eToro Forex Trading Review 2012 - Ratings, Likes, Dislikes, Comparison, Demo, Open Account
Find latest review of eToro Forex - Largest Investment Network. Read their advantages/ disadvantages, compare it with others or share your experience.
eToro Forex Broker Review
We believe eToro is a great Forex broker, especially for beginners, who will hardly find so much educational content elsewhere, not to mention the added value of their investment network.
Very Positive - The most positive service of eToro is definitely their 'Open Book', allowing you to find the most successful Forex traders with similar trading style and automatically copy their trades.
Could do Better - It would be nice to see tighter spreads and faster development of apps for Apple devices like iPhone and iPad.
eToro is a trading name of RetailFX Ltd, a Financial Services Company registered in Cyprus, which vision is to bring online Forex trading to everyone. They own the world's largest investment network with over 1.5 million users worldwide, who make FX trading easy to learn and simple to master. You can see who is trading what in real-time and follow best performers by automatically copying their trades - a simple, transparent and smart way to trade currencies (majors, crosses and exotic pairs), commodities (gold and silver) and indices.
As eToro client you will be able to enjoy personal service support from their customer support 24 hours a day, 5 days a week. Newbie's to Forex trading will love the demo tool and $10,000 in their virtual account, which allows practicing and testing trading strategies, and is full of features tutorials, videos and guides. Regular trading challenges are another popular service they offer, with over one million U.S. dollars of real money delivered in rewards.
Among major eToro advantages one could certainly find simple trading platforms, social trading, responsible trading, free learning and practicing, following and copying the best traders, personal service for each customer, and competitive offering.
eToro Forex is recognized in financial industry for its innovative approach to trading and they have been rewarded from several institutions (Finovate Fall, Global Banking & Finance Review, World Finance, MoneyAM Online Finance Awards, European CEO, Forex Awards) for different reasons (Best of Show, Best Mobile Trading Platform, Best Social Trading Platform, Most Innovative Trading Platform, Best Social Trading Network, Best Trading Software Provider, Best Active Trading Platform, FX & Treasury Management Awards) in the last few years.
Opening account with eToro Forex is easy. The process is fully electronic and you are not required to send any documents by post, at least not until you rich certain level of trades or you want to withdraw money. Beginners should start with demo account first, where they get $10,000 of virtual money to trade with. When this amount is burned, you get new $10,000 so you can test your trading strategies indefinitely. For opening a real trading account you will need at least $50 (if you are from Australia or New Zealand than minimum is $500). Since up to $10,000 bonus on your first deposit is available, it is recommended to deposit more than just minimum. There are many ways you can deposit your account, like wire transfer, credit cards (Visa, Mastercard, Diners), e-Wallets (PayPal, Skrill-Moneybookers, Neteller) and others (Western Union, WebMoney, MoneyGram). There are some minimum and maximum limitations prescribed for different payment methods and verified/unverified account, so be sure to check them before making transfers.
eToro has always simplicity in their mind when developing trading platforms. eToro is offering you a free downloadable trading platform for instant access to Forex markets from your home, while their WebTrader makes Forex trading available to you from anywhere in the world. eToro Forex provides you trading platforms and access to financial markets from your home or on the go in a unique combination with so called 'Open Book', largest social trading network, where you can share currency trading tips and interact over the Forex forums, live chat traders messaging system or discussion boards. You will never be trading or investing alone with eToro - there will always be an expert trader from whom you will be able to learn from and copy their trades in case your risk profiles do match.
For all of you mobile fans, you will simply love the eToro Mobile Trader for Android. Trading apps for iPhone, iPad, BlackBerry and Windows Mobile are still developing and are expected to be available soon. You can leave your email at eToro's website and you will be notified as soon as one is ready for your handy.
Practice Account/ Demo Mode
Did you know you can download eToro Forex trading platform for free and use charts, indicators, signals, and lessons even without opening a real account? Yes, that's true. Practice your skills before you start trading real money and by automatically entering eToro Forex contests you might even earn some real FX cash before investing your own, if you beat the competition of course. Although eToro Forex is not offering a trading robot, you can set alerts to tell you when and what to trade, which is a great feature for those prefer to hold control over your trades and money.
Premium Trader Accounts
eToro Forex is offering customized accounts to match different trading styles: bronze, silver, gold and VIP account. Your account type depends on your trading volume and overall deposit. The more you trade and more money you deposit on your trading account, the better your account type is and more benefits you can expect as an account holder. For example, trading signals are only available to Gold and VIP accounts; for full list of features on each type of account visit eToro's website. One thing you should keep in mind is that you can be automatically upgraded or downgraded any month, if you meet or don't met required criteria.
Fees and Leverage
eToro Forex is not charging their clients' any fees for trading. The only revenue they earn comes from the spreads (difference between bid and ask price of the currency pair) and they are one of the lowest in the industry. Besides, you can expect fast withdrawals, no roll over fees, no dealing desk, no commissions, Islamic accounts, and up to $10,000 credit on first deposit.
One of the greatest features eToro is offering to its clients is the ability to setup your own leverage. It can be as low as 1:5 or as high as 1:400. Just remember, the higher the leverage, the higher the risk, so choose it carefully!
Forex trading providers don't like to talk about risks involved, if not absolutely necessary - legislation minimums. eToro is different - they provide number of tools and features to guide customers to trade responsibly, like for example with pre-set leverage settings, Guardian Angel system and more.
eToro's website is one of the most visited websites in Forex business and one of the reasons is in quality Forex information they provide to visitors, including a huge education center covering several aspects of Forex trading, suitable for beginners and pro traders as well. You can choose among wide range of learning videos, guides, webinars and more. For beginners it is especially recommended to join a free live Forex webinar, trading eCourse and enter in eToropedia, where you can access articles and information to boost your knowledge up to the next level. FX guides for beginners come in PDF eBook format and are downloadable for free. You will learn to distinguish scalping from day trading, micro and mini lots, separate Forex dealers from introducing brokers and learn Forex terms from their huge glossary. Profitable Forex trading is not impossible, but it does require good education and some hard work.
Promotions, Challenges and Bonuses
First thing to notice is the fact, that promotions do not apply for all countries and might have some restrictions and are subject to change, co be sure to check eToro's website for latest information.
First you can get a bonus on your initial deposit. Depending on the amount deposited, you will get a bonus (deposit of $10,000 gives you a bonus of $1,000) and special status of your account (silver, gold, VIP).
Next, you can get a bonus by inviting your friend to open a real trading account with eToro who deposits at least $100. This way you will get an extra $100 bonus and your friend will get $50 bonus.
To make it clear, these bonuses are not free for withdrawal once you get them. There are subject to terms and conditions, which generally require you to trade at least 10 mini lots of real money for each unit of $10 bonus granted. One mini lot is equal to 10,000 units of any currency and number of currency units depends on the leverage.
When it comes to challenges, they are available for both demo and real traders. Top 100 demo traders with highest profits of the week are rewarded with cash prizes (first place gets you $1,000), while all real traders have the chance to win $20,000 prize poll and top 30 traders with highest real profits can win extra cash prizes.
The information and opinions in this review are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency and/or opening of an account with RetailFX Ltd.
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Written by: Goran Dolenc