eToro Copy Trading. Table of Contents

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How to open eToro’s Copy Trading account?

Follow the steps below to open a new investment account

  1. On eToro Official Website, find and click a button called “Join Now” or “Invest Now”.
  2. On the next page, you will see an electronic form where you can enter all the personal data necessary to open a new investment account.
  3. Fill in all the pertinent information requested in this form. Signing in through Facebook and Gmail is another additional option.
    Signing in through Facebook and Gmail is another additional option on etoro
  4. Before submitting your information for review, please take a moment to familiarize yourself with the eToro terms and conditions and privacy policy.
  5. Once you have read all the terms, indicate your acceptance by checking the corresponding box.
  6. Submit your information by clicking the “Register” button.
    accept terms and conditions account opening of eToro
  7. Investors are hereby notified that eToro and all associated brands comply with Directive 2005/60 / EC of the European Parliament and of the Council on preventing the use of the financial system for the purposes of money laundering and terrorist financing. As such, it is the responsibility of all investors to undergo the know-your-customer (KYC) process as mandated by the aforementioned EU laws and regulations.
  8. As part of the KYC process, newly registered investors must provide a confirmation of their residency (for example, an invoice from a utility company dated within the last six months), as well as proof of identity, such as a valid passport or another form of an official identity document.
  9. As an additional step in the KYC process, new investors will need to fill out a questionnaire so that eToro can customize a service package perfectly tailored to the individual profile of each investor. Some examples of the information that would be requested are questions regarding the professional status of the new investor, level of knowledge of capital markets, financial liquidity, acceptable levels of risk, investment objectives, etc.

upload documents to etoro for account verification

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How to verify your eToro account?

Verification is a mandatory part of the registration process on the eToro platform.

Regulatory requirements require eToro to verify every new eToro account.

This measure keeps eToro’s platform secure and prevents inappropriate activities.

Once your account is verified, you can enjoy all the benefits of the eToro platform.

To verify your account, you must upload a Proof of Identity (POI) and Proof of Address (POA).

When you send eToro both documents, the verification process will begin.

You can use the eToro application to scan your documents directly on the platform.

1. Proof of identity

Your POI should contain your name, date of birth, a clear photograph, the date of issue, and if you have it, a legible expiration date.

The passport is the preferred proof of identity, as it is the document that the eToro team processes the fastest.

Alternatively, you can use a driver’s license or any other government-issued identity document.

If the document is two-sided, and there is relevant information on the back, don’t forget to send it as well.

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2. Proof of address

Your POA must contain your full name, address, and an issue date that is no older than six months.

The issuer’s name or logo should also be clearly visible.

Be sure to scan your document against a different colored background so that all four corners can be seen clearly.

Your proof of address may be one of the following: Bank statement, Credit card statement, Electricity, water or gas bill, Invoice of some tax from the City Council, Tax letter or invoice, Official housing rental contract, issued by a rental agency, Letter from an employer, Letter from your local municipal delegation, Phone bill, Internet bill

The verification process can take a few days, and when your account is verified you will be notified.

You can also track your verification status on the eToro platform.

Verified accounts have a green checkmark next to the username in the user profile.

eToro’s team will review your documents and update your verification status, so there is no need to file an issue with customer service to inquire about the verification process. If your documents are rejected, eToro will send you an email with a clear explanation of what to send eToro. To avoid losing email, please add eToro to your “safe senders” list in your email settings.

Verify your eToro account

Choose your account type of eToro

eToro operates in a multi-regulatory environment: eToro UK compliant with FCA, eToro Europe compliant with CySEC, and eToro Australia compliant with ASIC. Some types of customers are allowed to open an account under EU regulations: Retail Client and Professional Client.

To understand the full legal description of client classification, visit the eToro regulations page and refer to the ” Client classification ” section.

Read all the differences well to see which one would be the most appropriate for you.

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1. Retail Clients

Simply put, a retail customer is an unprofessional customer.

Retail clients can access all of eToro’s investment assets and invest manually or by copying to other investors (subject to suitability).

Although the leverage of retail clients is restricted, they enjoy certain protections such as coverage from the Investor Compensation Fund and the Financial Sector User Protection and Defense Service.

They also enjoy protection against negative balances and restrictions on closing margins.

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2. Choose to become a professional-client

Professional clients have passed a test to determine their eligibility to be.

Note that professional clients are exempt from certain ESMA protections, such as the Investor Compensation Fund and the Financial Sector User Protection and Defense service.

In contrast, professional clients do not have any restrictions on the use of leverage.

Negative Balance Protection – On the rare occasions that market conditions cause your principal balance to be negative, eToro will bear the losses and reset your principal to zero, exactly the same as a retail client account.

As an elective professional client, you are allowed to open positions with a leverage of up to 1: 400 for certain instruments and enjoy a reduction in your current margin rates, allowing you to invest with more leverage, as opposed to the limitations imposed by the ESMA on retail customers.

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How to become a professional-client of eToro?

Only clients who meet certain criteria are eligible to change their retail client status and become professional clients on eToro.

To request the change, follow these steps:

  1. Click on “Apply Now” and fill in your personal details.
  2. Check the boxes next to the criteria that apply to you.
  3. Submit the request and if you meet the criteria, eToro will contact you.

Contact eToro Support Team

Improve your portfolio with investment through CFDs

ETORO CONTRACT FOR DIFFERENCE INVESTMENT

Discover the unique advantages of the eToro CFD trading platform.

Innovative, regulated and personalized for all your investment needs.

Investing via CFDs on eToro offers many options for investors not available with traditional investing.

Investing through CFDs is a method by which a person contractually commits to a CFD broker, rather than directly buying the underlying asset.

The CFD is the acronym for “Contract for Difference”.

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How does CFD Trading work on eToro?

invest in stocks shares on eToro

  1. The investor chooses an asset offered as a CFD by the brokerage agent. It could be a stock, an index, a currency, or any other asset that the brokerage offers.
  2. The investor opens the position and sets the parameters, such as whether it is a long or short position, the leverage, the amount invested and other parameters that depend on the brokerage agent.
  3. The two of you sign a contract in which you agree on what the opening price for the position is and whether any additional costs will be incurred (such as nightly fees).
  4. The position is opened and remains open until the investor decides to close it or is closed by an automatic order, such as when the Stop Loss or Take Profit point is reached or the contract expires.
  5. If the position closes with profit, the brokerage agent pays the investor. If you close at a loss, the brokerage agent collects the difference from the investor.

Easily diversify your portfolio with assets from various classes and from foreign markets, all in one place.

CFD transactions are instantaneous and highly liquid, eliminating the hassle of acquiring underlying assets such as oil or gold.

Use leverage to increase your exposure with just a fraction of the capital invested.

Open eToro’s Account for Free

Why investment through CFDs is recommended?

In recent years, CFDs have become the most popular way for online investors to invest in commodities, indices, currencies, and stocks.

As investing through CFDs does not imply owning the real asset and operates independently of the market, it allows greater flexibility than traditional investment, such as access to foreign markets, investing with leverage, purchase of fractional shares, and sell in short.

Apply leverage
Get exposure with less capital.
Go long or short
Take advantage of all fluctuations in the markets.
Diversify with ease
Invest in various markets and assets.

For example, rates as DJ30 or SPX500 are not really physical assets, ie, you can not own a part of an index.

However, with CFDs, you can speculate on the performance of an index, allowing you to invest not just in one stock but in entire sectors of national economies.

Go to eToro Official Website

eToro – Choose the best investment platform

invest in forex and cfds with eToro

Investing through CFDs is a method that allows people to invest long or short-term in an asset by signing a contract with a brokerage, rather than directly purchasing the asset.

The investor and the brokerage agent agree between themselves to replicate the market conditions and settle the difference with the other party when the position is closed.

CFDs (in Spanish, contracts for difference) offer investors the opportunity to benefit from price fluctuations in the financial markets without owning the underlying instrument.

  • eToro is a multi-rule compliant brokerage , trusted by millions of users.
  • Invest in currencies, commodities, stocks, indices and more in a single portfolio.
  • Enjoy spreads as low as 1 pip on the EUR / USD and USD / JPY pairs.
  • Protect your investments with advanced risk management features such as real-time alerts, customizable stop loss rates.
  • EToro users can apply the leverage of up to 1: 30 *. Become a professional investing client with access to higher leverage.
  • Try eToro’s $ 100,000 demo account to experience risk-free CFD trading.
  • The innovative CopyTrader ™ function eToro allowed other investors to follow and automatically copy their operations in real-time.
  • Specialized customer service 24 hours a day, Monday through Friday.

Get Access to eToro’s Trading Platforms

High Leverage Investing with CFDs on eToro

Investing with leverage means using capital borrowed from a broker to open a position.

Investors may sometimes want to apply leverage in order to gain more exposure with minimal capital as part of their investment strategy.

Leverage is applied in multiples of the capital invested by the investor, for example, x2, x5, or more, and the agent lends this sum of money to the investor at a fixed ratio.

Leverage can be applied to both buy (long) and sell (short) positions.

It is important to note that as a result of leverage, both losses and gains will multiply accordingly.

Go to eToro Official Website

Making a profit from falling market prices

“Short selling” or “going short” is a practice that allows investors to open a position that will increase in value if the price of a financial instrument falls.

This is used when markets fall or as a protection tool.

One of the great advantages of investing through CFDs, as opposed to doing it in markets such as commodities or stocks, is that you can also benefit from the markets when they are trading lower.

Remember, a CFD is a contract for difference, but that difference can go either way.

So you can invest in the possibility of prices going up (a “buy” or a “long” order) or down (a “sell” or a “short” order), depending on what you think is more likely to happen.

Open eToro’s CFD Account

Investing only in fractional shares

With CFDs, you don’t have to buy or own an instrument, so you are not limited by the high prices that some stocks cost.

CFDs allow you to buy or sell a part, or a fraction, of a share.

For example, if the price of a Google share is $ 1,000, on eToro you can choose to invest $ 50 in the Google share with 1:10 leverage, making your share of the Google share worth $ 500 (the half a share) in your portfolio.

eToro does not charge any fees, outside of spreads, for investments or deposits.

Instead, it charges overnight / weekend fees for CFD positions.

Invest in Shares on eToro

Is investing through CFDs safe with eToro?

Every financial instrument carries risk, and CFDs are no exception.

Investing in assets through CFDs without leverage carries the same risk as investing in those assets directly.

At eToro, for example, you can invest in any asset without leverage.

However, investing via leveraged CFDs increases your exposure to the market and, as a result, increases your risk.

The legality of investing through CFDs varies in each country, but there are many where it is allowed if properly regulated.

eToro is a CFD brokerage regulated by CySEC, the FCA, and the ASIC.

eToro offers investment via CFDs in the UK, Germany, France, Spain, Italy, Australia, and many other countries.

Contact eToro Support Team

Take your CFD investment to a new level with eToro

With eToro, the leading social trading platform, you can connect, share strategies and discuss investments via CFDs with millions of people.

CFDs also offer the flexibility to copy the shares of other investors with proportional precision, automatically in real-time.

For beginners, copying experienced investors is a great way to get started in CFD trading.

Personalized risk management
Set dynamic “Stop Loss” and “Take Profit” values ​​to match your strategy and automatically protect your investments.
Advanced analysis tools
From various professional charts to analyst consensus or insider trading, get all the data you need.
Innovative inverter functions
Enhance your investing ability with One-Click Investing, customizable real-time alerts, and interactive live channels.

EToro users have the option to buy fractions of shares, which means that the entry price to invest in an asset can be much lower.

Used wisely, leverage allows users to profit from the markets without having to shell out large sums of money first.

Go to eToro Official Website

How to buy and sell orders on eToro?

Many clients ask about the Stop Loss (SL) and Take Profit (TP) functions, so I would like to take this opportunity to explain them further.

In this section, we will explain what it means to BUY and SELL on eToro and, when we have open positions, what each column means to us and to the trade.

When we open a BUY position, it means that we are buying an asset in the market.

Therefore, when we close the position, we must also SELL it on the market.

If we open a BUY position, we should be aware of the six main points of open trade.

  1. The current rate displayed is the sell price.
  2. We must always take into account the differential.
  3. We can adjust the SL up to 100% of our investment without the need to add more funds to our capital.
  4. We can adjust the TP to a minimum of 1 pip of the market price and to an unlimited maximum.
  5. The displayed Stop Loss price is the potential SELL price (it means the price at which to SELL the market again).
  6. The displayed Take Profit price is also the potential SELL price. (It means the price at which to SELL the market again).

The displayed Take Profit price is also the potential SELL price.

When we open a SELL position, it means that we sell to the market.

Therefore, when we close the position, we must BUY IT from the market again.

If we open a SELL position, we must be aware of the six main points of open trade.

  1. The current rate displayed is the BUY price.
  2. We must always take into account the differential.
  3. We can adjust the SL up to 100% of our investment without the need to add more funds to our capital.
  4. We can adjust the TP to a minimum of 1 pip of the market price and to an unlimited maximum.
  5. The displayed price of the SL is the potential BUY price (it means the price at which to BUY the market again).
  6. The displayed price of the TP is also the potential BUY price. (It means the price at which to BUY the market again).

The displayed price of the TP is also the potential BUY price.

Learn How to Invest on eToro Official Website

Definition of leverage and margin of eToro

Leverage means using capital borrowed from a broker when opening a position.

Investors may sometimes want to apply leverage in order to gain more exposure than is offered by the amount deposited, as part of their investment strategy.

Leverage is applied in multiples of the capital invested by the investor, for example, 2x, 5x or more, and the agent lends this sum of money to the investor at a fixed ratio.

Leverage can be applied to both buy (long) and sell (short) positions.

It is important to note that as a result of leverage both profit and loss will multiply accordingly.

What is Leverage?

What is the margin on eToro?

A margin is a relative amount required to carry out a leveraged trade, taking into account spreads, leverage, and currency conversions.

Let’s say you want to invest $ 1,000 in Apple stock with a 1:10 leverage ratio.

The margin will be 10%, which means that you will have to invest $ 100.

If Apple’s current share price is $ 136, you will receive the equivalent of 7.35 Apple shares.

What is Margin

How does leverage work on eToro?

  1. Choose the asset you are interested in investing in on the eToro platform and click INVEST. A pop-up window with investment parameters will appear, as shown below.
  2. Select the appropriate tab at the top to either Sell (short) or Buy (long).
  3. Indicate the amount of capital you wish to invest in this operation. Set your leverage multiplier. This ratio could differ depending on the assets chosen. Alternatively, you can also invest without using leverage by choosing 1x.
  4. Define your “Stop Loss” and “Take Profit” parameters. A “Stop Loss” limit is required to mitigate potential risks to your capital.
  5. Click SET ORDER to place the feature. Trades are executed immediately when the market is open.
  6. Leveraged trades are processed as CFDs.

leveraged trading n etoro

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Financial Markets in which you can trade with Leverage

Leverage can be applied when investing in stocks, currencies, ETFs, commodities, and indices, and, in certain circumstances, cryptocurrencies.

Each instrument has its own maximum leverage limits dictated by industry regulations, as well as eToro’s own efforts to promote responsible investing and mitigate the risks of investing with high leverage.

The maximum exposure also varies by account type.

An eToro professional-client account allows for higher leverage, as well as other benefits like low margin rates and no withdrawal fees.

Only clients who meet certain requirements are eligible to become professional clients.

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How to minimize risks when using leverage?

While investing with leverage can lead to higher income on successful trades, it also carries the risk of extended losses.

However, at eToro, you have risk management tools that can help you reduce possible losses.

Stop-Loss (loss limit)
Apply a “Stop Loss” value to close a trade in the event that the market moves a certain amount against your position. You can set your “Stop Loss” according to a specific level in the market (rate) or a monetary amount, which is also shown as a percentage of your initial investment in the trade window.
Take Profit
Set a “Take Profit” value to automatically close your position when your trade profit reaches your chosen amount.
Negative Balance Protection
On the rare occasions that market conditions cause your principal balance to go negative, eToro will bear the loss and reset your principal to zero.

Go to eToro Official Website