eToro CopyTrader Review
Social trading platforms allow you to follow others, copy their trading decisions or even build your own following. Understand how eToro's platform can work for you, whether you're new to Forex trading or an experienced trader.
eToro's social trading platform
1. Follow successful users
eToro's platform is built around OpenBook, a newsfeed similar in many ways to your Facebook or Twitter newsfeed. Follow successful users to receive their posts, updates and trading tips. If you are new to Forex and online trading, this is an opportunity to connect and learn from others.
2. Copy their trades
Once you've found a trader with a strong track record, CopyTrader allows you to automatically copy their trading positions in real-time. Choose between copying all their trades (including all open positions) or just new trades. eToro will also automatically carry over any stop loss and take profit orders. From that moment onwards, your account will mirror theirs until you decide otherwise.
3. Get paid to trade
If you build a following, eToro (eToro.com) will reward you through its Popular Investor Program. Earn a 2% management fee across your followers' annual Assets Under Management. In addition, you're also receive a 100% spread rebate across all your trades. These amounts are in addition to the profits from your own trading activity. Crucially, all Popular Investor earnings are credited monthly and can be withdrawn.
Risk management tools
However, following other users isn't without its risks as even the best can experience losses when the markets turn against them. eToro's (eToro.com) platform comes with a wealth of risk management tools that limit your exposure to loss making trades.
- You cannot invest more than 20% of your account's equity in a single trader. As you cannot invest less than $100 in a trader, we recommend depositing upwards of $500 upfront when you open your account.
- eToro's Copy Stop Loss (CSL) feature limits your exposure to a single trader to a set dollar amount. By default, that amount is set to 40% of the copied balance. However, you can adjust it manually anywhere between 95% and 5%. eToro will automatically terminate the copy relationship when its balance falls below that amount.
- eToro's Copied Trades Stop Loss (CTSL) feature allows you to limit your exposure to individual copied trades. This is in addition to the protection your receive through the CSL.
- Last but not least, you can close a copied trade manually at any time.
eToro's platform is available online at eToro.com and on mobile, through iTunes and the Google Play store. Its social trading app has over 1,000 different investment opportunities across currencies as well as CFDs on stocks, indices and commodities. Visit eToro.com to find out more.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% 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.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
Past performance is not an indication of future results.
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