Etoro is a forex broker with a different take on trading. Where forex trading is usually considered, at least somewhat, difficult to get into for the layman, Etoro has designed their platform to be very simple to use, perhaps even too simple, read on!
Etoro uses a graphical interface that is unlike your usual forex trading platform. There are no graphs and candlesticks, but instead the currencies are represented by graphic images. The Yen is shown as a samurai, the Dollar as a cowboy and so on. If you are a professional forex trader you may want to stop reading already. Etoro is not a platform for the serious forex trader, rather it is for those that want to have fun and make some money while having it. If that is you, then read on:
The Etoro platform is developed by guys who used to work in the Online Casino and Poker industry and that shows. This is also their main target group. If you have had experience as a professional online poker player or sports bettor, then you will feel right at home with Etoro, and then it could very well be a good choice of forex broker. Forex, sports handicapping and poker do have some similarities when it comes to predicting behavior, calculating viable trades and psychology. Chances are you can transfer some of your skills in that are to forex trading.
Etoro does offer a lot of traditional forex educational material on their website to help their clients educate themselves on the subjects. They have tutorials, wiki glossary of forex terms and much more to help you get started. They also have a calender service and free news updates which are very useful, especially since you will not be doing technical analysis with this broker.
The concept behind Etoro is to offer forex trading to the part of the market that does not want to spend to much time setting up software and studying technical analysis and indicators. They do achieve this by making their platform simple and fun to deal with, but they will necessarily not appeal to expert traders as they simply lack the functionality needed for technical analysis and charting tools.
Etoro has low minimum spreads that begin at 2 pips for currency pairs and they do not charge commission for trades. You can open an account with as little as $50 to try out for yourself and the minimum required to make a trade is $25. Etoro has a leverage level of 400:1 which implies that you can trade your $50 into $20.000. Of course your margin will be tested very fast at these leverage levels.
Etoro has good and friendly customer support and answers questions fast and professionally.
There seems to be some complaints online about cash out speed, but it’s hard to tell if these complaints are real or competitors spreading disinformation.
I wouldn’t recommend Etoro if you are a serious trader, they simply lack functionality, but if you are just looking to try forex trading and have some fun doing it, then they have their place.