I'm really starting to enjoy trading stocks on eToro. And now there are hundreds of new stocks available on eToro for you to trade!
eToro has slowly and steadily been improving their stock trading platform over the past 12 months. You can now try webtrader 2.0 – which makes it easier to find stocks and trade stocks. They also added leveraged trades. This means you can open both and buy and sell (long and short) positions and these can leveraged to increase profits (which will also increase risk).
I've been adding more and more stocks to my eToro portfolio and it is really starting to pay.
A. $200 isn't a lot to begin investing, but it is certainly enough to begin investing with etoro. eToro requires a minimum of $200 per copytrade. Obviously you would want to find a trader who had a low risk trading strategy and is delivering a return of around 10-20%.
Another option would be to purchase stocks. If you had a particular stock or two in mind, you could easily use the $200. In fact you could spread the $200 across 4 different stocks, which would spread the risk.
Big news! eToro has launched the next version of their trading platform.
One of eToro's biggest advantages in the forex space has always been their trading platform. Almost every other forex trader uses the same old platform. But eToro has always developed their own. You didn't need to download any software, it worked in the browser. And now there is a new version which is a major overhaul. Here's a sneak peak and what's inside:
No More Flash
One downside of webtrader was that it used Flash. Well not anymore! The entire thing is built using HTML5, meaning you doesn't need flash to work.
All of eToro in One Place
One thing that annoyed me about the old webtrader was that you needed to visit the etoro website to copytrade, and then you needed to visit webtrader to open manual trades. Well now everything has been unified into the one platform. You can copy trade, buy stocks, trade currencies and more – all in the one place. This is brilliant!
A Simple, Clean Design
The new eToro platform is by far and away the best designed forex platform. The competition isn't even close. The old webtrader was much easier to use than any other platform, and this one is even easier.
Have you tried out the new platform? Let me know your experiences in the comments.
Social trading has been around for a while – it's where traders share all the trades they make, so you can copy them. But the trading has been limited to forex. But that has all recently changed. eToro – the worlds largest and most popular social trading network now lets you copy traders who trade in stocks. Social trading stocks has arrived!
First Off, How Does Social Trading Work?
What if you took a social network, and turned it into a trading platform? What would you get? A social trading platform. There are lots of different social trading networks, but as I'm most familiar with etoro, I'll explain how it works.
1) When you open a trade on etoro, that trade is posted to your profile, and everyone can see it. 2) When you close a trade, that is also shared, so people can see if it is profitable or not. 3) You can “copy/follow” other traders on etoro. When you “copy” a trader, you invest, say $100 in a trader, and then whenever they open a trade, your account will open that trade too. Your investment amount will be scaled depending on how much you've chosen to invest in a trader.
Social Trading is for Beginners
You don't need to be a forex guru or stock picking expert to social trade. This is because you can follow others and automatically make the same trades. You just need to pick the right people. And yes, there is some skill to picking the right traders. Read my guide here for more help on finding the best traders to copy.
Introducing Social Trading for Stocks
eToro is the first platform I've come across (legit platform) that offers stocks. In the past you've been able to invest in currency (forex) and commodities. Stocks are a obviously a bit harder to do. eToro took their time, and they have put together a really impressive offering. And it works really well!
Forex tends to be a little wild. It's hard for forex traders to create consistent results. Simply because the markets can move with massive swings. I've found that stock trades tend to be a lot less violent. So I've begun copy trading investors who invest in stocks as well as forex. And I've had great results.
So Do I Actually Own the Stocks?
When you open, lets say an Apple (aapl) trade and buy $50 worth, do you actually own the stock? Nope. You are a buying what's know as a CFD. You'll be able to buy and sell them at the market rate, however it can be done much faster than actually buying the stock. The other advantage of CFD's is you don't need to buy an entire share. You can buy a fraction of a share. eToro lets you buy stocks with as little as $10 which is awesome. You can also open leverage CFD trades on etoro, which increases your profit potential, but it also increases the amount you could lose. I would recommend staying away from these unless you are an advanced trader.
Can you Short stocks on eToro?
Yes. Again this is more of an advanced trading technique. If your new to trading, I would recommend just copying the trades of the actual traders on etoro. Many of these traders will open “short” positions which will of course will be copied automatically by you.
What Type of Stocks are Available?
eToro offers a selection of stocks. Meaning, you won't find every company listed in the major exchanges. But the goods news is they have all the big players. You'll also find stocks from all over the world. Which lets traders reach out and invest in different markets. In my view, the bigger the diversity, the better.
How much Does it cost to start Social Trading?
eToro has a $200 minimum first time deposit. After this, you can deposit any amount (over $10). I would recommend starting with between $200-$500. This will allow you to copy multiple traders. The more you can spread the risk the better. Make sure you're comfortable with how the platform works before you try investing more. And remember, just like all investments, social trading carries risk. And it can be more risky, then many other types of investments. Start with a comfortable amount and take your time! It's not a get rich quick scheme.
So what's the easiest way to start your own investment portfolio? Fancy yourself as a bit of a day trader? Think you've got what it takes to lead other investors? Well then you should definitely think about joining etoro.
eToro is a social trading platform where investors can follow other traders. Whenever a trader makes a trade, that trade will be duplicated by the followers. As a copytrader, I can invest a minimum of $200 in following your trades. Whenever you make a trade, a duplicate of that trade will be opened in my account based on a ratio. So even if you make a trade with $10k I will still open that trade, but with a smaller amount. It's really cool!!
The Popular Traders on Etoro
eToro has this thing called “popular traders“. Basically they will pay you if you people start following you and copying your trades. You basically earn a monthly income for simply sharing your trades.
Why Become a Popular Investor on eToro?
Cash. Simple as that. Popular traders get generously rewarded on etoro. I think the rewards are far better then any other trading platform I've seen. Plus etoro has a massive community so it's easier to get followers.
Whats a Copytrader?
A copy trader is someone who follows you on etoro, and has invested in you. They will automatically copy every trade you make. The more copiers you have on etoro, the more cash you make on top of all your usual trading income.
Social Trading is the Future
I'm a big believer in social trading. I think it's the future. eToro is the worlds largest social trading platform with millions of users, and it's only going to continue growing. It's worthwhile getting in now – people are only going to start copying you if you have a history of successful trades.
How to Become a Popular Investor on eToro.
Build a Portfolio – eToro tracks all the trades you make on their platform and generates a sexy stats page. This stats page is what potential copiers will look at to see if they want to follow you. Most people will only copy a trader who has at least 6 months history on the platform. Otherwise you won't even show up high in the search filters.
Invest in Currency and Stocks – Spread the risk around. Now sure, if you're an expert currency trader, then obviously you should stick to your guns. But I've found that most of the traders I copy invest in a variety of different products. On etoro you can invest in stocks, forex, commodities and indexes. So no matter what your style, you'll be covered.
Build a Complete Profile – Upload a profile picture, use your full name and right a bio. The etoro search has filters which show traders with full profiles. This is about trust. So take the time to build out your profile. Make sure you list your trading experience in your bio.
Interact with the Community – etoro is a trading community. You can comment on every trade, you can also comment on different markets. So if you have news to share – share it! If you're a popular investor, people will also post questions on your profile. Be active and respond to these. Remember, some members on etoro won't have a lot of experience – use comments to reassure these members and help educate them on how financial markets work.
Make Regular Trades – When i'm looking for a trader to copy, the first thing I usually do is make sure they make at least one trade per week. I'm not looking to have my money tied into a single trade for the next 12 months! I want a popular trader who is active and engaged.
Post to Twitter and Facebook – Want to expand beyond the etoro community? Reach new investors, and potential copytraders by posting your trades to social networks. eToro has a built in feature that allows you to quickly share trades. This is a great way to expand your reach.
eToro, my forex trading platform of choice, has announced some interesting changes to CopyTrader. CopyTrader allows you to automatically copy the trades of professional forex traders. It's a great system – one that has banked me over $850 profit last month.
New Stop Loss and Pause Features
One of the biggest features that has recently appeared in CopyTrader is the pause function. This is HUGE. If you don't like the trading style of a trader, you can pause the system from copying any new trades. This way, your existing copied trades can close out and you won't be locked into copying this trader. Previously you had to just stop copying, which closed all open positions.
There is also a new stop loss feature. If a trader loses more than 40% of the copied amount you'll automatically stop copying this trader. This can be manually adjusted. Nice feature that promotes responsible trading.
New Minimum Copy Amount
Probably the news that will have the biggest impact is the minimum copy amount. You now need to copy with at least $100. I think this is great. I've always recommended copying with $100 because $50 (the previous minimum) was just too small an amount and didn't offer any flexibility. This new minimum will ensure that you'll be able to copy all the trades of the traders you copy.
eToro's copytrader keeps on getting better and better. In my opinion their product is miles ahead of other social trading platforms. It's easier to use and they really promote sensible trading, which in the long run equals bigger profits!
I've been trading for a while on eToro, and one of things that I see time and time again are new traders or copytraders, losing money. And sometimes I even see them wipe out their entire accounts. Here are some of the reasons why these people are losing out. If you follow these tips, you should be able to reduce some of the risk and be a smart trader.
They Only Follow/Copytrade 1 Trader
The most basic rule of investing is diversification. If you don't follow this one rule, you may as well forget about copytrading. Just close your account! You need to follow at least 3 people. I usually recommend to people they should copy 5. This will spread the risk. All traders have bad months.
They Copytrade The Wrong People
Only copy traders who have been trading on etoro for at least 12 months. Have steady growth – not explosive – this is very important. The traders who have 300%+ growth are using high risk trading strategies which are akin to flipping a coin. Sure they might have gotten lucky and pulled off one or two trades with a massive return. But they also risk massive losses. Only copy trade traders who have around 20% growth over the past 12 months.
You also want to ensure they are constantly heading in the right direction. Take a look at their graphs, if there are big dips, don't copy. They should have a steady growth curve.
They Only Invest in Forex
The great thing about etoro is you can invest in a wide range of markets. Instead of just focusing on currency, try investing in stocks (such as Apple or Google) and commodities such as silver and gold. Stocks can provide the foundations of your investment, and can grow steadily over time.
They Panic and Aren't Patient
As I mentioned before, all traders will have bad weeks and even bad months. Don't panic. Sure, if a trader isn't performing for 2 months in a row, you should definitely stop copying and move on, but don't jump ship after 1 or 2 days! I see this all the time, and it's the worst thing you could possibly do. Be patient. Some trades can take days to close out and turn a profit.
If you follow these simple tips, then you will reduce the risk on eToro. This is my strategy and its been working really well for me.
I've traded on a number of different forex platforms. But I find myself always coming back to my favorite of the bunch, etoro. This past month, I've made over $500 through a combination of copy trading and by opening my own trades.
Here is my review of the etoro platform.
eToro is Web Based
Unlike MT4, which is offered by every other forex broker, etoro is web based. This means you can use it on a Mac (yay!) and PC and they also offer iphone and android apps for mobile trading.
You also don't need to download anything and there is zero setup.
The platform is really well designed and by far the easiest and simplest forex trading platform.
eToro is the Broker
eToro is both the broker and the trading platform. This means that the experience is seamless and you don't need to do any setup.
They Have Simplified Trading
You won't need to worry about things like available margin, lot sizes, market execution etc. eToro has dramatically simplified the way you trade forex. You just choose how much you want to put towards a trade ($2, $5, $20 etc) and then open it. This makes money management extremely simple.
Choose the Leverage on a Trade by Trade Basis
With every other forex broker I've tried, you are forced into choosing the account leverage on registration and you are stuck with it. Furthermore, some even don't offer a choice.
With etoro, you choose the leverage for each trade you open. This means you can choose to trade with a low leverage and employ a low risk trading style.
You Can invest in Stock, Currency and Commodities.
The cool think about etoro is that it isn't just forex. You can also invest in numerous popular stocks. Opening a stock trade can be done with as little as $50. If you've ever wanted to invest in a company like Apple or Google, you can do it easily with just $50 on etoro.
eToro is by far the best platform for those looking to start investing in forex. The learning curve is small and even if you have no experience you can still invest using copy trader.
Each week I'm going to suggest a new etoro user you can copy trade. I often get asked via email who are the best traders to follow. So from now on, I'll share with you some of the traders that I have analysed and think could be copied.
Here are the stats on abd1986. Over the past 30 days, he has had an impressive gain of over 100%. But this isn't just a short term spike, over the past 12 months he has had a gain of over 420%.
On average his trades are open for 3 days, which means, you shouldn't get stuck with lots of open trades waiting for them to eventually get closed. He opens no high risk trades and has shown steady growth over the past 12 months.
I've been trading using the social trading platform, zulutrade for the last few months. The one slight issue I have with Zulutrade are the robots. Forex robots can work wonderfully for months and then suddenly start chewing through your cash. If they did work consistently there would be a lot more millionaires in the world.
eToro is a social trading platform that allows you to follow traders and automatically copy their trades. The great thing about the platform is that you can autotrade with as little as $50. This means, it's well within the reach of the new investor to follow a number of traders and diversify your portfolio.
There are also no robots on etoro as they use their own platform which doesn't allow it.
Furthermore etoro is huge. It has by far the largest number of traders. I'm looking forward to seeing how this platform grows over a number of years. I think there is a lot of potential!