How Do I Invest in the ASX 200 Through eToro?

Written by Nick Zelver

Fact checked by Wikitoro Team

Updated Mar, 2024

To invest in the ASX 200 through eToro, sign in to your eToro account and use the platform. Enter "AUS200" in the search bar to locate the index, then choose to Buy or Short depending on your investment strategy. Specify the amount you want to invest, set your trading parameters, and click "Open Trade" to execute your investment.

Getting Started

The ASX 200, commonly referred to as the AUS200 in trading platforms, is an index that comprises the top 200 Australian stocks listed on the Australian Securities Exchange (ASX). While the information provided seems to pertain to the EURO STOXX 50, a prominent European stock index, the principles of trading indices on platforms like eToro apply similarly to the ASX 200. This index serves as a barometer for the overall Australian equity market, reflecting the performance of Australia's largest publicly traded companies.

Here's the thing: I've prepared this straightforward, step-by-step guide on how to invest in the ASX 200 Index on eToro. This guide is crafted with clarity in mind, ensuring that even those new to investing can easily follow along. Continue reading to discover how you can start trading one of Australia’s foremost market indices using this online investment platform.

How to Trade ASX 200 on eToro?

Embarking on trading the eToro ASX 200 index via the platform is straightforward. Below are the steps that will guide you through the process:

1. Create an account on eToro or log in to your account for existing users
   Opening or accessing your eToro account is the gateway to trading. For new users, the registration process is user-friendly, requiring some personal details and verification. Existing users can simply log in with their credentials.
2. Enter "AUS200" on the search bar, locate the AUS200 or AUS200 Index result under the Markets category, and hit the associated "Buy" or "Short"
   Once you're in, type "AUS200" into the search bar to find the index. You’ll see it listed under 'Markets.' Here you can choose to either 'Buy' if you anticipate the index will go up or go 'Short' if you expect it to go down.
3. Key in your desired amount to invest or the number of ASX 200 units you want to trade
   Decide on the investment amount or the number of units you wish to trade. eToro allows flexibility in investment size, making it accessible for traders with different budgets.
4. Set the stop loss, leverage, and take profit parameters
   To manage risk, set your stop loss at a point where you’re comfortable with the potential loss. Adjust the leverage as desired – remember, higher leverage increases both potential gains and losses. Set a take profit level to secure earnings when the index hits your target.
5. Hit the "Open Trade" button to execute the order
   After double-checking the details, click 'Open Trade' to execute your trade. Your position is now live, and you can monitor it within your portfolio.

☝️It’s important to remember: You are engaging with Contracts for Difference (CFDs) when trading the ASX 200 index on eToro. This means you are not purchasing the actual index but are trading on the movement of its price. CFDs offer the ability to find trading opportunities based on the index's price volatility without owning the underlying assets.

And That's a Wrap!

You're now equipped with the knowledge to trade the ASX 200 index using this platform. Whether you're a seasoned trader or a beginner, this guide is intended to help you navigate your investment journey with one of Australia’s leading market indices. Feel free to share this guide with fellow traders and embark on your trading adventure today.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.