My Trading Platform of Choice - eToro

So one of my friends was asking me about trading platforms. The truth is, I've lived in a couple of different countries and trade stocks in a few different exchanges from different countries. For exchanges where it was convenient for me to engage a local brokerage, that's what I did. For others and other types of markets, I use eToro.

Why eToro?

1. It covers a multitude of markets. Commodities, NYSE, NASDAQ, Forex, etc. Take your pick. Trade in all these markets and more all through 1 platform.
2. Social trading. Their eToro Open Book allows you to browse profiles of other traders and even set up your account to automatically copy other traders' accounts. While I've never tried the auto copy function, I can see how this might come in handy (if you have the risk appetite for it). Beyond being able to view other peoples trades, they've got a great community going so the opportunity to learn is limitless.
3. Mobile app. I love this. I can check the markets anywhere, anytime. Trade anywhere, anytime. 
4. Regulated. eToro is regulated by UK's Financial Conduct Authority (FCA). While I'm not a UK citizen or resident, it does gives me some piece of mind that there's someone looking over their shoulder. Afterall, we're not trading with pocket change.
5. Customer service. While I've never had need to engage them, eToro boasts a 24/7 customer service team. I hope I never have need to make use of this service, but it's nice to know it's available.

If all the above meets your criteria for a trading platform, click here to open an account.

What is Social Trading?

Have you ever wished you could 'copy' trades off successful traders? Did you ever think to yourself, "Gosh, I wish that guy'd let me in on his trades as he was making them." This is precisely what social trading allows you to do.

 One of my hobbies is drawing and the easiest way to learn to draw is to copy someone else sketches (start with simple ones and the progressively harder ones), and then draw while referencing a photograph and then progress on to drawing real life scenes. I remember when I started learning to trade. I would often think to myself, there's got to be a better way to learn how to trade, like copying off somebody else. Well, social trading allows you to do just that. You may not make as much money as the person you're copying off but having access to a successful traders' trades gives you a starting point to understand how successful trades work.

Learn More About Social Trading

Prior to the internet boom, the only access to someone else's trades was via newsletters sent out by brokers, which also meant (1) a big delay between the trades being made and newsletters being sent out and (2) your pool of info was limited by which brokers were sending you info. Today, with social media being something you carry around with you in your purse or back pocket (in your smartphone, in case you didn't get it) any and all information is transmitted in real-time and is always available. The world of trading has caught up with this and brokers such as ayondo, Zecco, Curensee and eToro are some of the platforms that incorporate social trading into its trading platforms.

 The key to making social trading work is unencumbered flow of information. Small traders can now trade with the big boys where traditionally, you would need money and a certain amount of status to get you into their 'clubs'. As with many other things, social interactions across the web has changed this and money and status are no longer an obstacle to plugging into the right network. But here's the key: "THE RIGHT NETWORK." The information you receive is only as good as its source so pick your sources carefully. Follow successful traders but bare in mind that even the best make mistakes. Be ready to cut your losses if you don't have the holding power to ride out a down trend and always, always remember: you are the only person ultimately responsible for your own trades. 

Down Trends and Up Trends (Or What is Bi-Lateral Trading?)

People trading in the S&P 500 and other stock market indices often talk about making money on the up trend (buying at a lower price and then selling at a higher price) or down trend (shorting a stock or selling a stock they don't yet have with the expectation that the price will drop so that they can then buy what the already sold and make a profit). With Forex trading, you can make money on both the down and up trend in a single trade. This is taking advantage of bi-lateral trading.

Huh? Bi-lateral trading?

Yes, darlings, bi-lateral trading. When you make a Forex trade, it is always pitting one currency against another, for example, the British Pound against the Japanese Yen. OK, hypothetical situation: the British economy is in the toilet and the Pound with it. The Japs on the other hand, just announced a year-on-year GDP growth of 10%! (Purely hypothetical situation, don't get excited.) So you're thinking the Pound is going to continue losing value relative to most other currencies while the Yen will be increasing in value. What do you do with this notion? Well, what do you do in a two-horse race where one of the horses is only running on three legs and the other just won the Kentucky Derby? You bet on the horse with all four legs, obviously! So as with the Yen and Pound scenario, what any sane, right-thinking trader would do would be to buy Yen against the Pound. This way, you get to take advantage of both the down trend AND the up trend. Now you can start getting excited.

Forex FAQ's

1. What are Financial Markets?

Financial or capital markets are markets for products which are related to securities or other financial instruments and are typically traded on exchanges around the world. These include products such as Forex, Oil/Gas, Metals, Commodities, Indices and Stocks and a wide variety of these products are available for trading through our partners.

2. What is Forex?

Forex stands for "Foreign Exchange Market". Forex is the International foreign exchange market where currencies are being sold and bought by investors freely, Forex is known to be the biggest and most liquid financial market in the world with around $4 Trillion being traded in the Forex Market daily. Forex investors' trade via the telephone or online for efficiency and effectiveness. Thanks to modern day technology clients can trace their investments through their computer and see results in real-time. The Forex market is open 24 hours a day throughout the working week which makes trading much easier and profitable for global participants. The market schedule of the Forex Market is related to the time zone of its functional market such as London, New York, Hong Kong, Tokyo and Sydney. The Forex market is one of the fastest growing financial markets for both retail and professional investors.

3. Why should I trade on Forex?

Different investors choose Forex trading over trading in other types of markets for a variety of reasons. The Forex market is flexible enough for both novice traders and experienced traders to profit from, so anyone can learn to trade currencies.

• Compared to other markets, Forex has a high profit opportunity, therefore allowing investors to maximize returns for the same amount of capital.
• Trading times are flexible. Which means if you're an early riser who's up before the sun, you don't have to wait for the opening bell to start making money and making the most of your day. If you're nocturnal and go to bed at 4 a.m., you can trade right up till bedtime. If you decide to relocate to the other side of the world, you can still trade in the same market. No fuss, no muss.
• The Forex market is in it's nature global. Forget about BRIC mutual funds, trade BRIC currencies directly. At least you know what you're buying.
• Any financial expert will tell you to diversify your investments. The only real way to do this is by trading currencies. Why? Because trading currencies is trading in a neutral zone. What could be more diverse than trading the common denominator of everything?

4. How do I start trading on Forex?

1. Set up a trading account with a reputable trading house
2. Start trading!

Yes, it's that simple. Reputable trading houses will have their own online platforms to connect you to the market and will guide you step-by-step through the trading process. Look for a trading house that complies with regulatory bodies, e.g., UK's FCA. Be careful to note any hidden fees or costs that could eat away at your profits. The best trading houses are transparent about costs and will not hide costs just to get people to trade.