eToro Copy Trading

How to Survive Your First Copy Trading with eToro?

Since being introduced in 2010, the eToro CopyTrader feature has become a favorite tool among users especially newbie investors because it allows traders to follow, copy and learn from the very best investor users of the eToro trading app.

To know more about this feature, this section will explain everything you need to know about eToro's CopyTrader.

Table of Contents

  1. What is CopyTrader?
    eToro's unique trading feature explained (27sec)
  2. Usefulness of Copy Trading
    How can this benefit you? (24sec)
  3. Groups and Categories
    What specific results can I get? (9sec)
  4. Trader Profile
    What can I see on the user's profile page? (2min 8sec)
  5. Your First Copy Trading
    What should I be aware about? (20sec)
  6. How to Copy Traders?
    Step-by-step guide (43sec)
  7. Eligible Users Who Can Copy Other Traders
    Am I allowed to copy? (11sec)
  8. Advantages of CopyTrader
    Pros of using this feature (13sec)
  9. How Does CopyTrader Work?
    Basic steps to follow (14sec)
  1. CopyTrader Requirements
    What are the conditions for me to use it? (33sec)
  2. Methods of Copying a Trader
    What are the ways to copy? (24sec)
  3. Copying All Trades Explained
    What does it exactly mean? (1min 9sec)
  4. The “Copying Only New Trades” Method
    Are there strings attached? (49sec)
  5. CSL or CopyTrader Stop-Loss
    How can I actually use this? (53sec)
  6. CopyTrader Pause
    What does it really do? (14sec)
  7. Benefits of Copy Trading
    What do I get from using this feature? (39sec)
  8. Reducing Risks When Using the CopyTrader
    Must-read tips and guides (54sec)
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Like to explore copy trading?

eToro's copy trading feature is no doubt an interesting way to invest and if you're already curious enough to test it out, you can click on the button below to open an account to begin your trading journey.


EXPLORE COPY TRADING!

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What is CopyTrader?

The CopyTrader feature allows investors to copy any trader's strategy and positions in real-time. Users can browse profiles of eToro's most successful traders to see their earnings and positions, so they can easily mimic their opening in a trade position and their other strategies such as amount of leverage used, target profit, stop-loss and timing of when to close a trade.

eToro CopyTrader feature
eToro CopyTrader feature

Simply say: It is almost like shadowing an experienced trader on the floor of an exchange such as the Wall Street exchange and imitating all their trades.

Usefulness of Copy Trading

Most eToro users are not full-time investors who can afford to put in the time to watch and study the markets 24/7. This is where the CopyTrader feature of the trading app becomes useful.

By using CopyTrader, you can easily follow, copy and learn from the expertise of the successful traders who are using eToro. This feature allows you to replicate the portfolio of top-performing traders.

According to eToro, the average profit of their 50 most copied traders in 2019 is 83.7%.

Groups and Categories

A list of traders can be viewed on eToro’s platform based on certain parameters. You can get specific results based on the following:

  • Editor's Choice
  • Most Copied
  • Trending
  • Long-Term Investors
  • Long-short Investors
  • Multi-strategy Investors

Trader Profile

When you access an eToro trader's public profile, you will be able to see 4 main sections:

  1. Feed: This is similar to Facebook's timeline or wall where the user can post statuses or updates, share other posts, and interact with followers. Users on the other hand can like, comment or share the trader's posts.
    eToro trader profile feed
    eToro trader profile feed
  2. Stats: As the label suggests, this will present a breakdown of the user's trading statistics in detail with emphasis on the following:
    • Performance: This features the past performance of the trader but is presented in a much simpler way but the data has been derived from a complex formula. The monthly stats calculate the user's change in equity from the beginning of the month until the end of the month and offsets any deposits or withdrawals. The yearly figures are calculated by compounding the monthly gains throughout the year.
    • Risk: The formula for this score includes the total allocation of the user's portfolio, the leverage they are using, the overall volatility of the Markets they trade and the correlation between them. The risk score is calculated using a special formula that they've developed. It is calculated for each user from 1 to 10 with 1 being the lowest possible risk and 10 being the highest.
    • Copiers: This indicates the current number of users who are copying the specific trader. It also shows a chart featuring the number of copiers at each point for the previous year.
    • Trading: This will feature the total amount trades that user has made in the past year and this will include their profitability ratio, average profit and loss, and the distribution into the types of assets. In addition, it will also feature their top 3 investments based on the number of trades, profitability ratio, and the average percentage of their profit & loss.
    • Additional Stats: More stats can be found here such as the average number of trades they made for a week, information about their average holding time, the date since they've been active and the percentage rate of their profitable weeks.
    eToro trader profile stats
    eToro trader profile stats
  3. Portfolio: This is an overview of all the assets the trader currently has open positions on. It comes will all the details including the name of the asset and its symbol, buy/sell position, percentage of investment, profit/loss rate, value, and the buy and sell buttons with regularly updating values based on the market.
    eToro trader profile portfolio
    eToro trader profile portfolio
  4. Chart: This is the updated chart showing the trader's performance. This is based on copy-simulated results using the account's data with an investment of $10000 and 60% copy stop-loss.
    eToro trader profile chart
    eToro trader profile chart

Your First Copy Trading

Once you've decided to copy a trader and this is your first time to do it, you will get a one-time notice about this trading method including a short introduction about this feature, and your authorization and confirmation to all the listed specifications. Be sure to read the CopyTrading Risks and the terms and conditions before clicking on the "Confirm" button.

First copy trading confirmation
First copy trading confirmation

How to Copy Traders?

To copy traders on eToro, just follow these simple steps:

  1. On your profile dashboard, click “Copy People”.
    Clicking "Copy People" on eToro's trading platform
    Clicking "Copy People" on eToro's trading platform
  2. Choose a trader among the eToro's most successful traders that are grouped and categorized under “Editor's Choice”, “Most Copied” and other options.
    Browsing for traders to copy on eToro's platform
    Browsing for traders to copy on eToro's platform
  3. Take note that you can set your search by performance, assets, risk score, profits and more.
    Refining trader search results on eToro CopyTrader
    Refining trader search results on eToro CopyTrader
  4. Click the trader you selected to view his/her profile and click the “Copy” button.
    "Copy" button on an eToro trader's profile
    "Copy" button on an eToro trader's profile
  5. Set a monetary value for the copy and an amount for the Stop-Loss.
    Copying a trader on eToro
    Copying a trader on eToro
  6. Click “Copy” to begin automatically mimicking the trader’s positions.
    Executing a copy trade on eToro
    Executing a copy trade on eToro

Here's a short 30-second video on how to copy a trader from the mobile app:


Eligible Users Who Can Copy Other Traders

Any eToro user who are willing to engage with a moderate risk to achieve sustained profit growth both in short and long-term period by relying on the investment decisions of well-experienced traders.

Advantages of CopyTrader

Aside from making life easier when investing, the advantages of CopyTrader are numerous and includes vast earning potential, diversified portfolio, learning from the best traders, copying of long and short-term trades, investing on top performing stocks and for most copiers, receiving dividends.

How Does CopyTrader Work?

The concept of CopyTrader is basically simple: copy other traders. The other steps that completes this process are as follows:

  1. Choose a trader to copy.
  2. Set the amount you wish to invest.
  3. Start copying all their trades automatically and in real time by simply clicking the "Copy" button.

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CopyTrader Requirements

Before you can start copying other traders, bear in mind these basic requirements:

  1. There is a $200 minimum amount needed to invest in a trader (the amount was temporarily changed to $500).
  2. The maximum number of traders you can copy at the same time is 100.
  3. The minimum amount for a copied trade is set at $1; any trades below this minimum will not be opened (the amount was temporarily changed to $2).
  4. When you manually close a copied trade, the funds from this closed position will be directed back to your copy balance (this is the amount that you allocated to copy a trader that is not invested in any open positions).

Methods of Copying a Trader

Users can select from two methods when copying a trader. These are by:

  1. Copying all trades
  2. Copying only new trades

This can be set via the Copy pop-up screen. With the "Copy Open Trades" box checked (which is the default), this will set the system to also copy all the existing open trades and the future traders of that specific user while unchecking it will only start copying when the user opens new positions.

Copying open trades of an eToro trader
Copying open trades of an eToro trader

Copying All Trades Explained

After you have selected a trader to copy and decided you would want to copy all their trades, this means you are also opening on all of their existing trades, under the following conditions:

  1. The copied trader's existing open positions will be automatically opened in your (the copier) account reflecting the market rates at the time of copying (and not on when the original trade was opened).
  2. The copied trades will reflect the same Stop-Loss (SL) and Take-Profit (TP) of the original trade.
  3. You will also copy any of the Copied Trader's activities including modifications in TP and SL's, as well as the closing of the trade, starting from the moment you copied them.
    If the copied trader changes their SL by putting additional funds to a position, your SL will also adjust automatically. Take note that your position amount will remain as the initial amount.
    Therefore, you may notice slight differences in the percentage of gain when comparing your account to the Copied Trader's account.
  4. You can close a copied trade without closing the copy account.
  5. When the copied trader opens a position during closing hours of a market, the system will automatically open a Market Order for the copier.
    When the market opens, the order will immediately execute into a position reflecting the first market rate.

Remember:
You can view every trade copied from a trader by going to your portfolio and clicking the Copied Trader's profile.

The “Copying Only New Trades” Method

When you choose this method of copying a trader, you will be subjected to these following terms:

  1. You will only copy the trades made by the Copied Trader after you copy them.
  2. All new trades will open with the same rate as when the Copied Trader opened them.
  3. The proportions of all new trades will be computed from the Copied Trader's realized equity (Invested funds + account balance).
  4. All copied trades will reflect the same TP and SL of the original trades.
  5. All the Copied Trader’s activities will be replicated in the copier’s account. This includes the changes in SL’s and TP’s and closing of the trade.
    If the copied trader extends their SL by adding more funds to a position, your SL will adjust accordingly. However, your position amount will stay the same as its initial amount.
    Therefore, you may notice slight differences in the percentage of gain when comparing your account to the Copied Trader's account.
  6. You can close a copied trade without closing the copy account.

CSL or CopyTrader Stop-Loss

eToro has a feature within a feature of CopyTrader called the Copy Stop-Loss (CSL). The CSL allows users the ability to have more control of their Copy portfolio by having a risk management system in place across all copy relationship based on updated Profit / Loss amount.

The system set the CSL at a default value of 60% of your total invested copy value per copy relationship. What this will do is when your copy value experienced a loss of 60%, the CSL will function by terminating that copy relationship. It will then return the remaining funds back to your fund balance.

Copy Stop-Loss on eToro
eToro's Copy Stop-Loss (CSL)

Remember: This is only the default setting. You can set your CSL anywhere from 5% to 95%.

For example:
You copied a Trader with $2,000. You set your CSL to 50% of the equity to return to the account, which equals to $1,000.
Once the current equity, including the profit/loss stumbles to $1,000, the copy account will be automatically closed, and the remaining funds (50% of the original copy amount) will be returned to your balance.

CopyTrader Pause

This new feature called the "Pause Copy" allows you to stop copying a trader without having to close all your opened positions. To "Pause Copy" a Copied Trader, you need to go on your Portfolio page and click "Pause Copy" on the settings.

Pausing a copy trade on eToro
Pausing a copy trade on eToro

Benefits of Copy Trading

  1. Learn form the best traders. The CopyTrader (accessed by clicking the "Copy People" in your eToro dashboard) gives you access to the profiles of many of the most successful and highly-skilled investors who are using the eToro app.
    From here, you can study each trader's performance and decide to copy their trading activities as well as monitoring their trading strategies.
  2. Save precious time. By taking advantage of the power of CopyTrader, you won't have to spend a lot of time just learning the ins and outs of the financial market. You can learn as you copy a knowledgeable trader.
  3. Diversify portfolios easily. Even if you are not familiar with stock exchanges and asset classes, you can easily diversify your investment portfolios by simply following and copying the leads of the more seasoned traders.

Reducing Risks When Using the CopyTrader

Even the best traders can make bad trading decisions. Therefore, CopyTrader still comes with a risk. Here are some ways on how to lessen the risks when using CopyTrader:

  1. Diversify your portfolio. The more diverse you make, the more your investments will also spread out risk. You can learn more about this in our CopyPortfolio section.
  2. Always keep up to date with your copied positions. Not because you are copying an experienced trader it doesn't mean you will leave all investment cards to them.
    Make sure to regularly check their profile to be updated with their trading strategies.
  3. Take note of the Risk Score of the trader you are copying. The risk score assigned to each Copied Trader ranges from 1-10 with the number 10 representing the highest risk while the number 1 as extremely low risk.
    These high-risk scores are based on their trading activities. Remember that high profit can also involve high risk.
    Therefore, you may start with someone with a risk score of 5 and work from there as you familiarize yourself better with the CopyTrader feature of eToro.


Ready to test out eToro's CopyTrader?

Now that you have all the information that you need, you're probably more interested now about copy trading and wondering where to start. The first step is to open an account with eToro and to make things easier, you just need to click on the button to get started.


I'M READY FOR COPY TRADING!


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. 67% 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.

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*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.