So here's a guide for the talented traders out there who are looking to become a popular investor on eToro.
What is a “Popular Investor”
The “popular investor” is what etoro calls its reward program for traders who have a certain amount of funds under management.
Joining the program isn't difficult. In fact you need as little as $200 invested in you. The minimum amount someone can copy you with is $200, so this is effectively having one person copy you.
The Popular Investor rewards
eToro rewards you based on the amount of people copying you and the amount of assets under management. To reach the top level of the program, you will need at least $500k AUM (assets under management). While this may sound like a lot, in reality its only ~1000 people copying your trades.
In return for making your trades on eToro and having people copy them, eToro will reward you with a 2% AUM bonus. That's at least $10k for being in the top tier!
You'll also receive a 100% spread rebate and access to perks such as a marketing, education and events budget to promote your account and trading methods.
How to be a Popular Investor
You become a popular investor when people copy your trades. Investors will choose to copy you if:
- Have at least 12 months history on eToro – investors want to see how you perform over an extended period of time
- Have a low risk score – eToro calculates a risk score based on the markets you invest in, the % of capital you use for each trade and the leverage you use.
- Post updates – it's important to remember that eToro is as much a social network as it is a trading platform. Traders who post updates and keep their investors informed tend to perform better in the long run.
At the end of the day, it comes down to being able to deliver consistent profits over the long term.
Find out more about etoro here