eToro is quite an interesting broker to look at, as it is special in its own way. A company established in 2007 and regulated by CySEC on its own and NFA, CFTC, FCA and ASIC via the partners, has become and still is (according to FxCritic personal ranking) the most popular social trading platform. eToro is a place where online forex gets messages, likes and shares.
If you are a hardcore forex trader, who likes to have his indicators in a place, quickly change time frames or have your own special EA – forget about eToro as a trader. Once you are able to demonstrate good trading results, you would be much better off as a manager in eToro. This way you can earn not only on your trades, but also on everyone who copies you.
If you are a beginner, you can go ahead with eToro and see if this is something you like. eToro won’t generally make you a good trader, but you could become a successful copier and sometimes this could be even more fruitful, as your risks are diversified.
eToro Trading Platforms
eToro offers OpenBook, which combines social network and a webtrader, so you can communicate the forecasts, get real time feedback and copy the best ones. It has an integrated web terminal, which makes it quite comfortable to trade. This is very different from most of the trading platforms that are on the market, and may not be suitable for every trader. Best to preview eToro services and see if they suit you, but it is quite fun, so do try.
You can also use good old MetaTrader 4 with eToro (or at least it used to be possible), however it is available on demand only with not the sexiest trading conditions.
eToro Trading Conditions
Likes, shares, messages and other fluffy thing combined with a truly global trading community comes at a price, so you will have to pay higher spreads with eToro than with a regular forex broker. Spreads starting from 1 pip, but averaging 3 pips on majors are not the most attractive on the market, however eToro is more about catching 100 pip price movements than scalping.
eToro provides a great set of trading instruments, so you can be sure you will trade most of the instruments available at other brokers. Over 50 currency pairs, metals, stock CFDs and CFDs on indices, it is all here.
There are other social platforms designed for forex trading out there, however most do lack social elements, so if you like spending time on Facebook, twitter or maybe still have a myspace account, then eToro is your choice. Alternatively you can try ZuluTrade available with many brokers, but you will not encounter any social elements there. There are other platforms and networks like Tradeo, TradeCrowd, Currensee (R.I.P) and more, but FxCritic can’t recommend them.
This can be a great brokerage if you are into social networking and copying trades instead of learning to trade yourself or if you are quite good in trading and what to start earning commissions. Spreads and leverage are not the best with eToro, while the trading platform is somehow inferior, in terms of charting, research and plugins, to most of the alternatives on the market. This is why eToro can’t be your option if you are a regular trader who is not looking for a change. As for the security and licenses of eToro, you can be sure that this is a trusted place, as the amount of licenses makes it quite a safe place.