In addition, I have written down a few frequently asked questions that hopefully addresses any outstanding questions you may have on copytrading.
How do I copy a trader on eToro?
First step is to find the trader you want to copy. Finding the trader that has a investment strategy that fits your preferred risk level will require some research. It is important to check out the strategy and holdings before copying someone.
When you have found the trader to copy, click on the name to view their profile page. On this page you select Copy button located in the top right.
You will then be asked to enter the amount you want to invest in the trader’s portfolio. The amount is entirely up to you but usually there is a minimum recommended amount e.g. $200.
On the same screen prompt you have the option to copy open trades. Copying open trades means that you will invest in positions the trader currently has (existing positions). If you leave this option unchecked, you will only invest in new positions, any existing positions will be ignored.
You are also able to specify a stop loss that will close the investment in the event that the value of your investment drops below a certain amount. This is optional. It is not always optimal to have a stop loss specified, reasons you can find out in the Stop Loss article.
Now the last step is to click on the Invest button and voila! You are now copying a trader on the eToro platform.
What does copytrading cost?
The person copying another trader will not pay anything to the trader. The only costs involved are the general costs of buying and selling a stock or other types of assets being traded by the trader.
What happens after I press copy?
The amount that you have allocated to the copytrade will be invested the same way as the trader you have selected to copy. The money will be invested with the same allocation as the trader.
For example, if you have invested 1,000 for the copytrade and the trader has 10% of his/her money invested in Apple shares then you will have invested 100 in Apple shares also. Same principle applies for other stocks held by the trader.
How do I stop copytrading someone?
To stop copytrading someone you can go to your portfolio page. Selecton the position that shows the copytrade you want to stop. Press the Stop copytrading button.
If you’re interested in learning more about how copytrading works please visit the official eToro website.