eToro is one of the best forex trading platforms and acts as a secure global marketplace for buying and selling currency pairs.
Trading with a trusted broker is a critical factor in determining your success in the international currency market.
Every forex investor has specific needs related to the platform, the tools they use, and the research done.
eToro is one of the best forex trading platforms for beginners, allowing you to trade confidently.
This leading social trading platform is used by millions of people worldwide. You can easily choose an investment product to start with. eToro offers intelligent investing posibilities in multiple types of assets.
What are Forex Trading Platforms?
In simple words, the forex market, or the foreign exchange market, is where currencies are traded.
Currency allows you to buy goods and services locally or across the border. If you want to buy cheese from France, a US importer would exchange the currency into Euros and conduct the purchase.
This means that foreign currencies need to be exchanged to conduct business overseas.
A unique aspect of this international market is there is no central marketplace for this exchange. Instead, the exchange is done over the counter.
This means that the market is open 24 hours a day, five and a half days a week. The prices change constantly and can be active any time of the day.
The forex market is the largest and the most liquid market globally. It represents every global currency. To trade in this market, you need a reputable broker or platform.
The platform you use should be well-regulated and highly trusted. It should also offer a user-friendly web-based platform with multiple educational resources.The platforms should also provide actionable market research.
eToro is one of the most trusted and best forex trading platforms offering educational resources, a user-friendly interface, and actionable research.
eToro – Best Forex Trading Platform for Beginners
eToro is one of the best forex trading platforms for beginners, allowing you to trade in stocks and cryptocurrencies. It was one of the first platforms to support digital currency trading.
It added support for trading Bitcoin back in 2014. The platform shortly after added trading options for Ethereum and Ripple as well.
eToro was started in 2007 by David Ring, Yoni Assia, and Ronen Assia. It initially operated under the company name RetailFX and was just a forex trading platform.
Later, the founders changed the name to eToro and started offering stocks, indices, and commodities. eToro has now established itself as the world’s leading social trading platform.
With the innovative social trading feature, eToro allows its users to copy successful traders’ trade automatically.
eToro is one of the best forex trading platforms, offering a wide range of educational material for beginners. In 2014, the platform allowed its users to trade Bitcoin on the platform. More digital assets were added to eToro in the years to follow. Today, eToro offers more than 25 cryptocurrencies on its platform.
It is a reasonably priced crypto exchange with an active community of users. eToro has established itself in the highly competitive crypto exchange market along with direct trading services.
Pros and Cons of eToro
eToro offers multiple unique advantages that might set the platform apart from its competitors.
The Pros
Free Stock Trading
With eToro, you can open a free stock trading account quickly. The platform charges zero commission fees when you invest in leading stocks.
eToro offers multiple leading stock options from the world’s top exchanges. eToro allows you to create a diversified stock portfolio, unlike other forex trading platforms. You don’t have to pay any markup, management, or ticketing fees to the platform.
Quick Sign-Up Process
eToro is one of the most accessible platforms to use. You can access this best forex trading platform by creating an account for free.
All you have to do is enter a few personal details, including your name, phone number, and email address. This will enable the platform to verify your identity. Most forex traders can create an account on the platform within 10 minutes.
Social-Media Like Dashboard
eToro allows you to buy and sell foreign currencies and cryptocurrencies and offers an active community to discuss your trades.
The stock or the digital currency market is an ever-changing one. You learn about new things, tips, and tricks every day. Having access to an active online community is helpful while trading foreign currencies.
This best foreign exchange platform allows you to communicate with other traders and see what other traders think about the currency you want to trade. Click on the currency or the coin you are thinking of to trade and learn more about what other traders are saying.
Intuitive Buy and Sell Order Placement
eToro has a pretty interactive and easy-to-use dashboard. The platform offers up-to-the-minute pricing information. If you are a Pro member, you can access real-time charting options. This helps you analyze when to buy a currency and sell it to book your profit. This makes eToro one of the best forex trading platforms in the market.
The sentiment calculator is available for every currency listed on the platform. The simple charting features make it easier for traders who are just starting their journey into foreign exchange trading. The interactive dashboard makes it easier to place an order or sell your stocks.
Internationally Established
Even though eToro was established as recently as 2007, it has already gained an enormous following. The platform has more than 120 million users in over 20 countries, making it one of the best forex trading platforms for beginners.
It not only allows you to trade foreign currency but also offers to trade in stocks, cryptocurrencies, and commodities. eToro is looking to extend its services in multiple countries worldwide.
The Cons
While the platform offers some exciting features and advantages to its users, there are a few places where eToro can improve.
Limited Service
While eToro is trying to expand its services to multiple states across the United States and worldwide, its services are a little limited. In the United States, you can only use eToro to trade cryptocurrencies. It does not offer stock trading or forex trading services as of now. Additionally, the platform is available in only 44 states of the United States. It’s unavailable for trading residents in Hawaii, Delaware, New York, Minnesota, Nevada, and Tennessee.
Complex Fee Structure
While eToro does not charge any fees on stock or foreign exchange trading, they charge a conversion fee. You will have to pay a fee each time you withdraw your amount from the platform.
Additionally, the withdrawal process can take up to a week at times. If you are using eToro for trading cryptocurrencies, you will be liable to hidden and additional fees like fiat to crypto conversions, overnight fees, or inactivity fees.
Doesn’t Offer Advanced Charting Options
eToro is a simple-to-use platform directed towards traders who are just beginning their journey in forex or digital currency trading. The platform provides over 66 indicators while using the web platform, while only 5 when using your mobile for trading.
However, the lack of some advanced features makes this platform easy to understand for traders, making it the best forex trading platform for beginners.
What Does eToro Offer?
eToro offers a range of services to their customers. Here are a few key features of this trading platform, making it the best forex trading platform for beginners.
CopyTrader
One of the most attractive features eToro offers, which sets it apart from its competitors, is copy trading. With this platform, you can copy trades in real-time.
This means that you can select a specific trader consistently booking profits and copy all of their trades. eToro will automatically trade the same trades as your copied trader. You can allocate the funds to each CopyTrader and set stop losses. This helps you control drawdowns.
Investment Portfolios
Investment portfolios are a little similar to CopyTraders. The platform not only allows you to copy the trades of a successful trader, but you can also view their investment portfolio and replicate it.
This makes it easier for traders who are just starting their investment or trading journey. You can either invest in top trader portfolios or market portfolios.
Top trader portfolios allow you to copy the portfolio of the top-performing and most sustainable traders. On the other hand, market portfolios will enable you to invest in portfolios that combine different investments.
Risk Score
Before copying someone’s trade or portfolio, it’s pretty necessary to analyze their performance. eToro offers a risk score to each trader. It ranges between 1 and 10.
1 means a trader is not very risky, and 10 signifies that the trader has the potential to blow up an account. Their performance also includes drawdown information and monthly historical performance.
Support Crypto Trading
eToro is one of the first platforms offered to trade digital currencies. It started with just Bitcoin back in 2014. eToro allows you to trade more than 40 cryptocurrencies, including Ethereum and Ripple. They include 17 of the most popular cryptocurrency coins.
The platform also offers an eToro money crypto wallet to its customers. It supports more than 110 currencies, and you can change over 500 crypto pairs. The unlosable private key feature helps you to recover any lost funds.
Account Types Offered by eToro
eToro offers two basic types of accounts to their customers. They are as follows:
eToro Standard Trading Account
The eToro standard trading account is the primary account you will open up on this platform. You can use this to make stock, foreign exchange, or crypto trades.
It’s a pretty simple process. You have to enter your details and deposit $50 to your account. Once the verification is complete, you can withdraw your money from the account. However, you will be charged a withdrawal fee ranging between $5 and $25.
Islamic Trading Account
eToro offers an Islamic trading account for Muslim traders who follow shariah ideologies. You can apply for this account if you seek to trade the forex market without going against your religious teachings.
You will have to deposit a minimum of $1000 while opening your account. The best part about getting an Islamic trading account is you do not have to pay any interest or commissions for the overnight positions.
Depositing and Withdrawing Money with eToro
While eToro offers a wide range of features and is undoubtedly the best forest trading platform for beginners, it might be a little restricting when it comes to money withdrawal. The platform places a 7-day hold on all your deposits.
This means your funds cannot be used for at least seven days. There is a one-day hold on withdrawals as well. The minimum amount for withdrawal is $50. Additionally, your account should be in good standing to withdraw your money, which is not under review.
Is Your Money Safe with eToro?
When it comes to deposits and withdrawals, eToro is a pretty safe and secure platform. It is regulated under Cyprus Securities & Exchange Commission and Financial Conduct Authority.
They are high-end authorities that offer a protective trading environment for beginner and advanced traders. The platform also uses a firewall and multiple data encryption algorithms to keep their marketplace safe from any black hat hackers.
eToro also shares various tips on its website that help makes your account more secure.
The platform adds an extra layer of security to the account with two-factor authentication options. The cash deposited with this forex trading platform is FDIC-insures up to $250,000. However, there is no insurance for crypto deposits as of now.
Takeaway
If you are into foreign exchange and digital currency trading, eToro is one of the best platforms. It offers multiple features that can help you learn more about the market.
The CopyTrader and Investment Portfolio features allow you to understand how sustainable traders make their trade and replicate them in the starting. Traders can then learn their tricks to book profit.
While the deposits and withdrawals can be confusing, eToro is easy-to-use and understandable. You can create an account within 10 minutes and start trading. However, you do need to figure out whether this platform offers a full range of services in your country or not.