User-Friendly Platform Educational Resources Social Trading Features
Wikitoro author Mike Druttman Written by Mike Druttman
Updated Feb, 2024

To trade forex on eToro, first open the eToro platform and navigate to "Discover," then select "Currencies." Choose the currency pair you wish to invest in and decide whether to "Buy" or "Sell." Set your investment preferences according to your trading strategy, and then click "Open Trade" to execute your position.

Trade Forex!

76% 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.

 

Getting Started

Trading forex through eToro's platform is a straightforward process, based on my personal experience. To assist you, I've compiled a concise step-by-step guide, along with some helpful information, to enhance your currency trading experience with this broker.

 

Forex Trading on eToro: Understanding CFDs

In forex trading on eToro, you engage in transactions involving Contracts for Difference (CFDs) rather than buying or selling physical currencies. This approach allows you to speculate on currency price movements without owning the actual currencies.

Traditional forex trading involves exchanging one currency for another, capitalizing on price differences across markets, typically for speculation or hedging. In contrast, a CFD is a derivative that lets you speculate on the price changes of a currency pair, without the need for physical ownership. When you trade forex on eToro, you're entering a CFD contract, where your profit or loss is determined by the price difference from when the contract is opened to when it's closed.

CFD trading offers the advantage of gaining from price movements without the complexities of owning or delivering the actual asset. However, it's crucial to be aware of the risks, including the possibility of losing your investment. Employing risk management strategies, like stop-loss orders, is essential to mitigate potential losses.

 

Before You Begin Trading

Prior to diving into forex trading with this broker, it's important to consider a few essential steps for a smooth experience:

  1. Ensure your eToro account is fully verified.
  2. Verify that your account has sufficient funds, keeping in mind that the minimum deposit for this asset class is $1,000.
  3. Be aware of the forex market's volatility and understand that your capital is at risk, necessitating cautious and informed trading decisions.

 

How to Trade Forex on eToro

Initiating forex CFD trades on eToro is a user-friendly process. Follow these steps to get started:

  1. Access the eToro platform and select "Discover".
  2. Choose "Currencies".
  3. Identify the currency pair you're interested in and opt for either "Buy" or "Sell".
  4. Determine your investment amount.
  5. Adjust settings like leverage, stop-loss, and take-profit orders to align with your trading strategy.
  6. Finally, click "Open Trade" to commence your trading position.

 

Parting Words

And that's how you do it! With just a few simple clicks, you can start eToro forex trading. Remember to keep in mind the key points highlighted in this guide. I hope this information assists you in becoming a more knowledgeable and savvy trader. Best of luck in your trading journey!

 

 

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. 76% 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. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

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.

Wikitoro author Mike Druttman About Mike Druttman

Mike Druttman, Head of Content at Wikitoro.org, has decades of expertise in marketing communications and business matching. Educated at the CAM Foundation and the Chartered Institute of Marketing, Mike has collaborated with businesses from the UK to Japan. He founded KEYZUNA, bridging Japanese businesses with global innovations. With a diverse background spanning high-tech to hospitality, Mike's articles at Wikitoro reflect his vast knowledge and unique perspective.

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76% of retail investor accounts lose money