Copy-trading in the Forex industry has gained a foothold in recent years. This is something that a lot of people follow. Copying trades through eToro is also possible. This is a broker that established itself as one of the best providers of different services in recent years.
What makes the broker stand out is that it is the social component that the company prioritizes. Hence, a large number of leaders, and other opportunities aimed at the interaction between traders. On eToro you can choose traders and copy their trades in real-time. This feature is one of the most popular ones that eToro offers to traders and it has a lot of followers.
Below we will go through the main stages of copying trades, starting with the criteria for choosing a master account and ending directly with subscribing to signals.
eToro Copy Trading Details
eToro copy trading, as we have already mentioned above, is one of the most used and attractive features of the broker. As soon as you create an account you choose a trader and copy his or her traders. There are no hidden costs – everything is free. This is something that will help you improve your trading in the long term. At the same time, other traders can also copy you, as soon as your profile is public.
Available Trading Platforms
eToro has a wide variety of trading platforms to trade with. From mobile trading to MetaTrader 4 which is definitely the most popular tool, you can experience copy trading on different platforms.
Available Leverage
Leverage is a necessary tool for conducting trading more effectively. It is a temporary loan which the broker gives to a trader. Generally, it is a double-edged sword, because it can bring you profits as well as losses. So you should always be careful dealing with leverage.
Leverage rates are different for various trading instruments on eToro. For example, major currency pairs have leverage of 1:30. Gold, major indices, and non-major currency pairs have 1:20. As for commodities and CFD stocks 1:10 and 1:5 respectively. Cryptos have the lowest amount of leverage – 1:2. Depending on the trading instruments you are using, eToro has different leverage ratios.
Spreads Range
As for spreads on eToro, they are variable. When we are talking about spreads basically it is the difference between the bid and ask price. Technically it is a fee by the broker. When you are trading 2 major currency pairs for example buy it for $30,00 and sell later at $29,75 the spread will be 25 pips. Some instruments are more volatile than others so spread could differ. eToro broker provides a separate page on fees, where you can see them.
Pros & Cons of eToro Copy Trading Platform
eToro copy trading platform is perfect for both new and veteran traders. Generally, such a feature is directed to rookies, who are making their first steps in the Forex industry. Because of that, it is necessary to inform them about the advantages as well as disadvantages of the platform. Let’s have a look at them below.
Pros
Starting with the pros of the eToro copy trading platform, there are quite a lot of them. First of all, you automatically copy the activity of more renowned and successful traders and you are likely to earn income. Secondly, there are no management fees and hidden costs. eToro also has a community where you can chat with different people.
No Commissions
As soon as you sign on eToro and start copy trading there is nothing required from you in terms of the additional charge. You can start copying other traders and pay no single cent for it. The traders that you copy are paid as a part of a Popular Investor Program.
Community
Copy trading is a perfect possibility for new traders, without a question, but joining a place where you can chat with other people, discover their strategies, and get more knowledge is even better. Sharing and learning is another key factor to succeed in trading in addition to copying other traders.
Trade Automatically
A lot of new traders when they have just joined the Forex industry are afraid of opening positions with the fear of losing money. With copy-trading on eToro, you do not need to pay attention to market movements – everything happens automatically as soon as you choose a trader.
Cons
In addition to the advantages that we have just mentioned above, there are some cons which we should definitely mention. The first one is regarding the minimum deposits, which some may find high. Also, there is no bonus available and the limitation on the number of traders you can copy.
Minimum Deposit
The minimum amount of money required to copy a trader is $200, which some traders may find unattractive. At the same time, this price could be changed temporarily and surge to $500 even. Basically, such a high amount of money might lead traders to abstain from copy trading.
No Bonus
When you sign up on eToro’s website to start copy trading, you are not getting any type of bonus. Bonuses are essential in order to attract more traders, but at the present moment, there is no possibility of claiming the one with a copy-trading platform.
Limitations on Traders
The maximum number of traders you can copy simultaneously is 100. For beginners, it may seem a large amount, but in general, limitations could also be hampering.
FAQ on eToro Copy Trading Platform
What is eToro Copy Trading Platform?
eToro copy trading platform allows traders to copy the trades of other investors by investing in them. Choose any investor you want to copy, deposit the money and click Copy. When they trade you trade as well.
Is Copy Trading Free?
Yes, copy trading on eToro is completely free. There are no additional charges and hidden costs associated with trading. The only commission that the broker takes from you are spreads that are shown in the “Fees” section. The traders are paid directly as a part of the Popular Investor Program.