eToro is one of the most famous online eToro trading platforms in the world, specializing in providing convenient and functional options. The platform can be used worldwide and is ideal for novice traders and professional investors.
How does eToro work
CopyTrader is an iconic element of the eToro platform.
The CopyTrader feature is the driving force behind social eToro trading, allowing you to view real-time trades made by real traders and find traders that match your personal preferences, track their actions and, most importantly, copy their trades “with a single click”.
The CopyTrader developed by eToro is a game-changer in eToro stock trading, allowing traders to copy trades of real users and create their own investment portfolios.
Here are some minimum and maximum limits, which should be considered:
- The minimum amount required to copy each individual trader is $200.
- The number of traders to be copied at the same time should not exceed 100 people.
- The investment amount allocated for copying of one trader should not exceed $2.000.000.
- The minimum size of the transaction is $1. If the proportional sum on the copying account is less than $1, such transaction is not opened.
How does eToro work? The CopyTrader system offers the possibility of copying all positions of the copied trader, already open at the moment of receiving the copying order. In case this option is selected, the then open positions of the selected trader are reproduced (copied) on the copier’s account.
Already open positions of the copied trader are opened in the copied trader’s account at the current market rate at the moment of copying (not at the rate at which they were initially opened by the copied trader).
The same Stop Loss (SL) and Take Profit (TP) values will be set for copied trades as were originally set for copied positions.
Once you start copying a trader, when considering how does eToro work, you will understand all his actions with respect to copied trades, including changing stop loss or take profit and closing positions, will automatically be performed with respect to copied trades as well. If the copied trader increases the stop loss level for a certain position by investing an additional amount in it, the stop loss of the copied transaction is also recalculated accordingly. In this case the size of the copied position remains unchanged. Therefore there can be a discrepancy between percentages of profitability of copied and copied trades.
Any copied position can be closed without cancelling that trader’s copy as a whole, that’s how does eToro works.
If the copied trader opens a position in the market, closed at the moment of copying start (for example, on weekends or holidays), the system will open a market order for the copied trader. As soon as eToro trading in the market resumes, the order will be executed at the rate at the moment of market opening.
To see all trades copied from a particular trader, go to your portfolio and click on its name.
All previously duplicated positions are opened on the account simultaneously. The positions will show a small loss, reflecting the difference between the buying and selling rates. Thus, the copied trader sees in real time the amount of money he can get when closing them. After copying has begun, new trades are opened in the copied trader’s accounts at the same speed as they are opened by the copying trader. The amount of trades copied opens is calculated proportionally taking into account the copied trader’s own realized funds. Let’s see how does etoro work, if the copied trader opens a position for 10% of his own realized funds, then on the copying trader’s account the corresponding deal will be opened for 10% of the capital, allocated to copy the trades of this trader.
At the same time, the initial proportion can change if the balance in the eToro trading account of the copied trader changes, for example, when he deposits or withdraws funds from the account. All these events affect the amount of funds in the copied trader’s account and can lead to the change of the percentage ratio when copying trades. After the copied trader closes all current trades, the ratio between the size of positions in the accounts of the copied trader and the copier is restored.
How to trade on eToro
How to trade on eToro, which has tools to help with research and analysis.
First, there is the current standard economic calendar, which shows all the right events that can affect your important trades.
Secondly, there is a social eToro trading feature called CopyTrader, where all users will be able to see what other people are saying on the eToro Platform. You can use this feature to get some ideas for your trades.
There is also a market research tool built into the TipRanks site that shows important news headlines. This is very important if you are eToro trading an instrument that is highly dependent on external events.
Of course, you have standard indicators as well. Other than eToro have done a great job with this aspect and have added a total of 67 indicators to the website. Don’t be surprised, you can read our guides here at Toro Demo Trade if you don’t understand something about a particular indicator.
You also have access to drawing tools like lines and rectangles to help you better in your trading strategies.
There are currently two types of accounts offered by eToro.
The first type of account is a real account, also known as a live account. This account allows traders to use real money in eToro trading. If your goal is to use the platform for real leverage, then you should use this account.
The second type of account is an eToro demo account, also known as a virtual account. As its name suggests, a demo account allows traders to use virtual money in eToro trading. This account is completely risk-free, which means that you can use it to test new strategies and techniques without the risk of losing your hard earned money.
To start trading with eToro, the first thing you need to do is open an account. Fortunately, opening an account on the platform is easy – it’s more like opening a social network account. All you need to do is:
- Enter your name, email address and physical address.
- You will receive a confirmation email sent to your email. Click on the link to activate your account
- After confirming your email address, make an initial minimum deposit of $200 ($50 for US and Australian traders).
- Verify – After completing the above steps, you will open an account and begin trading. However, you cannot withdraw profits from your account until you verify your account. This verification process involves providing eToro with a copy of your identification document. This can be your national passport, passport or driver’s license. In addition, you must provide proof of address using a recent bank statement or utility bill.
After submitting the above information, the eToro team will review it and evaluate your account as a whole. They may either approve it or request additional information.
Choose the assets that are interesting to you. Do you want to trade eToro stock? Currencies? How about bitcoins? Each asset category has its own benefits and associated risks, so you need to get a clear understanding of each.
How to make money with eToro?
One of the main things newcomers to forex trading learn is how to make money on eToro. It is one of the oldest and most successful Forex trading platforms that has a great track record when it comes to making profits for its users.
The most important thing anyone interested in trading should know is how to make money on eToro and not be afraid to take risks. While there are many good sides to EToro, it also has many bad sides. Those who are willing to accept the bad side of this platform can make a lot of money and lose a lot of money at the same time.
The first step in how to use eToro to make money is to create an account with this onlineeToro stock trading company. Then, select shares of your choice and deposit them into your new online trading account. During the course of your registration, eToro will check the availability of your shares. Upon approval, your account will be funded and your shares will be added into your trading portfolio.
eToro is the world’s largest social trading platform. With millions of users from over 140 countries, eToro can transform their collective knowledge and experience into practical trading tools.
eToro offers its clients a wide range of financial instruments: 47 currency pairs, eToro stock and CFDs on eToro stock, CFDs on commodities, ETF funds, CFDs on eToro stock indices and cryptocurrencies. Leverage in eToro is limited by regulatory requirements and is:
|30:1 for major currency pairs.|
|20:1 for cross rates (such as EUR/NZD), gold and major indices.|
|10:1 for Commodities|
|5:1 for CFD’s on eToro stock|
|2:1 for CFD on Crypto-currencies|
Spreads on eToro are quite large and can help you in the question of how to make money on eToro: for example, the spread on ESDUSD is 3 pips and the spread on GBPUSD is 4 pips. Fans of scalping and arbitrage are not welcome on eToro: scalping is strictly prohibited by the company’s regulations (Clause 7.3 of the Terms). The company reserves the right to interfere with the execution of orders, to revise previously opened trades and, finally, to simply close the client’s account.
Along with a whole range of tools for eToro stock trading, online investing, crypto trading, and much more, it has introduced many fundamentally new social trading features. But what makes the eToro platform social? The range of social features offered by the eToro platform is incredibly broad and extends far beyond the trading platform itself. By pioneering social capabilities and making the financial market more supportive and accessible to almost anyone, anywhere in the world, eToro has significantly expanded its audience and maintained effective communication channels.
Tips for trading with eToro
- The first tip on how to use eToro to make money is to find the right users to copy. Use the search tool to find the best traders to subscribe and copy. Filter your search results by risk, profit, country, and many other categories.
- The second tip on how to use eToro to make money is to copy the best traders, the CopyTrader™ system is a great way to automate your trading activity on our platform. If you are not ready to trade on your own or you simply don’t have enough free time, the best option for you is to copy an experienced trader and automatically reproduce all their actions in real time.
- Meet Popular Investors. Successful copy traders can be attracted to the Popular Investors program on the eToro platform. This program rewards these traders with impressive bonuses, which encourages them to share their knowledge and approach their trades responsibly. If you are a successful trader with good returns and low risk, then you have a real opportunity to be part of this program, this will be the third tip on how to use eToro to make money
- The final rule on how to use eToro to make money is that the time factor plays a key role. When copying a new trader, study his profile and get an idea of his strategy. Some traders follow long-term strategies that involve the possibility of intermediate losses followed by compensation and profits in the future – so you should have a good idea of the length of the investment cycle planned by a particular trader.
Tips for investing in CopyPortfolios
- Include thematic investing tools in your portfolio. Thematic investing is the first thing you need to know how to trade on eToro, because it’s a great way to invest long-term with reduced risk. Read more about it on the eToro blog
- The second tip on how to trade on eToro is to know what CopyPortfolios are. It is the latest financial tool developed by eToro. Each CopyPortfolio investment strategy is a combination of different assets or traders and is constantly optimized with an algorithm aimed at reducing risk and increasing returns.
- Learn about the CopyPortfolio strategy offered to you, so you know how to trade on eToro, without mistakes. The CopyPortfolios line includes three types of strategies:
- Top Trader CopyPortfolios, uniting successful eToro traders.
- Market CopyPortfolios, which combine various assets according to a specific market strategy.
- Partner CopyPortfolios, comprised of some of the world’s most sophisticated financial analytics firms.
Method how to make money on eToro:
- Think long term. Lower risk usually means lower returns. Therefore, when investing in CopyPortfolios strategies, keep in mind that they do not provide a quick return and are designed for the concept of how to make money on eToro.
- Learn how to trade on eToro. Copy Trader is one of the tools provided by eToro to educate traders on how to trade on this platform. This online trading company allows users to learn from the trading habits of others
- Get rid of the inactivity fee. If you know how to make money on eToro, you need to monitor your portfolio performance. Since this online trading firm charges a low fee for trading activity, it is advisable to maintain a small portfolio.
- Go for spreads. The primary reason why many traders love using how to make money on eToro is because it offers excellent trading platform features at a very low trading cost. The eToro spreads feature makes money.
- Stay away from weekend fees. Some traders have a habit of staying in front of their computer all weekend and taking part in all the trading platforms on weekends. Weekend fees can eat up a lot of your trading profits. Although this is one of the advantages offered by eToro, you still need to learn how to make money on eToro.
- Know how to make money on currencies. Aside from getting rid of weekend fees, another thing you need to know how to make money on eToro is how to get better with your currency conversions. This is where eToro comes in. You have the freedom to set up your own currency converter which will allow you to convert your currency into many currencies without making use of another trading platform.
- Get yourself a trading robot. Automated trading robots have answered the question of how to make money on eToro for many traders. Most traders who use trading robots say that they are much more successful than when they worked on their own. This is because when a trader gets used to a particular robot, they get used to analyzing data and making trading decisions faster and smarter, which allows them to make more money.
- Be patient when considering how to make money on eToro. Even though the CFDs offered on eToro are cheap, you must remember that they are still considered high risk investments. Therefore, you need to be patient and wait for your profits to grow.