Whether you’re seeking expert guidance as a novice investor or aiming to expand your investment portfolio as a seasoned trader, Etoro’s copy trading feature unlocks a realm of possibilities.
This Etoro copy trading review aims to provide you with a comprehensive analysis of Etoro’s copy trading functionalities, exploring how it works, its key features, benefits, drawbacks, fees, and how to get started.
Table of Contents
Copy Trader Overview
| CopyTrader | Specifications |
|---|---|
| Regulation | FCA, ASIC, and CYSEC. |
| Account Currency | USD ($) |
| Markets | Currencies, stocks, commodities, cryptocurrencies, ETFs, and indices. |
| No. of Instruments | 3000+ |
| Copy Trading Fee | $0 |
| Min. Amount Per Copy | $200 |
| Max. Amount Per Copy | $500,000 |
| Min. Copy Amount | $1 |
| Max. Simultaneous Copies | 100 |
| Risk Management Tool | Copy Stop Loss |
| Traders Statistics | Performance, Average Risk Score, No. of copiers, |
74% 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.
How Etoro Copy Trading Works
Etoro offers copy trading through its innovative copy trading feature called Copy Trader. Etoro’s Copy Trader allows users to replicate the trades of successful traders within the Etoro community which consists of over 30 million active traders.
With Etoro’s copy trading feature, users can browse through a diverse range of traders, assess their performance history, and choose who to copy. Users are also provided with access to comprehensive statistics of the traders they want to copy, including their trading performance, historical data, average risk score, number of copiers, profitability ratio, assets traded, and other essential metrics.
Past performance is not an indication of future results.
Once a trader is selected, all their trades are automatically copied in real-time, allowing the copier to achieve similar investment outcomes.
What truly sets Etoro’s copy trading apart is its vibrant social trading community where users can connect, share insights, and discuss trading strategies with over 30 million active users. This collaborative environment promotes learning and enhances the overall copy trading experience.
Additionally, professional traders who qualify for Etoro’s Popular Investor Program can earn additional income, perks, and rewards when they are copied by other Etoro users. This incentive program creates a win-win situation, as copiers can benefit from the expertise of popular investors while popular investors are rewarded for their successful trading strategies, based on the number of copiers they attract.
Fees
Etoro does not charge any additional fees for copy trading. This means that users can access the platform, browse through a wide range of traders, and replicate their trades without incurring any extra charges. However, users may be subject to other standard fees such as spreads, overnight fees, conversion fees, and withdrawal fees.
Platform
Etoro Copy Trading (Copy Trader) can be accessed through the Etoro trading platform which is a user-friendly and intuitive trading platform that is accessible both through web browsers and mobile devices. The platform’s interface is designed to offer a seamless trading experience, allowing users to navigate effortlessly through various features and tools.
Both the web and mobile platforms feature a user-friendly interface, with intuitive navigation menus and customizable layouts. The interface is well-organized, providing clear sections for account management, portfolio overview, social and copy trading features, and market analysis tools. Furthermore, the platform incorporates advanced security measures to protect user information and ensure a safe trading environment.
Overall, Etoro’s platform interface, whether accessed through the web or mobile app, provides a convenient and efficient way for users to trade or invest through the platform.
Advantages
- Strong regulatory framework.
- Free demo account to test drive the copy platform.
- No management fees or additional fees for copy trading.
- Easy-to-use platform with an intuitive interface for copy trading.
- Option to diversify the portfolio by copying multiple traders simultaneously
- Access to a wide range of professional traders to copy.
- Access to a wide range of and markets financial instruments for copying trades.
- Transparency in trader profiles, which allows users to assess the traders’ performance and historical data.
- Access to an interactive social trading community with over 30 million active members.
- Ability to set specific parameters for copying, such as trade size limits and stop loss levels.
- Potential for professional traders to earn additional income and benefits through the Popular Investor Program.
- Ability to interact with other copy traders in the Etoro community and discuss strategies.
Disadvantages
- Does not support the integration or connection with external brokers
- Limited customization options for risk management and trade settings.
- A fixed fee of $5 is charged on all withdrawals.
- Only one account base currency is offered.
- Customer support service can be improved regarding response time and available support mediums.
How To Copy Trade Using Etoro
Setting up copy trading on eToro is simple and can be done in a few easy steps.
- From your eToro account dashboard, go to the ‘Discover’ section.
- Using the ‘Discover’, choose a trader that fits your investment needs and objectives.
- Click the ‘Copy’ button.
- Input the amount (in dollars) you would like to allocate.
- Customize your preferred Copy Stop Loss.
- Click the ‘Invest’ button.
After clicking the copy button, you’ll automatically duplicate their positions in real-time.
Conclusion
Etoro’s copy trading feature (Copy Trader) offers a unique opportunity for traders and investors to gain exposure to the strategies of successful traders. This makes it an ideal investment tool for novice traders with limited knowledge and skill, and professional traders with limited time.
With a user-friendly platform, a diverse range of traders to choose from, and a massive social trading community, Etoro provides a conducive environment for learning, interaction, and potential investment success. Additionally, there are no fees for Copy Trading on the platform, which makes it a cost-effective option, especially for low-capital investors.
While the Etoro copy trading feature presents several advantages, users should be mindful of the potential disadvantages and also exercise due diligence before working with the platform. This comprehensive review has provided a detailed analysis of the platform, which should help you evaluate its suitability for your trading or investing requirements.
Frequently Asked Questions
What is Etoro Copy Trading?
Etoro copy trading (copy trader) is an investment feature offered by Etoro that allows users to copy the trades of professional traders, enabling them to potentially achieve similar investment outcomes.
What are Etoro's copy trading fees?
Etoro does not charge any fees for copy trading.
What is Etoro's minimum deposit?
On Etoro, the minimum deposit amount required is $200. Although it might defer, depending on the user's country, account type, and payment method.
What is Etoro's minimum amount for copy trading?
To start copying a trader on Etoro, a minimum amount of $200 is required.
Is copy trading on Etoro profitable?
Copy trading on Etoro can be profitable, but it depends on various factors such as the performance of the traders being copied and market conditions. Please note that past performance is not indicative of future results, and it's always advisable to carefully evaluate and monitor the traders you choose to copy.
Disclaimer
eToro is a multi-asset platform that offers both investing in stocks and crypto assets, 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. 74% 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. The trading history presented is less than 5 complete years and may not suffice as a basis for investment decisions.
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.
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.