Copytrading

Copytrading means that you choose to copy a trader, and whenever he or she makes a trade, you will do the same automatically. Meaning that once you have found a trader you would like to copy with your funds, you do not have to do anything else.

The best of it all is, there are no fees in doing this (besides the spread fee, meaning the trader buy an asset a tiny bit more expensive than it is and sell it a tiny bit cheaper than it is, and so do you). So why would the trader agree to this? Because if the trader is popular and many people copy him or her, they will receive money from the broker. 

Why would the broker do all the work and pay the trader extra? Because the broker also makes money on this, as they get a spread fee  every time a trader buys or sells and asset

If you choose the right trader it is a win, win and win situation for you, the trader and the broker. If you are interested in copytrading you can follow this guide:

If you want to start doing some copytrading you will need to make a profile at eToro. It takes approximately 5 minutes, however you must be ready to provide some personal information in order to varify your account due to financial service regulations. So before we go even further in this guide, go to eToro and join their platform by clicking on the join now button.

Once you have made your profile at eToro you will need to deposit some funds, so you can start investing. You just do it by clicking on "Deposit Funds" in the menu to the left. You can deposit funds through different options, such as credit card, Paypal etc and they are available right away. When your have added funds you click on "Copy People" in the menu to the left:

Copy people.png

Once you have clicked on Copy People you will get to the Copytrading menu. In the top you will be able to search on your own parameters, else you can also see some preselected Popular Investors chosen by eToro, and they have been categorized in different groups, such as most popular, medium risk, low risk etc. It shoulds look like this:

Copy search.png
Copy choise.png

Once you have found a popular investor that you would like to copy, you just click on his or hers profile. I have chosen to go to my own profile, and now I will show you what you can see on every Popular Investor's profile. The first thing you see is the Feed, where you can read the different post the Popular Investor has written. The post in the top is typical a pinned post, which explains the guidelines for copying that person, and what you can expect.

*Past performance is not an indication of future results.

Profile.png

Next you can click on the stats, where you, among other things, can see how the Popular Investor has performed, how many that copy him or her, and the riskscore.

Stats1.png
Stats2.png

If you are interested you can click on portfolio to see what that Popular Investor is trading. If you do not know much about investing, it isn't that important, however since you are going to own the same assets as the popular investor, it can be fun to see what you are going to own, if you copy that particular investor.

*Past performance is not an indication of future results.

Portfolio.png

If you click on the chat you can see how the Popular Investor has performed if you had copied him or her with $10.000. The amount of $10.000 is a default setting by eToro and cannot be changed. It does give you a good idea of that particular Popular Investor's performance.

*Past performance is not an indication of future results.

Chart.png

If you have found a Popular Investor that you would like to copy, you simply just click on the copy button in the top right corner.

*Past performance is not an indication of future results.

Copy.png

When you have clicked on copy, you have to decide the amount you would like to copy the person with. You will also need to set a copy stop loss. In my particular case I decide to copy with $500, which is the minimum amount you can copy with, and I have a stop loss which is set by default at 60 %. That means that I cannot lose more than 40 % of my initial amount. In case the popular investor lose more than 40 %, the copytrading will automatically stop. Once you are ready to copy, you just click on the copy button and eToro will take care of the rest. You are now copying that person, so whenever he or she does a trade, you do it too. Do not be alarmed that your copytrade starts in minus. It always does, as you have to pay the spread fees that I wrote about previously.

Stoploss.png

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. 67% 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.

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.

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.