eToro is a social trading and multi-asset brokerage company that was founded in 2007. It allows users to trade and invest in a variety of financial instruments such as stocks, ETFs, cryptocurrencies, and more. One of eToro’s unique features is its social trading platform, which enables users to follow and copy the trades of successful traders.
What is eToro Copy Trading?
eToro Copy Trading is a feature that allows users to automatically copy the trades of other eToro users. This means that if a user decides to follow and copy another trader, any trades that the copied trader executes will be automatically replicated in the follower’s own account.
How does eToro Copy Trading work?
In order to use eToro Copy Trading, a user must first find a trader to copy. This can be done by browsing through eToro’s social trading platform and looking for traders who have a track record of success. Once a trader has been identified, the user can choose to allocate a portion of their own funds to automatically copy the trader’s trades.
When a user copies a trader, any trades that the trader executes will be automatically replicated in the follower’s own account. The size of the trade will be proportional to the amount of funds that the user has allocated to the copy trade. For example, if a trader executes a trade worth $100 and a user has allocated $1,000 to the copy trade, then the user’s account will execute the same trade but with a value of $10.
What are the benefits of eToro Copy Trading?
- Easy to use: Copy trading allows users to benefit from the expertise of experienced traders without having to do the research themselves.
- Diversification: Copy trading allows users to spread their investments across a range of different traders and financial instruments.
- Transparency: eToro’s social trading platform provides users with access to a range of performance metrics for each trader, allowing them to make informed decisions about who to copy.
- Low minimum investment: eToro allows users to copy other traders with as little as $200.
Overall, eToro and eToro Copy Trading are powerful tools for anyone looking to invest in financial markets. Whether you’re a seasoned investor or just getting started, eToro’s social trading platform makes it easy to access the expertise of experienced traders and diversify your portfolio.
If you don’t have an eToro account yet, register here.