With the emergence of social trading platforms like eToro, copy trading has quickly gained traction among investors of all skill levels. In this eToro copy trading review, we will discuss its available markets, regulations, fees, copy trading app and many more.
Summary
For those new to investing or with limited time to monitor the markets, there is now a convenient and straightforward method to follow experienced individuals and benefit from their expertise. Simply said, copy trading is when another automatically copies one trader’s trades. If they succeed, you succeed. If they suffer financial losses, so do you.
Copy trading enables inexperienced traders to “ride the coattails” of more skilled traders by emulating their portfolios. The best copy traders get a cut of the capital managed by the service.
One of the first providers to offer copy trading is eToro. eToro’s CopyTraderTM feature lets users mimic the moves of successful traders in real time. Moreover, the broker does not charge a single penny for copy trading from traders. That said, a minimum deposit of $200 is required to start. Conversely, if you are a pro, eToro offers a popular investor program to get regular pay from each copier that copies you.
Before investing your hard-earned cash, let’s explore more about copy trading on the broker. This eToro copy trading review provides detailed insight into the broker’s regulations, copytrader, fees, smart portfolios, popular investor programs, and many more.
Regulations
A broker’s trustworthiness is enhanced by regulations, and you can rest assured that your money is being handled securely. To operate legally, a broker must follow rules established by corresponding regulators. eToro is regulated by multiple regulatory bodies, and here are the details about them.
eToro (Europe) Ltd.: Having an office address at 4 Profiti Ilia Street, Germasogeia, Limassol, Cyprus, this entity is regulated by the Cyprus Securities & Exchange Commission (CySEC). It is regulated to provide financial services.
- Registration Number: HE200585
- License Number: 109/10
eToro (Europe) Ltd.: This entity is registered with De Nederlandsche Bank N.V (DNB) and provides crypto-related financial services.
eToro (UK) Ltd.: Regulated by the Financial Conduct Authority (FCA) in the UK, this entity is located on the 24th floor, One Canada Square, Canary Wharf, London E14 5AB, United Kingdom and registered to provide financial services.
- Registration Number: 7973792
- Firm Reference Number: 583263
eToro AUS Capital Limited: Regulated and licensed by the Australian Securities and Investments Commission (ASIC), this entity has an office address at Level 3, 60 Castlereagh Street, Sydney NSW 2000 Australia.
- License Number: 491139
eToro USA LLC: Registered with FinCEN as a Money Services Business, this entity is located at 221 River St., 9th Floor, Hoboken, NJ 07030, USA.
eToro USA Securities Inc.: This entity is a member of FINRA and SIPC in the USA.
eToro (Seychelles) Ltd.: Authorized by the Seychelles Financial Services Authority (FSA), this entity has an office address at eToro Suites, S45 2nd Floor, Espace Building, Victoria, Seychelles.
eToro Copy Trading
Copy trading enables users to instantly and automatically copy the trades of seasoned and profitable traders. The concept behind it is to enable novice traders or those lacking the time or expertise to benefit from the knowledge and strategies of seasoned professionals. The process is straightforward: users can browse and select from a variety of skilled traders on eToro, assessing their past performance, risk level, and overall trade style. Once a trader is chosen, users can allocate a portion of their investment portfolio to mirror the trades executed by the chosen trader automatically. Note that the minimum deposit to start copy trading is $200. It’s interesting to note that eToro does not charge copy traders for copying.
Markets
eToro has a wide range of market categories and instruments that are available for copying. These categories provide a wide range of investments that can be tailored to individual investors’ tastes and strategies. In this section of the review, we will meticulously explore different markets available for copy trading on eToro.
Stocks: Investors can copy the trades of successful stock traders, allowing them to replicate their strategies and benefit from their expertise in various global stock markets.
Crypto: Investors can now mimic the actions of successful cryptocurrency traders.
Exchange-Traded Funds (ETFs) are an investment vehicle that represents a portfolio of assets that may be bought and sold like a single stock.
Indices: Traders that focus on indices like the S&P 500, NASDAQ, or FTSE 100 can have their investments mimicked by other investors.
Commodities: eToro allows users to mimic deals in gold, silver, oil, and natural gas, among other commodities.
Forex: The broker also allows users to copy trades in several different currency pairs, mimicking professional forex traders’ actions.
Contracts for Difference (CFDs) allow investors to bet on price fluctuations without purchasing the underlying asset. CFD traders can copy many asset classes on eToro.
The market types and instruments shown above are merely a portion of what the broker offers regarding copying.
Trader Statistics
In this aspect of the eToro copy trading review, we will closely investigate the broker’s traders statistics.
The recent investor update for Q2 2023 from eToro reveals the staggering growth and popularity of copy trading on the platform. With an impressive 32.1 million users and $7.5B assets under administration, the broker has become the go-to site for investors who want to learn from the experiences of great traders. The platform’s roster of over 2,800 Popular Investors is indicative of the wide variety of investment approaches and areas of expertise available to users. Notably, among these accomplished traders, 10 individuals have amassed over $10 million in assets under copy. This number exemplifies the popularity of eToro’s copy trading function and the confidence investors have in it, as traders want to replicate the actions of those who have already found financial success.
Investment Portfolio
Investment portfolios refer to the collection of financial instruments or assets that an investor holds within their account. These portfolios can be customized based on individual preferences and investment goals. This section of the review will thoroughly explore some common types of investment portfolios you can create on eToro:
Stocks Portfolio: An investment portfolio can include a selection of individual stocks from various global markets. You can choose to invest in specific companies that you believe have growth potential or are undervalued.
AI Revolution portfolio: This is a new Smart Portfolio that provides the chance to invest in the artificial intelligence sector by allocating funds to some of the most technologically advanced businesses in this field.
CopyTrading Portfolio: eToro’s CopyTrading feature allows you to replicate the trades of successful and experienced traders on the platform. By selecting Popular Investors to copy, you can create a portfolio that mirrors their investment strategies and allocations.
Social Trading Portfolio: You can create a social trading portfolio by engaging with the eToro community, following influential traders, and incorporating their ideas into your own investment decisions.
Signal Portfolios: Copy trading introduced a new class of investment portfolios known as “People-Based Portfolios” or “Signal Portfolios.” They are distinct from conventional investment portfolios in that all invested capital is reinvested in more investors rather than more conventional market-based securities.
Pros and Cons of Copy Trading on eToro
No doubt, copy trading offers a lucrative approach for beginners to start investing. However, it has a few minuses as well as a few pluses. Let’s discuss its pros and cons in this part of our eToro copy trading review.
Pros
- Better Results for Newbies.
- Saves a lot of Time and Effort.
- Free of Cost.
Cons
- Over Reliance on Help.
- Lack of Direct Exposure to Market.
eToro Top 5 Performing Traders
Here are the top performing traders on eToro. We will learn about their background, trading style, returns and so on, and gain insights from their strategies and expertise.
HarpinderKang
Since 2020, UK-based copy trader Harpinder Kang has participated in the Popular Investor Scheme as an Elite. He has about 1,270 copiers and a total copy worth between $1 and $2 million.
His highest and lowest returns in terms of performance were 225% in 2020 and 43% in 2021, respectively. 68% of trades, on average, end in profits.
He does 18 trades on average each week, holding each investment for one month. Shares make up 69% of the portfolio, followed by indices (18%), ETFs (12%), and currencies (1%).
He concentrates on taking holdings in the S&P 500, Advanced Micro Devices and NVIDIA.
Fatima Matibag (KahitAnoMahalko)
Since 2020, Philippines-based copy trader Fatima Matibag has participated in the Popular Investor Scheme with a 48.34% trade profitability. She has about 422 copiers and a total copy worth between $100K and $300K.
She has a 2-year return of 27.9%. Plus, she does 7.54 trades on average each week, holding each investment for 4.5 months. Shares comprise 79.85% of the portfolio, followed by ETFs (18.25%) and cryptos (1.90%).
Moreover, she frequently takes holdings in the United Health and ishare silver trust.
Creativemedia (Creative Media Art BV)
Since 2017, Creative Media, a Dutch company, has been a copy trader and a Champion of the Popular Investor Scheme. With over 970 copiers, he has between $300,000 and $1 million worth of copies in all.
His highest and lowest returns in terms of performance were 244% in 2021 and -35% in 2019, respectively. In this review, we would like to add that the average share of profitable trades by this trader is 47%.
He makes 19 trades on average each week and holds his investments for one week. Indexes make up 61% of the portfolio, followed by equities (20%), commodities (13%), cryptocurrencies (2%), and ETFs (3%). He concentrates on buying holdings in gold and the US indexes, S&P 500 and Nasdaq 100.
Jorden Boer
Jorden Boer (based in the Netherlands) has been a copy trader since 2021 and is an Elite pro on the Popular Investor Scheme. Presently, he has more than 14.7K copiers, with a total copy value of $5M.
His highest and lowest returns in terms of performance were 38.36% in 2022 and 3.29% in 2021, respectively. The average proportion of profitable trades is 83.25%.
He does 10.55 trades on average each week, holding each investment for 2.5 months on average. Shares comprise 96.6% of his portfolio, followed by commodities (3.4%). He frequently trades in Nvidia, Affirm and Taylor Morrison Home Corp.
Alex_Ku1 (Alexander Küpferling)
In the coming paragraph of this eToro copy trading review, let’s discuss the performance of German-based copy trader Alexander Küpferling – a Popular Investor Scheme Champion since 2020. His current inventory of over 200 trade copiers is estimated at $100,000 to $300,000. Approximately 54% of trades end in a profit on average.
His typical trading volume is 17 weekly transactions, and his holding period is one month. His portfolio comprises: 57% stocks, 22% indices, 9% digital currency, and 9% commodities.
He mostly invests in the Ger40, the Nasdaq 100, and gold.
eToro Copy Trading Fees
The most appealing thing about eToro’s copy trading feature is that it has no management or other fees. You won’t have to pay any hidden costs because professional traders are compensated through the network’s Popular Investor Program.
We’d like to mention that if you want to copy a trader, you’ll need at least $200, and each position you copy will cost at least $1. That makes it possible for novice investors to get their feet wet with little capital outlay. Furthermore, you can copy no more than 100 traders at once. When copying a trader, you can deposit a maximum of $2,000,000.
Trades with a value below $1 will not be opened when using the copy feature. On top of that, your copy balance (the total amount allotted to copy that individual not currently invested in open positions) will be refunded for any manually closed trades that were copied.
eToro CopyTrader
eToroCopyTrader is the platform that allows traders to copy other seasoned traders and may benefit from their expertise.
eToro Desktop CopyTrader
eToro offers a desktop CopyTrader platform that allows users to engage in copy trading directly from their computer. This part of the review will discuss some key aspects of the desktop CopyTrader.
Copy Trading Dashboard
The desktop platform provides a dedicated CopyTrader dashboard that allows users to search for popular investors to copy. Users can explore detailed profiles of popular investors, including their trading history, portfolio allocation, and statistics.
Portfolio Management
With the desktop CopyTrader platform, users have enhanced portfolio management capabilities. They can view and manage their copied trades, set allocation amounts for each popular investor, and adjust stop-loss and take-profit levels.
Advanced Charting and Analysis
This feature is particularly useful for those who prefer to perform in-depth analysis before copying traders or executing their own trades.
How to Open an Account on eToro Desktop CopyTrader
- To sign up for eToro, click “start investing,” on the eToro homepage and provide your username, email address, and new password. Else, you can register with a Google or Facebook account.
- Next, click on the “Continue” button.
- Enter your personal details, ensuring that they match your passport or ID.
- Provide your current address.
- Follow all the steps and answer all the questions.
- To complete the account set up process, you’ll need to provide proof of identification, either by uploading a document or typing in your national ID number. Once you’ve followed every step, select “confirm”.
- Make a deposit by clicking on”Deposit Funds”.
- Discover popular investors on eToro and choose the one that meets your investment goals.
- Click Copy. The open trades will automatically be copied.
- Select an amount you want to allocate to this position. Select Invest.
eToro Copy Trading App
The eToro copy trading app is a powerful tool that allows users to automatically replicate the trades of successful and experienced traders on the platform. Here are some key features and benefits of the app.
CopyTrading Functionality
The app enables users to find and select experienced traders and copy their trading activity. Users can browse through a vast pool of popular investors and assess their performance, and other relevant information.
Transparency
The eToro copy trading app provides transparency by offering detailed statistics and performance metrics for each popular investor.
How to Open an Account on eToro Copy Trading App
- Download the eToro mobile app and log in using your Google Apple or Facebook account. Else, enter your email address or username and click Create Account.
- Press the “Continue” key.
- Give information, and make sure that it exactly matches your ID, including your name, gender, and date of birth.
- Follow all the steps and answer all the questions. Once completed, make a deposit by clicking on “deposit funds”.
- Next, you can find Popular Investors on the eToro homepage. Choose a popular investor. Click Copy.
- Now allocate an amount on the trade and click Invest. Now, you have copied your desired investor.
Smart Portfolios
The Smart portfolio is a group of assets (perhaps from different asset classes) that share a common theme. This subject could be centered on a classic industry like healthcare, finance, oil, a new technology like semiconductors, or assets from a specific region.
To maximize the performance of the underlying thematic trading method, eToro Portfolios are rebalanced regularly. Each asset in a diversified portfolio is treated as a separate investment. The unique aspect of the smart portfolio is its automated nature. The platform’s algorithm handles the complex tasks of portfolio selection, rebalancing, and risk management on your behalf, saving time and effort.
In this section of the review, let’s discuss the steps to set up and use a smart portfolio on eToro:
- Profile Creation: Create an eToro account and complete registration, including identity verification.
- Risk Assessment: Answer questions to determine risk profile and investment goals.
- Portfolio Selection: eToro’s algorithm recommends a diverse portfolio of asset classes and instruments based on your risk profile and investing goals.
- Portfolio Customization: Once the recommended portfolio is presented, you can customize it further by adjusting asset allocation and excluding specific assets if desired.
- CopyTrading Option: Choose to include copy trading to replicate trades of successful traders.
- Monitoring and Management: The broker’s algorithm monitors and rebalances the portfolio automatically.
- Review and Adjustments: Periodically check and modify portfolio to align with evolving investment strategy.
Is eToro Copy Trading Safe?
Copy Trading on eToro is safe and secure as the platform has placed various measures to enhance users safety. Reputable financial agencies regulate the broker, which helps to give certain standards and oversight. On top of that, the broker provides transparency by offering detailed statistics and performance history of each trader. Users can evaluate the track record, risk profile, and trading strategy of the traders they choose to copy. However, previous results should not be used as an indication of future success.
Popular Investor Program
This program allows accomplished investors to grow their businesses by sharing their knowledge and increasing their assets under copy (AUC) on the eToro platform, where others can replicate their trades. Users can search for other traders on the platform, and those traders can choose to have their trades automatically copied by other users. Copy traders can replicate the trades of popular investors, benefiting from their expertise and possibly improving their trading outcomes. The program offers networking opportunities, educational value, and time-saving benefits for both traders and copiers.
The program has four tiers, each with its own set of prerequisites and perks:
- Cadet.
- Champion
- Elite
- Elite pro
Traders interested in joining the popular investor program must have their eToro accounts verified. They must also satisfy the following criteria to be admitted at the entry-level (Cadet):
- You are not allowed to have any open trades with a leverage higher than what is permitted by eToro’s responsible trading guidelines.
- In the two months before the program’s start, your Risk Score could not have been greater than 6.
- Your trade record spans back at least two months.
- You are not copying more than 25% of your equity to any trader or CopyPortfolio and have developed your unique trading strategy.
- To qualify for funding, you must have an AUM of at least $200, an average equity of at least $500, and at least one validated copier.
An eToro Popular Investor can receive up to a 1.5% payout based on average Assets Under Construction (AUC) when other users duplicate their transactions.
Online Reviews
Here are the highlights of comments made by online users of the eToro copy trading on different platforms.
What Reddit Users Say About Copy Trading on eToro
When searching through Reddit about copy trading, we found mixed opinions about it. Some were excited about it, while others doubted the program.
This user states that copy trading can be a good idea if done right, and it’s not impossible to make an interesting selection.
What Quora Users Say About Copy Trading on eToro
While searching through Quora we found many threads that discussed copy trading on eToro. The majority of the users have positive views about the platform.
This Quora user answered that copying the best traders on eToro works, and his experience with the broker is very good. He found eToro to be an excellent copy trading platform.
TrustPilot User’s Review About Copy Trading on eToro
On Trustpilot, out of 20,040 reviews, eToro has a rating of 4.3. Most users made good comments, while many complained about the platform.
Contrary to popular opinion, this user is not happy with the eToro customer service. He further stated that other users should not waste time on eToro.
ForexPeaceArmy User’s Review About Copy Trading on eToro
Out of 229 reviews, eToro has a rating of 1.735 on Forexpeacearmy.
This user, “Bossman 760,” had a bad experience with eToro, and he called them total thieves. He claimed that eToro had stolen his $100 and won’t refund him.
Bottom Line
It is evident from this eToro copy trading review that the broker’s fee-free copy trading feature has gained significant popularity among investors. With the launch of Popular Investor on the platform, users now have access to a wide range of trading experts to emulate. With a focus on sectors like Artificial Intelligence and investment portfolios, including the Smart Portfolio, which cater to different investor preferences. Traders may be rest assured knowing that the mobile trading app and desktop copy trading platform are intuitive and straightforward. Diversification is simplified with eToro’s several available markets for trading equities, cryptocurrencies, commodities, and indices. The users had mostly positive impressions of eToro, praising its copy-trading function for making it possible for everyone to benefit from the experience of more skilled traders.