Online forex trading scam




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Online forex trading scamForex Trading Online Frequently Asked Questions And Answers

What Is Forex Trading Online?

Forex is a premier currency trading vehicle for local and global investors. The sophisticated platform allows traders to access their account, conduct research, and place trades from virtually any location. Mobile applications are compatible with most smartphones and tablets. When investors set up a new account, they are given access to updated information about investing in foreign currency and general trading guidelines.

What Is A Currency Trading Platform?

Every investment traded publicly or privately must be entered through an appropriate platform. Experienced brokers and novice individuals are both able to place orders to buy, sell, or trade through a software program. In the past, these orders were turned into viable transactions when commissioned brokers and registered representatives physically took the paper orders to an elevated stage, or trading platform, for execution. Today, a trading platform typically represents the avenue in which an investor chooses to place their orders. Forex trade requests can be placed online using a traditional desktop, laptop computer, or other electronic mobile device. The manner of investing may differ from one investor to another, but the way orders are entered is usually similar across all trading platforms. Individual investors have different needs and expectations, so they will choose the most suitable trading platform to meet their specific criteria. Some of the most commonly compared features of various trading platforms include charts, real time quotes, research options, and professional suggestions. Hands on investors want to have instant access to relevant information and real time trading data from around the world. Busy professionals and experienced investors who prefer to let an advisor handle their trading requests usually prefer not to be inundated with unnecessary information and data that will not impact their immediate trading decisions or their overall investment styles. Regardless of their investment style, there is at least one trading platform that matches the personality of every specific investor.

What Are The Special Features Of A Forex Trading Platform?

The most important aspect of any trading platform is the ease of use for investors. Education can come from many sources, and results are never guaranteed in any publicly traded investment opportunity, but a user friendly platform enables investors to take control of their financial portfolio with a sense of confidence. Key factors that impact an investor include the presence of trading tools and the absence of hidden fees. Investors want enough information available for their personal use and research to make an informed decision before investing. Savvy traders are likely to research specific economical factors for countries before choosing to invest in the nations currency. Each transaction will have some cost associated with it, but some platforms and investment firms charge investors an additional service fee or account maintenance fee either per transaction or per month.

Customer service is another determining factor for investors who are seeking an investment platform. Many companies and software programs feature a mixture of personal associates and searchable database tools for investors to reference when they have a problem or simply want more information. The relationship management piece is also important if an investor encounters a technical problem with the website or have a question about a specific investment opportunity. An efficient and reliable trading platform that offers a balance of self-service options, such as education onsite or through external links, and the availability of expert assistance is the perfect blend for most investors. Since there are so many options available for investors who want to experience the world of Forex trading, it makes sense for newcomers to spend time finding the most suitable Forex trading platform according to their specific needs and preferences.

Who Or What Is An Authorized Forex Dealer?

Several regulatory authorities serve to oversee the daily interactions of investment firms and registered representatives who conduct business on behalf of their customers. Federal guidelines typically provide the framework around which a nongovernmental body or organization enforces and upholds the law. These agencies provide multiple support outlets for consumers, clients, investors, and investment firms. They ensure the prompt and accurate transmission of orders and information. In addition, they provide checks and balances to remove any unfair advantages that may result from business practices that deviate from the normal and standard operating procedures. Another role for governing agencies is to ensure that trades are conduced ethically and methodically, in full compliance with all applicable laws and regulations.

Because of the precise and sensitive nature of international trading and foreign currency trading, investment firms and financial representatives must be educated and experienced before being authorized to perform transactions on behalf of investors. Part of the training includes administering a standardized test to evaluate knowledge in specific areas of the investment and finance genre. Continuing education requirements must be met annually in order for a registered representative to remain actively licensed to practice in their specified territory. Due to the potential risk involved in currency trading, only authorized Forex dealers are permitted to provide information, post daily results, update tracking charts, and perform other research on behalf of currency traders. The authorized Forex representatives are able to conduct business for an individual or an investment company. Consumers can invest with confidence, knowing that their transactions are being process according to all applicable laws and international regulations.

How Can I Get Started With Online Forex Trading?

Investors who are new to foreign currency investments or trading in general, find the free practice account to be enlightening and informational. Investors can choose a Forex trading mock account that is funded with a basic minimum investment that can be traded according to real time information about the international trading market. Clients make trades based on the data available and are able to see how their decisions would have translated in the real world if they were using real money instead of the fictitious account. The trial account serves to give investors a chance to become familiar with trading currency and also to learn how to review information and understand the streaming data.

Real time information, including prices and recent transactions, are a vital part of trading on any stock or commodities exchange. Timing is everything when it comes to these ever changing markets, and in a volatile market even a few seconds can make a big difference between a profitable investment and a substantial loss. The lessons learned with a free practice account can help investors avoid common mistakes that newcomers often make. The real time streaming quotes can also help new investors get used to recognize the various symbols and country flags so they are able to view their screen at a glance and make educated choices about buying or selling foreign currency. Trading with real money is much easier after an investor has a chance to play the market and developing trading strategies with pretend money before investing their hard earned money in an unknown market.

What Are Spot Metals?

Gold, silver, precious, and industrial metals are frequently traded because they offer a universal value that is not necessarily dependent upon a specific country, business, or industry. While there is no such thing as a spot metal, these precious metals are sold at what is typically referred to as a spot price. The denomination of precious metals usually consists of a coin, bar, or bullion and will be specified somewhere in the transaction details. Investors who wish to dabble in the precious metals industry should take the necessary precautions to ensure they are confirming the purchase price and the amount of metal to be delivered or traded.

Every metal has a melt value that holds standard across the material and helps originating countries maintain a consistent placeholder for the value of the specified metal. The melt value is always calculated the same way in every country and equals the amount of the metal in the transaction by the spot price of the metal at the time the transaction was conducted. A metal sold at a premium represents the cost of the bar, coin, or bouillon that exceeds the melt value. Investors who deal in precious metals know that the spot price is based upon immediate delivery. This is an important factor to consider with precious metals because their prices vary greatly within a single business day. Traders can conduct transactions within a variety of precious metals within their Forex trading platforms if the carrier of the platform allows the transactions. Profits are made in precious metals when the value of the metal increases between the time of original purchase and the subsequent sale, or when an investor is able to hold the metals until they can be sold at a premium.

In What Ways Can I Manage The Funds In My Account?

There are multiple ways to fund and manage Forex trading accounts. Generally speaking, most trading platforms allow users to create accounts online and link their trading accounts to a major credit card, internet banking option, or checking account. There may be more stringent requirements for commercial accounts as opposed to personal checking or savings accounts. Automatic drafts make monthly contributions and regular trading activities convenient for frequent traders. Online trading platforms place a high priority on security measures for account maintenance and automated transactions so users can invest with confidence their their personal information is delivered through state of the art encryption methods. Brokerage houses and investment firms that offer Forex trading may accept payments in person at local banks or branches.

Once an account has been established and the identification of the account owner has been verified, trading activity can commence according to the account balance in the Forex trading account. Settlement times will vary based on the method of payment used. In most cases, the same methods of payment can be implemented for withdrawals and deposits. When traders want to withdraw some of their earnings, they may be able to request a bank to bank wire transfer or an automatic transfer into their checking or savings account. Alternatively, when a withdrawal request is not time sensitive, investors may request that a check in the amount of the sale proceeds be mailed to their address of record.

How Is Currency Trading Different From Other Investments?

There are many different types of investment vehicles, but no single avenue is suitable for every investor. Day trading volatile stocks and saving for retirement through an employer sponsored plan are both examples of investment vehicles that represent opposite ends of the spectrum. Independent investment options appeal to specific traders based on their overall risk tolerance. While some traders are willing to risk large deposits in hopes of the potentially higher rewards, other investors view this uncertain strategy as a form of gambling. They are not comfortable taking risks regardless of the possible payout. Even within an actively managed account, these investors probably prefer mutual fund investments over commodities or currency trading.

The main difference between stocks, bonds, commodities, and currency investments are the underlying product or service being offered. None of these investment options are instantly visible or tangible to the investor. Stock certificates represent ownership in a company relative to the total number of shares of stock owned by a shareholder. Corporations and government agencies may also issue bonds as a way to raise capital for a specific project or event. Bonds represent payment due from the issuer to the bondholder and includes a specific expiration date and interest rate, which are listed on the face of the bond certificate. The underlying commodity would technically be available upon the demand of the owner, but traders typically prefer to buy and sell rather than collect the actual commodity. Currency trading in effect transfers ownership of position rather than the actual currency being traded. Investors are essentially placing transactions based on their understanding and expectation of how the value of one nations currency will compare to the currency of another specific country within the specified time period. The end result of these transactions do not necessary mean that an investor is going to be paid with the currency of a foreign country.

What Does It Mean To Trade On Margin?

Many online brokerage accounts and Forex trading platforms allow customers the option to trade on margin. This process may also be referred to as trading on leverage or leveraging accounts. There is more risk associated with trading on margin, so this method of trading should be approached with caution and limited to experienced investors. When a person leverages their position and decides to make a transaction request on margin, they are not required to have the full balance for the worst possible outcome of the transaction in their trading account at the time the request is made. Although this is very convenient for frequent traders who want to place time sensitive orders, it can also result in a negative account balance if the trade settles in a manner that the investor did not expect.

Most trading platforms allow investors to trade on margin, but warn against the risk of this investment style. Software programs and brokerage houses may require that any debit balance is cleared and a trading account is brought to a positive balance before the investor is able to commence trading. In addition, the margin amount may increase for an investor who repeatedly trades on margin and fails to restore the account balance in a timely manner. The amount of the margin, or percentage of reserves that must be met before a margin transaction can be placed, may also increase for investors who frequently place leveraged account transactions. Trading platforms reserve the right to limit or prohibit margin and leverage transactions without notice.

What Is A Rollover Transaction?

There are a few investment terms that have the propensity to create confusion because they have different definitions based on the specific genre in which they are being discussed. For example, a rollover IRA is created when an individual transfers funds from an existing individual retirement account or from an employer sponsored account into a new account. This process essentially serves to shift the location of assets but does not incur any tax penalties or the realization of gains or losses when the same underlying investments are transferred to the new account.

In a Forex trading account, a rollover has a much different definition. Under the circumstances of trading foreign currency, the term rollover refers to the position an investor holds in their investment portfolio. Most trades and transaction request in foreign currency take two business days to settle. The settlement period includes a portion of time where the funds are not present in the investment portfolio or in the currency market. When an investor conducts a transaction with another trader, he or she has two days to rollover their position and deliver the amount of currency specified in the transaction to the buyer. The new owner must be able to take ownership of the currency at the end of the rollover period. Some trading platforms and software programs offer assistance to investors by automatically rolling over funds to meet the settlement period requirements for trades made during the course of the day.

What Do I Need To Know About Forex Trading Online?

Charts are one of the main ways that information is transmitted in the financial world. Most notably, line charts, bar charts, and candlestick charts are used to represent market trends and activity.

They offer a picture of market activity based on specific criteria such as time period, price fluctuation, and trading frequency. Although Forex investing does not necessarily require an exhaustive understanding of charting, some traders prefer to be somewhat well versed in the core concepts of charting.

Whether investors choose to review published charts or create their own handiwork charting their personal progress, they will likely choose one of the three main types of charts previously mentioned. Regardless of the style preference a user has, they can utilize any of these charts to review information and make informed trading decisions.

Line charts are the most widely used charting styles, because they are clear and easy to understand. Different points are plotted along the chart and can be connected with a single line to express a relationship or change in data.

Most daily reporting tools use line charts to represent a change in closing prices from one day to the next. Bar charts are somewhat similar to line charts in that they express data along a constant line. They are useful for looking at multiple data reports over a specific time period in a condensed and specific manner.

Bar charts can be used to exhibit information for a wide span of time, from one hour to a full month or longer. Candlestick charts are named for the unusual shape that consists of a large body of information that is tethered on either end by a solid line that represents a wick from a candle.

These charts are predominately used to compare opening and closing prices for a particular currency and are not typically used to compare prices over a long time period.

Should I Develop A Forex Trading Strategy?

Trading in foreign currency is not a new industry and there are several tried and true methods of successfully timing trades to earn profits. Although no method is completely foolproof, considering a trading strategy is important for a first time investor. Forex trading platforms that offer trial or mock accounts give investors a chance to play around with a few different strategies and even set up guess games where they randomly choose countries and execute trades. These transactions are entertaining and risk free because the investor does not have any real funds at stake. When it comes time to invest real money, most investors prefer to have a better strategy than blindly selecting random countries.

Experienced traders in foreign currency often look for specific data when considering how and when to execute a new trade. Support and resistance levels are an important factor in almost every trading strategy because they are good indicators of how the market will perform next. Support levels are created when a downward trend spikes back up to a specific point. The flat line is considered a support level, meaning the market will support the most trades when the price teeters near this point. Resistance levels work much the same way, except in the opposite direction. When a specific currency that is trending upwards suddenly reverts back to a lower point on the price line, it is said to have met resistance. Both of these concepts mirror general economic principles that are well founded and thoroughly researched.

What Is Trend Trading?

Financial advisors in most other investment vehicles recommend against market timing. Novice investors who attempt to time the market often fail for two basic reasons. First, when the market for a specific industry or company stock is very volatile, the market can change drastically within a few minutes. Even when investors are monitoring the market throughout the day, most real time synopses are reported in twenty minute intervals. Making trades based solely on the most recent activity could be a gamble, and many investors learn this lesson after facing a significant loss. The second way that day traders and inexperienced investors can lose money when trying to time the market is through transaction fees. Depending on the type of account they have established, the number of transaction fees assessed through frequent trading may outweigh the potential profits from the actual trades.

Forex trading platforms are different from many other investment options

They actually work in real time and traders must find creative strategies based mostly on market timing. While other factors do come into play, the most reliable information in foreign investment trading comes from recent executions. Trend trading focuses on the general direction a market is moving and is marked with higher than average closing prices.

Beginners find that trend trading is successful for their purposes

Those with a higher risk tolerance and more experience with foreign currency investing may dabble in counter-trend trading. This is more complex and attempts to enter the market at the precise moment when an existing trend is expected to reverse or slow down. More research is required for this technique, but the rewards are higher relative to the increased risk.

What Are Some Common Mistakes That New Traders Make?

Investing can be a rather intimidating experience, especially for new traders. Since foreign currency trading is even more complex than regular stock trading, many Forex trading platforms offer new users a chance to experience the currency exchange on a mock account before they actually invest money into their accounts. One of the most common mistakes that investors make is trying to analyze every detail of every foreign currency transaction. This overindulgence creates confusion and often becomes so overwhelming that traders become afraid to take any action. Another common problem occurs when investors do not take the time to learn anything about the foreign currency market and make rapid, unplanned trade executions. These two paradigms represent flip sides of the same coin and both scenarios can spell trouble for new investors. Traders use or fail to use information at their disposal and either never make a trade or make a series of irresponsible trades.

Since there is a fairly equal possibility to gain or lose money on any investment, new and experienced traders must weigh the risk and reward before conducting any transaction. Failure to recognize that a loss is plausible at any time causes investors to act more like gamblers than responsible financial stewards. Margin and leverage options make the concept of losing money even less realistic to investors who have radical tendencies and view these account features as a viable form of credit. Moderation is the key to any investment, and traders should not wager more than they are willing to lose on any single transaction.

What is a Forex Scam?

Foreign currency futures and options contracts can be traded legally on an exchange or board of trade approved by the CFTC. In addition, trading can be conducted legally where one or both parties to the trading is a bank, insurance company, registered securities broker-dealer, futures commission merchant or other financial institution, or is an individual or entity with a high net worth. Currency trading is not limited to these boards, exchanges, banks or insurance companies but anyone engaged in the exchange of currencies who is not regulated falls under the jurisdiction of the United States Commodity Futures Trading Commission (CFTC).

The CFTC has witnessed the increasing numbers and growing complexity of financial investment opportunities in recent years, including a sharp rise in foreign currency trading scams. While much foreign currency trading is legitimate, various forms of foreign currency trading have been touted in recent years to defraud members of the public. Forex currency trading scams have increased in number recently and the problem has become so bad that the CFTC has released an advisory:

Currency trading scams often attract customers through advertisements in local newspapers, radio promotions or attractive Internet sites. These advertisements may tout high-return, low-risk investment opportunities in foreign currency trading, or even highly-paid currency-trading employment opportunities. The CFTC urges you to be skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with minimal risks, or that employment as a currency trader will make you wealthy quickly.

Forex scams are so numerous and take so many forms that it makes more sense to tell you how to identify a Forex scam than to atempt to list them. As you will see Forex scams have a lot in common with other investment scams with the main theme being: Getting Rich Quick with no risk to the investor. Anyone that makes this kind of promise should be avoided and possibly reported to the CFTC.

1. Stay Away From Opportunities That Sound Too Good to Be True.

Get-rich-quick schemes, including those involving foreign currency trading, tend to be frauds.

Always remember that there is no such thing as a free lunch. Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible.

2. Avoid Any Company that Predicts or Guarantees Large Profits.

Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.

The following are examples of statements that either are or most likely are fraudulent:

Whether the market moves up or down, in the currency market you will make a profit.

Make $1000 per week, every week

We are out-performing 90% of domestic investments.

The main advantage of the forex markets is that there is no bear market.

We guarantee you will make at least a 30-40% rate of return within two months.

3. Stay Away From Companies That Promise Little or No Financial Risk.

Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.

The currency futures and options markets are volatile and contain substantial risks for unsophisticated customers. The currency futures and options markets are not the place to put any funds that you cannot afford to lose. For example, retirement funds should not be used for currency trading. You can lose most or all of those funds very quickly trading foreign currency futures or options contracts. Therefore, beware of companies that make the following types of statements:

With a $10,000 deposit, the maximum you can lose is $200 to $250 per day.

We promise to recover any losses you have.

Your investment is secure.

4. Dont Trade on Margin Unless You Understand What It Means.

Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited.

Many currency traders ask customers to give them money, which they sometimes refer to as margin, often sums in the range of $1,000 to $5,000. However, those amounts, which are relatively small in the currency markets, actually control far larger dollar amounts of trading, a fact that often is poorly explained to customers.

Dont trade on margin unless you fully understand what you are doing and are prepared to accept losses that exceed the margin amounts you paid.

5. Question Firms That Claim To Trade in the Interbank Market

Be wary of firms that claim that you can or should trade in the interbank market, or that they will do so on your behalf.

Unregulated, fraudulent currency trading firms often tell retail customers that their funds are traded in the interbank market, where good prices can be obtained. Firms that trade currencies in the interbank market, however, are most likely to be banks, investment banks and large corporations, since the term interbank market refers simply to a loose network of currency transactions negotiated between financial institutions and other large companies.

6. Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise.

Be especially alert to the dangers of trading on-line; it is very easy to transfer funds on-line, but often can be impossible to get a refund.

It costs an Internet advertiser just pennies per day to reach a potential audience of millions of persons, and phony currency trading firms have seized upon the Internet as an inexpensive and effective way of reaching a large pool of potential customers.

Many companies offering currency trading on-line are not located within the United States and may not display an address or any other information identifying their nationality on their Web site. Be aware that if you transfer funds to those foreign firms, it may be very difficult or impossible to recover your funds.

7. Currency Scams Often Target Members of Ethnic Minorities.

Some currency trading scams target potential customers in ethnic communities, particularly persons in the Russian, Chinese and Indian immigrant communities, through advertisements in ethnic newspapers and television infomercials.

Sometimes those advertisements offer so-called job opportunities for account executives to trade foreign currencies. Be aware that account executives that are hired might be expected to use their own money for currency trading, as well as to recruit their family and friends to do likewise. What appears to be a promising job opportunity often is another way many of these companies lure customers into parting with their cash.

8. Be Sure You Get the Companys Performance Track Record.

Get as much information as possible about the firms or individuals performance record on behalf of other clients. You should be aware, however, that It may be difficult or impossible to do so, or to verify the information you receive. While firms and individuals are not required to provide this information, you should be wary of any person who is not willing to do so or who provides you with incomplete information. However, keep in mind, even if you do receive a glossy brochure or sophisticated-looking charts, that the information they contain might be false.

9. Dont Deal With Anyone Who Wont Give You Their Background.

Plan to do a lot of checking of any information you receive to be sure that the company is and does exactly what it says.

Get the background of the persons running or promoting the company, if possible. Do not rely solely on oral statements or promises from the firms employees. Ask for all information in written form.

If you cannot satisfy yourself that the persons with whom you are dealing are completely legitimate and above-board, the wisest course of action is to avoid trading foreign currencies through those companies.

10. Warning Signs Of Commodity Come-Ons

If you are solicited by a company to purchase commodities, watch for the warning signs listed below:

Avoid any company that predicts or guarantees large profits with little or no financial risk.

Be wary of high-pressure tactics to convince you to send or transfer cash immediately to the firm, via overnight delivery companies, the internet, by mail, or otherwise.

Be skeptical about unsolicited phone calls about investments from offshore salespersons or companies with which you are unfamiliar.

Prior to purchasing:

Contact the CFTC.

Visit the CFTCs forex fraud web page.

Contact the National Futures Association to see whether the company is registered with the CFTC or is a members of the National Futures Association (NFA). You can do this easily by calling the NFA (800-621-3570 or 800-676-4NFA) or by checking the NFAs registration and membership information on its website at nfa. futures/basicnet/. While registration may not be required, you might want to confirm the status and disciplinary record of a particular company or salesperson.

Get in touch with other authorities, including your states securities commissioner (nasaa), Attorney Generals consumer protection bureau (naag/), the Better Business Bureau (bbb) and the National Futures Association (nfa. futures).

Be sure you get all information about the company and verify that data, if possible. If you can, check the companys materials with someone whose financial advice you trust.

Learn all possible information about fees charged, and the basis for each of these charges.

If in doubt, dont invest. If you cant get solid information about the company, the salesperson, and the investment, you may not want to risk your money.

11. More Information and Contacts

Questions concerning this advisory may be addressed to the CFTCs Office of Public Affairs at (202) 418-5080.

Commodity Futures Trading Commission

Three LaFayette Centre

1155 21st Street, N. W.

Washington, D. C. 20581

Where to report Forex and Commodities Scams:

DC. New Zealand

Didn't run with too much trouble with them so I would have gave them 4 or 3 stars however after they changed my account from a standard account to mini WITHOUT telling me, I phoned them to ring that I noticed the connection has been set to mini and I suspected they moved my account but their representative outright LIED to me and said that it was their "label" and that I was in fact still on a standard account.

Mini accounts are dealing desks, while standard account are NDD. They told me that I needed to apply to change it back. I didn't ask to switch in the 1st place.

A few days ago, FXCM had a breach by a hacker apparently concerning sensitive user information so I decided to call them to withdraw my funds but phone support + website portal were down for a few hours.

Also, note that FXCM has HUGE debts because of the CHF crash, their future is not so bright so I would advise you to stay away from them and choose a more financially stable broker.

Since the deregulation of the forex trading industry in 1997, there has been a massive proliferation of internet based spot forex brokers. While this scenario might be a good thing in terms of the availability of choice for traders, too much of a good thing can also be bad. This is because it can be difficult to sift out the “bad” from all the brokers out there, as basically everyone is offering the same kind of service. However, all this started to change when a broker called eToro introduced the concept of social trading to the world in 2010 with the launch of their OpenBook social investment platform. With this innovative social trading platform, traders can now easily copy the trading strategies of their more successful peers without having to have a solid foundation in trading the spot forex market.

Trading Platforms

Since the debut of their OpenBook social trading platform, eToro has gone on to improve the functionality of their platforms. Now, eToro have provided their traders with 3 ways in which they can trade the markets namely with eToro WebTrader, eToro OpenBook and eToro Mobile Trader.

Regarded as the most popular forex social trading platform in the world, eToro OpenBook platform lets you follow the progress of other traders as well as lets you interact with them in real time and puts the power of networking into the palm of your hand. With the integrated “Copy Trader” feature, you can copy the trades of your more successful peers automatically in real time as well.

A web based powered trading platform, eToro WebTrader provides you with all the tools that you need to analyze your trades as well as letting you synchronize with OpenBook to copy the trades of others.

eToro Mobile Trader

With the introduction of eToro Mobile Trader apps, traders can now also access the power of social trading with their smartphones and mobile devices.

Now in addition to forex, traders can also trade a selection of commodities and stocks with eToro’s trading platforms.

Account Types

At eToro, you have a choice of two different types of trading account, standard trading account and Islamic trading account.

Standard Trading Account

Opening a trading account at eToro is easy as they only require a minimum initial deposit of just $50. You can fund your trading account using the following methods:

Credit Cards

MoneyGram

Neteller

PayPal

WebMoney

Wire Transfer

Withdrawals at eToro can only be done after your have verified your account. Once you have verified your account, you can withdraw using the same method that you used to deposit your money into your trading account. Take note that the minimum amount to be withdrawn is $20. There is also a small fee payable when you make a withdrawal. The fee is dependent on the amount to be withdrawn and ranges from $5 to $25. The stipulated processing time for a withdrawal request is up to 5 business days.

For Muslim traders who want to trade the forex market according to Shariah principles, they can choose to open an Islamic trading account with a minimum initial deposit of $1000. With the Islamic account, no interest is imposed on overnight positions and no commissions are payable as well.

Demo Account

For those of you who want to try out eToro’s trading platform fist, you can always sign up for their obligation free demo account. The demo account lets you try out all the features on eToro without having to risk any real money. Instead, you will be trading with $10,000 virtual cash supplied with the demo account.

Commission Spreads

At eToro there are no commissions payable. Instead, traders have to pay a slightly wider spread on all their trades. With the exception of Bitcoin transactions (1 pip spread), the typical spread at eToro starts from a minimum of 2 pips for the USD/JPY currency pair and 3 pips for the EUR/USD, USD/RUB USD/CHF and USD/CAD. For less frequently traded pairs, the spreads can go up to as high as 14 pips.

Customer Support

Customer support services at eToro are provided in several major languages and are available 24/5. Contact with the support team can be done through email, live chat or the telephone.

Automated Trading

Comprehensive Training Academy

Ground Breaking Social Trading Platform

Multiple choices of trading platforms

Regular Attractive Promotional Offers

High Spread

Limited Choices of Forex Pairs

Their Platforms are Non Customizable

Trading Charts lack sophisticated tools

Conclusion

There is no doubt that eToro’s social trading platform is the most innovative change that has occurred during the past few years. They have single-handedly transformed a stressful trading endeavour into a fulfilling experience which feels more like game for everyone. The OpenBook platform can be said to be tailored made especially for novices of online trading who are unsure of how to start.

Forex Trading

Forex trading or more commonly known as FX trading is globally recognized as trading currencies. In terms of volume, forex trading is by far the largest market in the world.

Forex trading is largely unregulated in that there is no centralized exchange for trading. There are many levels of participants including large investment banks, hedge funds all the way down to retail traders.

Forex trading is largely affected by interest rates, economic growth of individual countries as well as geopolitics, trade flows and capital flows and mergers and acquisitions. A higher interest rate generally results in a stronger currency and higher inflation results in a weaker currency. In forex trading, the dollar is considered the benchmark currency.