Since the deregulation of the forex trading industry in 1997, there has been a massive proliferation of internet based spot forex brokers. While this scenario might be a good thing in terms of the availability of choice for traders, too much of a good thing can also be bad. This is because it can be difficult to sift out the “bad” from all the brokers out there, as basically everyone is offering the same kind of service. However, all this started to change when a broker called eToro introduced the concept of social trading to the world in 2010 with the launch of their OpenBook social investment platform. With this innovative social trading platform, traders can now easily copy the trading strategies of their more successful peers without having to have a solid foundation in trading the spot forex market.
Since the debut of their OpenBook social trading platform, eToro has gone on to improve the functionality of their platforms. Now, eToro have provided their traders with 3 ways in which they can trade the markets namely with eToro WebTrader, eToro OpenBook and eToro Mobile Trader.
Regarded as the most popular forex social trading platform in the world, eToro OpenBook platform lets you follow the progress of other traders as well as lets you interact with them in real time and puts the power of networking into the palm of your hand. With the integrated “Copy Trader” feature, you can copy the trades of your more successful peers automatically in real time as well.
A web based powered trading platform, eToro WebTrader provides you with all the tools that you need to analyze your trades as well as letting you synchronize with OpenBook to copy the trades of others.
eToro Mobile Trader
With the introduction of eToro Mobile Trader apps, traders can now also access the power of social trading with their smartphones and mobile devices.
Now in addition to forex, traders can also trade a selection of commodities and stocks with eToro’s trading platforms.
At eToro, you have a choice of two different types of trading account, standard trading account and Islamic trading account.
Standard Trading Account
Opening a trading account at eToro is easy as they only require a minimum initial deposit of just $50. You can fund your trading account using the following methods:
Withdrawals at eToro can only be done after your have verified your account. Once you have verified your account, you can withdraw using the same method that you used to deposit your money into your trading account. Take note that the minimum amount to be withdrawn is $20. There is also a small fee payable when you make a withdrawal. The fee is dependent on the amount to be withdrawn and ranges from $5 to $25. The stipulated processing time for a withdrawal request is up to 5 business days.
For Muslim traders who want to trade the forex market according to Shariah principles, they can choose to open an Islamic trading account with a minimum initial deposit of $1000. With the Islamic account, no interest is imposed on overnight positions and no commissions are payable as well.
For those of you who want to try out eToro’s trading platform fist, you can always sign up for their obligation free demo account. The demo account lets you try out all the features on eToro without having to risk any real money. Instead, you will be trading with $10,000 virtual cash supplied with the demo account.
Commission & Spreads
At eToro there are no commissions payable. Instead, traders have to pay a slightly wider spread on all their trades. With the exception of Bitcoin transactions (1 pip spread), the typical spread at eToro starts from a minimum of 2 pips for the USD/JPY currency pair and 3 pips for the EUR/USD, USD/RUB USD/CHF and USD/CAD. For less frequently traded pairs, the spreads can go up to as high as 14 pips.
Customer support services at eToro are provided in several major languages and are available 24/5. Contact with the support team can be done through email, live chat or the telephone.
Comprehensive Training Academy
Ground Breaking Social Trading Platform
Multiple choices of trading platforms
Regular Attractive Promotional Offers
Limited Choices of Forex Pairs
Their Platforms are Non Customizable
Trading Charts lack sophisticated tools
There is no doubt that eToro’s social trading platform is the most innovative change that has occurred during the past few years. They have single-handedly transformed a stressful trading endeavour into a fulfilling experience which feels more like game for everyone. The OpenBook platform can be said to be tailored made especially for novices of online trading who are unsure of how to start.