How To Start Trading Forex

Many people find forex trading, which is the exchange of foreign currencies, complicated. Starting out with forex is actually as easy as creating a forex account and get going within a timespan of a single afternoon.

Follow the following steps to be well on your way to trading foreign instruments.

Step 1: Understand the Language

First of all, make sure to familiarize yourself with the language of foreign exchange. Learn some of the most frequently used terms, as a firm grasp on these will help you and make your first trade that much simpler.

Below are some of the words and phrases that you will encounter on a continuous basis:

  • Pip: The pip is the smallest value that can be measured in the movement of currency. The word “pip” itself stands for “percentage in point,”. One pip is equal to one hundredth (1/100th) of 1% of a currency. As an example, should the value of the USD rise by a single pip, it would mean that it increased in value by $0.0001.
  • Bid price: The bid price is the price your broker is willing to “bid” or “buy” for the base currency you are willing to sell.
  • Base currency: The currency you are wanting to sell or are holding. If you’re from Britain, your base currency is most probably the GBP (Great Britain pound).
  • Quote currency: This is the currency that you’d be willing to purchase.
  • Ask price: The ask price is the price your broker is asking for in exchange for buying your quote currency. The ask price is always higher than the bid price.
  • Spread: The spread is calculated as the difference between the bid and ask price. The spread is normally retained by the broker as commission.

Once you are familiar with most of the trading language, you would then be able to pick up a couple of forex books or take a few online forex courses. Although forex books might seem a bit dry, the authors in most cases do their level best to made them as entertaining and fun as possible.

How to start trading forex - devices used to trade forex
How to start trading forex – devices used to trade forex

Step 2: Choose the Right Broker

Before you can start trading forex, you need to sign up with a broker. The broker will help you place your trades, plus they also offer a ton of additional financial services.

When working with a trustworthy broker, it can make a difference between whether you will make money from your trades or lose money on those trades.

Before settling for the right broker, take the time to thoroughly research and read reviews on a number of possible brokerage firms.

Since not all brokerage firms offer forex trading, it is best to make sure of that fact before you open an account with any of them.

As a beginner trader, it is best to work with a broker that offers different outlets for customer service. If you’re still not sure what broker to use, rest assured, as we have compiled a list of the best forex brokerage firms out there.

Would you rather be steered to the best forex brokerage firms without having to spend a ton of time researching? No problem at all. Here is our list of the best

  1. xxx.com –
  2. xxx.com –
  3. xxx.com –
  4. xxx.com –
How to start trading forex - choose the right broker
How to start trading forex – choose the right broker

Step 3: Analyze the Economy of The World

In order to make money trading currencies, you have to be able to predict very accurately what movements the global economies are about to make.

As a profitable forex trader, you have to change your base currency into a quote currency which is about to rise in value. Then you have to change your quote currency back into the base currency when the value rises.

The best type of research you can do is that associated with the trading positions, the political climates as well as the GDP (Gross Domestic Product) of the different countries you are interested in purchasing currencies from.

Doing this will give you a great jump forward in knowing exactly what quote currencies are worthy of investing in and also what countries have economies that are growing. TradingView has a customizable widget called Forex Heat Map, which is a great place to start.

How to start trading forex - open account
How to start trading forex – open account

Step 4: Make Your First Trade

Now that you’ve decided the quote currency, you’d like to purchase you can go ahead and place your first trade. A good brokerage firm will provide online trading software in order to buy or sell currencies.

Once you’re logged into the trading software, you’re ready to place a market order with your broker.

How to start trading forex - account funding
How to start trading forex – account funding

Although the specifics of the layout of your broker’s platform may vary, they all have the same basic functions. Also, to remember that many brokerage firms use Metatrader 4 or 5 to trade from.

After placing an order, you can relax and wait for the order to fill.

Conclusion

In order to prepare yourself better before you place an order, it is advisable that you read up on forex news that is currently trending. In this way you will understand the risks that are associated with trading currencies. What’s more, doing so will ensure that your wallet will not get depleted. If you don’t have the time for trading then opening  forex managed accounts might be the best option for you!

AvaTrade Malaysia – A.E.A. honest review

Summary

AvaTrade was originally founded as AvaFX in 2006. They offer average to minimally competitive spread on trades, as well as a variety of financial instruments to trade on.

AvaTrade is based in Ireland and has a substantial number of satellite offices across five continents. It is also available as AvaTrade Malaysia to traders from Malaysia.

As a novice trader you can open an account with as little as $100USD, and as for education, the broker’s educational material will get you up to speed in no time.

AvaTrade’s research and education section has grown substantially in the past year, and now offers videos on market analysis and free courses.

AvaTrade have reduced their number of platforms and have added a designation bypassing ESMA restrictions.

Some of the documentation they’ve created are poorly constructed, creating confusion as to the account types, fee listings and spread schedules.

 

Pros

Cons

  • Full range of crypto and forex instruments
  • Their offer includes hidden fees
  • Their social trading features are unique
  • They do not have MT5 integration
  • Great educational material
  • No news and research on platforms

AvaTrade review – Pros and cons of AvaTrade

Trust

AvaTrade has client account protection for an amount of EUR 20,000. This is done through Ireland’s ICCL (Ireland Investor Compensation Company). This is the only insurance AvaTrade provides.

They also offer negative balance protection, a rule that is mandated under European Union financial regulations.

Second factor authentication is not required for web, desktop and mobile usage, but as a form of login security account holders may make use of Metatrader’s OTP (one-time passwords).

Client funds are held in a separately segregated account. Due to the fact that they run a dealing desk that markets against their clients, this greatly creates the potential for conflict of interest.

A large part of AvaTrade is regulated through the Australian Securities and Investment Commission (ASIC).

Trading platforms

AvaTrade is offering their clients desktop and mobile trading platfroms. Alas clients have no other option than to use Metatrader 4. Mobile app is available in both IOS and Android version.

Desktop trading

Due to the removal of Mirror Trader and RoboX, clients have no other option than to use Metatrader 4. Though many other European Union competing brokers have opted to include a Metatrader 5 option to their arsenal of platforms, AvaTrade does not seem to have plans to offer that option.

AvaTrade review - Desktop trading platform
AvaTrade review – Desktop trading platform

AvaOptions allows the taking of spot and options positions by traders. AvaOptions is a basic platform for complex hedging for forex pairs. Their ZuluTrade and DupliTrade platforms allow for social and copy trading, and many other features once available in their aborted programs.

Mobile trading

AvaTrade’s web version platform, the AvaOptions, provides complete integration with other desktop platforms, however, their AvaTradeWeb has been discontinued.

The AvaTradeGO platform, which was released in November 2017, has an iOS and Android version. An alternative to the normal Metatrader 4 mobile version downloadable from Metaquotes.

This rebranded app, which is basically just an updated MT4 version, has the capacity to social trade, however this feature was released with limited features, something the clients were not really happy with, as can be seen from the dozens of negative reviews on Google Play.

This app also has the feel and layout that is more friendly for newer and inexperienced traders, as it provides step-by-step directions on how to open trades, as well as a feedback system not really needed by experienced traders.

AvaTrade review - mobile trading platform
AvaTrade review – mobile trading platform

AvaTrade knowledge base

AvaTrade is offering their clients education through sharptrader.com where they can find Youtube videos, tutorials and webinars. Topics are well arranged and easy to comprehend.

Pros

Cons

  • Chart is interactive, design pretty good
  • Fundamental data on stocks is missing
  • Sharing how to trade ideas
  • Good user experience

AvaTrade review – Pros and cons of AvaTrade Knowledge base

Research

AvaTrade provides research through sharptrader.com as well as an economic calendar. All research material on the platform is provided via a Youtube channel with brief 4-minute daily videos. These videos are then transcribed and offered as the Daily Market Review.

For short-term technical signals there is the AutoChartist intra-day updates app. Also provided are very dated articles offering a bit of fundamental analysis. Another section with more up to date articles discuss subjects such as Brexit and Bitcoin.

Education

All of the educational material is offered through a website called sharptrader.com. On this website tutorials are arranged neatly into beginner, intermediate and advanced topics. This makes it easy on the learner to build paths and grow incrementally.

There are also a big variety of general market topics.

Most of the material is divided down into five major sections. This allows clients to find answers to questions quicker and easier.

The search function is not that effective as it is buggy and, in many instances, fails to deliver the right answers. The main broker site also has an education section not directly integrated into the site.

Special Features

The AvaTrade brokerage now provides a designation allowing for higher leverage, a new ESMA rule. However, to qualify for that you need to have a large trading account and adequate financial industry experience.

Also available are fixed and floating spread accounts and an Islamic account (also for Malaysian clients) with wider spreads.

With the AutoChartist plug-in access is granted to third party software like Metatrader 4, which add further technical functionality. For this option you must have at least $500USD in the trading account, a feature which easily locks out smaller traders.

Investment Products

AvaTrade has an impressive list of CFD, forex and options trading instruments, with an additional 8 cryptocurrencies. These instruments allow for new opportunities for those traders comfortable with high-risk speculation.

The CFD instruments include commodities and bonds, as well as 69 shares and 5 EFTs, which are dominated by US big tech stocks. UK and Irish clients can open spread betting accounts, a nice addition to an already full-featured catalog.

Commissions and Fees

Though AvaTrade says that their trading is commission free and that they have low spreads, it might be applicable to only certain account types. On their website is a page that is a list of all spreads for each financial instrument. It also lists overnight fees, maturity rollover and inactivity fees.

The page only shows fixed spreads, and no information on floating spreads. However, that information is to be found within the FAQ section, contributing to more confusion regarding account types.

Also not discussed is the spreads incurred on an Islamic trading account. There are some discrepancies between spread and fee disclosures, with evidence of hidden withdrawal fees, and supposed commission charges on certain account types.

AvaTrade review - Account types
AvaTrade review – Account types

To open an account at AvaTrade requires an investment of $100USD. They do not offer volume discounts and have no guaranteed stop losses.

AvaTrade account inactivity is charged at $50 after 3 months of inactivity, and an inactivity fee of $100USD after a year of not using the platform.

Although no fees were mentioned for withdrawal and closure, yet legal documents noted these on bank transfers and on credit card transactions. To withdraw money might take as long as 10 days.

Customer Support

Most questions are addressed through an FAQ section. AvaTrade offers a 24/7 phone and chat support system, as well as a social media presence and an online form entry. Their live chat can be cumbersome at times, and you may have to wait for about 8 minutes before you are linked to a support agent.

AvaTrade has international offices, providing local contact whenever it is needed. They also have an international number, as well as a horde of local phone numbers over different EU member states.

AvaTrade review - Customer support
AvaTrade review – Customer support

What You Need To Know

AvaTrade has excellent educational material and offers competitive spreads depending on what type of account you have. Especially because of their low account minimums, they are an excellent choice for new traders or traders that have a low amount of equity.

Due to the lack of volume discounts, large scale traders might find better value somewhere else.…

XM Forex Review – Read this, it will help you decide

To sum it up

This review of XM was written to help you understand why XM is considered to be the best broker for the next generation, where online forex and commodity trading is concerned.

XM offers a very user-friendly platform, both for beginners as well as experienced traders alike. To get started you can first test out the platform software with a demo account and $100,000 of virtual money.

Some of the highlights of trading with XM include services such as auto trading, they have no hidden fees or commissions on every trade, with fast order executions, 99% placed in under 1 second.

Company Details

The XM Group is a group of regulated brokers that operate online under different entities.

  • Trading Point of Financial Instruments. They were established in 2009 and are regulated by CySEC (Cyprus Securities and Exchange Commission).
  • Trading Point of Financial Instruments Pty Ltd. They were established in 2015 and are regulated by the Australian Securities and Investments Commission.
  • XM Global. They were established in 2017 and are regulated by the International Financial Services Commission.

XM has over 1.5 million customers in over 196 countries. They aim to become one big family and treat others with fairness and humanity.

They pride themselves on great customer service and are known to have a personalized approach to every client, no matter what goals they have for their investment portfolio.

XM Trading Platform

XM offers their clients 2 trading platforms. These can be accessed from real and demo accounts. You can customize almost everything, fee reports are easy to understand. We were missing price alerts.

Pros

Cons

  • Very customizable
  • Price alerts are missing
  • Web, desktop and mobile platforms
  • Design is a bit oldschool

XM review – Pros and cons of the trading platform

  • The MT4 (Metatrader 4) platform, is very popular amongst forex traders and supports trailing and market orders, limits and stops.
  • The MT5 (Metatrader 5) platform offers precious metals, stock indices as well as stocks.

Apart from installation on PC/Mac, both the MT4 and MT5 platforms are accessible from mobile as well and can be installed on Apple and Android devices.

There are more tools available on the platform, like economic calendars and trade volume statistics.

Both the PC and Mac versions of the software allow for one-click trading.

There are more tools available on the platform, like economic calendars and trade volume statistics.

XM review - Trading platform web
XM review – Trading platform web

XM Mobile Apps

The XM mobile platform is available for download from both the Apple and the Android stores, and can be used on the Apple iPhone, iPad, tablets and Android phones. To login is easy and can also be done with fingerprints.

The apps are fully functional and allow for full monitoring of your trades while traveling.

XM review - Trading platform mobile
XM review – Trading platform mobile

Assets/ Markets

XM has over 1000 financial instruments, which are tradeable both on the MT4 and MT5 platforms.

Pros

Cons

  • More than 100 financial instruments
  • No futures or binary options
  • Tradeable on both platforms

XM review – Pros and cons of assets and markets

These include assets such as the energies CFDs, precious metals CFDs, equity indices CFDs, commodities CFDs, stocks CFDs and forex CFDs.

When trading forex you can do so on over 55 different pairs, inclusive of the JPY, USD, GBP and EUR pairs. XM does not offer futures or binary options.

Spreads and Commission

The kind of spreads you will pay, will depend on the type of account you open. These are the different types of accounts you can open: Micro Account, XM Zero Account and Standard Account.

The minimum spreads you can pay across all accounts as well as what you’ll pay for major pairs is 0.1 pips. XM has a very strict policy when it comes to transparency.

They believe in no-hidden fees or commissions, and commissions are only given on the XM Zero Account.

XM guarantees same day withdrawal and covers transfer fees.

Leverage

Depending on which instrument you’re trading on you can make use of the following leverage ratios from 2:1 up to 30:1. Of course this leverage is not forced upon anyone, and clients have the freedom to manage their own leverage risk.

Their margins requirements remain constant throughout the week and do not widen during the night or during weekends. This leverage is only applicable to clients who are registered under EU regulated part of the group.

Payment Methods

As per KYC regulations, all users must provide a coloured copy of their national identification document. This can either be a passport or a driver’s license.

Apart from an identification document, customers must also provide a utility bill that is as recent as three months for proof of address.

Once registration is successful, a minimum deposit of $5 for the Micro and Standard accounts and $100 for the Zero account. Most popular modes of making a deposit are accepted, including local bank transfer, wire transfer, electronic payment and many major credit cards.

When depositing from your currency, it will automatically be converted to the base currency you chose when you opened your account. Withdrawals are normally processed in 24hours, with no fees payable when taking money out of your wallet.

XM review - Deposit and withdrawal options
XM review – Deposit and withdrawal options

Demo Account

XM has an exceptional demo account plan. Demo accounts can be set up with  few details and open up with as much as $100,000USD virtual money. Nothing is held back in the demo account, and all functionalities available in the real account are also available in the demo account.

Bonus Deals and Promotions

XM offers many other bonus services and deals like that of a free VPS service to help speed up trades.

The VPS can be accessed from anywhere in the world, anytime of the day, as long as you have an internet connection.

XM’s withdrawals and deposits have no extra fees. As XM is an EU (European Union) regulated company, they no longer offer bonuses no clients in the EU, in compliance with the ESMA’s ban of bonuses. Thus, the $30 bonus is not available to traders in the EU.

Regulation And Licensing

The XM Group (XM) runs under a number of brands, and each of these is covered by a different regulator.

  • Trading Point of Financial Instruments is regulated by the Cyprus Securities and Exchange Commission (CySec) and was established in 2009.
  • Trading Point of Financial Instruments Pty Ltd is regulated by the Australian Securities and Investments Commission (ASIC) and was established in 2015.
  • XM Global is regulated by the International Financial Services Commission (IFSC) and was established in 2017.

Additional Features

The XM platform is filled with additional educational material for traders. They host webinars on a regular basis, both for seasoned as well as new traders.

The atmosphere is very social, encouraging peer-to-peer learning and coach-student instructions. They also publish technical and research analysis.

XM review - Education and research
XM review – Education and research

XM Account Types

Opening the XM account is really easy quick and completely digital.

XM review - Opening an account
XM review – Opening an account

XM has four different levels of accounts: Micro, Ultra, Standard and Zero, each of these allowing to 200 open or pending positions.

Micro Account – This account can be traded in these currencies: EUR, GBP, CHF, AUD, JPY, HUF and PLN as base currencies, and starting out with $5USD deposit. A micro lot is equivalent to 1000 units of the base.

Ultra Account – The Ultra Low account trades the following currencies: EUR, USD, GBP, AUD, ZAR, SGD as base currency and requires a minimum deposit of $50USD.

A Standard Ultra lot is equal to 100,000 units of the base currency, while a Micro Ultra lot is 1,000 units of the base currency. These Ultra accounts are only available to some of the XM entities.

Standard Account – The Standard account trades the following currencies: USD, EUR, GBP, CHF, AUD, JPY, HUF and PLN as base currencies, and starting out with $5USD deposit. A standard lot is equal to 100,000 units of the base currency.

Zero Account – This account uses USD, JPY and EUR as base currencies, with only a $10USD deposit required. Just as the Standard account, a standard lot is 100,000 units of the base currency.

Benefits

As part of their excellent customer service, XM offers an education package on forex. This is excellent for those getting their feet wet with trading. The experienced trader also is catered for, with expert analysis and tracking tools to help them with their trading.

Support on XM is available in different languages.

Drawbacks

Though their customer support is excellent, they are only available from Monday to Friday. The different account types seem too similar and do not have that personalized feel. Customers have complained that the Micro, Standard and Zero accounts look almost identical.

If Paypal is your mode of money transfer, then that would be a problem as they are not currently supported. Due to the restrictions of licensing laws traders from Canada and the US may not trade with XM.

Trading Hours

XM operates in line with global forex market hours and are available 24hours a day. Their trading hours for phone trading are Sunday, 22:05 GMT all through Friday, 21:50 GMT.

Contact Details

To reach XM, the easiest way to do so is via their live chat. This feature is found on the contact page. Apart from that you can also email them at support@xm.com or you can call on +357 25029933.

XM review - Customer support
XM review – Customer support

Safety And Security

The XM website has no apparent security issues. As a user, you are required to confirm your email address to open a demo account, but you don’t have to sign up for any email updates.

In order to open a real account, you would need to provide identification documents. XM has also put in place organizational procedures, ensuring that personal data is kept secure and safe.

Accepted Countries

If you are form the following countries you can trade on XM:

  • Australia,
  • Thailand,
  • United Kingdom,
  • South Africa,
  • Singapore,
  • Hong Kong,
  • India,
  • France,
  • Germany,
  • Norway,
  • Sweden,
  • Italy,
  • Denmark,
  • United Arab Emirates,
  • Saudi Arabia,
  • Kuwait,
  • Luxembourg,
  • Qatar
  • and most other countries.

Residents of these countries cannot trade on XM:

  • United States,
  • Canada,
  • Israel,
  • Iran.

Overall Verdict

As you can see through this XM review, this platform offers clients an all-inclusive trading service. No matter whether you are just starting out or are an experienced trader wanting to trade with reliable providers, XM is a good choice. Although they have a few shortcomings in regard to the different account options, their platform is easily navigable and simple.

We hope you have enjoyed reading through this thourough review. Before you really decide if this is the right broker for you, we invite you to read our other broker reviews such as Plus500 review and our eToro review.

We think you might find lots of things there which could lead you…

eToro Review – Should you go for it?

Abstract

We have put this eToro review up for you so you will know what eToro is, how it works and if this trading platform is right for you.

eToro was founded in 2007 in Cyprus. It is well known for it’s extreme and detailed attention to social and copy trading, a strategy that has earned them rapid growth and over 10 million trading customers globally. This focused service is also enjoyed by cryptocurrency traders on eToro.

One of the main advantages of this trading platform is how easy it is as a trader to make use of their copy trading system. eToro is notorious for it’s many traders who allow their trades to be copied by others whilst following risk control rules.

This feature on eToro, this accessibility, makes it able for account holders to copy strategies and trades of successful clients, both in real time and automatically.

Although there are other brokers who do the same, not many have pulled it off quite as well as eToro has also in the USA. Copying trades from others does not necessarily guarantee any gains or losses.

eToro might have weaknesses when compared to other forex brokers, but it’s trading platform is well catered for traders with an average understanding of crypto and forex trading.

When trading on eToro you might either like the platform or not like it at all, especially because of it’s high forex trading fees or it’s customer service which is offered online only.

Trade issues, account enquiries and various problems are handled through a ticket and chat system. Additionally, they have a FAQ database to support and add extra help. The one drawback of eToro is that it doesn’t provide any hand-holding or real time contact, a factor that could rise their customer complaints.

To open an eToro account, you need $200 (only $50 for Australia and the US). Withdrawal fees are quite high, higher that most other brokers at $25, and that is exclusive of banking costs.

Although paying high withdrawal fees is pretty annoying, a bigger annoyance especially for more experienced traders is lack of proper connection.

eToro does not provide for ways to hook up third party software or algorithms like Metatrader 4 onto their datafeed, because they do not have an API interface and no VPS hosting.

Their lack of an extensive range of products, coupled with wide spreads, is likely to send off prospective experienced traders to other brokers.

Pros & cons of eToro

Pros

Cons

  • They have an impressive crypto catalog
  • Very little customization
  • They allow copy trading
  • Their software is not standalone
  • Their charts are robust
  • They have no news streaming

eToro – Pros & Cons of eToro

Security

Pros

Cons

  • Most of clients belong to big financial institutions
  • No banking license
  • Protected negative balance
  • Not on any exchange
  • Very well known in fintech world
  • No publicly available financial information

What are the regulations of eToro

eToro is compliant with ESMA (European Securities and Markets Authority) rules, and is authorized through CySEC (Cyprus Securities & Exchange Commission), a fact that could be a problem for the broker as the 2012 financial crisis of the Cyprus Republic might still be fresh in their memories.

How safe is eToro?

Other licensing that eToro holds is that of the UK’s FCA (Financial Conduct Authority), which has more thorough risk disclosure requirements. eToro admits through the fine print of their legal documents, that they can hold funds belonging to clients outside the EEA (European Economic Area), which might increase risk in the event of a bank default. However, they do provide UK and EU brokers default protection in the range of €20,000 or £50,000.

And how secured are you?

There is no stop-loss protection or extra covering with insurers, while their order entry interface seems inadequate as it has no proper risk management features except the common trailing loss and stops. A further negative is that for cryptocurrencies stop losses can not be lower than 25%, a fact which might increase investor risk.

  • With the ESMA rules that came into effect in August 2018 regarding negative balance protection, clients enjoy protection as they cannot lose more than 100% of the value of their account.
  • eToro offers two tier phone-based authentication as well as standard SSL encryption.
  • With well-written documentation on the best way to execute trades as well as policies on conflict of interest, it builds clientele confidence in the company.
  • Their fully disclosed fee structures create transparency.

Desktop Experience

eToro review - web trading platform
eToro review – web trading platform

The eToro trading platform is entirely web-based and offers a completely complex-free interface that is easy to use. This is a major plus point for the company as both experienced and inexperienced traders can easily scroll through and use the features. Their charts are fully featured, including a number of drawing tools and 66 indicators.

eToro review - charting tools
eToro review – charting tools

There is no backtest function but there is extensive CopyTrading and CopyPortfolio data. Their news link is very disappointing as it opens up onto a social forum with a number of client posts but no substantial information. You can customize and save a watch list on eToro, but their order entries lack risk management.

Every watch list you save will allow you to view buying and selling percentages of clients in real time, for quicker sentiment analysis. Both CopyTrader and CopyPortfolio features can be automated to see positioning in real time.

Mobile Experience

eToro review - Mobile trading platform sample
eToro review – Mobile trading platform sample

eToro’s mobile versions of their trading platform allows you to easily sync data between both Android and iOS devices. The menus on mobile are well-designed, although having fewer charting features and not that much customization. The menus of indicators are smaller to five basic types and the order entry system looks similar to their web version.

Although the watchlist has no client positioning data, users are able to set customized price alerts while getting notifications about account issues and market events.

Research Tools and Insight

eToro’s research feature is not that well-organized and appears to be very bare boned. This feature is accessible through blog articles that are in themselves not timely at all. Through a button on the mobile app there was an indication that analyst research tools were only available to funded accounts.

They do have a few well-written cryptocurrency articles, written in greater detail than those on market analysis or forex.

Education

The tools eToro offers are quite limited, their educational videos are amed solely to investing and are of questionable quality.

Pros

Cons

  • Introduction manual to eToro platform
  • Poor educational video courses
  • Free practice / demo account

As part of their education efforts, eToro has placed a link to their Trading Academy as well as a Live Webinar link in the footer of their website. The Live Webinar link led to nowhere. The educational section of their website is quite disappointing with only 11 programs in a Powerpoint type of presentation.

They have an Advanced Technical Analysis course which opens up into a couple of candlestick patterns. There is no further educational material available on the platform, other than instrument descriptions and help databases. Their Youtube video library only have a number of how-to presentations.

eToro review - learning lab
eToro review – Learning Lab

Special Features

eToro cleverly focuses on its main strengths, which are social and copy trading, social sentiment data and client and portfolio copy trading which is automated.

They also provide protection in case of negative balance for all their professional clients, even though it is not required by the ESMA.

eToro does not offer volume discount, making their platform a bit more costly than others. However, they do have an eToro Club that offers a few discounts plus some more services based on the clients account size.

Improvements would be welcome

When looking at broker-to-broker comparisons you might look unfavourably towards eToro if you do not consider their primary strength.

There are a couple of things eToro could improve on, like:

  • guaranteed stop loss and order management protection, especially with cryptocurrency trades that have limited stop-loss control.
  • Another improvement they could introduce is an API interface coupled with VPS hosting.

Thus, the strength of the eToro platform lies primarily in a trader’s ability to piggyback on portfolios of more experienced traders where the CopyTrader program is concerned, or on branded algorithms where CopyPortfolios are concerned.

Crypto trading

The platform launched a blockchain wallet on the 7, March 2019 for both iOS and Android, available in 31 U.S States. eToro offers over 15 different crypto currencies in the USA alone and over 16 in other countries, inclusive of popular ones like Bitcoin and Stellar Lumens.

Available cryptos:

  • Bitcoin
  • Ethereum
  • Ripple
  • Bitcoin Cash
  • Ethereum Classic
  • Litecoin
  • Binance coin
  • Cardano
  • Tezos – Tezies
  • IOTA
  • TRON
  • ZCASH
  • Dash
  • Stellar Lumens
  • EOS
  • NEO

Please note that in the USA, eToro provides customers only access to cryptocurrencies and not other instruments. Those outside the United States of America have access to trading on forex, stocks, CFDs as well as cryptocurrencies.

Investment Products

With only 47 currency pairs and about 19 CFDs, their product catalog is quite small in comparison to other brokers, but it covers about:

  • 1500 shares,
  • over 77 cryptocurrency and
  • CFDs.
eToro review - Investment Products - Crypto
eToro review – Investment Products – Crypto

Although each instrument can be traded long or short, it is best to read all the fine print first, as each order type does incur an overnight and weekend holding cost.

The CopyPortfolio feature adds quite an extension to the features available as it has the ability to access markets that are not directly available as CFDs.

Commission And Fees

Fees

Fees at eToro are a bit high in comparison with many other brokers. EUR/USD spreads stand at 3 pips and S&P 500 at 75 pips. These spread prices can also increase as market conditions change.

Commisions

The company has recently introduced commission free stock trading but still maintain a weekday overnight cost of 24 cents per $1,000. Over weekends this fee triples.

Apart from these fees and the charges you’ll incur at your bank, there is an additional $25 fee charged for withdrawals, which is the highest among European brokers.

Withdrawals

eToro review - how to withdraw funds
eToro review – how to withdraw funds

eToro does not allow withdrawals lower than $50. Another fee eToro charges is the one for inactivity. They charge $10 per month after an account has not been active for 12 months.

Customer Support

eToro review - customer support
eToro review – customer support

Although the eToro contact page mentions 24/7 support, they do not list a phone number, except for one in Australia. There is a help center link that leads to an FAQ plus a help knowledge base. They also have a low-tech ticketing system, a type of support not used by businesses anymore.

They do have a phone number on that page, but that only leads back to a contact page, another dead end. There is online chat for clients and there is active Twitter and Facebook communication.

Bottom line

eToro is a great fit for amateurish traders who’d rather ride on the performance of well-skilled traders and copy their trades to mimic. This in itself can be very risky as good performance alone does not guarantee a winning trade.

However, those who are more advanced may understand better the risks involved and may have in place defensive actions to counter any losses.

For those seeking a broader scope of services, better and more prompt customer interaction or competitive costs, another broker might be a better alternative.…

AmericanEconomicAlert.org – Your go-to source of best trading platforms and broker reviews, options, forex and stock trading tips

It’s been quite a long time since we last posted something on our website. And now we are back, we have pivoted from a general business & economics educational website to internet portal full of helpful tips and reviews about investing and trading.

Why are we doing this?

We strive to empower our readers with the knowledge they need to take full control of their future decisions. Our mission is to educate and share our experience to novice investors and traders as well as experienced professionals, investors, financial advisors and CEO’s. We know everyone can and should benefit from our content to improve their skills and knowledge.

Trading platforms

Unbiased reviews

We know from our experience that it is really difficult to find a reliable source of information on-line these days. The internet is overwhelmed with “experts” who are trying to sell you their best product, but not us. Our sharing of knowledge is free but rest assured it is not cheap, meaning WE WILL NEVER TELL YOU SOMETHING THAT ISN’T TRUE OR BENEFICIAL FOR YOU.

If we decide to write about someone or something it means we have done our homework, we have tried and tested him or the product and we believe you may also benefit from him, his knowledge or their product.

mobile trading apps

Thank you for following us

Again we were absent for a while but now we are back, with new fresh content, great in-depth reviews of brokers and trading platforms, and tips from forex and shares trading. So stay tuned and follow us we have a lot of great things coming.…

Plus500-review – AEA trading experience with Plus500

As one of the leading global Contract for Difference (CFD) brokerage firms and online trading platforms, Plus500 is one of the biggest and most trusted CFD brokers worldwide. It offers the opportunity for CFD trade in a range of financial markets, including commodities, stocks, cryptocurrencies, forex, ETFs and market indices.

Plus500 review key visual

It boasts of its easy-to-use platform with its slick and simple interface, enhancing the trading experience of investors. Having been achieved many accolades and awards, Plus500 is according to dailysquib.com among the highest-rated CFD trading apps on both Google Play and the Apple App Store. Having said all these, is Plus500 truly safe and effective for trading? Lets break it down in the next sentences below.

Why are we doing a Plus500 review?

We are doing it because it is so awesome! In a nutshell, Plus500 has many impressive traits and characteristics that have successfully appealed to both retail and professional traders. Having scored a total of 90 out of 100 in trust ratings based on Finyears review, a large majority of traders turn to Plus500 as their go-to trading platform.

The variety of different versions available on desktop, mobile app and online are all extremely user-friendly and offer a seamless experience when traders switch from one version to another. With access to over 50 markets to trade in, Plus500 offers a wider choice of commodities that most brokers, increasing the appeal to traders.

Furthermore, Plus500 offers a demo account for beginners who want to try their hand at CFD trading without involving real money, thus giving them a chance to try out their trading strategies and the range of tools available.

Is It Safe?

As it is a publicly-traded company that is regulated in multiple jurisdictions, all trade executions are highly protected with Plus500’s amplified security. Plus500 subsidiaries are individually regulated by the Financial Conduct Authority (FCA), Cyprus Securities Exchange (CySEC) and the Australian Securities and Investments Commission (ASIC), where all client funds are held in a segregated client bank account, ensuring that assets and funds are well safeguarded.

Trading Products

Boasting for their wide range of financial instruments that Plus500 offers, traders can look forward to trading with indices, commodities, cryptocurrencies shares, options, ETFs and forex through the use of CFD. Commodities include oil, gold, natural gas, silver, cocoa, coffee, and sugar, while cryptocurrencies on Plus500 cover ethereum, bitcoin, bitcoin cash, NEO, monero, ripple, litecoin, and IOTA.

Furthermore, Plus500 cover all major currency pairs like EUR/USD, GBP/USD and EUR/GBP for forex trading, while they offer options contracts on stocks and indices including Germany 30, France 40, UK 100, Netherlands 25, USA 500, Italy 40, Alphabet, Facebook, Apple, Hong Kong 50, Deutsche Bank, SNap and Europe 50.

Plus500 trading products range from oil, coffee, gold to cryptocurrencies

Account Types

Striving for simplicity, Plus500 only offers a standard live trading account as well as a demo account. All account holders have been recently upgraded to Gold accounts as part of the platform’s recent upgraded system, and can now benefit from exclusive perks. As of late, Plus500 now offers a Professional Client Account (Pro Account) for selected individuals who have met certain criteria, which includes sufficient trading activity, a large enough portfolio size, and relevant work experience.

Pro Accounts also have access to a range of benefits, including higher leverage amounts on certain instruments, the ability to revert back to a Retail Account at any time, as well as the same client money protection and negative balance protection for all Retail Accounts. However, one downside is that Pro Account holders lose access to the Financial Ombudsman Service (FOS) that helps to resolve disputes between customers and financial institutions.

As for the demo account, beginners will be relieved to know that this key feature can help them test out their abilities and strategies without having to risk losing real money. They can also familiarize themselves with the interface and tools available, and determine if Plus500 are able to meet their specific needs as a trader, before signing up for a standard live trading account.

A photo of plus500 desktop monitor screen

Spreads and Fees

The underlying financial instruments determine the spreads that are offered to traders, where Plus500 the data is obtained from reputable third-party sources. Compensations are received through the market bid or ask spread, but customers may still incur additional costs like overnight funding, inactivity fee, and guaranteed stop order.

  • Overnight funding—This amount is either added or subtracted from an account if the position is open past a stipulated time period.
  • Inactivity fee—If accounts have not been used for more than a period of three months, traders will be charged with a $10 fee. This fee only applies to real money accounts and if there is a sufficient balance in the account. To avoid this, traders have to log into their accounts every now and then.
  • Guaranteed stop order—Traders who make use of guaranteed stop orders may have to pay wider spreads to limit their losses.

Withdrawal

For all account withdrawal requests, there is a minimum withdrawal amount of $50 USD for PayPal and Skrill. For bank transfers and credit cards, the minimum withdrawal fee is $100 USD and typically takes about one to three business days for Plus500 to process them.

All the withdrawal methods each have a minimum amount threshold, that can be found on the withdrawal screen on the trading platform. It is also part of the Plus500 policy that funds have to be withdrawn to the same payment method from which that have originated, and hence withdrawals cannot be done through other methods.

Conclusion

In a nutshell, it is an agreed fact that Plus500 is a reputable and recognized platform that traders trust and rely on also when you compare it to other platforms. The extensive tools and range of financial markets that are accessible to traders are a huge plus point, and their user-friendly trading platform makes it extremely hassle-free for traders to execute trades with ease.

The demo account also offers a convenient way for traders to try their hand out without incurring any potential losses, for beginners to familiarize themselves with CFD trading and the user interface. All in all, Plus500 is one of the top leading CFD trading platforms, that offers an enhanced and pleasant trading experience for all.

Are you a trader?