How Can I Invest in the CAC 40 on eToro?

Written by Nick Zelver

Fact checked by Wikitoro Team

Updated Mar, 2024

To invest in the CAC 40 on eToro, you must first have an eToro account to use their trading platform. Once logged in, type "FRA40" into the search bar to locate the asset, then decide whether to Buy or Short based on your investment strategy. After that, enter the amount you wish to invest, set your trading parameters, and click the "Open Trade" button to place your order.

The Foundation

The FRA40 index, more commonly known as the CAC 40, is the benchmark French stock market index. Established towards the end of 1987, it encompasses the 40 most significant stocks among the 100 highest market caps on the Euronext Paris. Reflecting a diverse spread from industries like automobile manufacturing to cybersecurity, the CAC 40 serves as a barometer for the overall performance and health of the French stock market. For traders interested in the pulse of France's economic and financial vitality, the FRA40 index is a go-to instrument to keep an eye on.

To help you navigate the world of investing in the CAC 40 Index on eToro, I've crafted a straightforward, step-by-step guide. Designed with clarity in mind, this guide aims to demystify the process for beginners and seasoned traders alike. So, let's delve into the essentials of trading FRA40 on one of the world's leading social trading platforms, eToro.

Steps How to Trade CAC 40 on eToro

Embarking on your trading journey with the eToro CAC 40 index is both exciting and straightforward. Below, you'll find the essential steps to get started:

Step 1: Create an account on eToro or log in to your account for existing users.

Signing up is quick and easy. For new users, eToro requires some basic information to set up your account. Existing users can simply log in to their accounts to begin.

Step 2: Enter "FRA40" on the search bar, locate the FRA40 or FRA40 Index result under the Markets category, and hit the associated "Buy" or "Short" button.

Searching for "FRA40" will bring up the index. Choose whether you wish to invest in the hope the index will rise (buy) or fall (short) based on your market analysis and predictions.

Step 3: Key in your desired amount to invest or the number of CAC 40 units you want to trade.

Decide how much capital you want to allocate or how many units of the index you want to trade. Remember, it’s essential to invest wisely and within your financial limits.

Step 4: Set the stop loss, leverage, and take profit parameters.

Setting these parameters helps you manage risk and define potential profit targets. Leverage can amplify both gains and losses, so use it with caution.

Step 5: Click the "Open Trade" button to execute the order.

Once you’re satisfied with all the details of your trade, it’s time to open the trade. With a click, your position is live, and you’re part of the CAC 40 trading community.

📊 Remember: This is Index CFD Trading

When you trade the CAC 40 index on eToro, it’s crucial to understand that you’re engaging in CFD trading, meaning you are not buying or selling the actual stock index. CFDs, or Contracts for Difference, enable you to speculate on the price movement of the FRA40 index, presenting trading opportunities based on fluctuations in value, all without owning the underlying asset.

Finishing Touches

There you go! You're now equipped with the know-how to trade the CAC 40 index via the eToro platform. Whether you're a beginner or an experienced trader, this guide is designed to help you understand the essentials of investing in one of France's most prominent market indices. Don't keep this knowledge to yourself—feel free to spread the word and share this guide with fellow traders.

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.