Easy Forex vs. eToro: Which is the Best Forex Trading System?

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Both Easy Forex and eToro are good websites for forex currency trading. Easy Forex is a more straightforward type of forex website while eToro has an interesting currency trading concept. eToro is more like a social network that allows you to watch what o

Forex Trading

Forex (Foreign Exchange Market) is the foreign currency exchange market and is the place to trade currencies. Whenever you travel to another country or trade your money in for another country’s money, you are participating in the foreign currency exchange market or forex (FX). In the stock market, you have thousands of stocks to invest or trade in. In the forex currency market, you can focus on eight important currencies.

  • United States Dollar
  • Euro
  • Japanese Yen
  • United Kingdom Pound Sterling
  • Swiss Franc
  • Canadian Dollar
  • Australian Dollar
  • New Zealand Dollar

The advantage of trading in the forex currency market is leverage. With 50:1 leverage ratio, you can control $10,000 worth of assets for just $200 of your own capital (50 x $200 = $10,000). This can translate into a great profit potential if the trade goes the way you expect it to, but if the trade goes the wrong way, you can lose a great deal of money if you do not exit your trade quickly. The leverage limit in the United States is currently 50:1. In other countries this leverage can be as high as 200:1.

Easy Forex vs. eToro

This article will look at two forex trading companies and what each company has to offer. Easy Forex is more of a traditional type of firm where you can trade currencies on the forex market.

eToro has what they call social trading, which is like social websites. You can follow other traders and watch what currencies those traders are buying and selling. Their social trading platform goes as far as allowing members to automatically copy another traders currency trades. 

What is Forex from Easy Forex

Opening an Account

When you open an account, there are a number of items to look at. What is the initial amount, types of accounts, research tools and how simple their trading platforms are to understand and use.

Easy Forex

Easy Forex has four different account types with the following minimums.

Account Type

Minimum Deposit

Minimum Deal Size

Minimum Margin to Risk

Mini

$25

$5,000

$25

Gold

$500

$50,000

$250

Platinum

$5,000

$250,000

$1,250

VIP

$10,000

$500,000

$2,500

There are added benefits with the higher minimum account types, but with all four account types, you will get the following standard benefits:

  • One-on-one training
  • Chat
  • You will have access to all platform features.

With a Gold account or higher, you get more benefits including:

  • Live SMS market alerts.
  • Technical analysis signals.
  • Dealing room chat and special offers.

With the VIP account, you get these extra benefits:

  • Professional charting package.
  • Updated market calls from dealers.
  • Call levels by dealers.
  • Custom made technical analysis reports by dealers.

With your account, you will also have instant credit card withdrawals with no fees. They do charge $25 annually for dormant accounts. Dormant is defined as an account with no trades, withdrawals or deposits for 12 months. 

eToro

eToro has two types of trading accounts:

They offer a premium account with a minimum of $20,000 and the following benefits.

  • With a premium account, you will get access to their expert trading tools, eSignals, which is a $1,500 value.
  • Exclusive promotions emailed to you.
  • A premium account manager that can give you personal portfolio analysis and assistance with your account.
  • Free practice account.
  • You will have free access to their forex trading e-courses.
  • Free webinars.
  • Exclusive market news provided by Dow Jones.

They also offer a basic account with a minimum of $5,000 and the following benefits.

  • Exclusive promotions.
  • The free practice account.
  • Full access to their forex trading courses.
  • Free webinars.

Forex Spreads

Each company has different forex spreads listed in pips. Pip stands for percentage in point and is the spread between the bid and offered (ask) price. A pip is the smallest price movement possible. Prices are quoted to the fourth decimal place, except the Japanese yen (JPY) which is quoted to the second decimal place. For example you might see the EUR/USD bid at 1.2950 and offered at 1.2953. The spread is 3 pips.

Easy Forex

Easy Forex has different pips depending on the account type and currency pair. Here are some spreads for each account type at Easy Forex.

Currency Pair

Mini Account

Gold Account

Platinum Account

VIP Account

EUR/USD

4 pips

4 pips

3 pips

3 pips

USD/CAD

5

5

5

4

USD/JPY

4

4

4

3

AUD/USD

4

4

4

3

EUR/CAD

12

12

11

10

eToro 

In addition to the normal forex spreads, eToro charges a fee for trades carried over the weekend, which ranges between $0.8 and $3.60 per 10,000 units. The following are some spreads for currency pairs at eToro.

  • Euro/US dollar (EUR/USD): 3 pips
  • US dollar/Canadian dollar (USD/CAD): 3 pips
  • US dollar/Japanese yen (USD/JPY): 2 pips
  • Australian dollar/US dollar (AUD/USD): 3 pips
  • Euro/Canadian dollar (EUR/CAD): 9 pips

Trading Platforms

The features and trading platforms are of course important to successful trades and ease of use.

Easy Forex

Visual Trading is their online web platform and has the following features.

  • Allows you to trade from any computer.
  • Inside viewer lets you see real time trades and trends. You can find the most popular currency pairs, their direction and structure.
  • SMS alert feature will alert you for deal closures, when a specified rate appears and limit order captures.
  • Freeze rate lets you freeze a rate for a few seconds before you actually commit to a trade.
  • With their Trade Controller, you can adjust the parameters of your trade and play what if looking at different outcomes.

TradeDesk is a group of apps that you can download and configure to make your own trading station. You can do charting analysis, read currency and market news and trade currencies. The list of downloadable apps includes:

  • Charts app allows charting of multiple currencies and time frames.
  • Deal Tester lets you do what if scenarios before you commit to a trade.
  • Deal Tracker is where you can view your trade information such as open rate, stop loss, take profit and current closing rate.
  • Dealers Chat allows you to chat with their dealers.
  • Forex Detailed Rates shows you the bid/ask, direction, change percent, high and low and previous high and low.
  • Inside Viewer gives you a unique view of all trades on the trading platform.
  • Limit Ticket is an important feature that allows you to set a new limit order.
  • My Position lets you look at your position. You can also modify or close out your position with this app.
  • Position Calculator lets you simulate closing values of your trades with different criteria entered in.
  • And many more features.

Easy Forex on Mobile has apps for trading on the Android, iPhone, Windows PDA and Blackberry.

Easy Forex MT4 trading platform is downloadable by request. If you are already using MT4 with other brokers, you can also use Easy Forex MT4.

eToro

eToro OpenBook is an interesting concept with trading. OpenBook is a social trading network that allows you to interact, watch, follow and copy other forex trader’s transactions. They have a list of the most followed and copied forex traders. You can follow them and read their comments about the currency markets and see what they trade. When you go to OpenBook, you can watch what currencies other members of eToro are trading in real time. If you see a trade that you like, you can click copy and you will automatically buy that same currency trade.

CopyTrader is a tool of OpenBook that lets you automatically copy the positions of another trader in their network. When you decide to follow a traders currency trades, your portfolio will automatically change as that traders positions change.

eToro Web Trader Platform provides day to day trading activities such as charting, chart analysis, setting up your trades, monitoring your trades and keeping track of all market news. In addition, Web Trader is also synchronized with your OpenBook platform. Whenever you make a trade with OpenBook or CopyTrader, your Web Trader platform will show your trades and positions.

With Web Trader, you will get professional charts and technical charting abilities including:

  • Plotting trend lines and support/resistance levels.
  • Looking at technical indicators like ASI and William %R momentum indicator.

eToro Copy.Me Trading Platform started because of the growth and popularity of their OpenBook platform. Copy.Me is more of a social network than a trading platform. Top currency traders or gurus on eToro can market themselves to other traders through the Copy.Me social pages on eToro. These top trading gurus can then earn a portion of the spread revenue from those that follow them.

eToro does not support Meta Trader 4 (MT4), which is a main complaint of customers. 

Learning and Education

Easy Forex

Easy Forex has the following education and learning tools on their website.

  • They offer a free demo account with a starting $100,000. Demo accounts are a great way to learn how to trade currencies and your own risk tendencies. Their demo account uses live market conditions. You have to register for this demo account.
  • Easy Forex has learning videos including forex basics, reading charts, technical and fundamental analysis and more.
  • Forex e-book is a great guide to opening an account and the basics of currency trading.
  • Forex articles are articles about forex basics.
  • Simulator gives you 120 minutes of a forex trade simulator.
  • An events calendar for upcoming forex webinars, seminars and expos.

eToro

eToro also has a nice collection of educational and learning tools.

  • eToro webinars are hosted by their top experts and will teach you about currency trading.
  • eCourse will teach you how to be a top trader at your own pace.
  • eTorpedia gives you access to trading information and articles.
  • eToro trading videos is a collection of videos about trading.
  • Trading research contains general trading articles, guides and market research articles.
  • A free demo account where you will get $10,000 for your practice trading and strategy testing. 

How eToro CopyTrader Works

Company Information and Customer Support

Easy Forex

Easy Forex has been in business since 2003 and is licensed in Europe, Australia and the United States. Easy Forex has a good FAQ and you can contact the company at the following email addresses and phone numbers:

  • General questions: info@easy-forex.com
  • Customer service: cs@easy-forex.com
  • US headquarters in Katonah, New York: 1-914-401-9123
  • European headquarters in Cyprus: +357 25 828 899
  • Australian headquarters in Melbourne: 1300 303 908

eToro

eToroUSA for United States customers is not a forex website; they are an introducing broker with their interactive platforms. They are partnered with ILQ (International Liquidity) for the execution of the forex trades.

eToro was founded in 2007 and began eToroUSA for United States customers in 2009. They are registered with the CFTC and a member of the NFA (National Futures Association) under the name Tradonomi LLC with an ID number of 0382918. They have a good FAQ and you can contact the company at:

  • eToroUSA in New York City: 1-888-993-8676
  • Worldwide headquarters in Cyprus: +1-888-880-6820 or +357-2-5030234
  • Australia and New Zealand headquarters in Sydney: +61-2-8014-4280

Conclusion

As you can see, eToro is a different type of trading website while Easy Forex is the more traditional type of brokerage website. Many experienced forex traders disagree with the eToro concept of just following other trading guru’s trades. Even though, many stock market investors follow trading gurus when they buy what Warren Buffet, Peter Lynch or Jim Cramer recommends.

A risk of following a trading guru’s short record of success is that you could just be following the hot hand for the time being which could turn cold at any moment, leaving you with losses. It is usually said when trading, that it is best to learn to make your own decisions, or at the very least understand the reasons for your trades. Otherwise, eToro is an interesting and fun currency trading concept. You could learn a great deal just watching and studying the top currency traders on the eToro website.

Easy Forex, being a more traditional type of currency trading website has great tools for charting, market news, analysis and tracking your trades.

2 comments

Sibt-e-Hassan Raja
0
Posted on Dec 13, 2012
Nick Yale
0
Posted on Dec 13, 2012