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Practical Guide To eToro Copy Trading

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Trading has gained a lot of popularity over the past few years. This popularity is why we‘ve taken a closer look at the leading social trading platform: eToro. 

This broker offers a reliable platform to suit the needs of the online trading community. Their goal is to achieve awareness based on premium trading activities, so they offer access to useful trading tools. 

Copy trading at eToro allows traders to copy successful trading strategies from registered accounts in their network. Everything is done in real-time with little to no effort. 

The Basics Of Copy Trading 

Copy trading is the best solution for beginner traders, but it can help experienced ones, too. If you want to trade and don’t have the experience or time to do so, you can improve your skills by copying successful accounts. 

eToro has a long track record in copy trading, and since 2010 around many traders have used its CopyTrader system with an excellent success rate. 

Copy trading means that your account is connected to the account of the trader you want to observe. You can include metrics you’re interested in, and the system will automatically copy the trader’s settings into your account. 

The benefit of copy trading is that you can set up a limit for your capital. Mostly, stop loss levels, entry levels, and exit levels are also copied into your account, but you can change those. 

Another benefit of copy trading with eToro is that you can disable this functionality and start trading as soon as you gain the necessary skills and knowledge. 

eToro stands out among competitor brokers due to the powerful social trading features and user-friendly platform. 

How Does Copy Trading Function? 

Copy trading is an asset for novice traders since it allows them to observe and copy a trader’s investments. The principle is straightforward: you select a trader (or more), submit the amount to invest, and copy the actions. 

This function is built-in platforms to allow an average trader to copy the market behavior of another trader. So, you can copy, become a leader, or both. Keep in mind that a leader receives financial bonuses depending on the number of copies he has. 

Copy trading lets you receive additional money depending on your strategies and trading decisions. It is an enviable position since not all traders can become leaders for copy trading. It takes a lot of experience and knowledge to generate profits from this. 

A copier follows the lead of a leader and can copy up to 100 traders. It can help you generate revenue, even though you don’t fully understand the leader’s strategies. 

Another advantage of copy trading is that you can check the decision-making history of top traders and get a deeper understanding of their analysis. This history is an excellent way to train your mind to work as theirs. 

About Mirror Trading 

The first type of copy trading is mirror trading. It lets a trader observe the results and characteristics of several strategies available on the platform. 

The trader can select the profit goals, trading approach, risk tolerance, and capital tolerance level. Overall, it reflects all the trading strategy actions, and the deal is assigned and copied automatically. 

Mirror trading enables beginner traders to navigate the forex or stock market to trade without technical analysis or further studies on trading fundamentals. 

The difference between a mirror and copy trading is that the latter resembles computerized trading. Copy trading depends on intuition, knowledge, and the human factor of experienced traders. 

Since we have volatile market trends, it can be wise to use mirror trading to your advantage. It can assist you in getting better trading results with fewer risks on your portfolio. 

About Copy Portfolios 

Copy Portfolios speed up the process of selecting a trader to copy. It lets you choose from several portfolios that bring together professional traders, positions, strategies, and investments. 

There are two portfolios you can opt for – Market Copy Portfolios and Trader Copy Portfolios. Here’s how these work: 

  • If you click on the Copy Portfolios button in the navigation bar, you’ll access a page featuring the Market Portfolios and Top Trader Portfolios. 
  • Clicking on either one will take you to a detailed page where you can click the Invest button. 
  • You can set here the amount you’re funding and the ratio of Copy Stop Loss. 
  • Clicking the Invest button will execute the investment. 

Trading with eToro will get you access to the Top Trader Copy Portfolios selections. These are meant to offer an equal weighting of investments to a selection of top-performing and active traders across the platform. 

  • GainsQTR is the first Top Trader Copy Portfolio with an impressive selection of 50 traders. The eToro algorithm offers the possibility to achieve a positive trading performance during the next quarter. 
  • Active Traders is the second option you have. It enables you to observe traders’ selection suggested by the eToro algorithm based on their results and probability to get the best reward/risk ratio in the next quarter. 

The Market Copy Portfolio is distinct from the Top Trader Copy Portfolio since it depends on a particular market sector position. 

eToro provides investment products in market sectors, similar to pension funds or banks. 

Insights On Choosing A Trader To Copy 

Selecting a trader to copy requires some due diligenceThat means you should research and observe them over time. It is highly recommended to avoid making hasty decisions. Overall, you can copy up to 100 traders at a time and decide when to stop doing so. This is excellent for testing distinct profiles to see which are the best for you. 

An advantage of social trading is that you can reach out and discuss key aspects with traders. If you’re studying a trader’s activity, you can chat with him and request some insights on his actions. 

When it comes to determining which trader is profitable and which isn’t, you can check their earnings percentage. This percentage is established by calculating the difference between their investment capital and their total profits. Observe this ranking for a couple of weeks before making a decision. 

The copy trading features at eToro are useful and attractive. It can help you copy top performing traders without the need to analyze market trends, news, and price movements. 

Key Aspects For Hidden Fees At eToro  

There are many key aspects to keep in mind when choosing a trading platform, such as eToro:    

  • the experience a broker has with day trading    
  • the customer support available    
  • the regulations in case of disputes or losses    
  • the timeframe for deposits and withdrawals    
  • the international presence in several counties    
  • the access to a multi-cultural customer support staff    

Based on these features, we shared a comparison table to help you decide which the best trading broker is in 2020. We analyzed eToro compared to the top brokers in 2020 that offer the best features and platforms for traders.    

Cell

eToro

IC Markets

Pepperstone

FxPrimus

AxiTrader

Swissquote

AvaTrade

ForexMart

Phoenix Markets

EZInvest

ETX Capital

Regulation

FCA, CySEC, ASIC, MiFID ASIC, FSA, CySEC ASIC, DFSA, FCA, SCB CySEC, MiFID FCA, ASIC, DFSA FCA FSA, FSB, BVI, ASIC CySEC CySEC CySEC FCA

Min. Deposit

200

200

200

100 No 1000 250 1 500 500 100

Funding

Bank Transfer

Credit Card

PayPal

Bank Transfer

Credit Card

PayPal

Bank Transfer

Credit Card

PayPal

Bank Transfer

Credit Card

Bank Transfer

Credit Card

Bank Transfer

Credit Card

Bank Transfer

Credit Card

PayPal

Bank Transfer

Credit Card

Bank Transfer

Credit Card

Credit Card Bank Transfer

Credit Card

Used By

12,000,000+

60,000+

10,000+ 10,000+ 10,000+ 300,000+ 200,000+ 10,000+ 10,000+ 10,000+ 10,000+

Advantages

STP available

Low Min. Deposit

Negative Balance Protection

Scalping & Hedging Available

Low Min. Deposit

Negative Balance Protection

Scalping & Hedging Available

STP

Low Min. Deposit

Negative Balance Protection

Scalping & Hedging Available

STP

Low Min. Deposit

Scalping & Hedging Available

STP

Low Min. Deposit

Scalping & Hedging Available Scalping & Hedging Available

Low Min. Deposit

Scalping & Hedging Available

STP

Low Min. Deposit

Negative Balance Protection

Scalping Available

STP

Scalping Available

STP

Hedging Available

Low Min. Deposit

Guaranteed Stop Loss

Accounts

Demo Account

Standard Account

Islamic Account

Demo Account

Mini Account

Standard Account

Zero Spread Account

Raw Spread Account

Islamic Account

Demo Account

Mini Account

Standard Account

ECN Account

Islamic Account

Demo Account

Micro Account

Mini Account

Standard Account

ECN Account

Managed Account

Demo Account

Micro Account

Mini Account

Standard Account

ECN Account

Islamic Account

Demo Account

Mini Account

Standard Account

Demo Account

Micro Account

Mini Account

Standard Account

Islamic Account

Demo Account

Standard Account

ECN Account

Islamic Account

Demo Account

Standard Account

ECN Account

Islamic Account

Demo Account

Standard Account

ECN Account

Islamic Account

Demo Account

Mini Account

Micro Account

Standard Account

Spreads

Var. Spreads

Var. Spreads Var. Spreads Var. Spreads Var. Spreads Fixed Spreads Fixed & Var. Spreads Var. Spreads Fixed Spreads Fixed Spreads Fixed & Var. Spreads

Platforms

Mobile Apps

Web Trader

MT5

MT4

ZuluTrade

Web Trader

Mirror Trader

cTrader

MAC

MT5

MT4

Web Trader

ZuluTrade

Mac

Mobile Apps

MT4

Mac

Mirror Trader

Web Trader

Mobile Apps

MT4

MAC

ZuluTrade

Web Trader

Mobile Apps

MT5

MT4

Web Trader

ZuluTrade

MT4

Mirror Trader

Mac

ZuluTrade

Web Trader

Mobile Apps

Web

Desktop

MT4

Mac

Android

iPhone

iPad

MT4

Mac

Android

iPhone

iPad

MT4

MT4

Mirror Trader

Max

Binary Tablet

Mobile Apps

Support

Live Chat

Email Support

Email Support Live Chat

Email Support

Phone Support

Live Chat

Email Support

Phone Support

Phone Support

Email Support

Live Chat

Email Support

Phone Support

Live Chat

Email Support

Phone Support

Live Chat

Email Support

Phone Support

Live Chat

Email Support

Phone Support

Live Chat

Email Support

Phone Support

Phone Support

Email Support

Risk

Up to 75% of retail investor accounts lose money when trading CFDs

Losses can be higher than deposits Up to 79.3% of retail investor accounts lose money when trading CFDs Losses can be higher than deposits Losses can be higher than deposits Losses can be higher than deposits Up to 79% of retail investor accounts lose money when trading CFDs Your capital is at risk Your capital is at risk Your capital is at risk Losses can be higher than deposits

Excluded Countries

AN, VG, NI, PR, GT, HN, PY, US, SV, LB, AW, AI, AG, BS, BM, BB, FJ, GD, KZ, MV, MH, BT, MM, HT, TT, LK, UZ, TJ, TM, VI, SG, NP, WS, TW, BN, PK, CI, DJ, GM, LR, SL, TG, NA, SO, TN, RW, BW, ZM, UG, LY, TZ, GH, ET, ZW, SD, CD, GN, RS, MK, MD, AL, BY, IL, TR, SY, JP, CA, BE, KP, IR

NA, SN, GN, KG, KR, GH, AG, NG, GM, AO, NE, LR, BO, ML, CG, TZ, LY, CU, ZW, LR, CI, YE, LS, KH, TG, IQ, MM, SY, IR, BW, SL, GN, AF US, JP, SY, IQ, IR, KR, BR EC, JP, DZ, SY, AU, US, PR, SD, KR, MM, LY, IR, IQ, CU, CI, AF JP, US US SG, CA, US, TR, NZ, KP, BR, BE Cell IL, SY, TR, LA, AF, YE, VU, UG, IQ, ET, BA, US, KP, JP, IR, CA, BE IL, SY, TR, LA, AF, YE, VU, UG, IQ, ET, BA, US, KP, JP, IR, CA, BE BE, SG, CA, US

eToro Copy Trading: Essential Factors To Consider    

eToro can be a volatile market that can pose serious challenges, even for experienced traders. Besides the online educational resources, you can use several other tools to understand the unique benefits of eToro markets better.    

Overall, eToro is considered an industry leader, thanks to its focus on innovation.    

#1 Track Record    

The first thing you want to study when selecting a trading broker is its longevity or track record in the market. It is a crucial element in your trading strategy that can help you avoid significant financial loss. eToro is the leading copy trading broker with 12 years of experience on the market and headquarters in Cyprus and the United Kingdom.    

eToro has several regulations, being supervised by the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA), the Financial Instruments Directive (MiFID), and the Australian Securities and Investments Commission (ASIC).    

The main competitor of eToro is IC Markets. This broker was established in 2007, having a long track record and its main headquarters in Australia. IC Markets is monitored by the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC).    

Cell

eToro

IC Markets

Pepperstone

FxPrimus

AxiTrader

Swissquote

Regulation

FCA, CySEC, ASIC, MiFID ASIC, FSA, CySEC ASIC, DFSA, FCA, SCB CySEC, MiFID FCA, ASIC, DFSA FCA

Used By

12,000,000+

60,000+

10,000+ 10,000+ 10,000+ 300,000+

Risk

Up to 75% of retail investor accounts lose money when trading CFDs

Losses can be higher than deposits Up to 79.3% of retail investor accounts lose money when trading CFDs Losses can be higher than deposits Losses can be higher than deposits Losses can be higher than deposits

Negative Balance Protection

Yes Yes Yes No No No
Guaranteed Stop Los No No No No No No
Headquarters Cyprus

UK

Australia Australia Cyprus Australia Switzerland
Year Founded 2006 2007 2010 2009 2007 1999

#2 Industry    

Another factor to consider when choosing a trading broker is whether it is at the forefront of innovation. eToro offers more than 1000 trading instruments, an online and mobile platform, and a user-friendly interface for all their services.    

Beyond that, eToro supports several third-party trading platforms, allowing its clients to use distinct markets worldwide. Thanks to its innovation and ability to seek ways to keep their competitive advantage, it is a world-leader broker.    

IC Markets, the main competitor of eToro, provides only 232 instruments and segregates clients’ funds according to law.    

Cell

eToro

IC Markets

Pepperstone

FxPrimus

AxiTrader

Swissquote

Instruments

2000 232 100 130 100 100

Platforms

Web Trader

Mobile Apps

MT4

MT5

ZuluTrade

MirrorTrade

Web Trader

cTrader

Mac

MT4

MT5

ZuluTrade

WebTrader

cTrader

Mac

Mobile Apps

MT4

Mac

Mirror Trader

Web Trader

Mobile Apps

MT4

ZuluTrade

Mac

WebTrader

Mobile Apps

MT4

MT5

ZuluTrade

WebTrader

cTrader

Mobile Apps

Excluded Countries

AN, VG, NI, PR, GT, HN, PY, US, SV, LB, AW, AI, AG, BS, BM, BB, FJ, GD, KZ, MV, MH, BT, MM, HT, TT, LK, UZ, TJ, TM, VI, SG, NP, WS, TW, BN, PK, CI, DJ, GM, LR, SL, TG, NA, SO, TN, RW, BW, ZM, UG, LY, TZ, GH, ET, ZW, SD, CD, GN, RS, MK, MD, AL, BY, IL, TR, SY, JP, CA, BE, KP, IR

NA, SN, GN, KG, KR, GH, AG, NG, GM, AO, NE, LR, BO, ML, CG, TZ, LY, CU, ZW, LR, CI, YE, LS, KH, TG, IQ, MM, SY, IR, BW, SL, GN, AF US, JP, SY, IQ, IR, KR, BR EC, JP, DZ, SY, AU, US, PR, SD, KR, MM, LY, IR, IQ, CU, CI, AF JP, US US

Forex Pairs

50 65 70 45 100 150

Major Forex Pairs

Yes Yes Yes Yes Yes Yes

Exotic Forex Pairs

Yes Yes Yes Yes Yes Yes

Cryptocurrencies

Yes Yes Yes No Yes No

Commodities

0 19 16 0 20 7

Metals

Yes Yes Yes Yes Yes Yes

Energies

Yes Yes Yes Yes Yes Yes

Agricultural

Yes Yes No No Yes No

Stocks

957 100 60 60 1000 0

UK Shares

Yes No No Yes Yes Yes

US Shares

Yes Yes No Yes Yes Yes

German Shares

Yes Yes Yes No Yes Yes

Japanese Shares

Yes Yes No No Yes Yes

#3 Fees And Commissions    

Trading fees and commissions must be transparent. The top-rated trading broker is eToro due to the competitive offers for commodities, stocks, CFDs, forex, indices, social trading, and cryptocurrency. This broker has a minimum deposit of $200.    

Another leading trading broker is IC Markets because it offers CFDs, spread betting, forex, share dealing, and cryptocurrencies. IC Markets has a minimum deposit of $200.    

Cell

eToro

IC Markets

Pepperstone

FxPrimus

AxiTrader

Swissquote

Min. Deposit

200 200 200 100 0 1000

Withdrawal Fee

Yes

No

No Varies Varies No

Inactivity Fee

Yes

No Yes No No No

Deposit Fee

No Varies No Varies Varies No

CFD Commission

No Yes Yes No Yes No

#4 Withdrawal And Funding    

Convenient withdrawal and funding methods are fundamental for the best trading experience.    

Cell

eToro

IC Markets

Pepperstone

FxPrimus

AxiTrader

Swissquote

Bank Transfer

Yes Yes Yes Yes Yes Yes

Credit Cards

Yes

Yes

Yes Yes Yes Yes

PayPal

Yes

Yes Yes No No No

Skrill

Yes Yes Yes No No No

Payoneer

No No Yes Yes Yes Yes

Neteller

Yes Yes Yes Yes Yes No

#5 Customer Support    

Customer support is essential when it comes to trading. Dealing with brokers and investing can often require several interactions with customer service. These interactions may take the form of training, installation, upgrading, troubleshooting, or even cancelation of service.    

eToro offers reliable customer assistance via phone, email, and live chat. This service is also available in several languages like English, Spanish, German, Italian, and French.    

IC Markets is well recommended for its reliable customer support, available in English, Chinese, Japanese, Afrikaans, Polish, Dutch, Danish, German, and several other languages.    

Both trading brokers let you reach support by phone, email, or chat.    

Cell

eToro

IC Markets

Pepperstone

FxPrimus

AxiTrader

Swissquote

Support

Live Chat

Email Support

Email Support Live Chat

Email Support

Phone Support

Live Chat

Email Support

Phone Support

Email Support

Phone Support

Live Chat

Email Support

Phone Support

Languages

English

German

Spanish

French

Italian

English

Japanese

Chinese

Polish

Danish

Dutch

Afrikans

German

etc.

English

Spanish

Chinese

Polish

Japanese

Vietnamese

Korean

Arabic

English

Spanish

Indonesian

Vietnamese

Thai

Chinese

Malaysian

Hungarian

English

Spanish

German

Chinese

Japanese

Russian

Romanian

Arabic

English

Italian

German

French

Spanish

Russian

Arabic

Chinese

Risk

Up to 75% of retail investor accounts lose money when trading CFDs

Losses can be higher than deposits Up to 79.3% of retail investor accounts lose money when trading CFDs Losses can be higher than deposits Losses can be higher than deposits Losses can be higher than deposits

#6 Resources    

Educational resources can help you gain in-depth knowledge about trading and hidden fees. Both eToro and IC Markets do their best to provide top insights and news to their clients.    

So, before choosing a trading broker, you should check to see whether it offers access to comprehensive trading resources. These might include education, analysis, and risk-management tools.    

#7 Regulations    

A broker regulated by leading authorities comes with a lower risk. These regulations will protect clients and ensure the broker offers qualitative services. Also, the broker regulation will minimize fraud and financial harm.    

eToro
Funding Bank Transfer

Credit Card

PayPal

Customer Support Live Chat

Email Support

Platforms Web Trader

Mobile Apps

Accounts Standard Account

VIP Account

Islamic Account

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. 75% 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.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

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

eToro compared to other brokers:


Methodology 

The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of online providers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a providers’s platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.

Providers were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online providers we reviewed.

Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.

Business24-7 maintains high editorial standards and provides the best advice and recommendations. The products and companies that we review may compensate us when you click on the links on this website. Click below to find out more about our review process and methodology.

Disclosure

All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

Previous articlePractical Guide to eToro Day Trading
Next articlePractical Guide To eToro Webtrader
Braden Chase is an investor, trading specialist, and former research specialist for Forex.com who helps aspiring investors develop the confidence and habits they need to make an income from the market. Braden has served as a registered commodity futures representative for domestic and internationally-regulated brokerages and has also spoken & moderated numerous forex and finance industry panels across the globe.

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