eToro Forex

Interested to Trade Forex with eToro? Better Read This First!

Forex is a popular investment opportunity for those with limited capital. Forex traders trade currency pairs, which means that they can buy one currency while selling another for a different type of currency. Like when you used to exchange your native currency to the currency of the country you were travelling to at the airport, investing in a currency pair could be seen as just another form of translating money.

You can use eToro to invest in the world of currency trading. With it, you can buy and sell a range of currencies, including following the advice of professional traders, all on one platform.

There are few things to learn before starting with currency trading. The first thing you should know is that Forex can be done through two approaches - investing or speculating. Secondly, you need to understand what a pair is - a currency pair consists of a base currency and a counter currency. In this page, we will further discuss about forex trading and how you can invest on these FX pairs with this broker.

Table of Contents

  1. What is Forex Trading?
    How does it work? (15sec)
  2. Where Can I Trade Forex?
    Is there place for FX trading? (23sec)
  3. When to Buy or Sell Forex?
    When should you buy or sell a trade? (34sec)
  4. Trading Forex via CFDs
    What is CFDs in forex trade? (25sec)
  5. Live Forex Rates and Charts
    Where can I get real time forex? (17sec)
  6. What Currency Pairs Can I Invest on eToro?
    What FX pairs are available? (17sec)
  7. How to Trade Forex on eToro?
    Step-by-step guide (28sec)
  8. Forex Copy Trading
    Does copy trading work in forex? (52sec)
  9. Best Forex Traders to Follow and Copy
    How do I find good traders to copy? (46sec)
  10. How to Copy Forex Traders on eToro?
    User-friendly guide for traders (42sec)
  1. Trading with Leverage
    How does leverage trading work? (10sec)
  2. Can You Transfer Forex to eToro?
    Can the account receive various currencies? (18sec)
  3. Is eToro Forex a Scam?
    Is eToro good for forex? (24sec)
  4. What are the Forex Trading Fees or Charges?
    What's the catch with eToro? (12sec)
  5. Forex Spreads
    How much spread does eToro take? (27sec)
  6. What’s The Minimum Trade Size?
    How much money do you need to trade? (14sec)
  7. Can eToro Clients from the USA Trade Forex?
    Does eToro allow forex trading in US? (9sec)
  8. How About Traders from Canada?
    Is eToro allowed in Canada? (11sec)
  9. Forex Trading Hours
    What time does forex close? (58sec)

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What is Forex Trading?

Forex trading refers to exchanging one currency for another, in order to take advantage of differing prices in different markets. It is mainly used by traders for speculation or hedging, not for long-term investing. This is a popular trading market and many investors use eToro to trade on this platform.

Currency (forex) trading on eToro
Currency (forex) trading on eToro

Where Can I Trade Forex?

It has no designated place to happen. It can happen when people are exchanging foreign currencies, but it can also happen in international markets. With a wide range of currency pair on offer, eToro is a great place for anyone from seasoned traders to beginners to invest their money.

Think of currency trading on eToro as trading in stocks. You can trade in a range of currencies, all with the click of a button.

When to Buy or Sell Forex?

In order to trade in currency pairs, you need to think about whether the base currency will increase or decrease in strength when compared with the counter currency. For this, you have to take a position that corresponds with your predictions. That means you need to decide whether to buy (go long) or sell (go short).

Simply say: If you think that the base currency is going to strengthen against the counter currency, you buy the pair. If you believe that it's going to weaken, you sell it.

For example:
If you think that the Euro will become stronger against the dollar, then it's a good idea to buy a EUR/USD contract.

Buying or selling EURUSD in eToro
Buying or selling EURUSD in eToro

Trading Forex via CFDs

One of the most popular trading methods for currency is to use contracts for difference (CFDs). There are many ways to trade, but this is one of the easiest ones available.

CFDs are a type of derivative that allow for traders to speculate on the price movement in different assets, without actually buying them outright. CFD trading enables traders to take advantage of short-term price movements in assets, which would otherwise be difficult or impossible to do in the absence of CFDs.

Live Forex Rates and Charts

eToro's app provides both real-time data and news updates to its users. It also comes with live price charts that you can use to set up trades according to your strategy. This makes it a great place even for newcomers since the way to study historical and current price movements is using graphs.

Live forex rates and charts on eToro
Live forex rates and charts on eToro

What Currency Pairs Can I Invest on eToro?

As of this writing, you will find around 50 currency pairs on the eToro online trading platform. This includes majors, minors and exotic pairs.

All the 7 major pairs are available for trading:

  • EURUSD
  • GBPUSD
  • NZDUSD
  • USDCAD
  • USDJPY
  • USDCHF
  • AUDUSD

 

There are over 20 choices of minor pairs or crosses:

  • AUDCAD
  • AUDCHF
  • AUDCHF
  • AUDJPY
  • AUDNZD
  • CADCHF
  • CADJPY
  • CHFJPY
  • EURAUD
  • EURCAD
  • EURCHF
  • EURGBP
  • EURJPY
  • EURNZD
  • GBPAUD
  • GBPCAD
  • GBPCHF
  • GBPJPY
  • GBPNZD
  • NZDCAD
  • NZDCHF
  • NZDJPY

 

There's also around 20 exotic pairs to choose from:

  • EURHUF
  • EURNOK
  • EURPLN
  • EURSEK
  • GBPHUF
  • NOKSEK
  • USDCNH
  • USDCZK
  • USDHKF
  • USDHUF
  • USDMXN
  • USDNOK
  • USDPLN
  • USDRON
  • USDRUB
  • USDSEK
  • USDSGD
  • USDTRY
  • USDZAR
  • ZARJPY

 


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How to Trade Forex on eToro?

Setting up forex CFD trades with eToro is easy. The following steps will guide you through the process:

  1. Open the eToro platform and click on "Discover".
    Clicking "Discover" on eToro
    Clicking "Discover" on eToro
  2. Select "Currencies".
    Selecting Currencies on eToro's platform
    Selecting Currencies on eToro's platform
  3. Look for the currency pair you want to invest on and click "Buy" or "Sell".
    Buying or selling EURUSD in eToro
    Buying or selling EURUSD in eToro
  4. Set the amount you wish to invest.
    Entering amount to invest on EURUSD via eToro
    Entering amount to invest on EURUSD via eToro
  5. Configure the, leverage, stop-loss and take profit orders based on your trading preferences.
    Setting the stop-loss, leverage and take profit on EURUSD trade
    Setting the stop-loss, leverage and take profit on EURUSD trade
  6. Click on "Open Trade" to execute the position.
    Executing EURUSD buy order on eToro
    Executing EURUSD buy order on eToro

Keep in mind that this particular position will remain open until:

  • You decide to manually close it.
  • It is automatically closed via the stop-loss or take-profit order.
  • The contract expired.

Forex Copy Trading

eToro also has a social media aspect that allows users to connect with other users, share their ideas and learn from others’ experiences. It provides a social trading platform where investors can copy the trades of successful forex traders.

If you’re the type of investor who’s not interested in analyzing charts or looking for patterns then you can simply follow the instructions of professionals. This way, you can invest in forex with minimal risk by copying the trades of other traders who have already done the research and put in the time to find out which trade to take.

This is a good way for a trader who wants to learn how to trade on the forex market but does not have the time, skills or money to do it themselves. You can use this system as an opportunity to learn from others so you can make wiser trading decisions in the process.

Users can choose from a list of professional and amateur traders and choose how much of their portfolio to invest in them.

Best Forex Traders to Follow and Copy

Remember: Forex trading is a high-risk, speculative market. However, there are many forex traders who are actually successful in this field. These typically have a long-term view of this market and take calculated risks to make good returns from it.

It is possible to generate good returns by participating in copy trading on eToro. The platform is generally low risk and can yield sizable dividends. Nevertheless, choosing the right trader is important to make sure you're getting the returns for your risk. It is important that they have a long track record of success and make an acceptable yield margin.

You can find the best FX traders on eToro by using the filter function of their CopyTrader feature. You will be able to get a refined list of choices based on several parameters such as the user’s country, gain rate, period (months to years), number of copiers, active weeks, etc.

How to Copy Forex Traders on eToro?

So how do you find these forex traders on eToro and how to copy their trades? Follow the basic steps below:

  1. Open the eToro platform and click on "Discover".
    Clicking "Discover" on eToro
    Clicking "Discover" on eToro
  2. Scroll down, look for "Copy Top Investors" and click on the "View All" button. This will open the CopyTrader.
    Viewing all top investors in eToro
    Viewing all top investors in eToro
  3. Configure the "Who Invest In" filter at the top by selecting "Currencies" and also set the other parameters based on your preferences. Click "Go" when you're done.
    eToro CopyTrader filter
    eToro CopyTrader filter
  4. Browse through the results to choose traders with many different goals in mind and find the most suitable for your situation. Once you have chosen your preferred trader, click on their profile to view it.
    Top forex traders on eToro
    Top forex traders on eToro
  5. Click the "Copy" button on their profile.
    Copying a forex trader in eToro
    Copying a forex trader in eToro
  6. Set how much money you would like to allocate and the proportions will be automatically calculated.
    Setting copy-trade parameters on eToro
    Setting copy-trade parameters on eToro
  7. Click the “Copy” button to start copying the trader's positions automatically.
    Executing copy trade order on eToro
    Executing copy trade order on eToro

Trading with Leverage

The maximum leverage that eToro offers is currently x30 for major currency pairs. This means that if your account currently has a balance of $50, you could trade it for an equivalent of $150.

Forex trading with leverage on eToro's platform
Forex trading with leverage on eToro's platform

Note: The x30 leverage is the maximum for retail clients as per the guidelines and restrictions of the European Securities and Markets Authority (ESMA).

If you would like to use a higher leverage (x50, x100, x200 or x400) then your account needs to be categorized as a Professional. This specific account type has certain conditions, experience and trading knowledge that you need to meet in order to qualify. You can click on the x50 to x400 leverage to trigger the Enable High Leverage Trading pop-up notification and proceed with the Professional Client application.

Enabling high leverage trading on eToro
Enabling high leverage trading on eToro

Can You Transfer Forex to eToro?

No. The service offered by eToro is CFD trading which means you do not own any of the underlying assets you are speculating on. CFD trading enables you to speculate on the price movements in either direction of an underlying asset (in this case, Forex) without having to purchase it outright or settle delivery at maturity date.


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Is eToro Forex a Scam?

No. eToro is one of the top trading platforms worldwide. Aside from forex, it has many different ways to trade cryptocurrencies, stocks, ETFs and CFDs. The site also has high trust due to the fact that it's regulated by FCA, CySEC and ASIC and has licenses from these financial institutions.

Here's the thing:
Keep in mind that one of the risks associated with trading is that sometimes, people who lose money might blame the platform and call it a scam.

What are the Forex Trading Fees or Charges?

One additional benefit of using eToro for currency trading is the low transaction costs. You can do many trades without paying any fees, the main fee being the spread between buy and sell prices.

Forex Spreads

The spread is the difference between the Buy and Sell prices of a certain asset. It's calculated by taking the difference between either side of a trade - one side being to buy and one side being to sell.

The spread is a profit margin that a Forex broker takes, and it's usually between 15 and 50 pips, depending on how volatile the currency pair is.

When you trade with eToro, the spread is the fee charged per transaction. Spreads range from 1 pip to 50 pips depending on the currency pair.

 

Currency Pair Spread
EURUSD 1 pip
USDJPY 1 pip
GBPUSD 2 pips
USDCHF 1.5 pips
NZDUSD 2.5 pips
EURGBP 1.5 pips
EURJPY 2 pips
GBPJPY 3 pips
AUDJPY 2 pips
AUDUSD 1 pip
EURCHF 5 pips
EURAUD 7 pips
EURCAD 7 pips
CADJPY 6 pips
CHFJPY 6 pips
USDHKD 5 pips
USDZAR 50 pips
USDRUB 3 pips
USDCNH 10 pips
AUDCHF 4 pips
AUDCAD 4 pips
AUDNZD 4 pips
EURNZD 4 pips
GBPAUD 4 pips
GBPCHF 4 pips
GBPNZD 4 pips
NZDCAD 4 pips
NZDCHF 4 pips
NZDJPY 4 pips
CADCHF 4 pips
USDNOK 20 pips
USDSEK 20 pips
NOKSEK 20 pips
USDNOK 20 pips
EURNOK 20 pips
EURSEK 30 pips
USDTRY 50 pips
USDMXN 20 pips
USDSGD 3 pips
GBPCAD 4 pips
ZARJPY 8 pips
EURPLN 30 pips
USDHUF 20 pips
EURHUF 20 pips
GBPHUF 30 pips
CHFHUF 30 pips
USDPLN 20 pips
eToro's forex spreads

What’s The Minimum Trade Size?

With eToro, the minimum investment amount you can place on a currency pair is $1000. This trade size may already include leverage so let’s say, if you have $100, then you need to use a leverage of X10 to meet the $1000 minimum requirement.

$1000 minimum trade size on eToro forex assets
$1000 minimum trade size on eToro forex assets

Can eToro Clients from the USA Trade Forex?

No. eToro does not offer forex trading to US citizens due to regulatory restrictions and regulations though they can trade other instruments specifically cryptocurrencies.

How About Traders from Canada?

In general, eToro is not allowed to offer their services in Canada due to regulatory change, which prohibits entities who do not have a Canadian Financial Services License from trading contracts for difference with Canadians.

eToro does not support traders from Canada
eToro does not support traders from Canada

Forex Trading Hours

The forex market is the world’s largest market, with a daily trading volume of more than 5 trillion dollars! It is an international, over-the-counter market and trading on it happens 24 hours a day, 5 days a week. There is no set time for it. It can happen when people exchange foreign currencies.

Trading in the forex market is available to retail investors. The volume of foreign currency traded every day exceeds that of the stock market and all other traded financial products combined.

The bottom line?
The forex market provides great opportunity for traders at all levels of experience and capital because it has low transaction costs and relatively low spreads (difference between buying and selling prices). Forex can potentially generate good yields whether one is interested in speculation or in hedging against adverse movements in their own currency.


Ready to trade Forex with eToro?

If you're considering to invest or trade currency pairs with this broker, then simply click the button below to get started. But before you can trade this FX on eToro, you'll need to open an account with them and this will only take just a few minutes to accomplish.


YES, TRADE FX WITH ETORO!


eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.