Want to trade Forex in South Africa? You have come to the right place. Trade Forex SA was established to bring answers to those who are starting in Forex trading and give honest and balanced reviews of the brokers. Trading Forex can be a lot of fun but it does come with a great deal of risk. If we help you choose the best broker for you by weighing every pro with a con, we have then succeeded in our goal.
Forex Trading Brokers
The Best Brokers For South African Traders
|1||Visit XM||$5||XM Review|
|2||Visit Etoro||$50||eToro Review|
|3||Visit Easy Forex||$100||Easy Forex Review|
|4||Visit Xforex||$100||xForex Review|
|5||Visit AvaTrade||$100||Avatrade Review|
|6||Visit Youtrade FX||$100||YoutradeFX Review|
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AvaTrade can easily be considered as one of the most well respected and trusted Forex brokers around, with live offices in Dublin, Sydney, Milan, Tokyo, and New York, just to name a few. To call AvaTrade a global broker would be an understatement. They offer Forex brokerage services to practically every nation, and they have dozens of different language options in their software and with support techs.
This brokerage firm is also licensed by MiFID from the European Union, while being regulated by the Central Bank of Ireland, so they're always held to the highest possible standards by legislation and strict oversight.
AvaTrade Account Types
As AvaTrade becomes a larger, more popular firm, they're beginning to take on different features. For instance, they now offer five separate account types for those interested in trading. Here is some information on some of those account types.
- Demo Account: This particular type of account is a no-cost, no-risk, high-reward account that allows those interested in Forex to trade without having to risk capital. Like practice for the big game, honing one's skills on a demo account can make all the difference.
- Silver Account: The Silver Account from AvaTrade is for individuals who are putting in a minimum deposit of $100, to $1000. This account is like a starter account, but you still get benefits like full customer support and usage of all of AvaTrade's platforms.
- Gold Account: The next account type is the Gold Account, which is for members depositing between $1,000 and $10,000, so it's a rather broad category. Of course, members here get access to all 8 AvaTrade platforms, support, custom-tailored analysis to help them trade, and much more.
- Platinum Account: For investors putting in $10,000 or more, the Platinum Account is a very feature-heavy account option with AvaTrade. This gives all the benefits of all the smaller accounts, while providing even more in the way of assistance, like live-time alerts, much better leverage, and more.
- AvaSelect: The last account type, AvaSelect, is for investors who are really trying to maximize their gains in Forex by investing over $100,000. The positive features of this account type are far too many to name, but do include custom-tailored support, you own personal agent available 24/7, all the training and tips you could ever need, and so much more.
Unique Selling Points
- Each account type comes with different custom features to help investors earn big
- AvaTrade offers dozens of languages for a truly global base
- There are eight separate platforms on which to trade
- The broker caters to a very broad range, from rookies just starting out to investment pros
- The broker will offer complete training and turn anyone into a Forex whiz
Pros and Cons
- Streamlined software
- Great bonuses and promotions offered
- A long list of educational resources
- A range of different trading tools
- A multi-platform set-up
- A very low minimum deposit ($100)
- Stability and honesty in trading
- Well regulated broker
- Must make relatively large investment before reaping full benefits
- The platforms can take some getting used to
- The demo account doesn't allow all the platform options
- Relatively lengthy withdrawal times
Unlike a lot of brokers that present a more gimmicky type of set-up, AvaTrade is a fully licensed, well regulated brokerage firm that operates all across the globe. They're not simply a start-up company looking to sell get-rich-quick software. They deal with real brokers whose success depends on your success, and that's why they offer so many different tools and platforms to all their traders. If you don't earn, they don't earn.
How should South Africans fund their Forex accounts?
Funding your foreign exchange (forex) account is not quite as easy as funding your local brokerage account. Due to foreign exchange controls (FEC) and regular changes to legislation it can seem like rather a minefield. However, if you are aware of the various options and rules that are applicable, you can have your forex account funded in no time.
How to fund your international forex account
Exchange control has been part of the South African way of life since 1939. There have been many changes and much relaxation of the policies over the last few years. Here is an update on where we currently stand in terms of foreign exchange control legislation.
Since 1997 the SA Reserve Bank has been relaxing FEC, allowing South Africans to take more money offshore legally. The most recent, significant change came on November 5, 2010 when it was announced that South Africans would be allowed a R4million annual foreign exchange allowance.
In addition, individuals can apply annually for access to a discretionary foreign currency allowance. This amount, in the form of a single discretionary allowance, has also grown over time and is currently R1million per adult, and R200 000 per child.
In order to utilise your R4 million foreign allowance you are required to receive tax clearance from the South African Revenue Service (SARS). This involves completing a number of forms and ensuring your personal tax returns are up to date. Contact SARS directly for your clearance requirements.
To apply for the R1 million discretionary travel allowance, you must complete an MP 1423 form, available from all authorised currency dealers and forex desks. No tax clearance certificate is required. Previously, this allowance was strictly a travel allowance and was only be used for four categories, namely: maintenance, gifts, travel and study. This allowance was therefore not an option for funding your forex account.
However, this legislation has recently changed. The Minister of Finance announced in his 2011 Medium Term Budget, confirmed by Treasury on October 27 that the annual R1million discretionary allowance may now also be used for foreign investments. This is therefore your best option for funding an offshore forex account.
The rules regarding offshore credit card transactions are quite clear. Credit card payments can be made for offshore purchases up to R20 000 per transaction. This does not require any clearance or special permission. However this is intended for goods and services only and although many forex traders used their credit cards to fund forex accounts in the past, it is not actually permitted.
Rather use your R1 million annual discretionary allowance to fund your forex investments. It’s straight forward and does not need SARS clearance. If however R1 million is not enough, then you will need clearance and full approval.
If you are planning to transfer large amounts, it may well be worth setting up an offshore bank account first and then funding your forex and offshore investment accounts from there. It does mean that if you want to open additional accounts with other brokers you will not be required to repatriate the funds and then go through the process of getting clearance and transferring the funds out again. Not only is this an onerous and costly process but you are also opening yourself up to possible additional currency risk.
In order to fund your offshore Forex account, first ensure that you use the correct and most appropriate channels to avoid contravening South African Foreign Exchange legislation. Once you have chosen the correct channel then choose how you are going to fund the account depending on the amount of money you plan to transfer and what your specific requirements are.
Fortunate are those who still struggle with exchange control. But for the rest of us R5 million per year should do!
Compared to the rest of the continent, South Africa is a bastion of freedom and a model of economic growth, and there are currently millions of SA residents looking to invest their money into various markets in order to profit. That’s not to say that the South African economy is booming or surpassing any other industrialized nations in terms of growth. But compared to the SA of 20 years ago, 2012’s nation is bustling.
Many SA residents are looking into Forex (the Foreign Exchange Market) as a way to invest their money. By trading currency pairs, you can profit according to the strength of your base currency vs. another trader’s currency. For the ZAR (referred to as simply “R” here) in particular, this currency is fairly strong on a world scale, with mining operations and other economic factors backing it.
You may have searched terms like “currency Forex market trading” before, specifically dealing with South Africa, in order to get some information about it. Well, here is some valuable info related to currency trading in South Africa. Hopefully you will come away able to make an informed decision - welcome to the world of Forex.
Is it Different Than Other Places in the World?
There are a few differences in South African Forex trading and currency trading in other parts of the world. However, these are not major differences, and they’re in no way differences that would impede your progress as long as you’re willing to look before making the proverbial leap.
For example: South Africa has a lot of fake brokers and bad software out there; this is why there is a great trend to look internationally for brokers that can be more accredited and reliable. The market hasn't been saturated by any stretch, but if something looks too good to be true, it generally is; remember to research every single broker, software package, and other Forex-related aspects before ever trusting, signing up or spending money!
Another difference is that the South African government will limit the amount of money you’re able to invest in Forex trading. Currency Forex trading doesn't require millions invested to profit, so, again, this isn't anything that would impede your progress.
The South African Forex market is also relatively new on a world stage, so be careful when trading that you understand the strength of your currency and that you’re playing the long game. Learn more about Forex trading in general to protect against bad trades.
Is it Actually Legal in South Africa?
Every nation has many different laws – rules and regulations that many of its citizens aren't even aware of. Forex trading in South Africa is legal, but it’s not something that’s necessarily mainstream, and thus not every citizen knows that it is legal, and even some of those that do don’t know about any of the regulations.
As of 2010, currency trading Forex platforms, brokers, and the market in general became generally easier and more tolerated in SA. It also became legal for South Africans to move their money around.
Brokers will have a harder time setting up shop in South Africa, because they have to worry more about the money being transferred and those particular regulations. The average investor, however, simply has to find a reputable broker.
At the end of the day, currency trading in South Africa is a pretty straightforward process. The trading works the same. You just have to select the right software and broker and avoid scams and bad investments.
Just when your currency of choice starts picking up strength, someone starts protesting and your prospects start going down the drain! Isn’t that always the case? Well, maybe not always. But with the South African miners dispute and the trouble the Rand is experiencing every time someone sneezes, it certainly seems as if R investors are treading on eggshells.
Protests are the norm around the world, and they do always manage to affect financial markets in some form or fashion. Such was the case last Wednesday when the Amplats’ Rustenburg miners were lit up with tear gas and chased around by police.
The fear that something bigger would arise from this protest, ala Egypt, sent the Rand plummeting a bit while the Dollar picked up a head of steam in the late trade. The good news here is that the Rand was actually stronger that morning. It took the tear gas incident, and threats of other miner strikes and protests, before investors began losing confidence in the currency.
And just when you thought the situation was contained in-house, Spain had to act up and cause even more problems for the Rand. As most Rand loyalists know, as the Euro goes, so goes the Rand (at least is the case usually). So with renewed concerns about Spain’s economic situation, the Euro started to struggle a bit, $1.3027 from $1.3024, and the Rand lost even more ground.
If Spain needs to be propped up further, the Rand loses more strength and the Dollar gains more ground. That news is either good or bad, depending on which side of the plate you’re batting from. Whichever side, understand that outside influences cause commotion in the financial world, so always focus on connected economies.
Only in operation since 2009, YouTradeFX is one of the newer brokers around helping traders deal in currencies via the Foreign Exchange Market. Located in London, Youtrade Holdings Limited and YouTrade Capital Markets PTY LTD is a reputable company regulated in Mauritius, Australia, the UK, and is licensed to operate in numerous countries. In only three years, YouTradeFX has made quite a name for itself in the Forex marketplace.
YouTradeFX is offering traders four different account types: The Demo account, a Standard account, a Premium account, and an ECN account. Each account has both its positives and negatives, so find out more about them below.
- Demo Account: The Demo account is available free to everyone who registers with YouTradeFX. It operates exactly like a real account, and to ensure that new users get a feel for the platform (whichever platform you decide to use), you can play around with $50,000 in fake money and still receive advice from the YouTrade experts.
- Standard Account: Any account comes with a free Demo, but on top of that, the Standard account offers low fixed spreads, a contract available from 0.1 lots, leverage of 1:300, and access to multiple features from the broker like professional help and analysis. It takes between $2,000 and $10,000 to open this account.
- Premium Account: Starting at $10,000 and capping at $100,000, the Premium account gives traders everything they need for live account trading, including a lot of special features and access to VIP materials from the broker. With 1:200 leverage and fixed spreads as low as 2, this is certainly a high-roller account.
- ECN Account: Initialism for Electronic Communication Network, the ECN account on YouTradeFX is one of the broker’s most popular. With customizable features, it takes $1,000 o rmore to open this account, and users receive maximum leverage here of 1:300.
Unique Selling Points
- $100 free signup bonus
- 50% deposit bonus on larger accounts
- Multiple platforms available, including mobile trading options
- Extending past currency trading and dealing in commodities, stocks and CFDs
- No slippage feature guaranteed
- Customized account available
- Social network and phone trading available
Pros and Cons
- Streamlined interface for easy use
- News feeds and charting package available
- Good trading signals
- Instant execution
- No requotes
- Multiple account types available
- Mobile alerts given
- Automated trading
- One-click trading
- Many trading options available besides currency pairs
- Multiple bonuses available
- US clients welcome
- No guaranteed stop loss
- No interest on margin
- Support closed 1 day a week
- Daily signals update only available on live accounts over $5000
- Not the best teaching structure for new traders
YouTradeFX seems to offer traders a lot more options than some of the competition out there. Not only do you have more account types to choose from, even a customizable ECN account, but you can also select from the MT4, MT5, iPhone, WedTrader, Mobile Trader, ZuluTrade and other platforms. The goal, of course, is to make traders comfortable and to grant them full access to the best tools available.
There are also good bonuses offered on the site and multiple rewards given out. Overall, YouTradeFX appears to be a solid broker for a trader of any expertise level. Requiring only $100 to start, it’s beginner-friendly, and with high-roller account options, big-time traders can also feel right at home.
One of the tougher things to gauge in the world of Forex is just how currencies act individually, thus affecting the strength of other currencies and currency pairs. It’s often said that a wise investor carries a bottle of Tylenol around to deal with the constant headaches.
For South African traders trying to hold fast with the Rand, they were a little disappointed last Wednesday, as the Dollar continued to gain strength. Of course, one currency gaining strength over another is nothing new; certainly not new news. It occurs frequently. What’s so troubling about this predicament, though, is that the Rand laid down like a tired puppy as the Dollar stood triumphantly over its carcass.
Due to the third round of stimulus spending by the United States, the Dollar did something that surprised many – it grew in strength instead of becoming a watered-down product. Some had predicted this, but not nearly enough that it wasn't a shock. The Dollar had been struggling against other major currencies recently, but with more confidence in the American note, coupled with a less-than-savory retail sales year growth in South Africa, the USD gained momentum while the ZAR flailed around like a hurt duck.
The growth in South Africa’s retail trade was low, dropping 4.2% in year-on-year statistics, even after an upward 8.6% increase in June. The 4.2% was exactly 3% lower than was expected by economists, and the bottom subsequently almost dropped out.
While the Rand is continuing to recover, as currencies tend to do, this still provides a valuable lesson to traders out there. Just because one currency is predicted to fall while the other is predicted to rise doesn't mean that the opposite won’t happen.
First showing up on the scene around 2009, XM is a Forex broker that is recognized for its proclivity for handing out bonuses. This STP broker is registered with FSA UK and is regulated by CySEC. Some traders may recognize the company behind Trading Point, XEMarkets. Others, however, are probably unaware of this broker since they’re so new on the scene.
Any eligible person who registers with XM is given a demo account to play around with until they get the feel for the MT4 platform. Other than that, you will find three basic account types via this broker: A Micro account, a Standard account, and an Executive account.
- Micro Account: One of the best selling points of the Micro account is that there is no minimum deposit requires. Of course, any trader will need to put enough in to trade with, but XM doesn’t require a set number to begin trading. The max leverage with this type of account is 1:888, and it doesn’t come with a whole lot of features outside of some help and analysis and status reports.
- Standard Account: The Standard account offers much more in the way of options, including different bonuses, better help from the experts, more access to the broker’s other features, etc. The minimum amount needed to start this account is $3,000, maxing out at $100,000, so this is the epitome of the “standard” account in every fashion.
- Executive Account: A huge account with XM, this Executive option takes a minimum of $100,000 to open. For this, you’ll receive the full run of the broker’s services, from advanced charting and personal account management to mobile alerts every time the slightest thing changes in the market.
Unique Selling Points
- Interest rates accrue on all funds
- MAM accounts
- Good affiliate program available
- 54 currency pairs available
- Wide leverage options
- No rejection policy
- Very fast execution
Pros and Cons
- Tight spreads available from 1 pip
- Up to 888:1 leverage
- Solid support features
- Hedging allowed
- Phone trading available
- Frequent bonuses available, including loyalty bonus and 30% first deposit bonus
- No requotes
- Automated trading available
- Mobile trading
- No minimum Micro account
- Trading contests available
- Training courses
- Personal manager for accounts
- Segregated accounts
- No US traders allowed
- Only one platform option
- Limited deposit/withdrawal options
- Variable spreads might not be ideal for all traders
One of the strongest points of XM, which is comprised of numerous points, is the fact this broker works hard to retain traders. They offer a slew of different bonuses, including loyalty bonuses, to ensure that traders are happy. Now, whether or not one experiences success is up in the air and cannot be determined through a simple review. But with the tools provided by Trading Point, it’s clear that the broker is invested in the success of its traders. For most investors, having a loyal, attentive broker is plenty. Another strong point here is the micro account. It gives newbies a legitimate platform to earn. With very little money, one can conceivably work one’s way up the ladder. Again, it’s not guaranteed, but XM certainly offers the right tools.
Founded in 2006 and operating out of Limassol, Cyprus, FXpro is a Forex broker relatively new to the game but already making a big impression. In 2010, the company had a huge year for its size, earning over $80 million. This means that traders are making money with this brokerage firm, and that puts FXpro near the top of a lot of lists.
Since FXpro has two main platforms available, we’ll touch on the main type of account you can have under each platform, MT4 and ECN. The broker does offer you a demo account, regardless of the type of account you open, and you can always open an account on each platform if you wish.
- MT4 Account: With the MetaTrader 4 platform account, you have to deposit a minimum of $500 to become active. However, there are a lot of features to take advantage of here, like hedging, trailing stop, pending orders, OCO orders (one-cancels-others), one-click trading, mobile trading, automated trading, and much more. Plus you’ll receive high leverage – 1:500 on Forex and Futures. You’ll also receive expert advice and daily reports and analysis.
- ECN Account: With an account on this platform, you have entered the equivalent of “high-rollers” territory on FXpro. With this account, you’ll receive pretty much all of the features of an MT4 account, plus you can trade via API, receive overnight interest rates, track orders better, and you get to trade with 54 currency pairs. However, the spreads here are variable instead of fixed, and only currencies are available.
Unique Selling Points
- Spreads available from 0 Pips (EUR/USD)
- Multiple platforms available
- Streamlined Trader Dashboard feature
- Incredible support options across the board
- A total of 10 trading platforms
- Funds insured by ICF
Pros and Cons
- MetaTrader 4 platform offers 8 individual trading platforms
- Negative balance protection
- No requotes
- No dealing desk execution
- Full market depth level II pricing
- Team of expert traders to advise you
- Zero-commission trading
- Very secure deposit and withdrawal features
- Affiliate program available
- Segregated accounts
- Phone trading available
- Mobile platform version
- Hedging allowed
- The “platforms within a platform” features can be complicated for beginners
- Occasional platform freezes reported
- Only one main platform offers the no requote feature (cTrader)
- No US traders accepted
- Higher minimum investment ($500/1000 respectively) to start
One of the more popular brokers out there, FXpro seems to take trading a little more seriously than some. They offer two quality platforms for investors and traders, giving you far more options to play with. Their website is also overflowing with valuable information on the market, links to quality Forex-specific sites, and along with their quality support, FXpro has received numerous awards as a broker.
When it’s all said and done, FXpro seems more geared toward traders who already have a little experience with the MT4 and cTrader platforms, but in terms of a feature-rich package offered by a broker, it’s one of the most thorough out there.
Operating online since 2003, Xforex is a broker in the Foreign Exchange Market that is headquartered in the British Virgin Islands and licensed and regulated by CySEC, ASIC and FSA UK. Formerly known as Webgine Ltd, the company now goes by O.C.M. Online Capital Markets Ltd; Xforex is simply the brokerage’s name. Over time, there have been mixed reviews about Xforex’s services, so let’s take a closer look at what they offer and what they don’t.
Xforex doesn’t offer any type of account to residents of the U.S., but for most outside of America, you can open one of three account types of the site: A Demo account, a Standard account, or a Premium account. Learn a little more about each type below.
- Demo Account: The Demo account on Xforex, like with most brokers and platforms you’ll find, is free to use and is available upon registration. However, the kicker here is that there are multiple types of demo account, enabling new traders to get a real feel for the proprietary platform.
- Standard Account: With a minimum deposit of $100, you can open a Standard account with Xforex. This account type gives you access to one-on-one personal training, a slew of trading tools and reports, and you won’t be charged any commissions or fees for using the account.
- Premium Account: On top of receiving the demo accounts and all the features of a standard account, the Premium account, opened with a minimum of $1,000, also gives you immediate stop-loss execution, fixed spreads, increased security over your account, and many more funding options for your account.
Unique Selling Points
- Proprietary platform that is unique and user-friendly
- Multiple languages available (7 total) for international traders
- Instant registration and startup
- Frequent “Market Scenario” reports
- A range of contests and promotions
- 3 versions of the demo account
Pros and Cons
- Easy to use features on the streamlined platform
- 2 metals also available on top of 21 currency pairs
- Competitive fixed spreads
- No withdrawal or trading fees
- 20% deposit bonus for new accounts
- Stop features are easy to set
- Web-based platform runs efficiently
- Daily events calendar
- Points-earning system for traders
- Margin watcher
- Not a lot of info about the company itself via its website
- Questionable support at times (i.e. a little slow)
- Very touchy about any type of hedging
- Only focused on international traders, so US traders not allowed
- No fractional pips
- No auto-trading feature
- MT4 not available
Researching Xforex online, we found a mixed bag of reviews. While some were fumbling around the platform, not able to make sense of things, others seem to be excelling with the platform. The conclusion drawn is that Xforex isn’t the most beginner-friendly broker you can select, but if you already have knowledge of how trading platforms work and how the market functions in general, this broker may be right up your alley.
There are many deposit/withdrawal options, a lot of opportunities to earn points and prizes, plenty of training offered with the multiple types of demo accounts, and you won’t have to spend a lot of money on an account to get the full-featured package from the broker.
It really isn't a secret that some parts of the world operate a lot differently than others, especially in terms of finances. Take South Africa for example. Although a booming nation in comparison to others sharing the same continent, their financial regulations can sometimes get a little out of hand. Case in point: Their stance against Forex trading.
It isn’t necessarily illegal to trade with Forex in South Africa, but with different limits, workarounds and sporadic pieces of legislation complicating the issue, it isn’t exactly easy either.
The Deal with South African Trading
Funding a broker account is fairly straightforward in South Africa, at least for a trader. It’s actually the broker that’s going to transfer and mix and match funds to keep everything as fluid as possible. For those looking to fund their Forex accounts directly, however, there are a few hoops to jump through.
As of 2010, it became easier for South Africans to legally move more of their money to offshore accounts. Obviously this makes funding a Forex account possible. But there is still a limit. Each South African citizen is only given an allowance of 4 million Rand for exchange. That is still a lot of money, though; about $490k USD. So it’s not as if the SA government is stifling investing on a personal level. Larger companies may have issues, but they also have the lobbying funds to get through some of the aforementioned workarounds.
Another way to get funds offshore is to apply individually for a discretionary foreign currency allowance, available in an amount up to 1 million Rand. This, along with the initial 4 million, must be cleared by the South African Revenue Service (SARS). Of course, this means filling out a lot of paperwork, like an MP 1423 form for the 1 million travel allowance, and making sure all your tax forms are up to date.
The real catch here is how you move the money; i.e. wire transfers, credit cards, etc. For a credit card transaction going offshore, the amount drastically cuts into that 4 million, only allowing 20,000 Rand per transaction.
The easiest way to fund a Forex account offshore is to simply use that 1 million discretionary allowance. Once approved for the allowance, you need no further approval to invest it offshore. If you need to invest more, that’s when you’ll need approval from SARS.
Also, be very careful to make sure you’re going through the proper channels. While funding your Forex account is much easier in recent years, money can still become lost very easily and you may never see it again.
Established in 2001 and launching online a few years later, Easy-Forex is a well-received broker operating in dozens of countries. They’re licensed to operate by CySEC, ASIC AFSL, and they operate primarily out of Cyprus although they’re an Israeli company. Even though they do not accept American investors, they have still managed to create quite a fan base around the globe.
There are three types of accounts on Easy-Forex: Standard, Premium and VIP. Of course, each different account type has separate features, but all four account types come with the standard benefits and services package, which includes one-on-one training, live chat, and access to the broker’s entire platform.
- Standard Account: With the standard option, you receive only the basic services mentioned above, plus a free demo account to play around with (also available on all accounts). Standard accounts have no minimum deposit, and has a minimum deal size set at $5000.
- Premium Account: For $1,500 minimum, a Premium account can be opened on Easy-Forex, with a minimum deal size of $50,000. On top of receiving all of the benefits of the Standard account, the Premium account also gives you much higher leverage, your own professional charting package, access to research tools, one-on-one coaching, sms trading alerts and much more.
- VIP Account: A VIP account is taken very seriously by Easy-Forex. Not only do you get every feature mentioned in the above accounts, but you also receive daily market calls by dealers, call levels by dealers, and custom tech analysis reports. It takes $15,000 as a minimum deposit to open a VIP account.
Unique Selling Points
- Interest-accruing accounts
- Multiple versions of the same platform
- Currency and commodity trading available
- A very clutter-free environment (per browser)
- Free one-on-one training with an account
- Geared for both beginners and expert traders
Pros and Cons
- Tight, fixed spreads
- Commodities available on top of currency pairs
- Works with MetaTrader platform
- Offers a mobile version of the platform
- Low starting expense of $25 minimum
- Quick, clean deposit process
- Fractional pips
- Live Forex news available
- SMS mobile alerts
- Streamlined function
- No U.S. residents allowed
- Seems to be no contests or bonuses given out (at time of review)
- Customer service seems slow
- Stop-loss feature difficult to set for newcomers
With any Forex broker, you take the good with the bad and just hope the good outweighs the bad handily. This seems to be the case when looking at Easy-Forex as a whole. For investors outside of America, there are a lot of positives with this particular broker, like a reputable, quality platform, a low investment needed, a very streamlined interface, and a lot of personal help if you need it.
The broker seems to do a good job of guiding investors through the process, helping newcomers to the field actually win in the market so that they can open even larger accounts. Some of the negatives here really stand out, like the stop-loss feature and the fact that the leverage is lower than some other brokers, but the positives scream “low risk.”
Founded in 2007 and operating online since 2008, eToro is a Forex broker with offices in the British Virgin Islands, Cyprus, the UK, Australia, and in the United States. Altogether, eToro offers accounts to over 2.75 million users around the globe, in over 140 countries. While the company is a relative newcomer compared to some others in operation, they have experienced a lot of rapid growth due to their attractive platform.
As with all reputable Forex brokers, eToro offers different types of accounts for its customers. With this particular broker, you only have three choices: A Demo account, a Basic account, or a Premium account. Read more about each type of account below.
- Free Demo: Since this account is 100% free, you won’t really get a lot of features with it. Once you open an account with eToro, you can receive this demo account in order to practice your trading, with $10,000 (play money) to trade to help you grow accustomed to the platform.
- Basic Account: The basic is the next step up, and this account gives you access to a free demo account, plus you earn eToro’s exclusive promotions, which are deals and savings sent to users via their email. This account type needs at least $50 to start, up to $20,000.
- Premium Account: The biggest account offered at eToro, the premium services are for accounts of $20,000 and up. You receive a demo for practicing, the same features of a basic account, plus $1,500 worth of annual trading tools for investors, and premium management of your portfolio by a trained professional with eToro.
Unique Selling Points
- The Premium tools offered are of huge value and thus are a big draw
- The platform is really eye-catching, unique and able to stand out amongst others
- eToro gives a 15% deposit bonus for Premium investors
- Very fast withdrawal time of only 3 days
- Optional Personal Rebate Program to participate in
- Telephone trading available
- Occasional trading contests that may be exciting and rewarding
Pros and Cons
- An award-winning trading platform (8 major awards since 2010)
- A lot of funds with a practice account to help new investors get a feel for trading
- A unique platform that’s streamlined, user-friendly, and fun to use
- Weekly contests with prizes
- Low deposits required for a Basic account
- Good customer support
- Available in an impressive range of countries
- PayPal accessible (and other e-wallets)
- 3 platforms: eToro WebTrader, eToro Mobile, and eToro OpenBook
- High leverage (400:1)
- No advanced charting
- Costs a lot for a Premium account
- Platform tends to suffer with slow connection
- Best deals and features reserved only for Premium members
It’s unlikely that eToro is going to score a 9 or 10 in any one category, but by pushing a solid 7 across the board, that makes this particular broker stand out in a field rife with dramatic highs and drastic lows. A level broker is a comfortable broker for most Forex traders.
Their platform is widely regarded as one of the best in the business, and the awards eToro has won say a lot about the quality of the broker in general. The broker seems to be about helping investors profit in numerous ways while always enjoying their time spent trading. Every business is about money, no question about it, but eToro seems to have approached a money-making industry with a user’s preferences in mind.