eToro Review
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Broker Reviewed: eToro
Regulation: Not regulated (Note: eToro is an IB of RetailFX, which is regulated by CySEC).
Broker type: market maker
Headquarter: Tortola, British Virgin Islands
Established: 2006
Note: eToro is an IB of RetailFX, IC Markets and FX Solutions.
Probably the most noticeable thing in eToro is their unique trading platform which offers two different modes: visual mode and expert mode.
Visual mode is created for new trader by introducing various game-like visualization to illustrate your trades, making forex trading learning a fun experience.
The expert mode is a professional-like trading platform with one-click order execution and a charting feature which offer various indicators. It also provides stop loss and take profit form right next to the order button. In addition, you can find various information such as news, calendar, open trades, etc right below it, thus making easy navigation throughout the entire platform. Hedging is also allowed but scalping isn’t.
eToro Review: Features Summary
1. Trading Platform; user friendly trading platform with everything you can quickly reach. The visual mode is designed for novice trader in order to make forex trading learning easier while the expert mode is providing sufficient features for advanced traders. There is also web-trader that you can access from everywhere around the world without downloading application.
2. Leverage; offer maximum 400:1 leverage which is quite high.
3. Commision; eToro charges no commission or overnight fees. The company is compensated through the difference between bid and ask price.
4. Support; eToro provides its traders multi lingual Live Customer Support via phone and live chat from Monday till Friday between 06:00 and 22:00 GMT. If you need them before or after those hours, send email or leave a message in the live chat section.
5. Spread; the lowest spread is 2 pips for USD/JPY. For EUR/USD the spread is 3 pips.
6. Deposit and Withdrawal; easy deposit and withdrawals by credit cards, PayPal, NETeller, Western Union, Wire Transfer, etc. Minimum deposit is $50.
7. Practice Account; allow practice account.
8. Security; eToro apply industry standard Secure Socket Layering (SSL) technology for data encryption and doesn’t share customers data with any other institutions. eToro is owned by Tradonomi LLC, a member of NFA (National Futures Association).
9. Community; every week eToro holds Trading Challenge where trader with the highest profit of the week wins and receive cash bonus from eToro. Traders can also communicate with each other via forum and chat room.
10. Currency Pairs; allow 16 currency pairs. Also support commodity trades such as gold and silver.
11. Forex Robot and other strategies; eToro does not allow forex robot or Meta Trader, thus make it impossible for forex robot user to participate in eToro. Hedging, scalping, and trailing stop are allowed.
Islamic and managed account are available.
12. Citizenship; various citizenship allowed; US citizen should go directly to etorousa.com
Pros
1. Great forex brokers with various features to support a novice trader, including a friendly community and trading challenge.
2. One with the highest leverage in the industry 400:1
3. Big brand; one of the brokerage with the highest number of traders currently.
4. You can view other’s deal via OpenBook.
Cons
1. Do not allow EA/forex robot. You have to trade manually.
2. Lagging problem reported in several cases
Conclusion
eToro main strength are the novice friendly and community approach. Also, the visual style trading platform and the live support will make novice trader feel comfortable while sharing information and story in the community will make the trader stay encouraged and learn more. Overall, eToro is a great environment for novice and professional traders to earn profit from forex trading.
