eToro Copy Trading enables traders of all levels to replicate the strategies of experienced professionals, allowing them to participate effectively in the markets without requiring extensive analysis or strategy development. This service offers a simplified approach where followers choose a master trader to copy, automating their trading activities based on the master’s strategies. Although the copying process is automatic, followers maintain control over their investments, including the ability to adjust risk levels and stop copying at any time. eToro integrates this service on its own platform, fostering a large international community of traders and investors, making it the largest collaborative trading community. The service is cost-effective as fees are only incurred when the copied strategies yield profits, incentivizing masters to maximize their trading efficacy.

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Understanding Copy Trading

Although it might seem almost like a game, a hobby, or a way to earn easy money, trading is none of these things and is certainly not for everyone. Investing in markets requires experience, knowledge, and intuition. These characteristics allow traders to assess risks, create strategies, and perform detailed analyses in order to maximize the benefits from their trades. In a sector where risk is a dominant factor, traders around the world are fully aware that they could lose their capital and are constantly engaged in studying and research to achieve their goal: profit.

So, are the markets exclusive to a select group of individuals with proven experience? Not necessarily.

In recent years, a service as interesting as it is innovative has spread rapidly in the competitive and risky world of online investing, allowing traders of any level to trade on the markets efficiently: Copy Trading.

In simple terms, Copy Trading allows anyone to access a service that offers the ability to follow and replicate the trading strategies created by professionals, achieving the same results. By subscribing to Copy Trading platforms, both expert traders and beginners can share knowledge, strategies, trades, advice, and much more.

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The main figures who have access to copy trading platforms are:

• Master: experts with proven experience who are constantly engaged in creating detailed strategies that every trader will have the opportunity to copy.
• Follower: traders access the service to follow a master and copy their trades.

A simplified trading approach:

• By choosing the master that best suits their needs, the follower will not need to perform exhaustive analyses, waste time creating strategies, or conduct research. The professional will handle this.
• Any strategy that one wishes to copy will be executed automatically on the account; the follower only needs to wait for the results.
• Although the copy process is done automatically, the follower will always have total control, being able to set the amount to trade, select additional services to protect against risks, close the copied trade, or stop following the Master.
• In addition to the potential profits that can be gained by following a professional, the trader will have the opportunity to expand their knowledge and experience.

Like other services or tools offered by a broker to trade on the markets, copy trading has costs that must be borne. By deciding to follow a professional, the Follower will have to pay a commission (which often changes based on the professional selected). The cost that the trader will face will only be calculated if the copied strategy is fruitful. Otherwise, the master is not entitled to any reward. This last feature encourages Masters to make the most of their abilities, to generate profits both for the traders and for themselves.

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eToro Copy Trading

Undoubtedly a global giant of online trading, it could only offer a service capable of confirming its position. With over 35 million users worldwide and thousands of professionals with proven experience, the eToro platform dedicated to Copy Trading is by far the largest collaborative community of traders and investors.

Unlike most brokers who opt to use external platforms to offer a copy trading service, eToro manages all operations on its own servers, without having to rely on third parties. This allows the broker to unite both Masters and Followers in a single, immense international community.

A platform created with the sole aim of perfecting and improving an existing service, which has literally revolutionized Copy Trading with its extraordinary and innovative features:

• An extremely intuitive interface allows traders of any category to interact on the platform with ease. To begin investing, the trader must access the Copy People screen and choose the master to follow.
• Unlike other platforms dedicated to the service, Copy Trading eToro has no additional costs for copying one or more traders. The client will only incur ordinary expenses, such as trading spreads and/or transaction fees.
• With access to the Community, the follower can accurately choose who to follow and copy, viewing in detail characteristics of the Master such as risk propensity, trading preferences, investment volume, success rates, and much more.
• With access to the exclusive “Popular Investors” section, every client will have the opportunity to follow popular professionals with high performance. It’s important to specify that in order to copy the operations of the “Popular,” the client will have to pay a commission (in the event of a successful operation).
• Total control. Although the copy operations are totally automatic, the trader can manage their own trading with complete freedom and decide to interrupt or pause an operation, add additional services for risk protection, make changes to the amount of funds to be invested.

Another not negligible innovative feature is the demo Copy Trading. The broker allows “prudent” clients to test the service using a version of the account that includes a free virtual portfolio of $100,000 with which to practice.

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Instantaneous Copy Trading.

Regardless of the client’s experience level or the time they can dedicate to trading, the eToro copy trading platform allows copying the strategies of professionals in the field. All selected operations will be managed through an automatic process and replicated in the follower’s portfolio.

No management fees.

By opening a real eToro account, the client can access the service without incurring any management costs. Besides the minimum account activation deposit and any commission due to the popular master.

Experience and profit.

In addition to the possibility of profiting from copied operations, the platform allows community members to increase their knowledge and experiences, through the sharing of information and viewing the work of experts in the field. The platform includes a wide range of portfolios, statistics, risk scores of other traders, and much more. Furthermore, with access to the community, traders can interact, chat, analyze strategies to apply, and improve their own style.

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Trader Profile

To optimize their experience, the broker recommends creating a profile carefully detailed, in order to present themselves to the community and receive advantageous statistics, elaborated based on their own trading needs and habits:

Feed.

Area of the profile that allows access to all social activities, including posts and comments. This page will also display biographical data.

Statistics.

Section that offers the opportunity to know the profits made and the failure/success ratio. Useful for managing one’s activities better.

Portfolio.

To get to know trading preferences and risk propensity and other details. Very useful for choosing the trader to copy.

Chart.

Free access to a simulation of a hypothetical $10,000 investment on the selected trader. A kind of entrance test to assess the qualities of the trader to be copied.

Although the broker recommends having a public profile, the trader will have the opportunity to decide whether to set their trading experience to “private.” If the client does not want to share their information, they can click on the “Private Profile” icon (located in their client area). To modify the privacy levels of the profile, click on the “settings” icon and access the “profile privacy” section.

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Social News Feed

Another feature of a platform synonymous with innovation, the Social News Feed service allows the trader to integrate social media into their online trading activities. This enables the trader to know in detail both the tools and the traders to follow. Comparisons, interesting discussions, and useful tips.

• Publish updates on operations carried out.
• Tag the instruments on which one has decided to invest.
• Tag people interested in the topic.
• Share posts on the feed.
• Comment on posts published by other traders.
• Create completely free feeds that reflect one’s interests.

The trader will be able to receive and share information on:

Facebook

Up-to-date news published by the broker, access to information about new and interesting tools, live webinars.

Twitter

Real-time updates, notifications on exclusive promos, influential news, and free access to financial conversations on Twittersphere.

Instagram.

Quick eToro updates in a clear and precise graphic format.

Youtube.

Tutorial videos, interviews, informative videos, and much more. By viewing the information on the channel, the trader can stay updated and expand their knowledge.

Check out the Social News Feed

How to Access eToro Copy Trading

To access the service and start investing on the platform, the interested trader must be the holder of a strictly verified real account. In their client area, the trader can decide whether to invest with copy trading, simply by clicking on the dedicated icon.

To access the service, just follow these simple steps:

First step.

To begin, the client must visit the official site and click on the “sign up” icon, located at the top right of the screen. On the new page, fill out the first form by entering email, name, and password. Click on “create account” and accept the terms and conditions of use (after reading them carefully). The broker will send a verification email, which the trader must open to validate their email address. Enter the code and click on “Send”

Second step.

Now the client must provide all the requested information: first name, last name, gender, date of birth, country of residence, city, address, tax code.

Third step.

The trader must answer some questions about trading that will allow the broker to assess the level of experience and knowledge.

Fourth step.

Insert in the new form: educational background, employment, annual income, name of employer (or company for which one works), how much one is willing to invest, risk propensity, origin of funds, etc. Insert your phone number, the broker will send an SMS containing a verification code to be entered. Click on “Send”.

Fifth step.

To successfully complete the registration, the new client must proceed with a verification to prove their identity and country of residence. To do so, they must send a clear front and back photo of an identification document (driver’s license, identity card, passport) and a recent utility bill (electricity, gas, internet) containing the full address of the trader (which must be the same provided in the previous registration stages).

Last step.

Once suitable, the trader must access their personal area, make the minimum deposit required to access the copy trading service ($100) and click on the “Copy Discover” icon. In the new screen containing the list of available managers, select the trader to follow. Once the most suitable professional is chosen, copy their operations.

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eToro Account

As mentioned, to be able to access the eToro copy trading service, every client must be the holder of a strictly verified account.

eToro Retail Account

Account dedicated to retail clients, the Retail account offers a flexible environment with high security levels (such as the Investor Compensation Fund and negative balance protection). Suitable for traders of any category, it allows experts and novices to invest in a wide list of instruments available with competitive trading conditions and moderate risk.

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Professional Account

A type of account created exclusively for experienced traders constantly seeking conditions and features suitable for professional trading. Compared to the previously described account, commissions and spreads are reduced.

To access the Professional account, the trader must first open a Retail account, verify it, and meet the following conditions:

• Have a portfolio not less than $500,000 (excluding cash).
• Have conducted at least ten transactions with a total value of $500,000 in the short term.
• Have at least one year of experience in the financial sector.

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eToro

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FAQs to summarize the article

What is eToro Copy Trading?

eToro Copy Trading allows users to automatically replicate the trading strategies of experienced traders, enhancing their chances of success without extensive market analysis.

Who can use eToro Copy Trading?

Both novice and expert traders can benefit from eToro Copy Trading, making it a versatile option for anyone looking to invest in the markets.

How do I choose a master trader on eToro?

Users can select a master trader based on their performance, trading style, and risk management, all available on the eToro platform.

Are there any fees associated with eToro Copy Trading?

Fees are only charged on profitable trades copied from a master, making it a cost-effective option for followers.

Can I stop copying a trader at any time?

Yes, followers maintain full control and can stop copying a trader’s strategies at any time through their eToro account settings.

What are the benefits of using eToro Copy Trading?

It offers a learning experience, potential for profit, and saves time on market analysis and strategy development.

How does eToro ensure the security of my investment?

eToro uses advanced security measures to protect user data and investments, ensuring a secure trading environment.

Is there a demo version of eToro Copy Trading?

Yes, eToro offers a demo account with a virtual portfolio to practice copy trading without financial risk.

What is the minimum deposit for eToro Copy Trading?

The minimum deposit to access Copy Trading features is $100, which allows you to start copying professional traders immediately.

How do I start with eToro Copy Trading?

To start, sign up for an eToro account, verify it, deposit funds, and then select the “Copy Discover” option to choose a master trader to follow.