eToro Forex Trading Review

There are two things you need to succeed in Forex.

1) An effective trading strategy.
2) An excellent broker.

The reason for this eToro forex trading review, is to help traders make an informed decision as to whether eToro meets these requirements.

When selecting a forex broker, there are 5 key things to be considered

1. Low minimum account opening and trading amounts: If you have ever received a share offer you know the minimum spend is usually well over $1000. For many people, they simply don’t have that amount of money to spare. Thankfully, with forex trading it is relatively easy to discover places where you can start off with a small amount.

   With eToro you can start trading with as little as $50 and work your way up from there. In addition, eToro provides a practice account containing up to 10,000 ‘virtual’ dollars for you to practice with. This is extremely important for individuals who are new to Forex because it provides the opportunity to learn without risking any of your own money. The practice account is also useful for more experienced traders wanting to hone existing skills or test new trading strategies.

2. Low spreads: What this refers to is how much it costs to trade. For regular traders the spread can mount fairly quickly. For this reason it should be as low as possible.

   With the eToro the spread goes down to just 2 pips on the EUR/USD pair, this is extremely low compared to other brokers. In addition, eToro does not take a commission off your trades.

3. Instant Execution Of Orders: This aspect is crucial, some Brokers re-quote which means you can’t enter or exit trades at your preferred price. The ability to enter and exit trades instantly is especially crucial in the case of fast moving markets. The reason many brokers re-quote is due to liquidity, because they don’t possess enough trading volume to be capable of buying at any price.

   Etoro is one of the largest online brokers. This means they have greater liquidity making them very reliable. They also provide a superior quality, user friendly platform to back it up.

4. Good Education and Training: eToro provides an excellent training program with tutorials and training guides. This makes developing a comprehensive understanding of the fundamental aspects of currency trading simple.

   In July, 2010 eToro started what is effectively a social network for their users called ‘OpenBook’. This network makes it possible for users to “follow” successful traders and learn from their techniques… in real time!!! At the same time, other users can follow you. Early in my forex trading experience I used OpenBook to make successful trades. I’d noticed that one person was making consistent profit so I watched what they were doing and copied it. In the space of a few days I turned $500 into $950 so you can see how valuable this resource is.

   But eToro is not just for beginners. There is the “expert mode” for experienced traders which provides the same functionality without the training aspect. This innovative “experts mode” includes one click trading. It also provides trade charts, history, trading orders management, all at the click of a single button. Traders may also view upcoming events of the market or read the updated forex news, without having to leave the platform.

   It may interest you to know that eToro won the World Finance Award for the “Most Innovative Trading Platform” in 2010.

5. Leverage: Leverage refers to using other peoples money for trading. In return for using their money you give them a portion of the returns. Leverage is not something that should be utilized by total newbies because if you don’t fully understand the concept and have an effective trading strategy there is a danger of getting into debt. At eToro, leverage starts at 5:1 and increases to 400:1.

Etoro allows you to trade 24 hours per day, 7 days per week and provides a 24 hour customer service team in the event that you experience any issues.

How can you deposit money into your trading account? eToro accepts:

• Credit card
• Wire transfer
• Paypal
• Western union
• Neteller
• Webmoney
• MoneyGram

Deposit currencies accepted include: US Dollars (USD), Euros (EUR), British Pounds (GBP)

Withdrawals are simple and hassle free.

Please note that if you deposit large amounts of money into paypal, your account may be temporarily limited until you provide sufficient identification of either yourself or your business. This is a paypal issue… NOT an eToro issue. It’s an inconvenience but you will only have to provide this information once for the lifetime of the account.

One of the things I, personally, like about eToro is that they have endeavoured to create a comprehensive and supportive community for their users, whether they be newbies or professional forex traders. They even provide a forum where you can discuss trading experiences and tips. They also run regular trading competitions and provide a private call service to allow you to gain advice from expert traders. This social aspect combined with the simplicity of the system makes eToro irresistible to many modern traders.

Other Advantages:

• Provides REAL TIME trading data
• Support offered in several languages including English, German, Arabic, Russian, Chinese, Spanish, French, and Italian
• Website languages offered: 17 Languages including English, Spanish, Italian, Portuguese, Russian, Chinese, Arabic and German.
• Support offers a “callback” feature for members to request a call back for support purposes
• Stop Loss feature to protect investments
• Now offers web trading for users who don’t want to download the software onto multiple computers

Of course, this eToro forex trading review has not addressed the issue of developing an effective trading strategy but that is a matter for individuals. The only advice I can give is to visit the forum and ‘OpenBook’ as well as making use of the training materials provided. By seeing how others trade successfully you will soon learn to trade effectively and profitably.

My overall rating for eToro would be 9/10.

The fact that the eToro webtrader (web based forex trading platform) is really only suitable for experienced traders because it’s very similar to the “expert” mode in the downloadable version is probably the only negative comment I could make in this eToro forex trading review.

You can get your FREE eToro download by clicking the banner below.

For those of you looking for an etoro promotion code you need to know that the eToro system is FREE to download and use. The eToro promotion code is a personalized promotion that will be emailed to you when available after you have signed up.