Forex trading in Australia: etoro review australia

Forex trading in Australia: etoro review australia

eToro is one of the earliest online brokers in Europe and remains one of the most vibrant exchanges today. Their team of financial experts has worked tirelessly over the years to ensure that every trader feels at home and shares exciting, new features that can easily be learned by both novice and seasoned traders alike! This blog presents etoro review australia focussing Forex and CFD trading at eToro.

Forex Trading at eToro

eToro used to be a forex broker. That’s what the company started with when it first launched back in 2006! Of course, for a long time now, the company has specialized in offering traders the opportunity to use CFDs on stocks and ETFs. Still, if you intend to trade currencies on eToro, there are plenty of currency pairs to choose from at any given moment. There is a total count of 49 different ones (till 1st Jan2022)! If you don’t know how to trade, then first learn forex trading and then continue to sign up on such platforms.

Forex Spreads

The spread refers to how much difference there is between the price a currency pair is bought and sold for. The higher that spread, the lower your profit is likely to be. On the eToro platform, spreads will vary due to what currencies you’re trading with each other. For example, if you’re looking at the EUR/USD market, you’ll find that it has a one pip spread. However, in USD/ZAR, the spread can be as high as 50 pips! All of the other listed options fall somewhere in between.

Forex Leverage

Whenever you permit your readers to trade on leveraged instruments when using eToro, it is important to remember that all currency pairs, regardless of how common they may be such as, EUR/USD, has a maximum leverage level enhancement of x30. On the other hand, more exotic currency pairs like EUR/NZD have a maximum leverage level enhancement of x20.

CFD trading at eToro

CFD traders who know what they’re doing can make a lot of money from the market fluctuation, but at the same time, so many people are trading with CFDs for all the wrong reasons. The fact is that if you have zero knowledge about how to trade, then chances are that you’ll lose a lot more than you’ll win when using derivatives and securities.

It’s much better not to speculate in an area unless you know what you’re doing or are otherwise trusted by someone who genuinely knows what they’re doing. On eToro, you can invest in currencies and indices using CFDs. The CFD tickers will make it clear that you are trading CFDs, rather than ‘real’ assets.

Take Away!

As an Australian citizen, you can use eToro to trade cryptocurrencies. Just bear in mind that, as crypto isn’t recognized by the government as a foreign or Australian currency, it’s treated more like property than a currency and thus subject to capital gains tax when sold for fiat. Australia does allow transactions involving cryptocurrency derivatives (i.e. CFD trades). Enjoy trading at eToro and let us know in the comments that how you found this platform.

Also read : How to take the lessons related to currency trading

 

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