This broker is the obvious choice for a beginner at least that is the common knowledge among traders about eToro. A lot of things are geared towards people who are just getting to know the world of currencies and CFDs. Maybe the only thing that is missing is a mini-account, but there are plenty of other features to compensate for that.
eToro is a Cyprus based revolutionary broker with the first and biggest social trading platform, OpenBook that allows traders to communicate, interact with, and follow each other inside their trading platform.
Legislation and type of vendor
As a Cyprus-registered retail broker eToro primarily operates under the under CYSEC (Cyprus Securities Exchange Commission) ruling but there are branches of the firm that use ASiC (Australia), CFTC (US Commodity Futures), FCA (UK), MIFID (EU), and NFA (USA) too. The company doesn’t accept US residents as for the time being.
The firm was founded in 2006 under the name RetailFX and so it is in the business for almost a decade now pointing to a sound business model that combined with the good regulatory background should make you confident about eToro.
All the major pairs and a lot of exotic ones are offered too and you are able to trade with CFDs of indices, commodities and an impressive number of individual stocks both from developed and emerging countries.
eToro is continuously expanding the universe of tradable assets helping its expansion in new markets in Asia and the Middle East.
Trading Platforms available for Canadians
There are three different platforms available with E-toro:
- eToro WebTrader, a web-based trading and complete trade-analysis solution
- eToro Mobile Trader, a comfortable and fully functional mobile app
- and the eToro OpenBook social trader
A wide variety of order types, including conditional orders are provided by the three programs. Chart trading and automated trading are naturally available on the account
Spreads and other costs
The company offers fixed spreads as a retail broker, but the costs of trading are not among the lowest. There are relatively wide spreads on the major pairs, for example, 3 pips on the EUR/USD and 5 pips on the GBP/USD. These spreads are fix even in the most volatile market conditions.
Opening an account
You can open an account very easily as Canadian and with only $50 or an equivalent amount of capital depending on the type of funding you choose (it can be minimum $500 for some options). You will receive a bonus upon the first deposit depending on the amount, and the social experience will start upon account opening, helping you in starting with the firm’s platforms.
Of course, you can open a demo account to try eToro and with the special properties of the firm it is highly recommended to do so.
There are also numerous trading competitions that you can participate as a beginner and gain valuable experience besides possibly earning the rewards.
- Copy Trader, part of the OpenBook platform allows you follow the trades of other traders in real-time.
- The popular Investor program allows successful traders to earn extra money (up to 2%) after their managed assets. This is a great opportunity to leverage your knowledge and trading skills as you advance.
- Customer Service is available in 17 languages and the offering is steadily expanding.
- Great education material for the beginner trader
Other pros and cons
- Instant execution
- Platforms fully compatible with the major desktop and mobile Oss
- Fluent account management
- Dedicated Islamic Account
- Some stability issues with the trading platforms
- No external liquidity provider
- No phone orders accepted
- No MT4
Who should choose E-toro?
With the really good OpenBook platform and eToro is a great choice for beginners and it helps them to learn from accomplished traders via the CopyTrader function. Scalpers should look for another broker because of the wide spreads but for long term traders this is not really an issue and fixed spreads help in setting stop loss orders.
The great proprietary WebTrader and Mobile Trader also add to the offer with their flexibility broad compatibility.
eToro is one of the most popular and innovative Forex Brokers and rightly so. And although it is not perfect for everyone the stability and the experience of the company together with its beginner friendly structure, great payment options, and good Customer Service make it a good choice for novice and intermediate traders.
For experienced traders, the Popular Trader program is a compelling opportunity to increase revenue and take their forex business to the next level.