What makes eToro unique?
eToro is one of the largest brokers worldwide. Their success is partly due to the focus on the social aspect within the platform. Novice investors and experts discuss, exchange experience and copy each other's strategies through Copy Trading. This social aspect, where you can learn from each other, contributes to the success formula of this platform.
Copy Trading with eToro
As an eToro user you can automatically copy trades from successful traders. This unique system, called Copy Trading, was conceived and patented by eToro. You will therefore not soon see this system with other brokers. Copy Trading is, as it were, a kind of extension of social media. For example, you can also link your Facebook account to see which of your friends is active in Copy Trading. Maybe you have some friends who are already really good at it?
How does Copy Trading work
After you have signed up you will get a profile page where you can see your track record of trades and final results. Your followers on this platform can see on your profile page what your win percentage is that you have achieved with trades. With your profile page you can show how good you are at trading. You can also see from other users on the platform how much success they have with trading.
The unique and wonderful thing about Copy Trading is that you can directly copy trades of successful traders. When copying, you invest a portion of your account to execute exactly the same trades as the person you follow. You are in fact releasing part of your capital to let a (successful) trader invest with your money, with which the profit that the trader makes is fully for your account. With the push of a button you can copy all trades of a successful trader that you follow. This completely relieves you of having to manually buy all the shares yourself. You can also execute the trades manually if you prefer.
How do you find a successful trader to Copy Trade?
You want to start copy trading, but you don't have friends in your social circles who can trade as excellently as you want. You then look for a trader who can achieve the return you are looking for. Finding a trader is simple and complicated at the same time. It's easy, because on eToro you can easily filter traders by: Risk score, investment products and past returns. Based on this data, you already have a selection of interesting candidates. When it comes to actually choosing a trader, things get a bit more complicated. You hand over all your power to a trader who has only proven himself in the past. You can reduce the risk by researching the potential candidate you want to track. We recommend that you dive into the trader's trading history to find out what his or her trading strategy is. This way you know better what to expect if you follow that trader.