I have been trading in FX for most of the last decade. In that time I have seen many traders come and go, and also gained a lot of experience.
One of the key things that I have learned is that you can succeed in Forex if you have 2 things.
The first is a good trading strategy, that you stick to with discipline. The second is an excellent broker.
The reason that I have written this eToro review, is to help traders make a proper decision as to whether eToro is an excellent broker and whether it will be right for them.
There are 5 key areas that need to be looked at when choosing a broker and they are how I have structured this eToro review
1. Low Minimum Account Opening and Trading Amounts.
eToro offer traders the opportunity to trade their practice accounts for free. This is very important if you are new to Forex, or you would like to develop confidence and new trading strategies.
Traders can start trading live with just $50 and progress up from there.
2. Low spreads.
This means effectively, how much it will cost to trade. If you are trading frequently the spread will soon start adding up, which is why it needs to be as low as possible.
With eToro the spread goes down to just 2 pips on the EUR/USD pair, which is extremely good.
3.Instant Execution Of Orders.
This is vitally important some Brokers will re-quote meaning that you cannot get into or out of trades at the price you request, especially during fast moving markets.
This is often a consequence of liquidity, because many brokers don't have enough trading volume to ensure they can always buy at every price. However, eToro is one of the largest online brokers. This means that the liquidity they can give is very reliable. They also use a high quality, usable platform to back it up.
4.The Opportunity for Good Education and Training.
eToro has a great training program with tutorials and training guides. It's very easy to develop a full understanding of the technical and fundamental aspects that affect the prices of currency.
Also in July eToro started 'OpenBook', which is essentially a social trading network. It means traders can follow the trades or exerts and other traders in the network in real time, as they happen.
It's a brilliant idea, and there is nothing else currently like it in the industry. Traders can use the professional charting and graphing tools, or up to the second financial news and data to develop strategies, in conjunction with communicating and watching other experienced traders through the OpenBook network. Traders can either develop their knowledge of the marketplace and systems and strategies in conjunction with other traders in the network, or actually follow and copy traders based on their trading background and success. Read more about openBook here
The platform they use is also designed to be very intuitive. It's easy to get to grips with for newcomers with video walk throughs, and it's also set up to make it fun and fool proof. In fact eToro actually won the World Finance Award for the 'Most Innovative Trading Platform 2010'.
For those with more experience, there is the expert mode which has the same level of functionality but without the 'game' aspect.
Another key area and this eToro review wouldn't be complete without it. However, Traders should be careful with leverage, as it means you are trading with borrowed money and losses or gains are very much exaggerated. At eToro the leverage starts at 5:1 and goes up to 400:1.
You can also trade at eToro all day everyday 24/7, with the customer service team available at all times for problems and issues.
Money can be deposited by card, wire or with paypal and withdrawals are hassle free.
They have worked hard to create a real community feeling for all traders from novice to professional.
There is a big 'regular' forum in addition to OpenBook to bounce ideas off or share other trading experiences, as well as trading competitions and also a private call function for advice from their expert traders.
On the negative side you have to download the software platform to trade, sometimes a web based platform can be more convenient.
However, this is a minor point and overall I am very happy to trade with eToro and recommend them as a broker.
Click Here to visit the eToro official website.