The eToro copy trading system is designed to assist traders navigate the hurdles associated with trading, and also explore ways of making profits from trading. For those possibly considering to start copy trading, who need recommendations on the right platform for this. Or for those who might have heard of eToro, but still have certain questions in their minds, and need further clarification. Here’s what you need -this article-
If you belong to any of the above highlighted categories of persons. Or even if the category you belong to isn’t highlighted, I recommend you stick around with this article. This is because it promises to equip you with vital information that can help you make better informed decisions.
This article will provide answers on how to start copy trading with eToro, among other useful information.
Quick Overview of eToro
eToro is a global leading, multi-asset investment company. The company provides a wide range of financial investment assets including currencies, stocks, commodities, cryptoassests, and lots more. Regulated by various financial authorities, including FCA, CySEC and ASIC. Its social trading platform is designed to enhance a user-friendly experience, intuitive and accessible and making users navigate seamlessly through various features and information.
eToro has an extensive copy trading feature, enabling less experienced traders to copy and replicate the trades of other experienced traders.The following points are important points to consider with regards to eToro copy trading:
- The minimum amount allowed to invest in a single trader is USD200.
- The maximum amount allowed to invest in a single trader is USD2,000,000.
- The maximum number of traders you can copy simultaneously is 100
For those interested in starting copy trading on this platform, here’s a step by step guide:
How to Start eToro Copy Trading
You can start copy trading with eToro by simply following the steps given below:
Step One: Sign up for an eToro account
To be able to start copy trading with eToro, the first step is to have an account with them. You can visit the eToro website online for this. From the website, simply follow the instructions given for creating an account. Also read through the terms and conditions provided. In keeping up with regulatory requirements, you will be required to verify your identity and upload necessary documents to that effect. Once you scale through this, your account is ready, and you’re ready to move to the next step.
Step Two: Make Deposits
Haven completed the processes for creating an account with eToro, log in to your account to make deposits. This can be done from the “Deposit funds” section in your account. You can choose from various options your preferred method for making the payment. Available options include bank transfers, e-wallet or credit/debit cards. After making a selection, you can deposit the amount you wish to invest with.
Step Three: Find experienced Traders tom Copy
You can use the ‘Copy people’ tool on the eToro platform to search and review potential traders to copy. You can equally apply filters to narrow your search based on certain criteria such as trading style, risk score, performance over various timeframes, etc. Each trader on the platform has a profile from which you can assess relevant information such as their portfolio compositions, trading performance and other analytics. You should be able to get a trader that suits your expectations and preference. You can click on your preferred trader’s profile to view more information.
Step Four: Allocate Funds for copying trades
From the profile of your selected trader, there’s a ‘Copy’ button which you will click to start the copy trading process. Select the amount to allocate to the trader after which the trades of the trader will be automatically replicated for you in proportion to the amount you invested. Once this is done, you can review the details to confirm your investment. Your funds will be allocated and you can start copying the trades.
Step Five: Track your Performance
You can track the performance of your copy trading from the ‘Portfolio’ section. You can see the performance of the traders you’re copying and make adjustments where necessary. On the occasion where you wish to stop copying a particular trader or change the amount invested, you can do these from the ‘Copy people’ or ‘Portfolio’ sections.
Additionally, you can get useful tips and updates from engaging with the community. Participate in the eToro’s social trading community to share experience and learn from others. Also, it is advisable to copy different traders. This will help in diversifying risks.
Pros and Cons of eToro Copy Trading
Pros
Some of the pros of the eToro copy trading are given below:
- Given its popularity the eToro platform provides access to a wide range of competent traders to copy from.
- The platform doesn’t charge extra fees or hidden charges for its copy trader.
- The eToro trading platform is simple, accessible and user friendly.
Cons
Below are some of the cons of the eToro copy trading:
- The popularity of the platform also implies that many traders on the platform that are copied may not be proficient enough. This can be a risk to those copying this set of traders.
- There are possibilities of delays in execution of trades made by a copy trader. Such delays can be dangerous when copying a trader with a quick paced strategy which relies on fast execution.
Frequently Asked Questions
What is the minimum amount to copy trades in eToro?
- The minimum amount required to copy trades in eToro is USD 200.
How can I add money to my eToro copy account?
- If you’re either accessing the platform from the web or mobile app, you can get this done from the ‘Portfolio’ selection. Click on the ‘portfolio’ and tap the icon next to your copy trading investment and tap on ‘invest more’. Enter the amount you wish to add and tap on ‘update’ to confirm.
Is eToro copy trading profitable?
- While this can be profitable, it also depends on a number of factors including market conditions, performance of traders copied, etc.