Is it worth it to do copy trading on eToro? Is it a legitimate way of making money, and is it possible to achieve success using eToro for copy trading? Can it be profitable?
eToro copy trading is worth it, as it can be very profitable and is generally a low-risk investment. However, it is important to choose a trader who has a long track record of success and earns a profit margin acceptable to you (7%+). Remember: the more you invest, the more you can earn!
In this article, you will learn all about copy trading on eToro. I will explain what eToro is, what copy trading is, and why copy trading on eToro can be very profitable. Let’s get into it!
IMPORTANT SIDENOTE: I surveyed 1500+ traders to understand how social trading impacted their trading outcomes. The results shocked my belief system! Read my latest article: ‘Exploring Social Trading: Community, Profit, and Collaboration’ for my in-depth findings through the data collected from this survey!
Table of Contents
What Is eToro?
eToro is a trading platform that has been around for a while. It offers forex trading, and it later added cryptocurrency trading capabilities as well. For those outside of the US, you can also trade stock and contracts for differences. It is a well-regulated trading platform, which is why you know you can trust it.
eToro is an excellent platform for beginners, as it is incredibly easy to use and features non-confusing options. eToro aims to make forex trading easy for beginners. Generally, putting your money into eToro can be considered a low-risk investment due to its stability, regulation, and trustworthiness.
Here is a great two-minute eToro review:
What Is Copy Trading?
Copy trading involves copying the trades of a successful trader. With eToro copy trading, you will be copying the trades of a specific person who you think will be successful in the future, based on their past success trading in the forex, crypto, or stock market. Copy trading is excellent for beginners because it allows them to make money and be successful on eToro, even without having a lot of experience trading in the past.
Usually, it takes a lot of trial and error until you can become successful in the stock market. If you are just starting, you may lose a lot of money until you find a trading strategy that works for you. By the time you become profitable and know what you are doing, you may have already lost a lot of money. That’s why copy trading is so appealing.
What Is eToro CopyTrader™?
eToro CopyTrader™ is a service that eToro offers, specifically for those who want to use eToro for copy trading. eToro claims that the average yearly profit of most copy traders is more than 83%. eToro CopyTrader™ allows you to choose a top trader on the eToro trading platform and copy their trades.
You can search for successful traders on the eToro CopyTrader™ platform by looking at factors like risk score, performance, assets, and more. Take all of those factors into account, and look at how much profit they have earned per year. Once you have decided which trader you want to copy, you just decide how much money to invest.
You won’t have to manually follow the trades that the trader you chose makes. Instead, the eToro CopyTrader™ service will automatically copy those trades for you. When that trader sells a currency pair, for example, you will sell it too. You don’t have to pay any management fees to use eToro CopyTrader™, but the traders who allow people to copy their trades do get paid as part of the eToro Popular Investor Program. You can get paid too if you are a successful trader.
How Much Money Can You Make With eToro CopyTrader™?
You can earn a lot of money when you use copy trading on eToro. However, it all depends on how much you invest in the program. Let’s say that you chose a trader who has been earning 10% per year consistently, year after year. While there is no guarantee that he will earn 10% this year, he likely will.
If you invest $200, you will only earn $20. 10% of $200 is $20. However, if you invest $5,000, and the trader earns a profit of 10%, you will earn $500, which is 10% of $5,000. What I’m trying to say is that how much you earn depends on you. The more you invest, the more you can earn.
Is Copy Trading in eToro Profitable?
Yes, copy trading in eToro is profitable if you choose the right trader to copy. You have to invest a minimum of $200. However, copied trades are usually placed within seconds after the trader you are copying places their trades. Since there is no lag, you don’t have to worry about losing out on a profit due to rapid market changes.
Are Earnings on eToro Copy Trading Platform Guaranteed?
Of course not. Nobody can truly predict what the stock market will do with 100% accuracy. That is why it is important to copy a trader who hasn’t just made a profit in the past year but has been making a profit consistently. There is always a risk when trading, and copy trading is no different.
If you choose the wrong trader, you may lose money. However, if you do your homework and choose a trader who has a low-risk profile and high-profit margins, you are very likely to earn a lot of money as well, even if you have no prior experience. It is as simple as that. eToro CopyTrader™ is one of the best ways for newbie traders to profit in the forex or crypto market.
How To Choose the Right Trader To Copy on eToro?
As I said before, you must choose the right trader to copy. A trader might seem to be doing well, but you may find that they have a high-risk profile and a track record that does not go very far back if you look closely. In this section, you will learn about some things to look for when choosing a trader to copy on the eToro CopyTrading™ platform.
First of all, look for traders who have a successful track record for at least 2-3 years. The longer, the better. A trader who has had success for only one year might have had pure luck. It doesn’t mean they know what they are doing and understand the stock market inside-out and will be successful next year.
You also want to avoid traders who have experienced success during famous bull runs and not during other times. For example, a trader who made a lot of money with crypto in 2017 might not know what they are doing. It is well known that there was a major bull run in the crypto market during that time. Recently, there was also a bull run in the crypto market, so take that into account.
You need to find a trader who is experiencing success consistently. Find a trader who is experiencing success most of the months of the year. That will show that they have chosen good stocks—or in the case of forex trading or crypto trading, they are using successful strategies. If they are only successful some months in the year, it might be due to luck and not due to their strategy.
Of course, choose a trader who is experiencing returns you are comfortable with. For example, if you are fine with a trader who earns only a 5% return per year, as long as the risk is not high, go for it. I would generally want to see returns in the 7-10% range, at the very minimum.
Author’s Recommendations: Top Trading and Investment Resources To Consider
Before concluding this article, I wanted to share few trading and investment resources that I have vetted, with the help of 50+ consistently profitable traders, for you. I am confident that you will greatly benefit in your trading journey by considering one or more of these resources.
- Roadmap to Becoming a Consistently Profitable Trader: I surveyed 5000+ traders (and interviewed 50+ profitable traders) to create the best possible step by step trading guide for you. Read my article: ‘7 Proven Steps To Profitable Trading’ to learn about my findings from surveying 5000+ traders, and to learn how these learnings can be leveraged to your advantage.
- Best Broker For Trading Success: I reviewed 15+ brokers and discussed my findings with 50+ consistently profitable traders. Post all that assessment, the best all round broker that our collective minds picked was M1 Finance. If you are looking to open a brokerage account, choose M1 Finance. You just cannot go wrong with it! Click Here To Sign Up for M1 Finance Today!
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Conclusion
All in all, copy trading on eToro is profitable and worth it. However, it is important to choose the right trader to copy, or you may end up losing money. Also, only put money that you are comfortable risking in trading.
BEFORE YOU GO: Don’t forget to check out my latest article – ‘Exploring Social Trading: Community, Profit, and Collaboration’. I surveyed 1500+ traders to identify the impact social trading can have on your trading performance, and shared all my findings in this article. No matter where you are in your trading journey today, I am confident that you will find this article helpful!
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