Besides eToro’s 0% commissions for trading and investing, one of the main features of eToro that distinguishes their platform to other stock trading brokers is eToro’s CopyTrader™ feature.
While it’s really debatable if it’s actually a good option to use or not as some people prefer to have full control over the assets they’re trading and investing in, this is no doubt a really clever feature by eToro as it allows newbie traders to ride the profits(and losses) of other more experienced traders.
But first off..
What is eToro CopyTrader™?
Basically, with eToro’s CopyTrader™, you can “Copy” other traders on eToro’s platform.
For example: When you’re copying person X, and person X makes a trade, your account automatically copies person X’s trade. Pretty much replicating every trade person X does. But also, you can also copy multiple people!
Hence, when person X profits off his/her trades, you end you making profit as well. But of course, at the same time, if person X loses with his/her trades, you lose money as well.
While it seems like you giving full control of your funds to person X, you can simply stop copying person X any time you want and simply hop over to other traders when it just so happens that you don’t agree upon the trades that person X is executing.
So, is eToro CopyTrader™ worth using?
Yes, and no. It’s completely subjective.
To simply put it, if you’re already an experienced trader and you prefer trading and investing in stocks or cryptocurrencies on your own, then you probably shouldn’t use eToro CopyTrader™.
On the other hand, if you don’t like reading charts and doing stock research and instead prefer doing other stuff instead(probably like starting a blog) but still like to potentially make money off trading, then maybe you should consider using eToro CopyTrader™.
How do I use eToro CopyTrader™?
Fortunately, eToro’s platform is quite easy to use that pretty much anyone can use it.
1. Create an eToro account
If you don’t have an eToro account yet, you can create an account in just a few minutes here:
Disclaimer: 75% of retail CFD accounts lose money. Trade with caution.
2. Pick a trader
on eToro’s left sidebar, click on Copy People. A decent categorized list of traders should appear— from the most copied traders, to the trending traders, and to the most successful investors.
3. Start copying!
Once you’ve already picked a certain trader that you’d like to copy, simply click on the blue COPY button, enter in an amount you’re comfortable with, then click on Copy!
Do some research!
Especially knowing the fact that your money is going to be at risk, make sure to take a look at the past performance of certain traders to make sure if they’re actually making money, before copying them. You wouldn’t want to copy random people without checking if they’re actually making money off their trades, right?
Have realistic expectations
Especially when talking about trading, even the most successful traders and investors don’t make winning trades 100% of the time— that would be too unrealistic! They win some, they lose some. What separates the good traders from the bad traders, is not necessarily that the good traders don’t make mistakes, it’s just that they make more good trades than bad trades.
With eToro CopyTrader™, fortunately, you can copy multiple people at once.
If you want to decrease your risk, it’d probably be beneficial to copy multiple traders, instead of just copying one trader.
Let’s say you’re copying 5 traders. If for instance 2 out of the 5 traders you’re copying had a bad month of trading, but the other 3 traders had a good month of trading, you might still have made a profit in that month when you average the profits/losses of the 5 traders you’re copying.
Follow their feed
Interestingly enough, just like most social media sites, eToro also has a news feed feature.
From time to time, you can check out the news feeds of the traders you’re copying, to have an idea on why they bought or sold certain assets, and what they think of the current market situation.
Regardless if you’re using eToro CopyTrader™ or if you’re doing your own trades, it’s really important to take risk into account, and never go all in with your money because nothing is guaranteed in everything— in trading and investing, and even in other stuff like business in general. Make sure to always trade and use your money wisely!