eToro is a social
investment company that is radically different from most Forex brokers in a
sense that it has been developed with a purpose to create an investment
community where one trader can copy another one.
Everybody is an investor and can attract
followers/copiers
You can open an
account with a few hundred bucks and become a leading investor or can be a
follower and copy those who are popular investors and make money for themselves
and for others. The higher the percentage you make the more reliable you become
as a trader and if your risk score is low you can attract huge followers and
copiers. If you do not want to trade yourself, then you can be a copier or a
follower. A follower just gets info about all the trades a specific trader
makes, but does not commit any capital to that trader.
A copier copies actual
trades and if the trader makes money, so does the copier. Of course, if the
trader loses money, so does the copier. You can start and stop copying any
investor any time you want.
Disclaimer: All trading involves risk. Only risk capital you’re prepared to lose. Past performance is not an indication of future results. This content is for educational purposes only and is not investment advice.
How to start/stop copying
That is easy. You
simply click on the icon of the investor and on the top right size of the
screen there is a blue sign ‘Copy’. You press it and a window will open. It
will ask what amount you want to allocate for copying. The minimum is 100$, but
you can allocate more. You can then choose when to stop copying the trader.
Default settings are ‘if the copy value drops more than 40 percent’. You can
change that to whatever amount you want. If the losses reach that level you
will automatically stop copying that trader. Of course, you can manually stop
copying or pause copying any trader at any time you want. It is recommended not
to interfere with the trades, but you can also close positions that are open or
modify stops. So, you are fully in charge, despite the fact you are copying all
the trades the investor is making.
How to choose who to copy
It is your choice
entirely, but there is a list of popular investors and on your platform (on the
left) you can push a button ‘Copy people’ and you will get a default version of
popular investors with specific settings: country, market they invest in, gain
at least (10%) and during last 12 months. Again you can modify those settings
and choose people from a specific country or any part of the world, choose
those who have the biggest gain in 12 or 6 or 3 months. You should also look at
risk category, the higher the category the higher the risks the investor is
taking, the lower the category the lower the risks the investor is taking. Do
thorough analyses before you decide who to copy and if you want to be copied be
sure you trade great, do not risk much and after a few months you will be
considered as a candidate to become a popular investor. But about that next
time.