our take on its most popular feature

eToro is a multi-asset trading platform like no other. Its DNA is based on social trading with Copy Trading as its flagship feature. If you are a young investor and want to know more, find out without delay our detailed opinion on Copy Trading on eToro.

© Journal du Geek

A few words about eToro

eToro was created in 2007 and quickly became known as the reference trading platform with over 20 million users in 2022. eToro allows diversified investments across many asset classes: stocks, cryptocurrencies, ETFs, commodities and indices. But what makes eToro famous are its innovative social trading features, especially with Copy Trading. This unique concept in the world was born in 2010. eToro was also awarded the following year by winning the Finovate award.

In 2022, investors have different profiles. More and more beginners also want to increase their money. Copy Trading is therefore timely as it opens the doors of trading to everyone.

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On eToro, 78% of retail investor accounts lose money when trading CFDs. You need to know if you understand how CFDs work and if you can afford to lose your money. On eToro, cryptocurrency trading is done in CFDs.

What is Copy Trading?

Copy Trading is a free feature that allows users to copy the actions of other traders (Top Traders) in an automated way. By reproducing verbatim and in real time what other traders are doing, you don’t have to worry about the investment strategy. It is a real opportunity because you can meet experts from leading investment banks who share their expertise and advice on eToro. It is simply impossible from your traditional bank.

Copy-Trading-eToro
Copy Trading on eToro © Journal du Geek

By offering open profiles with a Facebook-inspired news feed, eToro reassures many users. You also have the possibility to get in touch very simply with Top Traders to discuss and ask them questions by posting a comment on their profile. Like on social media, you will be notified with a notification when a trader you follow posts something or replies to your message.

Copy Trading therefore offers the possibility of investing in the markets even if finance is not your area of ​​expertise.

How does Copy Trading work?

Copy Trading is particularly intuitive and open to all users. You simply have to go to the “Search” tab on your personal space and then look for the “CopyTrader” section. You will then have access to the profiles of the best investors. By clicking on it you can see in detail their portfolio, their performance over the year and month as well as the average risk indicator of their investments. The risk scale is between 1 and 10. There are also other very interesting data such as the number of people who copy Copy Traders. This can be a good indicator of success.

It is possible to refine the investor search by adding filters such as the trader’s country of residence, the markets in which he has invested, the returns obtained, the level of risk of his investments or the number of photocopiers.

By copying a trader, you will immediately see the gains or losses made. Note that all costs (rollover spreads) have already been deducted. The profit you see is then the net amount earned.

Tutorial: how to copy an investor?

To formulate an objective opinion, we tested Copy Trading on eToro. Although the process is very simple, we will explain step by step how to copy a Top Trader on eToro.

Find a trader to copy

The first step is to create an account on the platform and then verify your profile. If you want more details on how to proceed, you can consult our detailed opinion on eToro.

Open an eToro account

On eToro, 78% of retail investor accounts lose money when trading CFDs. You need to know if you understand how CFDs work and if you can afford to lose your money. On eToro, cryptocurrency trading is done in CFDs.

So you can look for a trader whose strategy and results look good to you. Even if you are not experienced in the industry, the user profiles on eToro are made so that you can see key information at a glance. In this case, we recommend that you consult:

  • traders’ bio (they explain their strategy and usually give advice for copying)
  • performance, portfolio breakdown and additional statistics (Statistics tab)
  • the average annual risk indicator
  • the markets in which it has invested (active trades can be found in the Portfolio tab)
  • the number of photocopiers

Invest an amount for the copy

With these elements, you already have a good overview of the trader’s profile and strategy (especially long or short term). When you have found a profile that suits you and meets your expectations, click “Copy”. You will then need to set the amount you want to use for the copy. Of course, you will need to deposit funds into your account first. For your information, bank transfer is preferred because it carries no fees for USD transfers and very low conversion costs for transfers to another currency.

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Copy of a trader on eToro © Journal du Geek

Keep in mind that you can only copy 100 traders at a time and that the minimum amount to invest to copy someone is $ 200 (around € 183). You will also need to define a Stop Loss which will aim to stop copying if the value falls below a certain amount. For example, copying for $ 1000 and setting a 50% Stop Loss means that copying will stop when the value reaches $ 500. This is a good way to protect your trades. You can also choose to copy trades that are already open or not. In general, traders indicate in their presentation if it is advisable to copy the trades, the value of the Stop Loss to be set and the minimum duration of the copy.

Look at the results

Once validated, the copied trader will appear in your portfolio, along with any recorded gains or losses. At this point, all you have to do is check the status of your capital from time to time. If the trader you are copying has invested in stocks or cryptocurrency trading with a long-term focus, be patient and don’t panic at the slightest change. Don’t forget that Stop Loss is there to cover your back.

By clicking on the gear wheel on the right you can adjust some parameters. You can stop copying at any time or pause it, add or withdraw funds or set up a new Stop Loss.

If you are unsure of yourself, you can use your virtual wallet first. In fact, eToro awards all of its users $ 100,000 of virtual capital that you can use as you see fit. This is a great way to understand how eToro Copy Trading works. You can then replicate your real money actions later.

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Status of the eToro wallet with Copy Trading © Journal du Geek

Our feedback on eToro Copy Trading is more than positive. Operation is particularly intuitive. Everything has been designed for those who are new to investing and this is a real advantage in our opinion. Copied traders drive copiers, which greatly facilitates the process.

Become a Top Trader on eToro with the Popular Investor Program

Now you know what Copy Trading is and how to copy a trader on eToro. At this point, you may be wondering what motivates some members to share their expertise and unveil their strategy in the open.

EToro’s Copy Trading system works so well because it has implemented the Popular Investor program which rewards traders based on their managed assets and equity. There is a monthly fee, but also other perks such as free withdrawal (normally set at $ 5), tickets for sporting events, free subscriptions to some newspapers such as the Times, etc.

On every Copy Traders profile, there is a star next to the profile picture. The color of the star corresponds to different levels of competence:

  • Blue for cadet status
  • Red for Champion
  • Green for Elite
  • Black for Elite Pro

Of course, the higher the level, the greater the benefits. In order to claim the title of Top Traders and receive income through this activity, there are certain conditions to be met such as maintaining a daily risk score of 6 maximum and adhering to the leverage restrictions for all states. The Cadet level is also obtained by counting a photocopier for a minimum of 2 months and the status of Champion 5 photocopiers for 4 months. Finally, Elite and Elite Pro status must acquire certain management training qualifications and commit to keeping photocopiers informed by posting them in the news feed at least once a month.

Discover eToro

On eToro, 78% of retail investor accounts lose money when trading CFDs. You need to know if you understand how CFDs work and if you can afford to lose your money. On eToro, cryptocurrency trading is done in CFDs.

Note that all users with a public profile can be copied. It is only access to the Popular Investor program (and remuneration) subject to the above-mentioned requirements. Our opinion on this program is very positive since it is thanks to it that this service works so well.

Smart Portfolios, another feature offered by eToro

eToro is an innovative platform and proves it once again by offering Smart Portfolios. These smart wallets group different assets (often focused on market segments) intended for long-term investments. Smart wallets are designed by eToro’s investment teams after extensive research.

By investing in Smart Portfolios, you will automatically copy portfolio investments. Here, the minimum amount to invest is $ 500. There are no management fees.

Thanks to this approach, users can diversify their investments very easily, with just one click.

Conclusion: CopyTrading, the feature to try on eToro

With its social collaboration and Copy Trading proposal, eToro is disrupting trading codes, previously reserved for finance experts. Copy Trading allows you to duplicate the open positions of the traders of your choice in real time.

Copy Trading is a free feature which therefore has significant advantages, including ease of implementation and the fact that you don’t have to worry about your open positions. In return, you have to trust the trader you are copying completely because you are entrusting them with your money. This is why it is important to carefully study the profile of upstream traders.

Open an eToro account

On eToro, 78% of retail investor accounts lose money when trading CFDs. You need to know if you understand how CFDs work and if you can afford to lose your money. On eToro, cryptocurrency trading is done in CFDs.

In our opinion, this is a big step forward in the world of investments as now everyone can access it, without necessarily having advanced knowledge in the sector.

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