ForexNewsNow – Out of all the forex reviews on this site, eToro offers the most unique platform. Using their OpenBook platform, their goal is to turn forex trading into a social activity. No longer will you be a solitary trader sitting at your computer. Instead, you can learn from and network with your other fellow traders as you try to navigate the stormy seas of the market. This social aspect as well as a simple trading platform and a reasonable pip spread makes eToro a great option for new and intermediate forex traders and makes it the first truly social forex broker.
EToro was founded in 2007 and is based in Cyprus. They currently have over 1.5 million users in 130 different countries, making them one of the biggest foreign exchange brokers in the world. If you are an American trader, eToro USA is a subsidiary regulated by the Commodity Futures Trading Commission and the National Futures Association.
The OpenBook Platform
What really sets eToro apart from other foreign exchange brokers is their OpenBook platform, which makes it the first truly social forex broker. With OpenBook, you can monitor the positions other traders have and see their profit and loss. You can send messages to other traders, learn how they trade, and even copy their trades with a single click of the button! It’s like having a high paid trader work for you.
OpenBook isn’t just for novices either. Advanced traders can still learn and can even build their own following on OpenBook by successfully trading with this social forex broker and winning several of the competitions eToro holds every month to determine the best traders on the platform.
EToro offers you three easy ways to trade forex. The first is through the OpenBook platform discussed in the last section. They also offer WebTrader, which is a browser based trading platform that is fast, uncluttered, and flexible. It’s aimed at beginning and intermediate traders who want to get access to the market quickly and easily without having to wade through menus and graphs. The only downside to the WebTrader platform is that it doesn’t give expert traders the powerful charting tools that they need to execute complex trading strategies.
If you’re on the move a lot, eToro also offers a MobileTrader platform for the iPhone, iPad, and Blackberry so you can trade wherever you get cell phone service.
Trading With Your Account
EToro has a very small initial deposit requirement to start trading. You can deposit as little as $50 and be started trading in minutes. Your initial deposit is also eligible for a bonus that depends on the amount that you deposit. Unlike other foreign exchange brokers, they also provide you with smart leverage settings. You get to decide how much risk you want to take in a trade by setting the leverage yourself. You can trade anywhere from 1:2 to 1:400 leverage.
EToro is an online forex broker that makes sure to take care of beginning traders as well. They offer a feature known as Guardian Angel that gives you real time guidance as you are making your trades. They also offer many training videos and tutorials in addition to the OpenBook platform where you can learn from other expert traders. You also get access to an unlimited demo account that you can use to trade until you get profitable.
Customer support at eToro is 24/7 and you can fund your account with major credit cards, PayPal, and bank transfers. Customer support will give you live training on the phone as well as access to guided tutorials to get you started trading as fast as possible.
EToro is a great option for beginning and intermediate forex traders or anyone who wants to make a name for themselves through the OpenBook platform and experience a truly social forex broker. The biggest downside is the lack of charting tools in their WebTrader platform, so serious chartists might want to stay clear and find another online forex broker through our forex reviews.