platform may be overkill for beginners. Same goes for the lofty $3,500 minimum deposit. Check out Ally Trading if you’re a forex novice. Costs and Fees. Forex Trade: $1.00 + $0.10 per 1,000 lot Forex Trade Cost Type: Flat and pips Futures Trade: $2.25contract Minimum Deposit: $2,000 Options Trade: $9.99 + $0.75contract Stock Trade: $9.99. Trading Details. Clearing Method: Dealing Desk Maximum Leverage (International): 50:01:00 Maximum Leverage (U. S.): 50:01:00. Ally Invest Smart tools for sophisticated trades, without classing out investors new to forex. Ally Invest makes it easy to get started trading forex even if you’re operating on a budget, providing low minimums and tight spreads. You can start trading with just $500 in your account. The smart and streamlined trading interface also makes it quick and easy to watch trends and make trades. One of the best parts about Ally’s trading platform: the intuitiveness of its layout and functions.

New investors should be able to get familiar with the lay of the land fairly quickly by navigating out from the trading panel. The panel also includes shortcuts: buy and sell with one click. As your preferences develop, you can customize the look and location to suit your trading style. While Ally’s price points are ideal for new traders, the educational resources are somewhat lacking. The site can walk you through the basics, but you’ll need to look elsewhere for courses, videos, and tutorials. You’re also not able to access other investment products within the same account. Unlike thinkorswim, you’ll have to open up and individually access other accounts if you’re interested in trading stocks, options, or futures in addition to forex. Recently, Ally has gobbled up a couple of other key brokerages offering forex: Tradeking and MB Trading. Not a big point of consideration when you’re just looking at company offerings, but it’s a notable factor when looking at financial solidity across the board. Costs and Fees. Forex Trade: $13 Forex Trade Cost Type: Pips Futures Trade: NA Minimum Deposit: $500 Options Trade: NA Stock Trade: NA. Trading Details. Clearing Method: Straight Through Processing Maximum Leverage (International): 50:01:00 Maximum Leverage (U. S.): 50:01:00. ATC Brokers Super customizable and super transparent, a forex brokerage for the serious trader. High-end trading tools and perks that will be attractive to adroit traders, like a non-dealing desk environment. ATC’s Straight Through Processing (STP) order system posts your order directly to counterparties, taking away the possibility of your broker holding a conflict of interest and trading against you. The advanced platform also allows you to customize and quickly execute orders, moving between analysis to trading without navigating windows.

ATC provides backtest trading software to run simulations and testrun strategy, but goes light on other beginner-friendly features. For instance, its high minimum deposit ($5,000) and weak educational resources. Once again, look to Ally Invest for a more democratic entrance to forex. Costs and Fees. Forex Trade: $0.80 Forex Trade Cost Type: Commission Futures Trade: Contact Company Minimum Deposit: $5,000 Options Trade: NA Stock Trade: NA. Trading Details. Clearing Method: Straight Through Processing Maximum Leverage (International): 200:01:00 Maximum Leverage (U. S.): 50:01:00. Forex. com A trading platform exclusively for forex. Excellent for the seasoned and specific investor. Editor’s Note: On February 6th, 2017, FXCM reached a settlement related to the charges brought forth by the National Futures Association (“NFA”) and the Commodity Futures Trading Commission (“CFTC”) to withdraw from the US market.

A non-binding letter of intent has been signed with GAIN Capital Holdings (owner of the retail brand Forex. com) to transfer all accounts at no expense to the customer. No date has been set for the transition yet. Powerful tools and robust research make Forex. com a good choice for the seasoned forex trader. Every portion of the platform and app is customizable, plus provides stellar access to the Electronic Communications Network (ECN). The most attractive aspect of ECN pricing: no middlemen. Lower trading costs and increased transparency are the results. Forex. com is a great option for the dedicated forex trader, but if you’re interested in dabbling in other investment products you’ll need to look elsewhere. Costs and Fees. Forex Trade: $13 Forex Trade Cost Type: Pips Futures Trade: NA Minimum Deposit: $500 Options Trade: NA Stock Trade: NA. Trading Details. Clearing Method: ECN Maximum Leverage (International): 50:01:00 Maximum Leverage (U. S.): 50:01:00. OANDA Not as transparent as some, but chock-full of helpful tools to test, strategize, and perform trades. OANDA serves the forex trading needs of the inexperienced and the experts alike, with a range of user-friendly and robust platforms, desktop and web-based. Both options translate to mobile apps so you’re never far from your investments.

Another major bonus: access to historical exchange rate data. Backtest strategies before you trade in one of the largest currency databases across the globe. You can also subscribe to the data feed for even deeper analysis. One downside to OANDA — it’s a market maker. Setting the bid and the ask price means its protocol stands in opposition to the open pricing and non-interest conflict of an ECN. However, these pricing mechanisms are almost wholly automated, meaning concerns of partiality are largely unfounded. Like Forex. com, OANDA doesn’t provide any products to American investors besides forex. If being able to diversify your interests while staying within the same brokerage is important to you, check out thinkorswim or Ally Invest. Costs and Fees. Forex Trade: $12 Forex Trade Cost Type: Pips Futures Trade: NA Minimum Deposit: $0 Options Trade: NA Stock Trade: NA. Based in Tel Aviv, Israel, eToro was founded in 2006 by two brothers, Ronen and Yoni Assia and partner David Ring. The brokerage was founded with the vision of a popular financial trading and investment platform suitable for everyone. eToro has grown significantly since its founding and is currently ranked among the top social trading networks, as well as an online forex broker. As far as oversight and regulation is concerned, eToro (Europe) Ltd. is based in Limassol, Cyprus and is a registered Cypriot Investment Firm or CIF, registered under the number HE200585. The company is regulated by the Cyprus Securities and Exchange Commission or CySEC under license number 10910. In the United Kingdom, eToro (UK) Ltd. is headquartered in London and is a registered UK firm under registration number 7973792.

eToro UK is authorized and regulated by the Financial Conduct Authority or FCA under the firm reference number 583263. Both eToro (UK) Ltd. and eToro (Europe) Ltd. comply and operate under the Markets in Financial Instruments Directive or MiFID. eToro currently has more than 5 million users in over 170 countries. The company’s clients have access to trade in currencies, indices, CFDs and commodities. eToro’s online platform attracts thousands of new accounts every day as one of the world’s premiere social investment networks. eToro launched its social investment platform “OpenBook” in 2010, along with the company’s “CopyTrading” feature. In 2010, eToro launched its first Android apps to enable investors to make trades over their mobile devices. These innovative platforms allowed investors to watch, follow and copy the top traders in the network automatically, and they have now been replaced with an updated all-in-one eToro platform that is also available on Android. In the United States, eToroUSA is not currently active, therefore eToro does not accept customers based in the United States. Unique Features of Trading with eToro. In addition to the company’s excellent educational program and all inclusive trading platform, eToro’s most striking feature is its online financial trading community, which is among the world’s largest. eToro recently replaced its two popular WebTrader and OpenBook trading platforms into a new all-in-one platform that gives the trader access to all of their services across all types of devices. Depending on what region and country the client resides in, the minimum first time deposit for an eToro live account ranges from $200 to $1,000. In addition to being able to open a funded account, the company offers a practice account just for signing up at no cost. The eToro practice account allows the potential customer to test the trading platform without any financial obligation with an initial deposit of up to $100,000 in virtual currency.

In addition to the standard funded account and the practice account feature on their platform, eToro also offers an Islamic account, with a minimum deposit of $1,000. Much like other online forex brokers, eToro charges no commissions on trades. Instead, the company relies on quoting their customers a slightly wider dealer spread to compensate themselves. A survey of real time dealing spreads at eToro showed they start at two pips for the USDJPY pair and three pips for EURUSD, USDCHF and USDCAD. Pairs like GBPUSD and AUDUSD show spreads of four pips wide, while the NZDUSD spread was five pips wide and the USDRUB spread as seven pips wide. The dealing spreads for other less traded currency pairs looked as wide as 20 pips, and spreads in Bitcoin trades are apparently 225 pips, according to the broker’s website. As of April 29th 2018 eToro has moved from trading stocks as CFD to real stocks on their platform. All the countries will now be real stocks and only the listed countries will remain CFDs: Afghanistan Angola Australia Belarus Macedonia Iraq Liberia Libya Nauru New Zealand Nigeria Sierra Leone Zimbabwe Cote d’Ivoire Congo Congo Republic Myanmar. As of August 1st 2018 eToro is fully compliant with new ESMA rules. Read more here.

When eToro began, their original trading platform was primarily geared toward new and inexperienced traders and incorporated graphic animations depicting currencies racing against each other or participating in a tug of war. The broker’s previous platforms have since been consolidated into the all-in-one award-winning eToro platform, which is also available on Android and iOS, and integrates all of the features previously available. The eToro app is currently available at the iOS App Store or Google Play. eToro has added some NEW FEATURES… eToro CopyFUNDS. Hear all about it Here. Deposits and Withdrawals. Since eToro only allows trading in U. S. Dollars, any deposit in another currency is converted to that currency upon receipt. The minimum deposit required to open a live trading account at eToro ranges from $200 to $1,000, depending on the regional regulations that a customer’s account is subject to. For example, Neteller minimum deposits range from $200 – $1,000 and a maximum of $10,000; while Webmoney and GiroPay have a $200 – $1,000 minimum and a $50,000 and $30,000 maximum respectively. Russia based Yandex has a $5,000 maximum deposit. For their client’s convenience, deposits and to open an account can be made through Visa, MasterCard and Diner’s Club credit and debit cards, by bank wire transfer, and via Wirecard – Wire and Credit Card, Yandex, Neteller, Skrill Limited UK, China Union Pay, PayPal, Wirecard and Webmoney UK. For withdrawals, the user must fill out a withdrawal form in the Cashier section of the website, clicking on the “WITHDRAWAL” tab. The amount is entered on the form and eToro will then notify the client via email of the withdrawal process. Typically, funds are withdrawn via credit card, PayPal or bank transfer, in that order of priority. For first time withdrawals, clients must submit a clear color copy of their Passport including their written signature, as well as a clear copy of a utility bill not older than three months and that was mailed to your address of residence. Also, if the deposit to fund the account was originally via credit card, a clear copy of both sides of the credit card must be submitted. eToro charges a fee of $25 for withdrawals.

Withdrawals take up to five days to process and may be delayed even further due to third party withdrawal payment methods. Latest news on eToro. The company also features a “Customer Service Wall”, where customers can interact with customer service in a forum type format. Most customer service queries are handled by referring customers to Online Guides and eToro’s Knowledge base. If a client wishes to speak to a representative, a ticket is opened and a representative contacts the customer as soon as possible. Customers can choose their customer service representative by clicking on their photograph, which is included with a brief bio of the representative on eToro’s customer service team page. Customer support is currently available by region in the following languages: English, German, Spanish, French and Italian. In addition to its CySEC and FCA oversight, which ensures the broker is duly regulated in the European Union and the United Kingdom, eToro keeps their customer information secure. The company uses advanced Secure Socket Layer or SSL technology for the authentication of users and data transfers. eToro is at the forefront of social investing and is the preeminent online broker for traders who value such networking activities. With their newly integrated eToro trading and social investment platform, as well as their mobile app, eToro offers traders an excellent opportunity in this exciting new field. In addition, the company offers a Trading Academy, a Blog, a Trading eCourse and live webinars to educate novice traders. Their proprietary online eToro trading and social investment platform is fairly easy to use, and offers a free practice account just for signing up. eToro also rewards its most successful clients, since in addition to making money in their own accounts, profitable traders can also enter competitions, earn cash prizes, and have other traders follow their activities. The larger the following of a trader, the larger the proceeds become from eToro, which can significantly increase a trader’s income versus just their trading activity.

The most significant drawback with this broker are the rather long five day withdrawal period. All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results. This post is for educational purposes and should not be considered as investment advice. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. eToro, initially established in 2006 as RetailFX, is an online Stocks, Currencies, Indices and Commodities social trading platform founded by two siblings Ronen and Yoni Assia and their partner David Ring. The two brothers and their partner established eToro with the goal of providing an online financial trading platform that is user-friendly and suited to traders of all levels of trading experience. The business concept proved to be hugely successful and currently serves millions of users from all over the world.

Attracting thousands of new users every day, eToro has today become the world’s premier social trading platform. With eToro’s innovative and intuitive “OpenBook” trading platform, traders can now trade in various different types of financial instruments such as commodities, equities, currency pairs and market indices. The “CopyTrading” feature which comes with eToro’s trading platform also allows beginner traders to copy the trades of more experienced traders, offering the more experienced traders to leverage their trading skills into an additional revenue stream. To keep pace with changing trends in the industry, eToro developed and launched its innovative mobile trading app to allow eToro’s traders to trade the markets straight from their smartphones. In terms of regulatory oversight, eToro is regulated in 2 separate jurisdictions, UK and Cyprus. In the UK, eToro operating through eToro (UK) Ltd and registered by the UK’s Financial Conduct Authority (FCA) under the FCA reference number 583263. Since both CySEC and the FCA operate under the Markets in Financial Instruments Directive (MiFID), this means eToro is a MiFID compliant broker and is authorized to operate within the Eurozone. In Cyprus, eToro comes under the jurisdiction of the Cyprus Securities Exchange Commission (CySEC). Licensed under the Cyprus Investment Firm (CIF) license number 10910, eToro complies with strict regulatory requirements such as operating with adequate capitalization and maintaining segregated accounts for their clients’ funds.

Over the past ten years since eToro first began its operation, the broker has earned a reputation among the online trading community as one of the most reputable online brokers existing in the industry. Their services and “OpenBook” trading platform have been featured in numerous international financial periodicals such as Forbes, Financial Times, Finance Magnates, Fintech Finance and even on America’s cable news network CNBC. As mentioned earlier, eToro is regulated by both the UK’s FCA and Cyprus’ CySEC. Both these regulatory agencies impose strict regulatory guidelines which eToro is required to abide by. In addition to the regulatory oversight, investors of eToro are further protected with the coverage provided by UK’s Financial Services Compensation Scheme and CySEC’s Investor Compensation Scheme. All of eToro clients’ funds are kept in segregated accounts maintained at Tier 1 banks. For web security, eToro uses SSL encryption technology to ensure that all sensitive data are protected from any unauthorized intrusions. Finally, as a transparent and ethical broker, eToro doesn’t share any of clients’ personal data with anyone without their clients’ permission. eToro Trading Platform. What makes eToro truly unique from other online trading brokers in the industry is their proprietary “OpenBook” trading platform.

When the trading platform was first launched in 2010, it was the first social trading platform of its kind. This earned eToro the distinction of being the first broker to introduce the concept of social trading into the online trading industry. In other words, eToro has earned its badge as being the pioneer broker for social trading in the online trading industry. Unlike the traditional online trading platform, eToro’s trading platform harnesses the wisdom of the crowd to help traders maximize their investment returns. The social trading platform lets traders see each others trading statistics such as their market positions, profit levels and the trading strategies adopted in real time. It is through this OpenBook trading method that eToro is able to tear down all the barriers between traders and hence help to accelerate the learning process among traders on the social trading network. Apart from the web-based trading platform provided by eToro, traders also can download to their smartphones an Android and iPhone app of eToro’s trading platform. The mobile app lets a trader view in real time the feeds of other traders in the eToro social trading network just like the web-based OpenBook platform. In addition to the mobile trading app, traders can also view the prices of all the various instruments before placing their trades. They can also monitor their trading account as well as interact with other traders in the social trading network. eToro Trade TypesInstruments. In terms of the types of instruments that are available for trading at eToro, they include a wide selection of international stocks, indices, precious metals, commodities, currencies pairs (forex) and Exchange Traded Funds (ETFs). In early 2014, eToro also introduced trading for the cryptocurrency Bitcoin but unlike other brokers in the industry where Bitcoin is traded as a currency, Bitcoin on eToro is available to be traded as a CFD derivative. In other words, traders on eToro’s social trading network will be buying and selling the cryptocurrency as a financial security which tracks the prices of Bitcoin on the open market.

eToro Cryptocurrencies Trading. 2017 has been a boom year for the cryptocurrency market. The bulk of the cryptocurrencies that are being traded on the internet have seen their value rise astronomically. Leading the pack is Bitcoin with its peak price reaching as high as $20,000 per coin. As such, it is hardly surprising to find online traders gravitating towards crypto trading. To cater for the increasing popularity of cryptocurrency trading, leading online forex and CFDs brokers such as eToro have also begun to expand their cryptocurrency portfolio. Crypto trading is nothing new for eToro. In fact, eToro first offered Bitcoin trading as early as 2014. Today, the broker has expanded its range of cryptocurrencies in its portfolio to cover the following digital assets: Bitcoin Bitcoin Cash Dash Ethereum Ethereum Classic Litecoin Ripple. Cryptocurrency trading at eToro is simple. Instead of having to deal with the hassle of buying and selling the physical cryptocurrencies, eToro allows you to trade them using CFDs. The advantages of trading cryptocurrencies with CFDs include being more affordable, more secured and the ability to leverage your trades with a leverage ratio as high as 1:400. In addition to eToro, it is also possible to copy the trades of popular investors or CopyFunds. At eToro, things are kept simple, so traders, especially beginner traders, will not be overwhelmed by the number of decisions that they have to make regarding their trading account choices. As such, you can find 2 types of trading accounts at eToro, a standard trading account, and a practice account. To open a standard account, a minimum initial deposit of just $50 is required.

As for the practice account at eToro, traders who sign up for access to the account will be given an initial deposit of $100,000 in virtual currency. This platform will allow the trader to conduct trial runs of their trading strategies without any financial risk to them. It also gives potential traders of eToro an opportunity to test out eToro’s services and trading platform before they commit any real money. eToro IslamicSwap-Free Account. A Swap free trading account or Islamic trading account is also available upon request to traders who wish to trade the financial markets without violating the Islamic Sharia principles. eToro Commissions and Spreads. eToro does not charge any annual fees or commissions for traders joining its social trading network. Instead, eToro charges a spread on top of the price quotes that they receive from the markets. eToro ensures that its traders will not suffer from slippages when they make their trades. To give our readers an idea of the spreads charged by eToro, below is a list of the typical spreads which traders have to bear for some of the more frequently traded instruments (Spreads may vary according to the broker’s terms). eToro had its humble beginnings as a simple forex broker, all the way back in 2006.

Founded by two brothers, Yoni and Ronen Assia out of Tel Aviv, Israel, it was initially known as RetailFX. The goal of the company was forex trading made easy, and eToro marketed heavily toward retail and ‘non-expert’ traders . This could be seen in the design of some of their early trading platforms, such as Web Trader and Globe Trader, which looked more like an 80s Nintendo video game than a professional trading platform. For instance, the Web Trader interface featured images of various business people running a race; the system was called ‘Marathon’ and was supposed to present an alternative to the ‘boring’ trading interfaces. Here’s an example, want to trade the common USDJPY pair? If you bet on the dollar, then the American Uncle Sam had to be ahead in the ‘race’ against the Japanese sumo wrestler, which showed that the dollar was gaining on the yen. There were no charts, analysis tools, or stop and order limits. eToro also featured the Globe Trader in the early days and this one was presented in the form of a world map. If you wanted to trade the sterling, then you would have to click on Great Britain. As you can imagine, these interfaces drove off some professional traders, but then again, those were not eToro’s target market in the first place. Bulls and Bears. eToro really took off in 2010, because that’s when it launched its OpenBook platform, putting eToro at the forefront of the social trading phenomenon with its Copy Trading feature (more on that below) . eToro also released its first Android trading app that year allowing people to trade from their mobiles. eToro’s success attracted the attention of investors, and eToro has successfully raised a significant amount of funds.

Between 2007 and 2014, eToro had 5 rounds of funding and raised $58.5 million from Russian and Chinese investors. This has enable eToro to continue to expand, and it began its UK operations in 2013. At the end of 2016, eToro announced that it was launching in Poland. And through joint ventures with its Chinese investors and Russian investors (PingAn Ventures and Sberbank), eToro is also available in China and Russia. It has also expanded its product offerings into Contracts for Differences (“CFDs”), cryptocurrencies, and in the beginning of 2017 launched CopyFundsTM for Partners. This feature gives investment companies the ability to create bespoke funds on the eToro platform which eToro’s millions of clients can then invest in. With this step, eToro has taken a big leap from its days as a humble forex broker as it has now placed itself in direct competition with investment funds and financial advisors. They’re not just competing for the customers’ trading money, now eToro wants your investment dollars as well. To give you an idea of just how far eToro has come, in 2015, it signed a 3 year sponsorship deal with the football club West Ham United. Not counting eToro’s joint ventures, eToro operates primarily through two companies, eToro (Europe) Ltd, registered in Limassol, Cyprus, and eToro (UK) Ltd, which is registered in London. eToro Regulation. When it comes to the case of forex brokers, binary options brokers, or just online trading platforms in general, one of the main questions that should be first asked is ‘is this broker regulated?’ Unfortunately, the requirements for setting up an online brokerage are not very high or stringent, and there are plenty of unlicensed and unregulated brokers out there. Take a quick search on the Internet and you will find numerous stories of unaware and trusting traders being scammed by such unscrupulous traders.

This is not to say that a regulated broker is exempt from unscrupulous or fraudulent activity. In fact, plenty of regulated brokers have been caught in such activities. However, because they are regulated, customers at least have some recourse available and brokers are often penalized with fines. And the good news is that eToro is that eToro is indeed regulated. eToro (Europe) Ltd is regulated by the Cyprus Securities and Exchange Commission (“CySEC”), license number 10910, obtained in January 2010. eToro (UK) Ltd is regulated by the Financial Conduct Authority of the UK (“FCA”), license number FRN 583263 . Now, if you have been around the online brokerage scene for a while, you will know that when it comes to regulation, many such firms turn to CySEC. Because Cyprus is a member of the European Union, being CySEC regulated allows the company to offer their services throughout the greater European Economic Area. This is due the Markets in Financial Instruments Directive (“MiFID”). Unfortunately, the image of CySEC isn’t the best. The island is heavily dependent on income from such investment firms choosing to register in Cyprus, which is why they have a favorable tax regime and have a reputation of being rather lax on regulation, especially in the early years. However, with the growing number of investment firms being registered in Cyprus, CySEC has in recent years gotten noticeable more stringent in their regulation and enforcement. For example, Cypriot Investment Firms are required to have a minimum of EUR730k in capital. In addition CySEC also has an Investment Compensation Fund, which is funded by payments from all the regulated investment firms in case an investment firm goes bankrupt and is unable to repay its clients.

The total amount in the fund stands at over EUR17.5 million and each trader is entitled to a maximum compensation of EUR20k. However we should note that to date the conditions under which investors can claim from the fund are still unclear and the fund has rarely been used. We take further comfort in the fact that eToro is not just CySEC regulated, but FCA regulated as well. Unlike CySEC, the FCA has always been regarded as one of the premier regulatory financial authorities in the world. The fact that eToro was able to obtain an FCA license is a huge positive on their part and sets them apart from much of their competition. To summarize, at this point in time, we conclude that eToro is sufficiently regulated and customers should not have any worries in this aspect. eToroUSA is operated by Tradonomi LLC, a member of the National Futures Association (“NFA”) which is under the regulatory purview of the Commodity Futures Trading Commission (“CFTC”). However, eToro USA is not active at the moment, meaning that residents of the USA are unfortunately not permitted to use any of eToro’s services. eToro Trading Platforms.

As we mentioned above, eToro had various trading platforms over the years, with the most prominent being their WebTrader trading platform launched in 2008, followed by OpenBook in 2011 which was its first social trading platform and the base for the current platform available today. In November 2015, eToro’s WebTrader was integrated with OpenBook plus all the mobile platforms, and today eToro boasts a singular trading platform that has all the features of the previous platforms, plus more. Since the integration into eToro’s current platform, both WebTrader and OpenBook have been deactivated. eToro’s integrated platform offers two different functions: retail trading, and social copy trading. Retail trading is your standard trading and eToro functions as a normal broker in this respect. What differentiates eToro from the competition is its Copy Trading and Social Trading feature. Copy Trading allows you to automatically replicate the trades of your selected traders on a proportional basis while Social Trading describes the general umbrella under which Copy Trading falls. More on that in the section below. Like most brokers, eToro also offers leveraged trading, which allows you to trade notional amounts far higher than your trade amount. Currently, the minimum leverage is 1x for stocks and 2x for all other assets. Maximum leverage ranges from 5x for stocks to 100x for indices and commodities, and all the way up to 400x for currencies. However, eToro’s default ‘Responsible Trading’ setting does not allow you to trade leverage ratios above 50x or place trades that exceed 20% of account equity , although this can be manually changed. When it comes to leveraged trading, one important feature that can help mitigate a trader’s risk is negative balance protection.

At the moment it is unclear, whether or not eToro offers this feature. By offering CFD trading, eToro was able to evolve from offering merely forex trading into five different asset classes. Currently you can trade currencies, commodities, indices, stocks, and ETFs using eToro. eToro offers hundreds of different assets you can trade in under these classes. As is common with other brokers in the business, eToro does not charge any commissions but makes its profit through trading spreads. And while eToro’s trading platforms are excellent and are probably the company’s biggest draw, one of its biggest drawbacks are its spreads. eToro may have some of the best trading platforms in the business, however it also has some of the highest ( if not the highest ) spreads in the business. The spreads are prominently listed on eToro’s website, and the lowest spread is 2 pips which only apply to the USDJPY pair, in the case of currencies. The average spread ranges from 4 to 6 pips for currencies, which is very high considering that other brokers have spreads as low as 0.1 pips! eToro Social Trading and Copy Trading. Basically, social trading takes advantage of ‘crowd wisdom’ to help traders make the optimal trades. Instead of just relying on your own strategies, traders can now follow more successful traders and replicate all or part of their trading strategies. Social trading is a broad umbrella term; not only can you replicate other traders’ strategies but you can also ‘follow’ them (comments, likes etc.) as well as see their investment statistics in order to find the best traders to copy. And research shows that copy trading is indeed effective. In an MIT Study conducted in 2012, Dr. Yaniv Altshuler found that traders on eToro who used guided copying (copying a suggested trader) performed 6 to 10% better than manual traders, and 4% better compared to traders that were merely copying random investors of their choice.

Due to eToro’s large network of over 4.5 million users, its social trading is particularly effective. eToro’s main social trading tool is the CopyTrader which is the feature that allows you to discover and copy the best traders on the eToro network. You can copy up to 100 different traders at once, with a minimum amount of $100 each with a maximum amount of $500,000 per trader. The minimum trade amount of a copied trade is $1. CopyTrader has 4 main features: Copy All Trades: You will copy all open trades of your selected trader. These positions will have the same Stop Loss and Take Profit limits as the original trade and will also follow the copied trader’s future actions. For example, if your copied trader changes his stop loss position, yours will be changed as well. Note that you will have to open your trades at the current market rate, not at the copied trader’s original rate. However, you do have the option of closing specific copied trades while still copying the other trades. Copy Only New Trades: You will only copy your copied trader’s trades that he or she makes after you have initiated the copy action. Copy Stop Loss: This feature allows you to manage your risk across your whole copy portfolio. After the stop loss is breached, your copy account with the selected trader and all associated positions will be closed and remaining funds returned to your balance. By default it is set at 40% however it can be manually changed. This feature can be used in conjunction with the other features and is highly recommended for risk management purposes. Pause Copy: This feature allows you to pause any new copy trades being opened with a copied trader, however all open positions will still remain open.

In addition to the above, eToro also has several other features to enhance its copy trading program. People Discovery: This is eToro’s internal search engine to find traders to copy. You can filter your search according to country, invested assets, minimum gain over a certain time period. And that’s just the basic filter. If you use the Advanced Search function you can narrow it down even further with criteria such as portfolio allocation, average trade size, risk score, number of profitable months etc. Top Traders’ Insights: This is a feed which collects data from eToro’s Top 1,000 most profitable traders and provides insights into their most traded instruments plus a breakdown into buy and sell positions. Economic Calendar: A highly detailed economic calendar that shows data such as export growth, GDP, jobs data, industrial production etc. of various countries. The data is even broken down into actual, forecast, and previous. Market News: Live news updates, trends, fundamental analyses, and technical insights. Pips Calculator: A quick tool to translate movement in pips into actual dollar profits and losses. eToro Popular Investors. With almost 5 million traders on the eToro platform, finding the right traders to copy can be a bit of a challenge, even with the People Search function. That’s why eToro has implemented its Popular Investors program, which not only highlights its best traders but enables these traders to earn money from being copied as well.

This is not unusual, as one of the criticisms of copy trading is that is essentially investment management. After all, if thousands of people are copying your trades, aren’t you basically just investing their money for them? The only difference is that there is no real contract between the copier and the copied trader. Popular Investors can earn money via an ‘asset management’ fee of up to 2% ( assets under management would depend on how many traders are copying you ) plus up to a 100% spread rebate. This is all in addition to their own trading earnings. And the payments to Popular Investors are not just bonus credits; they are real funds that can be immediately withdrawn. We should note that all Popular Investors must trade using ‘Responsible Trading’ settings. eToro currently has four levels of Popular Investors. They are: Cadet: Requiring only 1 trader to copy you, plus a minimum deposit of $1,000. Doesn’t earn any monthly premium but instead earns a 20% spread rebate. Rising Star: Minimum deposit of $5,000 and 50 traders copying you. You get a spread rebate of 30% and a monthly payment of $500. Withdrawal fees are also waived. Champion: Minimum deposit of $5,000 and 250 traders copying you. You get a spread rebate of 50% and a monthly payment of $1,000. Withdrawal fees are also waived. You get access to a Premium Account and Trading Central. Elite: Minimum deposit of $20,000 and assets under management of above $300,000. You get a spread rebate of 100% and a monthly payment of $1,000 plus 2% of assets under management. Withdrawal fees are also waived and you get access to a Premium Account and Trading Central.

In addition, you get a $500 monthly marketing budget, a $500 quarterly education budget, and a $5,000 annual events budget. In early 2017, eToro launched its CopyFunds feature which moves eToro towards a universal investment and trading platform. As we explained above, copy trading is already conceptually similar to investment management; by copying another trader’s trades, he is essentially ‘managing’ your money for you. Each CopyFund will have its own investment strategy and asset allocation. The minimum investment amount in a CopyFund is $5,000 and there are two kinds of CopyFunds available: Market CopyFunds: A CopyFund that is comprised solely of financial assets such as stocks, currencies, ETFs etc. Top Trader CopyFunds: This CopyFund consists of actual traders instead of assets. The traders that comprise a certain CopyFund will be selected based on each individual CopyFund’s strategy. For example, if a CopyFund’s strategy is long term equities then it will select traders that have high stock allocations with long timeframes. Unlike investing in a typical fund or financial services firm, there is no management fee associated with using CopyFunds. This puts it ahead of even the low cost ‘robo-advisors’ which are so popular right now, most of which still charge management fees. The only fees will be via eToro’s spreads on the transactions initiated by the CopyFund. Also, unlike traditional funds which have very stringent redemption conditions and even ‘redemption gates’ to prevent a run on the fund, you can halt your CopyFunds investment at any point in time. The only delay is that if you initiate a stop when the markets are closed, you will have to wait until the markets are reopened for the system to close your positions. There are a few other salient differences between CopyFunds and traditional funds. For one, there is no need for a CopyFund investor to deliver capital to an investment manager, rather the ‘manager’ just opens and closes positions from the investor’s own accounts according to the CopyFund’s strategy.

Second, leveraged trading still applies meaning that your notional investment amount can be much larger than your actual investment amount. And finally, eToro’s CopyFunds allows the usage of short positions unlike traditional ETFs, which only take long positions. Over time, every investment portfolio experiences what is known as ‘portfolio drift’. This is what happens when due to individual price movements of the assets within a portfolio, its allocation starts moving further and further away from the target allocation. Because of this, a portfolio needs to be rebalanced on a periodic basis. eToro rebalances its CopyFunds periodically and automatically however the rebalancing period differs between each CopyFund. You can refer to each individual CopyFund’s prospectus to find out its rebalancing frequency. Of course when it comes to investment funds, what everyone wants to know is, what is the return on investment? Unfortunately, since eToro’s CopyFunds is not even 3 months old as of April 2017, its returns cannot yet be compared to any benchmark. However, as per most investment funds, investors should look at a timeframe of years for ideal returns.

Remember, investment is not trading. eToro Account Types. eToro currently offers 3 types of trading accounts. They are: Standard Trading Account: The most common account with a minimum deposit amount of $50 up to $1,000 depending on country and region. Demo Account: A demo account with $10,000 in virtual credits. Can be used simultaneously with a standard trading account; traders have the option of switching between the live and demo accounts on the platform. Islamic Account: A big plus for its competitors, eToro also offers sharia compliant Islamic accounts. Trades conducted on the Islamic account implement immediate buying and selling without delay with no interest on trades, thus avoiding potentially usurious interest, known as riba. An eToro Islamic account also provides you with interest free leverage, and there is no interest on contractts over 24 hours, nor does eToro take any additional commissions for contracts over 24 hours. However, it has one of the highest account opening minimums, at $1,0



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