How to get started with eToro copytrader?

Etoro copytrader is a service provided by the trading platform eToro. The service allows you to copy another traders trades and make money without doing any trades yourself. Everything is done automatically. If the trader you copy makes good trades, then you will earn money if they make bad trades then you will lose money.

Open an account with eToro

The first step to start using copytrader is to open an eToro account. Etoro is a trading platform that offers mobile and desktop trading. You can trade a wide selection of different types of financial instruments. Among these instruments, you will find stocks, forex certificates and CFD:s. Etoro is licensed by several different regulatory bodies, including the Financial Conduct Authority (FSA) and CySec. Read more about eToro and how to open an eToro account.

Open an account is easy and only take a few minutes. You will need to be able to verify your identity to be able to open an account and withdraw money from it.

Deposit money to your eToro account

Depositing money to your eToro account is very easy. You can do it in a number of different ways using several different banking options. You need to deposit money to be able to trade using real money. You can trade using a demo account without depositing any money. You can not earn money by trading in your demo account.

How quickly the money will be in your eToro account depends on how you deposit money. Some methods are almost instantaneous, while others can take several days.

Choosing a trader to copy

You will need to choose which trader you want to copy using the copytrader function. You can choose to copy one or several traders. Copying several traders allow you to reduce your risks as you are able to make money even if one trader you are copying is having a bad quarter.

Which trader you should choose to copy depends on how much risk you are willing to accept. If you want to maximize your chances of earning a high return and is okay with high risk, then you can choose a trader that trade high-risk financial instruments such as forex certificates and penny stock if you prefer a lower risk profile than you should choose to copy a trader that trade blue-chip stock and other low-risk financial instruments.

Inspect the trading history of any trader you want to copy. Check their history several years back. Check if they seem to earn a reliable return or if they just been lucky as of late. Avoid copying traders that usually lose money. This is true even if they made a good return during the last few months. Never base who you copy entirely on who has produced the best result during the last few months.

Active copy trader

Once you have decided who you want to copy you can set up copy trader, Go to the copy trader function on the website and enter who you want to copy. You will also be asked to enter how much money you want to invest in each copied trade. You mustn’t set this number too high. Your goal should be to have enough money in your account to copy all trades. How much you should invest per copied traded depends on how much money you have in your account. Never set the copy amount to more than 5% of the value of your portfolio. This reduces risk and maximize your chance to earn money.

You might lose money.

Remember that you risk losing money when using copy trader. If the trader you copy makes a bad trade, then you too will lose money. Never invest money that you can not afford to lose. Check your account regularly and check if the traders you are copying are doing well or if you should stop copying them.