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Etoro Broker Review: Great for Copy Trading

Launched in 2007, eToro focuses on the cryptocurrency markets, but that doesn’t mean forex traders can’t use it. Though most of the features are comparable to the best forex brokers, where eToro shines is with its copy trading feature.

With CopyTrader, you can directly copy expert traders’ strategies, trades, and portfolios. This feature alone has resulted in more average profitwhen users copied the most popular advanced traders.

In addition to being able to trade 40 global FX pairs, eToro’s CFD (contracts for difference) platform allows access to commodities, indices, stocks, and, of course, cryptocurrencies. Trading CFDs allows you to trade solely on the price movements of various financial markets and instruments without having to own the underlying asset. This strategy can allow you to gain capital quickly, while minimizing trading costs.

Instead, you pay a small percentage of the asset price (called trading on margin), and you can make a profit (or take a loss) depending on the asset’s price direction. This strategy is how experienced traders can make massive gains by taking advantage of leverage. The other forex brokers on our list also offer CFDs.

Trading Platform Overview

With an intuitive interface, the eToro platform can be easy to use for forex traders of all levels. You can view an asset’s performance at a glance, and there’s even an app to trade forex from a mobile device. The platform is accessible from 140 countries, though the exact features and available markets will vary based on your location.

Key Features

eToro has most of the basic features that you’ll find with most online brokers, including some of these favorites:

Spreads for forex pairs as low as 1 pip: Keep in mind that spreads fluctuate. 1 pip is the minimum only. Trading costs could be higher based on a variety of factors.

Flexible leverage: If you love liquidity, you’ll love eToro’s lack of restriction on trading CFDs with leverage.

Robust regulation: eToro is currently regulated in three jurisdictions. Two of them are tier-one, and one is tier-two. For reference, tier-one is the highest trust jurisdiction and includes independent bodies in the United States, Canada, UK, Australia, etc.

Tier-two is an “average trust” jurisdiction with regulatory agencies in China, Israel, Ireland, and others. The tier-one regulators that have authorized eToro as a forex broker are the Australian Securities & Exchange Commission (ASIC for short) and the Financial Conduct Authority (FCA).

Large community: With more than 10 million users, you can interact with and learn from other active traders all over the world.

Great for beginners: The user-friendly interface, together with the social trading aspect of the platform, is an ideal combination for new forex traders just getting initiated into currency markets.

Multiple membership levels: You can sign up with this forex broker as a VIP and get access to a dedicated account manager, exclusive signals, and assets that aren’t available to other members.

Though not known for its forex trading capabilities, eToro is still a solid platform, and it is a great choice if you’re also an avid cryptocurrency trader.