How to Copy: An EToro Copy Trader Review

This post is a review of eToro copy trader, and tips on how to copy the best traders on eToro. If you have questions or tips, join the live discussion on the comments section below and interact with like-minded traders.

Ever wanted to dive into stock, indices, commodities, and forex (foreign/currency exchange) trading, however lack the skill and knowledge in executing a successful and very profitable trade?

Yes, we may have that beginner’s luck at executing a few trades. The thing is, how do we maintain a very successful streak by somehow predicting that next sharp rise in the charts?

Certainly that is not that easy to do so without having expert financial “Wall Street” calibre skills. That is my issue as well. I wanted to trade and make a somehow handsome cash while relaxing on a beach. But I’ve already tested the waters of manual trading. Quite honestly, it didn’t work out well for me.

Turns out I was a very emotional trader, quickly responding to chart movements (a notoriously newbie mistake) as I’ve written in a previous blog post.

At the time, I really hoped there would be a game-changing trading platform that allows normal people to just automatically copy expert trades of expert traders. When I say expert, I meant those who are knowledgeable at what they do. Those who are able to deal with their emotions while prices plummet.

It’s actually a good thing there is eToro, the world’s largest social trading network with millions of active traders. eToro is a member of the Financial Conduct Authority (FCA) and Cyprus Securities and Exchange Commission (CySEC). The question is, what is my review of eToro? And how do we find and copy the best traders in this trading platform?

eToro Copy Trader Review: What is it & how exactly does copy trading or social trading work?

eToro basically allow you to invest while doing so in a social community (just like Facebook!). Meaning you can follow and chat with fellow traders regarding the markets. You also get updated in their every trading move.

What’s more convenient is that you can easily spot top performers. You can check their profiles to see their trading performance and pick the ones to automatically copy whatever they’re trading.

You also get to choose how much of your money you want to invest per trader that you copy. The registration and service is absolutely free, and in case you choose to put in some investment, the minimum deposit is $200.

If you’re a confident and experienced trader and you wish to rely on your own trading, you can still take advantage of this social network by becoming one of eToro’s popular traders and be copied by other traders. When your trades are copied by other traders, you also earn your own management fee.

How to copy the trades of master traders?

Take a look at this 6-minute video to see what the whole ‘copy trading’ is about and how it works. After the video, I’ll be giving you more tips in selecting who to copy.

Easy, eh? Basically once you log-in you’ll see your Facebook-ish live activity feed where you’ll see what’s going on around your investment network. You’ll see what your ‘friends’ are trading on right now, what hottest investment topics are on. Once you click on the ‘People’ tab, you’ll find top traders whose trades you can easily copy by clicking on the ‘Copy’ button and selecting how much of your money (equity) you want to dedicate in copying your chosen trader.

It is particularly refreshing knowing that eToro doesn’t allow us to invest more than 20% of our money to be copied into one single trader. This leads us more on the safer side. The basic investment rule to diversify assets, and not putting all ‘eggs’ in one ‘basket’.

Read on: Explanation of how the copy system works (and how to copy)

The platform also makes it easier to find out which trader profiles to copy. This lets us easily identify who has the highest gain, most number of active copiers, most profitable trading weeks, and the least profitable trading week in a given time frame. If you’ll take a look at their profiles, you find out what their risk appetites are. You also see their trading history, whether they are successful or not in their previous trades.

eToro Copy Trading Traders

A screenshot from my account at eToro showing the list of traders that I can choose from and copy.

How to find the best traders on eToro?

My advice: Take advantage of the ‘Advanced Filters’ option to make sure you rigorously find out exactly who to look for and copy. Make an informed decision – consider the following when picking who to copy.

  • Return – this of course is an important factor and is one of the best indicators of a successful trader. Since it shows how much a trader has made over time, set this to high.
  • Weekly drawdown – Try to set this at a low, as this is the maximum losses by a trader over a certain period.eToro Copy Trader Review and How-to
  • Average trade size – this is the average amount of money a trader allots on each of his trades compared the amount of money he has available. If, for example, a trader has $200 in his account and invests $150 to a particular trade, he is already considered a ‘high risk’ trader. Why you ask? Because he just put almost all of his money in one single trade.

You don’t want to copy this trader and watch most your money down the drain on a single trade, man. Copy those who are more conservative, diversifies his trades and invests only a small percentage of his equity to allow for other trades.

eToro Copy Trader Review and How-to

  • Leverage – the higher the leverage, the riskier the trader is. This happens when the trader invests more money than he has available in his account. Copy those who has a lower leverage – again, this is choosing the more conservative traders.
  • Active weeks & trades – this shows how many trades the user has made over a given period of time. This is important as this shows consistency and commitment of the trader. You don’t want to copy a trader who does little to no trade per week-your money would be sleeping, right? This also shows consistency on the performance of the trader. For example, if a trader has a high return and has a high number of active traders over time, this just validates the competence of the trader. eToro Copy Trader Review and How-to
  • Number of copiers – you can’t take this for granted. Since eToro is a social network, looking into the number of followers and copiers that a trader has just makes sense and makes for a more confident decision on your end. This is because you know that others put their trust on the trader as well. If the metrics are good and this trader has a lot of copiers, then he must be really good at what he’s doing and it might be worth copying this trader.

More of this: Copy systems explained

Some caveat though…

As you noticed in my tips above, conservative is the key word. Diving into copy trading is risky enough. Don’t add to the risk by copying the wrong trader – an unconservative, high risk trader. Trading takes a lot of patience and no one should expect earning a wad of cash on just a single trade. Greed, my friend, destroys a trader.

So if you notice a trader who’s taking on risky moves as described above,  do not copy, by all means. I’ve previously written about the pros and cons of copy trading, check it out!

Since online trading is high risk, it may be best not invest all your money in here. Diversify instead by investing on other financial products as well. But I think trying this and learning from your experience won’t hurt. And boy, this may even possibly be a new source of passive income for you.

Test the waters, invest a small account that can’t hurt if lost, and reap the benefits of learning and possible surplus on your account. 🙂

Stay rich,

FRUSTRATEDBILLIONAIRE

Have you already experienced the benefits of copy trading? Feel free to comment, share your tips, or ask a question. Please also like me on Facebook and Twitter! Thank you!

*Above is the sole opinion of the author and should not be taken as a formal advice. This will now be based on you, the decision-maker to determine if investing in this type will be in your best interest. Visit eToro for more information on social/copy trading.

  • Pingback: Pros and Cons of Copy Trading in Forex | FrustratedBillionaire()

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  • Paul_bw

    Wow thanks for sharing this! your tips are especially helpful i’m gonna try this. By the way, how do i deposit funds to my account?

    • Hi Paul, glad I was able to help! Thanks for commenting as well. The easiest way you can fund your account is by credit card – just click the credit card option, fill out the online form and your account will be credited instantly.
      Another easy way would be online deposit via PayPal. You just need to have your own PayPal account. If you choose to pay via bank transfer, you can have the bank ‘wire transfer’ your funds. Let us know how your experience is!
      Stay Rich,
      FRUSTRATEDBILLIONAIRE

  • mackyroon

    Tried copy trading since 2yrs ago, now earning an average of $900 each month. Agree with your point to not rush everything and take steps carefully. The best traders to copy are those who can wait and delay gratification.

    • Thanks mackyroon for commenting and sharing to us your awesome experience in copy trading. Idol! You can always comment here your valuable tips! That would be really appreciated 🙂

  • Drahcir

    Hi FB,
    it’s me again… Really happy to see this blog for Forex trading. I’ve been looking for this for long time… I just have some questions since you know about this already.. How about the withdrawal? Do they ask for some documents in able for a trader to withdraw their money?

    • Hey Drahcir, glad you found this helpful. Thanks for commenting bro, and sure, ask away!
      About the withdrawal, yes, to protect us traders, they will request the following from you (one time only, during your first withdrawal). Withdrawal requests can take up to 3 days to process, and you can withdraw your money via the credit card you used to make a deposit, PayPal, Skrill, or bank transfer.
      1. Clear color copy of your passport, showing your written signature
      2. Clear copy of recent utility bill (any bill that is not older than 3 months and comes to your name and address of residence, for example, water bill, electric, gas, telephone etc…). If no utility bill is addressed to you, a copy of your Bank Statement will do
      3. If you have deposited by credit card/s: Clear color copy of both sides of the card you used to fund your trading account (you can mask the middle 8 digits on the front & the CVV number on the back)
      Hope this helps bro!

      • Drahcir

        Hi FB,
        Thanks for your response. Can you give me an advice on how I can make money on this? As of yesterday when i opened an account with eToro, i selected 2 people to copy their trading(since the minimum amount to be funded is $100 for each copy).. and today one of my copied trade shows in a loss position(but not even $1 yet). How long should i keep my fund for each copy trade?

        Rgds,
        Drahcir

        • Hello Drahcir, thanks bro!
          How long should you keep, you ask? The short answer is, to trust the trader that you’re copying for now. They’re trading their own money as well, so let’s trust that they know the next step, if they’ll buy or sell (they might have some tricks up their sleeves). Since your money has been with the one you copied for only a day (and loss is less than $1), it might help to wait it out a bit.
          Of course, since it’s your hard earned money, I understand where you’re coming from. You have to monitor and do your research on it as well to avoid any possible loss. Is the one you’re copying being very aggressive (and risky) in his trading activities lately (as advised in above blog post)? What about the pairs that your money is in, are the charts looking all red right now?
          I think there’s no reason to worry for now. 🙂 Let’s try to wait it out a bit more, and for every step, consider this as part of the learning process!
          On another note, what about the other trader that you copied? Is it performing well?
          Keep us updated. Thanks bro!

          • Drahcir

            Thanks FB. For the other trader that i copied, he doesn’t have any movement yet… I’ll keep in touch..

            • Great! Thanks Drahcir, I’m quite positive and let’s hope for the best! Actually, from experience, it’s quite usual to experience some loss immediately after buying in (mainly due to spreads imposed by forex brokers, and of course, values fluctuate all day) – let’s wait it out a bit. 🙂

      • Also, below is what eToro said when I asked them before, if in case passport is not available. here are the alternatives they mentioned for passport and proof of billing.

        ——
        In addition to passports, we accept colour copies of government issued identification (both sides) showing all relevant information including:

        Photograph, full name and date of birth
        Country of Issue and Issue/Expiry date
        ID number
        For most countries, a driving licence is acceptable.

        Please note that to withdraw funds, we also require proof of address.

        This would be an official bill issued within the last 3 months by a financial institution, a utility company, a government agency or a judicial authority. It needs to confirm the full name and address of the trader. We will accept the following utility bills:

        -Electricity bill
        -Water or gas bill
        -Council Tax bill
        -Tax letter/bill

        We will accept one of the following documents as an alternative:

        -A Bank / Credit Card statement, issued within the last 3 months, containing the trader’s name and address and issue date.
        -An official letter from an employer confirming the trader’s address and name

  • mackyroon

    Drahcir I started with $150 or $200 back then. I remember it was the minimum. Then added $1000 after 3mos bec it was doin pretty well..
    I dont copy risky ones. I lean more towards traders who have frequent and slow but steady gains over risky traders. Risky traders can earn hundreds in each move but those kind of actions are risky to me and I tend to avoid.
    I keep my trades as long as it earns. The charts fluctuate as always so I just trust my instincts. Good luck!

  • Sure! Keep us posted bro

  • Hello Drahcir,

    Thanks for the update bro! Great to hear you’re getting the hang of it and your money is starting to earn! Cheers to that dude!

    About your question on how exactly our copied trades are being calculated: positions are copied into the copier’s account with the exact ratio that the copy was started. The ratio we are referring to is between the invested amount in the copy and the copied user’s equity. As an example: Anna, a Popular Investor, has $1,000. James, who copies Anna has $100. Anna (the Popular Investor) opens a new trade using $300 (30% of her equity). The position that will open for James will be for $30, which represents 30% of his invested amount in the copy. The profit or loss of this trade will be calculated according to the size of the copied position. Therefore, if the position is very small, the profits may be equally small.

    Since traders are being copied, I had to confirm too from eToro themselves just so we can get a clearer picture, if copied traders earn anything (as payment for the service of being copied) from our copied trades. As confirmed, regular traders do not earn money from being copied. For example, if a new user joins eToro and gets people to copy him, he will not earn from it. However, traders who join their Popular Investor program (benefits of the program here) may earn money from being copied.

    Given that bro, I think there are two strategies you can choose here: one is to be modest/conservative and wait for your earnings to increase, slowly but surely, given the fact that your copied trader looks like he knows what he is doing and is on a winning streak. The other option is, if you really want to increase your earnings with each win (also increase your loss with each loss), to be aggressive at it and increase the amount invested in the copy.

    By the way, whenever you open or edit a copy, below the amount you’re entering you will see the average trade size for the copy based on the invested amount. This way you can see the average trade size and will serve as a good reference. Surely, the larger the trade size, the larger the profit/loss.

    This complete explanation of how their copy systems work will surely be a great reference, too.

    Cheers to your investment bro!

    Stay awesome,
    FRUSTRATEDBILLIONAIRE

    • Drahcir

      Thanks FB.. You really answered my doubts (“;)

  • Hi Drahcir, Although I’ve read about binary options and autobots countless times already, unfortunately I haven’t tried these two yet, particulary because these two are unregulated and fraudulent more often than not, so I generally try to avoid these instruments. Also for auto-trading bots, for me there is absolutely no way a robot can predict each and every market movement no matter what scientific calculation is used.
    If in case I’ve tried a better alternative, I’ll post about it here for sure.

  • mackyroon

    Hi Drahcir nope i dont do my own trading because im not that good in it but sometimes i do for a small amount just for the fun of it. But im done with trading on my own so i just copy the popular traders and increase funds when handy. Good luck dude

    • Drahcir

      Thanks Bro.. I am planning to do the same. So far, my 2 copy trades are doing well… Maybe in a month or two i will add some funds as well..

      • Awesome dude! Great to know you’re getting better at it and your copied trades are doing good too!

  • Sure thing bro! Haha yeah, these binary/robot guys sure have their way of getting around the system to lure helpless traders… Double your money scheme is often too good to be true… And ‘slowly but surely’ is often the better option..
    Thanks Drahcir and I wish you all the best in your investments!

FrustratedBillionaire
FrustratedBillionaire
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