Why eToro Copy Trading is One of the Best
Copy trading is a brilliant trading strategy that allows you to increase your chances of making a profit.
The eToro trading platform was the first to introduce this strategy through their intuitive CopyTrader tool.
Copy trading is copying the trading strategy of a successful trader to optimize your trade for success. That is to say, it is an excellent idea for beginners as they may have limited knowledge of trading.
Copy-trading with eToro can be very profitable and is generally a low-risk investment. However, this is only possible if you choose the right trader and the platform has also made it easy to achieve that. What makes eToro the best for copy trading? Let’s find out here.
What Is eToro?
eToro is an online broker and trading platform that was launched in 2007 and is unique for its Fintech revolution – copy trading. Although eToro started with forex trading, it is now a multi-asset platform that allows you to trade cryptocurrencies, stocks, CFDs, and commodities.
The platform is well-regulated, with the support of ASIC, CySEC, and FCA which makes it credible, you wouldn’t have to worry about safety. eToro has a highly-friendly trading interface that makes it an excellent trading platform for beginners. It is very easy to use, with features and options that make trading straightforward.
Generally, eToro is a great option for trading, with an A+ rating on credible tech review sites and good testimonials from users. Investing in the platform is deemed a low-risk investment as a result of its stability and reliability.
What Is Copy Trading?
Copy-trading simply means copying the trades of other successful traders for your real-time trading. For successful trading, you will have to find a trader who you think has a potential for success based on past performance in whichever market you’re trading.
And, this is the purpose of eToro’s CopyTrader that allows you to browse through the portfolios of several traders to find ones you consider best. Copy-trading gives beginner traders a chance to make money with trading even when they don’t have a lot of experience.
Although it may not be a one-time hit for beginners, it may take a lot of trial and error before they can master the ropes. A beginner may record a lot of losses until you find the best trading strategy for you, then become more consistent in making profits.
What Is eToro CopyTrader?
eToro CopyTrader is a feature on the eToro trading platform that enables copy trading. With this tool, you can search for successful traders on the eToro CopyTrader platform taking into account individual trader’s performance, risk scores, assets, their annual returns, and more
Once you’ve found a trader you wish to copy, decide how much money to invest and automatically copy the trades of the trader. It only takes a few seconds to copy a trade after the trader you have copied places their trades. So, you don’t have to worry about losing profit as a result of abrupt market changes.
eToro does not charge you any management fees to use eToro CopyTrader, rather they pay the traders who make their trades available for others to copy. This is as part of what you benefit from the eToro Popular Investor Program as a successful trader. The platform claims that the average yearly profit of most copy traders is over 83%.
How Profitable Is Copy Trading in eToro?
Copy trading is a service that eToro offers you so that you can trade profitably on the platform. This platform does not directly have a hand in the success of your trade, rather it only gives you the opportunity for success.
So, copy trading in eToro is profitable depending on the trader you copy. if you copy the right trader to copy, you can almost be sure of profit. That is why it is important to copy a trader with a consistent record of profit, trading is always risky, whether copied or not.
You need to choose a trader who has high-profit margins and a low-risk profile and do your homework well. With that, you are most likely to earn a lot of money even as a beginner. Copy trading is that simple with eToro CopyTrader and is one of the best ways for newbie traders to profit in the crypto or forex market.
In summary, copy trading on the eToro trading platform helps you save told me you would have spent doing a lot of market analysis. This helps you to achieve success in trading within a short time, unlike when you have to build your trading success from scratch. At the same time, you get to learn how to trade from professionals.
How to Copy a Trade on eToro
Copy-trading on eToro is super easy, just follow these steps:
- Using the CopyTrader tool, browse to find and choose a trader you want to copy
- Decide on the amount you want to invest
- Copy everything the trader is doing in real-time automatically with a click
However, there are some things you should note before you decide to do copy trading with eToro, here’s a list:
- The minimum trading amount is $200.
- The maximum trading amount is $2,000,000.
- You cannot copy more than 100 traders simultaneously.
- If the amount for your copied trade is less than $1, the trades will not be opened.
- For a closed copy trade that you do manually, the funds will be placed back to your copy balance. The copy balance is the amount allotted to copy a trader that is not invested in open positions.
Copy trading is a solution to the technicality of trading. If you are yet to learn the nitty-gritty of trading, this can be a no-brainer for you. However, what is more important in copy trading is choosing the right trader to copy or you may end up losing your money.
eToro has also made it highly seamless with their automatic copy trading tools; CopyTraders and CopyPortfolio. So, eToro is most likely the best option for copy trading.