eToro Copy Trading

Written by Nick Zelver

Fact checked by Wikitoro Team

Updated Mar, 2024

Introduced in 2010, the CopyTrader feature has rapidly gained popularity, particularly among new investors. It offers a unique opportunity to follow, copy, and learn from some of the most successful traders on the eToro platform.

If you've found your way to this page, chances are you're seeking detailed information about eToro's CopyTrader. You're in the right place! In this guide, I'll cover everything you need to know about CopyTrader, including valuable insights and personal experiences that could be beneficial for your trading journey. So, stay tuned and make sure to read through to the end.

How Does CopyTrader Work

CopyTrader is designed to enable investors to replicate the strategies and positions of seasoned traders in real-time. By exploring the profiles of eToro's top traders, you can view their earnings, current positions, and adopt similar strategies in your own trading. This includes mimicking their trade openings, leverage used, target profits, stop-loss settings, and the timing for closing trades.

In essence: Using CopyTrader is akin to shadowing an expert trader on the floor of a major exchange, like Wall Street, and mirroring their every move. The only difference here is that you're doing everything online!

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.

Insights from My Copy Trading Journey

Based on my personal experience with eToro's CopyTrader, here are some key takeaways that might be helpful:

• Investment Minimums: To start copying a trader, there's a minimum investment requirement of $200. It's important to note that this amount was temporarily raised to $500 at one point, so always check for the latest requirements.
• Minimum Trade Amounts: The minimum amount for any individual trade within the copy mechanism is set at $1. This means that trades below this threshold won't be executed. Be aware that this minimum was temporarily increased to $2, so it's good to stay updated on these changes.
• Closing Trades and Copy Balance: When you decide to manually close a copied trade, the funds from this closed position are returned to your copy balance. This balance refers to the amount you've allocated for copying a trader, which isn't tied up in any open positions. Understanding this mechanism is crucial for managing your investments effectively on eToro.
• Learning from Top Traders: This is a gateway to the profiles of some of the most successful and skilled investors on the platform. This feature allows you to analyze each trader's performance comprehensively. You can choose to replicate their trades and keep an eye on their strategies, gaining valuable insights from their expertise.
• Time Efficiency: Instead of dedicating extensive hours to understanding every aspect of the financial markets, you can learn while copying trades from experienced traders. This approach allows for a more practical and time-efficient learning experience.
• Portfolio Diversification: This is particularly useful if you're not well-versed in stock exchanges or various asset classes. By following and copying the strategies of seasoned traders, you can effortlessly diversify your investment portfolio. This diversification is key to managing risk and potentially enhancing your investment returns.

Filtering by Groups and Categories

What I'm really amazed with the platform is that it offers a structured way to view traders through various groups and categories, allowing me to find investors that align with my specific interests and strategies. Here's a breakdown of the categories you can explore:

• Trending Investors: These traders have experienced a significant increase in their number of copiers recently.
• Most Copied: This category features popular investors who have attracted the most copiers. You can customize this filter to show the most copied traders over different time frames, such as the last 6 months, 1 year, or 2 years.
• Highest Gainers: Investors in this group are yielding the highest overall profits.
• Most Consistent Investors: These are traders with a high percentage of profitable months.
• Lower Risk Investors: This category includes profitable investors who maintain diversified portfolios with low risk scores.
• Global Macro: This group focuses on traders with exposure to currency and commodity markets, offering diversification non-correlated to the broader market.
• Market Outperformers: Investors who have outperformed the S&P 500 index over the past 12 months.
• Focused on ETFs: These investors specialize in exchange-traded funds, with ETFs making up over 30% of their portfolios.
• Energy Investors: Traders whose portfolios consist of at least 20% energy-related assets, such as oil and natural gas.

Finding Your Ideal Trading Match

So how do I choose which popular investors to copy on eToro? To find a trader that aligns with your investment preferences and risk tolerance, eToro offers the "Find Your Match" filter. This tool simplifies the process by asking you a series of questions to tailor your search based on your preferences. By utilizing this feature, you can efficiently identify investors who match your trading style and goals.

Once you're done answering these questions, hit the "Find Investors" button to see your filtered results.

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.

Exploring a Trader's Profile

When you visit a trader's public profile on the platform, you'll find four key sections that provide a comprehensive view of their eToro trading activities and style:

1. Overview: This section serves as the trader's introduction, offering basic information about them. Below the overview, you'll find the trader's feed, reminiscent of a Facebook timeline or wall. Here, the trader can post updates, share content, and engage with followers. As a user, you have the option to like, comment on, or share these posts.
2. Stats: This section provides a detailed breakdown of the trader's statistics. It's a valuable resource for understanding their trading performance, including historical data and success rates.
3. Portfolio: Here, you'll see a comprehensive list of all the assets in which the trader currently holds positions. This section includes detailed information such as the name and symbol of each asset, whether it's a buy or sell position, the percentage of investment in each, the current profit/loss rate, and the overall value. Additionally, buy and sell buttons are available, displaying values that update in real-time with market changes.
4. Chart: This section features an updated chart that illustrates the trader's performance over time. The performance data is based on copy-simulated results using the account's historical data, assuming an initial investment of $10,000 and a 60% copy stop-loss setting.

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.

Your Very 1st Copy Trade: A Must-Read

Embarking on your first copy trading experience on eToro is straightforward. When you choose to copy a trader for the first time, you'll receive a one-time notification. This notice includes a brief introduction to the copy trading feature, along with a request for your authorization and confirmation of the specified terms.

It's crucial to thoroughly read through the 'CopyTrading Risks' and the terms and conditions provided. Understanding these details ensures you are well-informed about the process and any associated risks. Once you have reviewed and understood all the information, you can proceed by clicking the "Confirm" button to start your copy trading.

Simultaneously Copying Multiple Traders

When exploring the capabilities of eToro's CopyTrader tool, a question that often arises is can I copy multiple eToro traders at the same time or is it limited to just one trader at a time. The good news is that they do allow you to copy several traders simultaneously.

However, it's important to note that there is a limit to the number of traders you can copy at any given time. This feature provides the opportunity to diversify your copy trading strategy and learn from a variety of trading styles and approaches.

And That's the Rundown!

You now possess a comprehensive understanding of eToro's copy trading feature. I've endeavored to make this guide straightforward and accessible, especially for beginners, and I hope it adds value to your copy trading journey. If you found this guide helpful, please feel free to share it with others who might also be interested in exploring the world of copy trading!

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. 51% 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.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

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

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.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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 hasbeen prepared by our partner utilizing publicly available non-entity specific information about eToro.