Have you tried social trading? This is a fantastic way to invest in multiple asset classes with ease without having many years of trading experience and market knowledge. Let’s take a look at the world’s leading social trading broker, eToro.
Make money as a popular investor
In addition to providing investors with the perfect platform to reap the benefits, eToro also offers experienced traders the opportunity to become popular investors and earn a decent income in the form of commissions and discounts based on the amount of money managed and the number of copiers.
Easy and efficient investment
An easy and extremely efficient investment has never been easier. In a few simple steps, you can start making a steady return on your investment without having to stare at dozens of charts all day, every day.
Although trading is always associated with risks, these risks can be effectively mitigated in a variety of ways on the eToro social trading platform, which includes portfolio diversification between 5 asset classes and up to 100 different popular investors (simultaneously).
Intelligent performance analysis
A great feature of tracking popular investors on the eToro platform is that you can use an advanced analytics algorithm to examine the performance of each trader, which calculates and displays the trading statistics of all popular investors.
In addition to calculating the profit or loss of each trader for different periods, the algorithm analyzes the amount of risk taken in each period and combines this information to give each trader a risk rating.
This risk rating is incredible because it comes from a number of trading perspectives that include a particular trader’s choice of asset, leverage choice, percentage of capital invested in a single asset, and hedged positions, to name a few.
This risk rating is expressed on a scale of 1 to 10, and it indicates the percentage of equity that is risked in a single day. Here is a screenshot:
eToro risk score scale.
For example, a risk score of 6 means that the trader risks between 3.9% and 5.4% of the equity in his account on average per day.
Of course, the risk of your own portfolio is also assessed with this smart algorithm to give you a good idea of how much risk you are exposed to and how certain operations (such as copying certain popular investors) affect your risk rating. What a great tool!
If you enter the profile of a popular investor to examine your performance, one of the things you will see is the average risk score of the trader over the last 7 days.
When examining the profile of popular investors, you will find all the other important information you need to choose the best traders wisely.
This includes statistics on how long this trader has been active on the eToro platform, his performance during this period, which assets he trades the most, average hold time per trade, amount of money managed, number of copiers following him, and much more.
Access to a large community of merchants
What I really like about eToro is that you can connect with many other traders, investors and of course popular investors. The efficiency with which the platform coordinates all the interactions of its members is absolutely phenomenal.
EToro even facilitates text translation on its platform when merchants of different nationalities need to communicate.
This makes the whole trading experience easier and also instructive. Interacting with popular investors is really important because it promotes transparency and helps investors evaluate different popular investors before they are copied.
Virtual practice account
EToro offers a fantastic demo account for merchants that doesn’t expire. Although trading or copying traders on the platform is very simple, their virtual account is a really useful tool to familiarize yourself with before trading on a live account.
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Wide range of asset classes
What I absolutely love about eToro is that you can trade a lot more instruments than what a typical forex broker offers.
You can trade no less than 1,071 different financial instruments on the eToro platform, which is simply incredible!
If you like to trade currencies, you can choose from 47 pairs, plus the two main cryptocurrencies, bitcoin and ether.
If you prefer to trade stocks, you will be happy to choose from 950 different stocks listed on the 8 most important stock exchanges in the world.
Index traders can choose from 12 major stock indices that include Nikkei (which is one of the new tools we have recently incorporated into our profitable forex signaling service).
You can then deal in a variety of commodities (7) and exchange traded funds (53).
EToro’s next generation investment product – CopyFunds
EToro is a real pioneer in social commerce. Their latest CopyFunds innovation is really worth mentioning in this review.
I just watched a video of the CEO and founder, Mr. Yoni Assia.
Founder and CEO of eToro, Yoni Assia
For me, it was an eye-opening video that testifies to eToro’s professionalism and magnitude. In this video, Mr. Assia explains how their new product, CopyFunds, works
CopyFunds has a minimum investment of $ 5,000.
“CopyFunds works like multiple merchants and it all works for you at the same time. As such, there are many underlying positions that are opened on your behalf. Therefore, the minimum amount required to invest in CopyFunds is $ 5,000. ”- eToro.
“There are two types of CopyFunds you can invest in: Top Trader Copy Funds, which consist of eToro’s best performing and most sustainable traders, and Market CopyFunds, which link CFDs, commodities or ETFs as part of a chosen market strategy.
CopyFunds ™ aims to help investors minimize long-term risk and promote growth opportunities by taking copy trading to a new level and creating diversified investments. ”’- eToro.
When it comes to customer support, eToro makes a really good impression. When I first opened an account with them, a friendly lady, Rachel Woods, called me within a few hours to find out if I needed any help.
Of course, I asked him a lot of questions. I don’t think it was an average customer call for him, but he was really patient, professional and helpful.
The eToro Academy of Commerce
The eToro Academy of Commerce
Whether you are a beginner or an experienced trader, eToro offers excellent educational materials that will teach you how to maximize your trading profits and improve your trading skills.
Live and recorded webinars organized by eToro trader experts are a great way to accumulate valuable trading tips. Their financial trading e-course and trading videos are also freely available to those interested in participating in the market.
The only fees you pay when trading are surcharges and overnight fees.
The spread of eToro is typically slightly wider than some leading forex brokers. The purpose is to compensate popular investors for the commissions paid for their services.
Of course, you can scroll through certain instruments, just like with the average forex broker, and there is no commission on any trade.
Minimum position sizes
The minimum amount (with maximum leverage) to open a trade on the platform is as follows:
Stocks: $ 50.
Major currencies: $ 25.
Other currencies: $ 25 to $ 500.
Bitcoin and ether: $ 250.
Commodities: Between $ 25 (e.g. gold and crude oil) and $ 100.
Indicators: $ 200, except China 50 and USDollar, which require $ 500.
The minimum item size offered on currency pairs is 10,000 (one mini item). This is ten times larger than what the average retail broker offers.
Personally, I don’t like the platform because it forces retailers to put themselves at greater risk than they should.
For example, if a retailer placed $ 300, it would risk 25% of the total account to trade the minimum position size (10,000) on GBP / USD with a 75 stop stop loss.
This small account trading is impractical and very risky.
However, if you are copying a popular investor, the minimum trading amount is $ 1. In addition, the minimum amount that can be set aside for each popular investor is $ 100.
This is a brilliant feature of eToro and allows retail investors to effectively copy popular investors without the typical $ 25 per trade (select instruments only) limit required.
Of course, I won’t cover every single aspect of eToro in this article, but I’m confident that this information will give you a good idea of the feature you can enjoy with this phenomenal broker.
If I were to be as critical as possible, I would say that the trading platform lacks some of the advanced features of traditional forex trading platforms and is somewhat less user-friendly in terms of executing and managing orders, and perhaps one or two other small features. However, eToro has a number of advanced features not found on other brokers or their platforms.
Algorithmic trading is also becoming more popular. At present, it does not promote algo trade, which some traders may perceive as a shortage.
Perhaps at some stage, algo trading will be incorporated, which will give some flavor to your trading experience.
However, many of the benefits offered by eToro clearly outweigh these minor shortcomings.
I am very impressed with how easy and cheap it is for other merchants around the world to copy. I also love the tools and information you need to thoroughly analyze the performance of each trader before deciding whether to copy them. Ultra-efficient investing has never been easier!
All in all, I have to commend Mr. Yoni Assia and his team for developing an absolutely incredible social trading platform.
I had a lot of experience using it myself and can recommend eToro to anyone who wants to trade in the markets, become a popular investor, or copy some of these popular investors.
See you on the Etoro platform!