The Cash Diaries

My experiments in passive income, trading and life

eToro Money Making Guide

Last month I made over $780 in profit on etoro.  I started copy trading there a few months ago with just $250 deposited in my account.  I wanted to put together this guide to show that it really is possible to earn income on etoro.  If you’ve ever wondered, “can you really make money on etoro”, then make sure you read this.

So What Exactly is eToro?

eToro is a social trading platform.  It’s a bit like combining a traditional forex broker with a
social network like facebook.  Basically, every time you make a trade, it’s shared with the rest of the community.  The flip side is, every time a guru makes a trade it’s also shared.  So you can see exactly what trades the professionals are making – all in realtime.

You can invest in currency (forex), Stocks (like apple, google etc), Commodities (silver, gold, oil etc.) and Indices. Personally I invest mostly in currency and I copy trade other investors who do the same. But I also hold a couple of stocks as well. It’s a bit of fun to be able to own a slice of Apple or Google.

etoro trader rankings

All trades on etoro are shared, so you can filter and find the best traders to copy based on your risk/return goals

Copy Trading is the Secret to Making Money on eToro

Unless you’re an expert banker or economist, I wouldn’t recommend trading forex on your own.  It takes years of practice and a strong understanding of both technical and fundamental economics.

The good news is, that using etoro, you can automatically copy all the trades of experienced, professional traders.  All you have to do is pick the right traders.

Getting Started Making Money on Etoro

Make sure you follow these steps.  If you just open an account, and start following random traders and opening your own trades, you are going to fail – trust me, I’ve been there.

Step 1: Open a new account with etoro using this link.  You’ll get the maximum available bonus.  eToro will give you some free cash, although you’ll need to make a deposit in order to be able to copy trade (the minimum amount to copy trade is $100 per trader you follow).  I recommend starting with around $400 if you can.  This will give you enough cash to absorb any dips and still give you decent returns.  Of course, never invest what you can’t afford to lose, but the more you put in the bigger the payout on each trade.

Step 2: Copy some traders.  Just hit the big blue button on the trader’s profile.  I like to copy a trader with a minimum of $100.  If you’re copying a trader, and you notice that some of his trades aren’t being copied by you, it’s because you’re not copying with enough.  $100 I find is enough. Update – etoro recently changed their platform so that the minimum copy trader amount is $100.  I think this is great news.

Step 3: Sit back and wait.  Patience is the key.  Some traders will only open 1 or 2 trades each week. Some will open lots.  The important thing is to not get impatient and start messing about.  If a trader, after 3 weeks isn’t showing any gains then you should stop copying them.  Come back to this list and copy the new traders.  Although, I’m pretty good at picking the right people to follow.

Update – Looks like eToro is holding a promotion.  You can find out details of the deposit bonus here

 

My Top Tips for Making More Money on eToro

  • Don’t manually trade.  One mistake I made early on, was opening trades on my own.  I didn’t have the knowledge or experience to do it.  And it cost me.  Don’t make the same mistake.  Only use copy trading to begin with.   If you want to manually trade, start with a practice account.
  • Copytrade 4 Different People. Copytrading just one trader will leave your account vulnerable.  Spread the risk and copy trade 4 different people.
  • Don’t Copy Traders Who have a 100%+ Gain.  These traders are employing high risk strategies.  Aim to follow traders who are gaining around 30%.  That is still an amazing return, yet without the stupid risk.

Investing in Stocks on eToro

A unique feature of etoro is the stocks feature.  Using the platform, you can buy a fraction of a share (starting at just $10) in a huge range of companies.  These include Apple, Facebook, Google, Coca Cola etc.  If you’ve ever wanted to get started investing in stocks, but don’t want to invest a lot of cash, then etoro is pretty much the only option that allows you to get trading in seconds using just $10.  I choose to keep a portion of my portfolio invested in etoro stocks.

Try out eToro for free

16 Comments

  1. Great read… Will use this guide and see how things work out from here..

    Thanks for providing…

  2. Investing in stocks, does this mean you have to trade it or just simply wait for the value to appreciate ? does it issue dividends?

    • admin

      February 12, 2015 at 5:06 am

      It’s a CFD so no it won’t offer dividends and you’ll need to sell it in order to make a profit. This past year I’ve been exclusively investing in Apple (aapl) which doesn’t offer dividends anyway. I bought in around $95 and sold out at $119. There is plenty of profit to made using this method

  3. Can name some expert traders you can recomend for coping

    • admin

      March 8, 2015 at 1:08 am

      follow the blog – when I come across a new trader who I believe is worth copying I feature them in a blog post

  4. I’ll give etoro a go! Just signed up!

  5. When traders start copying me, do i make money from the etoro or only what i trade.

    • admin

      May 4, 2015 at 10:11 am

      If 10 copiers start copying you then yes. You become what’s known as a “popular investor” on etoro and you get big cash rewards. etoro is very generous as rewarding the traders who show consistent monthly gains.

  6. Hi! Thank you for your experience, very interesting to see how you make money with etoro. I´ve recently began copy trading. I´m on the road to a popular investor i hope 🙂

    Can you tell me what your nickname is on etoro?

    Greetings from Germany,
    Tobias

  7. hi , whatthe difference between copying with 100$ and 500$ ? cause i copy traders with 100$ or 200$ nothing change , all operations between 1$ and 2$ ??? what should i do ?? and thank you

  8. Hi,thanks for ur exprience,im.very much appreciate to see the info that you have shared. Im actually a begginer, now my question is how can i copy more trades with just $200? Do i need to put more deposit just to copy more traders?
    Thank u for ur future comment 🙂

    • Matty

      August 15, 2015 at 1:12 am

      the minimum copy amount on etoro is now $100. So with $200 you can copytrade two traders. That might be enough to begin with. Test it out, see how it goes and then try expanding one trader at a time.

  9. Hi, I believe eToro is the best platform to beginners. Copytrader is great but be careful choosing the right trader. Popular trader doesn’t mean performing well and past performance will not guarantee your future success.

    I have written down couple of ways to make money on eToro at http://askforblog.blogspot.sg/2015/12/4-steps-to-make-money-on-etoro-social.html

    Thanks.

  10. Hi,inform more about stocks trading

  11. Hello,
    I don´t think you can actually make any decent profit with 500 by copying low risk traders, i
    I give you an example, I trade on etoro myself, I did started the same way you recomend, but very soon I realized that is not a way to make money.
    I´ve been copytrading one very good trader with 250, in 2 months, my profit is around 10… many people think, they can make money easily this way, with few hundreds, big amount is required for good income from copytrading.

    • Matty

      March 7, 2017 at 5:50 am

      You’re right, it does take a larger starting balance to see bigger profits.

      It depends on your definition of “decent profit”. $10 return on 250 in 2 months means you’ll be on track to see a 24% annual return. I don’t know many investments that deliver that type of return. Obviously this will compound as well.

      $250 is quite a small amount to invest on etoro, and these days I recommend investing more if you can afford it.

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