What is eToro copy trade? Copy trade on eToro make money?

TutorialsOctober 15, 2021

capital.com – The broker you should try to trade cryptos & US stocks. Learn more!

What is eToro copy trade? Should I use copy trading on eToro? How much money does eToro copy trading make? This article will learn the basics of copy trading on eToro, how you can make money from this feature.

What is eToro?

eToro is a trading platform launched in 2007. This broker allows trading in various platforms: Stocks, indices, commodities, forex, cryptocurrencies. In addition, eToro also offers a network feature, a very famous copy investment society.

eToro is a beginner-friendly trading platform. Compared to other brokers, eToro is considered the most user-friendly and easy to use right from the first use. eToro is regulated by reputable agencies in the world, such as FCA (Anh), CySec (Cyprus)ASIC (Úc). Therefore, investing in eToro is considered a low risk due to its stability, well-regulated, and reliability.

What is eToro copy trading? Copy trade on eToro make money?

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

What is Copy Trade?

Copy trade, also known as Copy trading, is a feature that helps investors copy the entire investment and trading activities of another user account. Copy-trading makes it possible for investors with no experience or knowledge still to make money from trading in the financial markets.

If there is no copy trading function, you will have to self-study and practice a lot to find an effective trading strategy to make money from the market. But with copying trades from successful investors, you need to choose an investor with effective trading results and a suitable trading strategy and click copy. Immediately after that, for every investor trade, you decide to trade, positions will copy your account accordingly.

What is eToro copy trading?

eToro copy trade is a feature that eToro offers to users who want to use eToro to copy trades from other users on the platform. eToro CopyTrade allows you to select any trader using the eToro platform and copy their trades.

* See more: The complete guide eToro from a to z

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

After choosing a suitable investor, you need to select the amount of investment capital, click copy. eToro will copy your account according to the portfolio of the person you set in the same proportion. All copy trading operations are performed automatically. For example, when the trader you copy buys a stock, your account will automatically execute an order to buy the same stock.

You don’t have to pay any management fees to use eToro copy trade. eToro only profits from the spread for each transaction, just like if you trade yourself.

However, the copied traders will get a share of the profits from eToro. This gives traders more incentive to invest effectively to attract more copyists.

Is copy trading on eToro worth it?

Copy-trading on eToro can be a good option for you if you choose the right trader to copy.

To choose a trader with good results, you can review the information provided on eToro such as Risk score, monthly/yearly trading performance, asset portfolio, transaction history Translate…

You can also find traders using the eToro platform’s filter to find the countries or performance you want…

After the trader you choose opens an order, your account will immediately open the corresponding order. Therefore, the delay when copying is not too significant to affect your trading results. If the trader you copy makes a profit or loss, your account will get the same result.

What is eToro copy trading? Copy trade on eToro make money? 2

Is eToro copy trade guaranteed?

Investment is always associated with risk. In the stock market, no one claims always to win 100%. There is always a risk when trading in financial markets. That’s why you can only use the available capital and potentially lose it.

Besides, it is also essential to choose a trader who has had good trading results for many years because that is the person who can manage capital and control effective trading strategies.

If you choose the wrong people to copy to, you could be at a loss because the trading result of the person you copy will be your account.

Using copy trading is quite simple. However, you need to choose a trader with a low-risk score, high return in the long run. With a good selection of profiles, you can make a lot of money from the financial markets without trading experience.

How to choose good traders to copy on eToro?

Choosing a trader to copy is the most important thing when investing in eToro copy trade. A trader with good results but a high-risk score and no stable profit in the long term may not be your choice. There are a few things to keep in mind when choosing a trader to copy:

The trader you choose must have stable trading results for at least 2-3 years or more. The longer the past trading results, the more reliable one’s trading ability. Because if a trader only has good trading performance for a year, maybe he is just lucky, or the market is good in general, so all strategies are correct. For example, if the trader you chose to trade in crypto in 2017, 2020 will undoubtedly have excellent profits. But that does not mean that he is a good trader in the cryptocurrency market. Only traders with good long-term results can prove their trading ability.

It would help if you chose a trader with stable trading results for a long time. The trader you select should be consistently profitable most months of the year. It shows that the trader knows what they are doing and that they have a consistent trading strategy. Their results are due to trading power, not to the market. If a trader is only successful in certain months of the year, it may be due to luck and not their strategy.

A trader on eToro with a risk score of 3-4 or less is considered safe. If that trader’s risk score is greater than 5, their trading strategy may be risky.

In general, how you choose a trader depends on your preferences. These are just some general recommendations for everyone.

Conclusion

Overall, copy trading on eToro is worthwhile. However, it is essential to choose the right trader to copy. Otherwise, you may lose money. Also, only place the amount that you are comfortable risking in the trade.

Investiki.com

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, 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. 68% 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. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

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.

Read more: etoro

guest
0 Comments
Inline Feedbacks
View all comments