I am writing this article to support international visitors to this website in understanding more on getting started with eToro. Please bear in mind though this is not a recommendation to invest. Visitors should understand the ideas in this article always comes with monetary risk.
eToro is a social trading platform offering financial products such as stocks, CFD, cryptocurrencies and forex. For the purpose of simplicity I would only refer to the stocks throughout this writing. By social trading, we mean less experienced traders may be able to take a look at what are the more experienced traders doing, and replicate the same result. How is that possible? Take a look at this promo video by eToro which can explain better:-
In this video Dave has no experience in trading and not actually get himself busy with getting more info about stock news, while Steve on the other hand is a skillful and top notch in getting news. But in the end both traders were getting the same result, why? It is because of the CopyTrading feature at eToro that enable Dave to copy Steve trades. Both of them were happy. Was Dave pay more? No. Was Steve got lesser profit for being copied? No.
The above example is what social trading is all about. Copying trades of others. Another good thing about social trading is for being in a like-minded community who share common interest and there are always exchange of information within the community. Open the app and check the news feed, there are a non-stop news coming in.
Another motivation, for some people with the knowledge, is to being copied. Traders with skills and know-how should be able to built a good portfolio, profitable one up to the point that there are people willing to follow and copy his trades. Upon being copied, there is a measurement called Asset Under Management (AUM) which indicates how much other traders are investing on him. Some portion of AUM which exactly is 1-2% annually will be incentivized to the person being copied, how cool is that?
That being said, some common reasons why people are joining eToro social trading platform are as below:-
- For new comers in stocks, they may want to copy the trades of others and get better result compared to self-trade
- For skillful traders, they want to be community leaders to get copied and get paid for it, the more copiers the better
- For non of the above, they just want to trade
Now let’s quickly go through the process of getting into eToro:-
- Signup with eToro using this link. I will get $50 for referring new users and you will get $50 for being referred.
- Change the trading account to ‘ Virtual’ and do some demo trading using this account. Trade by yourself, or start copying other traders, close the trades etc. Just get the feel and look on how the actual things are done on eToro.
- If you have truly satisfied & know the risk involved, start depositing real money and do the trading, feel the excitement.
Thank you for visiting this page, please leave a comment or say ‘hi’ to me in the comment section below;)
If you are wondering actually what is copy trading on eToro, here is the video I made to explain how to start and stop copying trades on eToro: