Learn the 4 steps to find a market, expiration, and strike price and open a trade order. With 28. What are Binary Options? What are binary options? Binary options are a simple way to make a true or false prediction about. A Welcome Message from Nadex CEO Tim McDermott. Our CEO would like a minute of your time to say “Hi” and explain how to get the most out of your. Nadex Spreads Risk Reward.
An overview of the riskreward profile of Nadex spreads and the important role played by the. Navigating the Platform. Brief video illustrating the basic navigation of the Nadex trading platform. Learn how to open Nadex charts, access technical indicators and tools, and place orders directly. Unlike some other binary options providers, Nadex is based in the US, holds all member deposits in. Learn Nadex Binary Options. Learn what makes Nadex binary options a great choice for traders who want a US-based, CFTC-. How Do I Trade Binary Options? There are five simple steps to trading binary options. Step 1 , you need to have an opinion on what. An in-depth look at how Nadex spreads can be used to take a leveraged view on the world's financial. US Toll Free: 1 877 776 2339. 311 South Wacker Drive. Chicago, IL 60606.
Trading on Nadex involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Any trading decisions that you make are solely your responsibility. Nadex instruments include forex, stock indexes, commodity futures, and economic events. Binary options trading. Earn up to 100% in just. Select an option type and the amount, then indicate which way the price will go up or down. Click Buy. Try it right now without risk or registering. Simply make a forecast as to whether a currency pair's rate (e. g. EURUSD) will rise or fall.
A correct forecast will allow you to earn! You can open options with a validity period of from 30 seconds. If your forecast for the option is right, profit on it will be up to 90% of invested funds. As such, investing 100 USD in this case would see you receive 190 USD (investment plus proft). Increase your profit with every trade! You can earn even more from binary options if your account has Pro status. To receive this status, the trading turnover on your alpari. binary account for the past 7 days should be no less than 30,000 USD 30,000 EUR. After acheiving Pro status, the profit you make from every trade will increase automatically by 3%. Advantages of binary options with Alpari. Alpari: Finance Magnates Awards 2015 Winner. in the nomination for Best Binary Options Broker. You can earn from. trading binary options. in just 30 seconds.
You just need to correctly select. the direction the price of the. binary option is heading: To start trading is easy! The minimum. cost of an option in the BinaryTrader platform. The size of the potential profit for all. binary options is shown in advance. There are no hidden commissions. Receive everything you've earnt. Are you ready to earn real money? Open an account right now. Take part in our King of the Hill contest. Earn even more from binary options! The indicated returns for binary options, and also previous returns, are no guarantee of future returns.
The potential profit size of a binary option is variable and depends on the market situation. In thin or fast markets, trading conditions may be altered and some option types or time frames may be inaccessible. Main Page Binary options trading. Alpari Limited, Cedar Hill Crest, Villa, Kingstown VC0100, Saint Vincent and the Grenadines, West Indies, is incorporated under registered number 20389 IBC 2012 by the Registrar of International Business Companies, registered by the Financial Services Authority of Saint Vincent and the Grenadines. Alpari Limited, 60 Market Square, Belize City, Belize, is incorporated under registered number 137,509, authorized by the International Financial Services Commission of Belize, license number IFSC60301TS17. Alpari Research & Analysis Limited, 17 Ensign House, Admirals Way, Canary Wharf, London, United Kingdom, E14 9XQ (financial research and analysis for the Alpari ompanies). Alpari is a member of The Financial Commission, an international organization engaged in the resolution of disputes within the financial services industry in the Forex market. Risk disclaimer: Before trading, you should ensure that you fully understand the risks involved in leveraged trading and have the required experience. We can speak with you in the following languages: We're sorry, an error has occurred. Please try again later. Notification of this error has been sent to our technical support team. To be redirected to the European Alpari website, operated by Alpari Europe Ltd.
, a company registered in Malta and regulated by MFSA, click Continue. To remain on this page, click Cancel. Forex Brokers, Binary Options and Robots. Are Binary Options Brokers, Forex Brokers and Robots Scams? This is a common question that is asked by traders who are new to the Binary Options scene and for good reason. Robots, including binary option robots and forex signals, are quickly becoming popular with traders. It is easy for brokers and trading bot owners to claim huge profits, but they are not all doing so with genuine intentions. Here at Forex Trader HQ, we aim to Options Binary Option brokers, Forex brokers and signals providers as well as binaryforex robots so you can be reassured that your investments are safe and secure. To become a successful trader, you need to have confidence in your trading platform of choice. As long as this is genuine, and not a scam, you can look forward to some great opportunities. Top Robots - August 2017. Top 3 Forex Brokers - August 2017. What are Binary Option Robots?
A robot is a piece of software that monitors binary signals to suggest trades or trades on your behalf. They have become more popular in recent years as a way of traders to automated their investments. For beginners, this also means they can generate profits on autopilot whilst brushing up on their trading knowledge. There are many robots on the market and, like brokers, it can be hard to pick out the ones that stand up to their claims. The best robots in the market are reliable and trustworthy, but unfortunately there are some scams out there. We are here to provide advice and details reviews on these systems so you can invest with confidence. Binary Options – What are they? Binary options are trades which have a binary choice. You, as the trader, predict the direction in which the price of the asset will change (either an increase or decrease). The option is valid for a set amount of time and when it expires you will be rewarded based on if your prediction was correct or not.
Combined with trustworthy brokers and reliable binary robots, this can be a great way to invest and is one of the most popular types of trading online. Many traders have found great success with binary options and now is a better time than ever to get involved. Avoiding A Robot Scam. As mentioned above, there are lots of genuine robots on the market, but equally there are a handful of scams which masquerade as get rich quick schemes. It is always important to do your research before starting your investment and we want to help you with this. Our reviews are always thorough and contain all the information you will need to make an informed decision. We only give our seal of approval to the best brokers and robots in the business. There are a few red flags you should watch for when taking a look at a robot: Unparalleled accuracy : Scammers will always claim their robot has 100%, or close to, accuracy. This is simply to draw you in and make you think it is a no-lose situation. Even the best robots which we review do lose trades occasionally. A good robot works based on the fact that it will win the majority of trades and this will outweigh any potential trade losses.
Get rich quick : Similar to the accuracy claims, scammers will always claim you can become a millionaire in a matter of hours. This is simply not true and you should definitely avoid any such claims. Dubious broker s: What makes a good scammer? Working with other scammers of course. Scam binary options robots will always be paired with a scam broker. The robot itself may work well, but if the broker is not up to scratch then it is not worth investing in. It is important to note that deposits made via any options robot are not payments for the software, unless otherwise stated, but are used for investment capital and are deposited into your brokerage account. This is why it is only wise to chose robots which work with genuine brokers. There are many brokers out there and the choice can be overwhelming, so we have made it our mission to review these brokers and give honest, unbiased, opinions and thoroughly investigate them. Be sure to check back often as we update the site with new brokers and robots frequently. Latest Reviews. AvaTrade Forex Broker Review.
Avatrade, originally founded in Dublin, Ireland (2006) is a well-known, trusted Forex and commodities trading broker. With over 12 languages spoken by experienced Customer Service representatives, and a committed team, this Forex broker remains a top … ForTrade Forex Broker Review. ForTrade is a highly trusted, well reputed, and efficient trading platform for both new and experienced traders alike. This is also the perfect trading platform for currency and commodities trading. We’ve created this Fortrade Review to … Omenda – Is It A Scam? It is always exciting to see a new broker on the flourishing Binary Options scene as it gives us an opportunity to explore what they bring to the table. As always, you need to be vigilant … Trade. com – Is It A Legitimate Forex Broker?
Here at Mr Binary Option, we have been venturing into the Forex field lately to test the waters with various brokers. If you are someone who is used to trading Binary Options, then Forex will be … Arab Money Machine – Is It A Scam? Arab Money Machine is a binary options trading bot that runs on autopilot. It benefits the new and experienced traders alike. This system makes use of the hands-free technology to ensure the placement of the profitable … Suggested Robot. About Forex Trader HQ. Forex Trader HQ is all about reviewing the latest and greatest Forex and Binary Options brokers, robots, expert advisors and binary signals in an effort to expose scams, but promote legitimate systems. Trading Forex With Binary Options. Binary options are an alternative way to play the foreign currency (forex) market for traders. Although they are a relatively expensive way to trade forex compared with the leveraged spot forex trading offered by a growing number of brokers, the fact that the maximum potential loss is capped and known in advance is a major advantage of binary options. But first, what are binary options? They are options with a binary outcome, i. e., they either settle at a pre-determined value (generally $100) or $0. This settlement value depends on whether the price of the asset underlying the binary option is trading above or below the strike price by expiration. Binary options can be used to speculate on the outcomes of various situations, such as will the S&P 500 rise above a certain level by tomorrow or next week, will this week’s jobless claims be higher than the market expects, or will the euro or yen decline against the US dollar today? Say gold is trading at $1,195 per troy ounce currently and you are confident that it will be trading above $1,200 later that day.
Assume you can buy a binary option on gold trading at or above $1,200 by that day’s close, and this option is trading at $57 (bid)$60 (offer). You buy the option at $60. If gold closes at or above $1,200, as you had expected, your payout will be $100, which means that your gross gain (before commissions) is $40 or 66.7%. On the other hand, if gold closes below $1,200, you would lose your $60 investment, for a 100% loss. Buyers and Sellers of Binary Options. For the buyer of a binary option, the cost of the option is the price at which the option is trading. For the seller of a binary option, the cost is the difference between 100 and the option price and 100. From the buyer’s perspective, the price of a binary option can be regarded as the probability that the trade will be successful. Therefore, the higher the binary option price, the greater the perceived probability of the asset price rising above the strike. From the seller’s perspective, the probability is 100 minus the option price. All binary option contracts are fully collateralized, which means that both sides of a specific contract – the buyer and seller – have to put up capital for their side of the trade. So if a contract is trading at 35, the buyer pays $35, and the seller pays $65 ($100 - $35). This is the maximum risk of the buyer and seller, and equals $100 in all cases. Thus the risk-reward profile for the buyer and seller in this instance can be stated as follows: Buyer – Maximum risk = $35. Maximum reward = $65 ($100 - $35) Seller – Maximum risk = $65. Maximum reward = $35 ($100 - $65) Binary options on forex are available from exchanges like Nadex, which offers them on the most popular pairs such as USD-CAD, EUR-USD and USD-JPY, as well as on a number of other widely traded currency pairs. These options are offered with expirations ranging from intraday to daily and weekly. The tick size on spot forex binaries from Nadex is 1, and the tick value is $1. The intraday forex binary options offered by Nadex expire hourly, while the daily ones expire at certain set times throughout the day.
The weekly binary options expire at 3 p. m. on Friday. In the frenetic world of forex, how is the expiration value calculated? For forex contracts, Nadex takes the midpoint prices of the last 25 trades in the forex market, eliminates the highest five and lowest five prices, and then takes the arithmetic average of the remaining 15 prices. From December 15, 2014, for forex contracts, Nadex has proposed to take the last 10 midpoint prices in the underlying market, remove the highest three and lowest three prices, and take the arithmetic average of the remaining four prices. Let’s use the EUR-USD currency pair to demonstrate how binary options can be used to trade forex. We use a weekly option that will expire at 3 p. m. on Friday, or four days from now. Assume the current exchange rate is EUR 1 = USD 1.2440. Consider the following two scenarios: (a) You believe the euro is unlikely to weaken by Friday, and should stay above 1.2425. The binary option EURUSD>1.2425 is quoted at 49.0055.00. You buy 10 contracts for a total of $550 (excluding commissions). At 3 p. m. on Friday, the euro is trading at USD 1.2450. Your binary option settles at 100, giving you a payout of $1,000.
Your gross gain (before taking commissions into account) is $450, or approximately 82%. However, if the euro had closed below 1.2425, you would lose your entire $550 investment, for a 100% loss. (b) You are bearish on the euro and believe it could decline by Friday, say to USD 1.2375. The binary option EURUSD>1.2375 is quoted at 60.0066.00. Since you are bearish on the euro, you would sell this option. Your initial cost to sell each binary option contract is therefore $40 ($100 - $60). Assume you sell 10 contracts, and receive a total of $400. At 3 p. m. on Friday, let’s say the euro is trading at 1.2400. Since the euro closed above the strike price of $1.2375 by expiration, you would lose the full $400 or 100% of your investment. What if the euro had closed below 1.2375, as you had expected? In that case, the contract would settle at $100, and you would receive a total of $1,000 for your 10 contracts, for a gain of $600 or 150%. Additional Basic Strategies. You do not have to wait until contract expiration to realize a gain on your binary option contract. For instance, if by Thursday, assume the euro is trading in the spot market at 1.2455, but you are concerned about the possibility of a decline in the currency if US economic data to be released on Friday are very positive. Your binary option contract (EURUSD>1.2425), which was quoted at 49.0055.00 at the time of your purchase is now at 7580.
You therefore sell the 10 option contracts you had purchased at $55 each, for $75, and book a total profit of $200 or 36%. You can also put on a combination trade for lower risklower reward. Let’s consider the USDJPY binary option to illustrate. Assume your view is that volatility in the yen – which is trading at 118.50 to the dollar – could increase significantly, and it could trade above 119.75 or decline below 117.25 by Friday. You therefore buy 10 binary option contracts – USDJPY>119.75, trading at 29.5035.50 – and also sell 10 binary option contracts – USDJPY>117.25, trading at 66.5072.00. Therefore, you pay $35.50 to buy the USDJPY>119.75 contract, and $33.50 (i. e., $100 - $66.50) to sell the USDJPY>117.25 contract. Your total cost is thus $690 ($355 + $335). Three possible scenarios arise by option expiration at 3 p. m. on Friday: The yen is trading above 119.75 : In this case, the USDJPY>119.75 contract has a payout of $100, while the USDJPY>117.25 contract expires worthless. Your total payout is $1,000, for a gain of $310 or about 45%. The yen is trading below 117.25 : In this case, the USDJPY>117.25 contract has a payout of $100, while the USDJPY>119.75 contract expires worthless. Your total payout is $1,000, for a gain of $310 or about 45%. The yen is trading between 117.25 and 119.75 : In this case, both contracts expire worthless and you loss the full $690 investment. Binary options have a couple of drawbacks: the upside or total reward is limited even if the asset price spikes up, and a binary option is a derivative product with a finite time to expiration. On the other hand, binary options have a number of advantages that make them especially useful in the volatile world of forex: the risk is limited (even if the asset prices spikes up), collateral required is quite low, and they can be used even in flat markets that are not volatile. These advantages make forex binary options worthy of consideration for the experienced trader who is looking to trade currencies. Forex and binary options videos We have high regards for Banc De Binary, and we believe after you review their track record and credentials you too would agree that they&hellip More.
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Regrettably,&hellip More. Forex Binary Options Videos & Signals. Binary Option Robot Hangout. Binary Option Robot Hangout. A hangout for people interested in using the Binary Option Robot software to automatically trade binary options and make money. More Binary Option Robots: 60 Second Binary Options Trading method – Eurusd Rapid Fire Candlestick Guide. Rapid Fire is an exciting binary options trading method utilising the 60 second expiry rates. This video explains how to use candlestick analysis to determine when to trade. Generally its advised to trade in 1 min charts in a strong bull or bear trend. Binary Options Free method That Works – From 100 To 21000 In A Month. Contact me at: alternateforcoc@gmail.
com. Here I try to explain How to grow your deposit fast in few days and earn money from binary options. It's for beginners and pros. I will post soon the live trading starting from 10 euro. Proven Binary Options Trading System – $433 Profit In 30 Minutes. Watch a demonstration of my proven binary method method to make money with binary options trading. CLICK HERE – To Open An Account With My Recommended Binary Broker. Binary Options Trading means you are estimating what will be the closing price of a financial asset at the end of a certain time period. This binary trading method is utilizing graphic trends analysis to trade 10-30 minute binary options. Binary method – Path To Million Day 3 – $8,385 – Binary Options – Expertoption. Binary method – Path to Million Day 3 – $8,385 – Binary Options – Expertoption. Trade for FREE on DEMO Account – Binary method – The Alligator is widely used in binary options, and you can also use it in Expertoption. It was developed by Bill Williams, the famous trader and author of a popular book Trading Chaos.
Using this binary method, you can know in time that the market broke out of the sideways, new trend presence and its direction in binary options. This helps you figure out the right market entry point using this binary method. When you plan trading on expertoption, you need to have in mind the public holiday calendar and the days the stock market is closed to catch the right moment in binary options. Binary method is based on the Alligator indicator showing three moving averages. The three lines are entwined during the sideways market. When the trend is stable, they are parallel in binary options. The Alligator’s jaw or the Balance line is a blue line having the longest period, that is, 13, moved by 8 bars into the future. This is really a strong signal predicting a long-term stable market tendency. If the price is above the moving average, the market will go up. Conversely, if the price is below the moving average, the market will decline in binary options. In this binary method the Alligator’s teeth is a red line or an 8-period moving average moved by 5 bars into the future. In expertoption unlike the Alligator’s jaw, the Alligator teeth predict short-term price movements.
Binary options with the Alligator’s Lip, the additional line, is a 5-period moving average, which is offset 3 and highlighted in green in expertoption. It shows the strength of a new trend. The Alligator’s Lip line is to cross two upper lines if a strong uptrend is expected. The Lip line turns down if a downward trend is expected soon. Simple Binary Option method With 85% Success Rate. Must Watch. As i mentioned in the video, here you have the economic calendar + download link for Metatrader app. Follow us on Facebook at: How To Hack Binary Options And Make $647 A Day. OK guys… get the 100% REAL truth about binary options BEFORE you go chasing after that easy money they promise you. The facts are the facts and going to the US Government for the facts is the best thing you can do for yourself. Above are the links to the US Securities and Exchange Commissions press release and PDF file on binary options. READ IT. It's for your own good.
How To Use Support And Resistance Lines When Trading Binary Options. How To Use Support And Resistance Lines When Trading Binary Options. I am often asked in the comments how to determine the point of entry into the Martingale method. Today I'll show you how to use support and resistance levels in Binary options. We set the chart for 15-minute or 5-minute timeframe. We use the Line tool and find the level of resistance by the tops of the candles. Binary Options Tutorial: Iq Option Trading method + Iq Option Review (binary Option) Tutorial for Binary Options: IQ Option method and IQ Option Broker Review (Binary Option method) ★ Register and trade with me ➤➤ ★ Get sign up bonus ➤➤ Hello, my friends! This video is about binary options trading with IQ Option trading method. In this binary options tutorial I am getting profit on IQ Option trading platform. During last 2 years I have tryed many binary options brokers but in the end I choosed IQ Option, because i see many iq option reviews which say that iq option is not scam. I use many tricks and proven strategies on binary options, you can find them in other my videos! Binary Options Trading – Path To $1,000,000 Day 1. Demo trading (no registration needed) – 00:19 – First $200 stake. 00:50 – $200 turn into $392.
01:16 – Another $200 for the fall. 01:47 – Making following $192 profit. 02:12 – Raising the bar to $300. 02:47 – Won $588, got to $1,600 level in 3 mins. 03:11 – Raising bar again, $400 stake. 03:48 – Lost this one. 04:09 – $400 for the fall. 04:48 – Won, getting back to previous position. 05:15 – Hopefully final stake, 1 win away from today’s goal. 05:48 – Reached the goal of the day – $2,040.80. 7 Binary Options. eToro had its humble beginnings as a simple forex broker, all the way back in 2006. Founded by two brothers, Yoni and Ronen Assia out of Tel Aviv, Israel, it was initially known as RetailFX. The goal of the company was forex trading made easy, and eToro marketed heavily toward retail and ‘non-expert’ traders . This could be seen in the design of some of their early trading platforms, such as Web Trader and Globe Trader, which looked more like an 80s Nintendo video game than a professional trading platform.
For instance, the Web Trader interface featured images of various business people running a race the system was called ‘Marathon’ and was supposed to present an alternative to the ‘boring’ trading interfaces. Here’s an example, want to trade the common USDJPY pair? If you bet on the dollar, then the American Uncle Sam had to be ahead in the ‘race’ against the Japanese sumo wrestler, which showed that the dollar was gaining on the yen. There were no charts, analysis tools, or stop and order limits. eToro also featured the Globe Trader in the early days and this one was presented in the form of a world map. If you wanted to trade the sterling, then you would have to click on Great Britain. As you can imagine, these interfaces drove off some professional traders, but then again, those were not eToro’s target market in the first place. eToro really took off in 2010, because that’s when it launched its OpenBook platform, putting eToro at the forefront of the social trading phenomenon with its Copy Trading feature (more on that below) . eToro also released its first Android trading app that year allowing people to trade from their mobiles. eToro’s success attracted the attention of investors, and eToro has successfully raised a significant amount of funds. Between 2007 and 2014, eToro had 5 rounds of funding and raised $58.5 million from Russian and Chinese investors. This has enable eToro to continue to expand, and it began its UK operations in 2013. At the end of 2016, eToro announced that it was launching in Poland.
And through joint ventures with its Chinese investors and Russian investors (PingAn Ventures and Sberbank), eToro is also available in China and Russia. It has also expanded its product offerings into Contracts for Differences (“CFDs”), cryptocurrencies, and in the beginning of 2017 launched CopyFundsTM for Partners. This feature gives investment companies the ability to create bespoke funds on the eToro platform which eToro’s millions of clients can then invest in. With this step, eToro has taken a big leap from its days as a humble forex broker as it has now placed itself in direct competition with investment funds and financial advisors. They’re not just competing for the customers’ trading money, now eToro wants your investment dollars as well. To give you an idea of just how far eToro has come, in 2015, it signed a 3 year sponsorship deal with the football club West Ham United. Not counting eToro’s joint ventures, eToro operates primarily through two companies, eToro (Europe) Ltd, registered in Limassol, Cyprus, and eToro (UK) Ltd, which is registered in London. When it comes to the case of forex brokers, binary options brokers, or just online trading platforms in general, one of the main questions that should be first asked is ‘is this broker regulated?’ Unfortunately, the requirements for setting up an online brokerage are not very high or stringent, and there are plenty of unlicensed and unregulated brokers out there. Take a quick search on the Internet and you will find numerous stories of unaware and trusting traders being scammed by such unscrupulous traders. This is not to say that a regulated broker is exempt from unscrupulous or fraudulent activity. In fact, plenty of regulated brokers have been caught in such activities. However, because they are regulated, customers at least have some recourse available and brokers are often penalized with fines.
And the good news is that eToro is that eToro is indeed regulated. eToro (Europe) Ltd is regulated by the Cyprus Securities and Exchange Commission (“CySEC”), license number 10910, obtained in January 2010. eToro (UK) Ltd is regulated by the Financial Conduct Authority of the UK (“FCA”), license number FRN 583263 . Now, if you have been around the online brokerage scene for a while, you will know that when it comes to regulation, many such firms turn to . Because Cyprus is a member of the European Union, being regulated allows the company to offer their services throughout the greater European Economic Area. This is due the Markets in Financial Instruments Directive (“MiFID”). Unfortunately, the image of isn’t the best. The island is heavily dependent on income from such investment firms choosing to register in Cyprus, which is why they have a favorable tax regime and have a reputation of being rather lax on regulation, especially in the early years. However, with the growing number of investment firms being registered in Cyprus, has in recent years gotten noticeable more stringent in their regulation and enforcement. For example, Cypriot Investment Firms are required to have a minimum of EUR730k in capital. In addition also has an Investment Compensation Fund, which is funded by payments from all the regulated investment firms in case an investment firm goes bankrupt and is unable to repay its clients. The total amount in the fund stands at over EUR17.5 million and each trader is entitled to a maximum compensation of EUR20k.
However we should note that to date the conditions under which investors can claim from the fund are still unclear and the fund has rarely been used. We take further comfort in the fact that eToro is not just regulated, but regulated as well. Unlike , the has always been regarded as one of the premier regulatory financial authorities in the world. The fact that eToro was able to obtain an license is a huge positive on their part and sets them apart from much of their competition. To summarize, at this point in time, we conclude that eToro is sufficiently regulated and customers should not have any worries in this aspect. eToroUSA is operated by Tradonomi LLC, a member of the National Futures Association (“NFA”) which is under the regulatory purview of the Commodity Futures Trading Commission (“CFTC”). However, eToro USA is not active at the moment, meaning that residents of the USA are unfortunately not permitted to use any of eToro’s services. eToro Trading Platforms. As we mentioned above, eToro had various trading platforms over the years, with the most prominent being their WebTrader trading platform launched in 2008, followed by OpenBook in 2011 which was its first social trading platform and the base for the current platform available today. In November 2015, eToro’s WebTrader was integrated with OpenBook plus all the mobile platforms, and today eToro boasts a singular trading platform that has all the features of the previous platforms, plus more. Since the integration into eToro’s current platform, both WebTrader and OpenBook have been deactivated.
eToro’s integrated platform offers two different functions: retail trading, and social copy trading. Retail trading is your standard trading and eToro functions as a normal broker in this respect. What differentiates eToro from the competition is its Copy Trading and Social Trading feature. Copy Trading allows you to automatically replicate the trades of your selected traders on a proportional basis while Social Trading describes the general umbrella under which Copy Trading falls. More on that in the section below. Like most brokers, eToro also offers leveraged trading, which allows you to trade notional amounts far higher than your trade amount. Currently, the minimum leverage is 1x for stocks and 2x for all other assets. Maximum leverage ranges from 5x for stocks to 100x for indices and commodities, and all the way up to 400x for currencies. However, eToro’s default ‘Responsible Trading’ setting does not allow you to trade leverage ratios above 50x or place trades that exceed 20% of account equity , although this can be manually changed. When it comes to leveraged trading, one important feature that can help mitigate a trader’s risk is negative balance protection.
At the moment it is unclear, whether or not eToro offers this feature. By offering CFD trading, eToro was able to evolve from offering merely forex trading into five different asset classes. Currently you can trade currencies, commodities, indices, stocks, and ETFs using eToro. eToro offers hundreds of different assets you can trade in under these classes. As is common with other brokers in the business, eToro does not charge any commissions but makes its profit through trading spreads. And while eToro’s trading platforms are excellent and are probably the company’s biggest draw, one of its biggest drawbacks are its spreads. eToro may have some of the best trading platforms in the business, however it also has some of the highest ( if not the highest ) spreads in the business. The spreads are prominently listed on eToro’s website, and the lowest spread is 2 pips which only apply to the USDJPY pair, in the case of currencies. The average spread ranges from 4 to 6 pips for currencies, which is very high considering that other brokers have spreads as low as 0.1 pips! eToro Social Trading and Copy Trading. Basically, social trading takes advantage of ‘crowd wisdom’ to help traders make the optimal trades. Instead of just relying on your own strategies, traders can now follow more successful traders and replicate all or part of their trading strategies. Social trading is a broad umbrella term not only can you replicate other traders’ strategies but you can also ‘follow’ them (comments, likes etc.) as well as see their investment statistics in order to find the best traders to copy.
And research shows that copy trading is indeed effective. In an MIT Study conducted in 2012, Dr. Yaniv Altshuler found that traders on eToro who used guided copying (copying a suggested trader) performed 6 to 10% better than manual traders, and 4% better compared to traders that were merely copying random investors of their choice. Due to eToro’s large network of over 4.5 million users, its social trading is particularly effective. eToro’s main social trading tool is the CopyTrader which is the feature that allows you to discover and copy the best traders on the eToro network. You can copy up to 100 different traders at once, with a minimum amount of $100 each with a maximum amount of $500,000 per trader. The minimum trade amount of a copied trade is $1. CopyTrader has 4 main features: Copy All Trades: You will copy all open trades of your selected trader. These positions will have the same Stop Loss and Take Profit limits as the original trade and will also follow the copied trader’s future actions. For example, if your copied trader changes his stop loss position, yours will be changed as well. Note that you will have to open your trades at the current market rate, not at the copied trader’s original rate. However, you do have the option of closing specific copied trades while still copying the other trades.
Copy Only New Trades: You will only copy your copied trader’s trades that he or she makes after you have initiated the copy action. Copy Stop Loss: This feature allows you to manage your risk across your whole copy portfolio. After the stop loss is breached, your copy account with the selected trader and all associated positions will be closed and remaining funds returned to your balance. By default it is set at 40% however it can be manually changed. This feature can be used in conjunction with the other features and is highly recommended for risk management purposes. Pause Copy: This feature allows you to pause any new copy trades being opened with a copied trader, however all open positions will still remain open. In addition to the above, eToro also has several other features to enhance its copy trading program. People Discovery: This is eToro’s internal search engine to find traders to copy. You can filter your search according to country, invested assets, minimum gain over a certain time period. And that’s just the basic filter. If you use the Advanced Search function you can narrow it down even further with criteria such as portfolio allocation, average trade size, risk score, number of profitable months etc. Top Traders’ Insights: This is a feed which collects data from eToro’s Top 1,000 most profitable traders and provides insights into their most traded instruments plus a breakdown into buy and sell positions. Economic Calendar: A highly detailed economic calendar that shows data such as export growth, GDP, jobs data, industrial production etc. of various countries.
The data is even broken down into actual, forecast, and previous. Market News: Live news updates, trends, fundamental analyses, and technical insights. Pips Calculator: A quick tool to translate movement in pips into actual dollar profits and losses. eToro Popular Investors. With almost 5 million traders on the eToro platform, finding the right traders to copy can be a bit of a challenge, even with the People Search function. That’s why eToro has implemented its Popular Investors program, which not only highlights its best traders but enables these traders to earn money from being copied as well. This is not unusual, as one of the criticisms of copy trading is that is essentially investment management. After all, if thousands of people are copying your trades, aren’t you basically just investing their money for them? The only difference is that there is no real contract between the copier and the copied trader. Popular Investors can earn money via an ‘asset management’ fee of up to 2% ( assets under management would depend on how many traders are copying you ) plus up to a 100% spread rebate. This is all in addition to their own trading earnings. And the payments to Popular Investors are not just bonus credits they are real funds that can be immediately withdrawn. We should note that all Popular Investors must trade using ‘Responsible Trading’ settings.
eToro currently has four levels of Popular Investors. They are: Cadet: Requiring only 1 trader to copy you, plus a minimum deposit of $1,000. Doesn’t earn any monthly premium but instead earns a 20% spread rebate. Rising Star: Minimum deposit of $5,000 and 50 traders copying you. You get a spread rebate of 30% and a monthly payment of $500. Withdrawal fees are also waived. Champion: Minimum deposit of $5,000 and 250 traders copying you. You get a spread rebate of 50% and a monthly payment of $1,000. Withdrawal fees are also waived. You get access to a Premium Account and Trading Central.
Elite: Minimum deposit of $20,000 and assets under management of above $300,000. You get a spread rebate of 100% and a monthly payment of $1,000 plus 2% of assets under management. Withdrawal fees are also waived and you get access to a Premium Account and Trading Central. In addition, you get a $500 monthly marketing budget, a $500 quarterly education budget, and a $5,000 annual events budget. In early 2017, eToro launched its CopyFunds feature which moves eToro towards a universal investment and trading platform. As we explained above, copy trading is already conceptually similar to investment management by copying another trader’s trades, he is essentially ‘managing’ your money for you. Each CopyFund will have its own investment method and asset allocation. The minimum investment amount in a CopyFund is $5,000 and there are two kinds of CopyFunds available: Market CopyFunds: A CopyFund that is comprised solely of financial assets such as stocks, currencies, ETFs etc. Top Trader CopyFunds: This CopyFund consists of actual traders instead of assets. The traders that comprise a certain CopyFund will be selected based on each individual CopyFund’s method.
For example, if a CopyFund’s method is long term equities then it will select traders that have high stock allocations with long timeframes. Unlike investing in a typical fund or financial services firm, there is no management fee associated with using CopyFunds. This puts it ahead of even the low cost ‘robo-advisors’ which are so popular right now, most of which still charge management fees. The only fees will be via eToro’s spreads on the transactions initiated by the CopyFund. Also, unlike traditional funds which have very stringent redemption conditions and even ‘redemption gates’ to prevent a run on the fund, you can halt your CopyFunds investment at any point in time. The only delay is that if you initiate a stop when the markets are closed, you will have to wait until the markets are reopened for the system to close your positions. There are a few other salient differences between CopyFunds and traditional funds. For one, there is no need for a CopyFund investor to deliver capital to an investment manager, rather the ‘manager’ just opens and closes positions from the investor’s own accounts according to the CopyFund’s method. Second, leveraged trading still applies meaning that your notional investment amount can be much larger than your actual investment amount. And finally, eToro’s CopyFunds allows the usage of short positions unlike traditional ETFs, which only take long positions. Over time, every investment portfolio experiences what is known as ‘portfolio drift’.
This is what happens when due to individual price movements of the assets within a portfolio, its allocation starts moving further and further away from the target allocation. Because of this, a portfolio needs to be rebalanced on a periodic basis. eToro rebalances its CopyFunds periodically and automatically however the rebalancing period differs between each CopyFund. You can refer to each individual CopyFund’s prospectus to find out its rebalancing frequency. Of course when it comes to investment funds, what everyone wants to know is, what is the return on investment? Unfortunately, since eToro’s CopyFunds is not even 3 months old as of April 2017, its returns cannot yet be compared to any benchmark. However, as per most investment funds, investors should look at a timeframe of years for ideal returns. Remember, investment is not trading. eToro Account Types. eToro currently offers 3 types of trading accounts. They are: Standard Trading Account: The most common account with a minimum deposit amount of $50 up to $1,000 depending on country and region. Demo Account: A demo account with $10,000 in virtual credits. Can be used simultaneously with a standard trading account traders have the option of switching between the live and demo accounts on the platform. Islamic Account: A big plus for its competitors, eToro also offers sharia compliant Islamic accounts.
Trades conducted on the Islamic account implement immediate buying and selling without delay with no interest on trades, thus avoiding potentially usurious interest, known as riba. An eToro Islamic account also provides you with interest free leverage, and there is no interest on contractts over 24 hours, nor does eToro take any additional commissions for contracts over 24 hours. However, it has one of the highest account opening minimums, at $1,000. Premium Account: Automatically given to Popular Investors who have achieved ‘Champion’ status and above. However if you have $20,000 in account equity or have made net deposits of $20,000 over an 11 month period, you too can qualify for a premium account. Premium Account holders have a personal account manager, faster withdrawals, direct access to eToro’s trading room, free access to its Trading Central investment research platform, weekly market analysis videos, plus a personal credit card. They may also receive a 25% deposit bonus upon the upgrade and further their referral commissions are higher at $2,000 per invitee with each invitee receiving a $5,000 special deposit bonus. eToro Deposits and Withdrawals. eToro’s minimum deposit amounts range from as low as $50 to as high as $1,000 depending on region and country. eToro also accepts a wide range of payment service providers in addition to the usual Visa, MasterCard, and wire transfer, eToro also accepts China Union Pay, Diner’s Club, Giropay, Neteller, PayPal, Skrill, WebMoney, Wirecard, and Yandex.
All eToro accounts are USD-denominated and deposits made in different currencies will be converted into USD which will be subject to eToro’s posted spreads. Depending on the payment option, there is also a maximum deposit amount (unlimited for wire transfers), ranging from $5,000 to $50,000. All transactions are protected using Secure Socket Layer (“SSL”) technology for maximum data protection and privacy. eToro Deposits and Withdrawals. We should also note that while it is possible to deposit money into your eToro account without first verifying your account, unverified accounts are limited to a total deposit amount of $2,250. Account verification requires proof of identity, proof of address, and phone number verification. When it comes to withdrawals, only customers with verified accounts can withdraw funds. The minimum withdrawal amount is $20. eToro takes 1 business day to process a withdrawal request, which we note is extremely fast, while the time it takes to reach a customer’s account will vary depending on the payment service provider. In general, it may take anywhere from an additional 1 to 8 working days after the withdrawal has been processed. Withdrawals are also subject to fees, which are described in the section below. Video ad of eToro below: Note: Remember to read our conclusion of eToro at the end of the review. eToro’s primary method of income is the spreads it takes on all trading transactions, which are already some of the highest in the industry. Further, eToro applies the same high spreads for currency conversion of a customer’s funds when depositing or withdrawing funds (since all of eToro’s accounts are denominated in USD).
In addition to these spreads, withdrawal fees are also applicable, depending on the withdrawal amount. Withdrawal amount of $20.00 – $200.00: Fee of $5.00 is applicable. Withdrawal amount of $200.01 – $500.00: Fee of $10.00 is applicable. Withdrawal amount of $500.01 and up: Fee of $25.00 is applicable. Based on the withdrawal fees above, it is clear the eToro’s withdrawal fees are very high, especially if you express them in percentage terms. If you withdraw $100 your withdrawal fee is 5% and if you withdraw $1000 your withdrawal fee is 2.5%! Only when withdrawing thousands of dollars does the withdrawal fee become small in percentage terms. Overall, it’s not just eToro’s spreads that are high, its withdrawal fees are as well. Definitely a negative that should be considered. eToro Trader Education. eToro features an educational ‘Trading Academy’ section which has three main features: live webinars, a trading e-course, and trading videos. Currently there are 7 previous live webinars posted which can be accessed via the eToro website or on their YouTube channel. Their trading videos are more of ‘how to’ videos and are designed to show users how to properly use their platform and its features. This is also available through their website and hosted on their YouTube channel. Their trading ecourse, while free, is only available to registered members.
Currently there are 11 lessons in the ecourse, covering topics such as basic and advanced technical analysis, effective strategies, trading psychology, and market analysis. In addition to their trading academy, eToro also maintains an active blog which has a wide range of topics from cryptocurrency news, top investor spotlights, market analyses, and of course, eToro updates. eToro Bonuses and Promotions. eToro has a ‘Refer a Friend’ program, which can earn you $100 in eToro credits for every friend you invite. Further, each friend you invite will himself or herself receive $200 in eToro credits! However, the caveat is that each of your invitees must deposit a minimum of $500 with eToro for you to receive the bonus credits. The invitation process is easy and can be done entirely via email. Premium Account holders receive higher commissions when using this program. In addition to ad-hoc promotions, eToro offers two main promotional programs a First Time Depositor promotion and a Re-Deposit promotion. eToro did not specify the amount of credits available under these promotions, however it did note that any credits as a result of these promotions have a six month expiry date from the time they are first deposited. While eToro’s main website pages are easily navigated to from the main page, we found that the site has a high number of inner pages which are not intuitively laid out. As an example, information about eToro’s Islamic account and leverage ratios can only be found by navigating through its inner pages. Further, we note that a lot of details about eToro itself require you to be a member to learn about them.
While overall eToro’s website is adequate, there is still much room for improvement. eToro Customer Support. eToro offers customer service on a 245 basis, that is 24 hours a day from Monday to Friday. eToro has a ‘Customer Service Wall’ feature, which is similar to Twitter for non-urgent inquiries. All complaints posted on the wall are visible to everyone further, this feature is only available from 8AM to 5PM GMT. For private or urgent inquiries, eToro customers can use their 245 Live Chat feature or submit a complaint to them via web form. It should be noted that complaints submitted via web form may take up to 48 business hours to receive a reply. The downside of eToro’s customer support options is that unlike their competitors, they do not offer any phone support. eToro Customer Complaints. Given the massive popularity of eToro, with almost 5 million users, complaints are inevitable. Our research showed that most of the complaints against eToro were very minor and mostly revolved around the lack of customer support, high spreads, withdrawal fees, and their focus on social trading over retail trading. With regards to the final point, it appears that more than a few traders were disappointed that the traders they had copied were not successful but this is a risk you must accept when using social trading. In addition, back in 2010, fined eToro EUR50,000 for weaknesses in their operational and organizational structure related to their early days in 2010. eToro paid the fine and all the weaknesses have been rectified.
eToro Social Media Accounts. eToro is active on all the usual social media accounts and you can find them on Facebook, Twitter, LinkedIn, Google Plus, and YouTube. When it comes to social trading, eToro has pushed itself ahead of the pack. Already one of the first in the game, its features such as the Popular Investor program and the latest, CopyFunds, puts it ahead of the competition. And with such a large user base, its social trading capability is only magnified. That said, it does have significant drawbacks, namely very high spreads and withdrawal fees. But since top traders can get spread rebates and their withdrawal fees waived, eToro may be the kind of broker where the top traders truly thrive while unsuccessful traders might find themselves left far behind. Large number of users means a wide pool of traders to copy from. and regulated. Social trading features such as Popular Investors and CopyFunds are ahead of its time and set it apart from the competition. High spreads. Lack of customer support options. Latest posts by John Miller (see all) Interview of Daria Glazko from IQ Option - July 20, 2016 IQoption Adds New Deposit Feature and Forms New Partnership - July 5, 2016 How Binary Options Changed My Life and Got Me Out of Debt - June 7, 2016.
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