{"id":1259357,"date":"2026-04-20T10:10:55","date_gmt":"2026-04-20T07:10:55","guid":{"rendered":"https:\/\/www.etoro.com\/copytrader\/risk-warnings\/"},"modified":"2026-04-30T09:46:17","modified_gmt":"2026-04-30T06:46:17","slug":"risk-warnings","status":"publish","type":"page","link":"https:\/\/www.etoro.com\/au\/copytrader\/risk-warnings\/","title":{"rendered":"Risks Associated with Social Trading (Copy Trading)"},"content":{"rendered":"\n<section class=\"wp-block-group wp-block-group-boxed wp-block-group-small-bottom-padding\"><div class=\"wp-block-group-inner is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-columns are-vertically-aligned-top wp-block-columns-1 is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p>eToro Group Ltd. and its affiliates provide social trading features that allow you to interact with, follow, and copy other traders (\u201cSocial Trading Features\u201d), including Copy Trader\u2122, Smart Portfolios, rankings, and community tools.<\/p>\n\n\n\n<p>While these features can help you discover investment strategies, they might involve risks. You should carefully consider the following before using them:<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-top wp-block-columns-1 is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-etoro-simple-collapsable-item-list\">\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">1. You Are Fully Responsible for Your Decisions<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<p>Copy Trading is based on your choice to follow or copy other traders.<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list wp-block-list-circle\">\n<li>You must consider your financial situation, investment goals, and risk tolerance.<\/li>\n\n\n\n<li>eToro does not provide investment advice.<\/li>\n\n\n\n<li>Any decisions you make based on platform information are at your own risk.<\/li>\n<\/ul>\n\n\n\n<p>You should always conduct your own research before investing.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">2. Automated Trading Risk<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<p>When you copy a trader or Smart Portfolio:<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list wp-block-list-circle\">\n<li>Trades are executed automatically in your account without your intervention.<\/li>\n\n\n\n<li>Positions are opened, modified, and closed in real time based on the copied trader\u2019s actions.<\/li>\n<\/ul>\n\n\n\n<p>This means:<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list wp-block-list-circle\">\n<li>You may not have control over timing or pricing.<\/li>\n\n\n\n<li>Market conditions (e.g., volatility, slippage, liquidity) can lead to different results than the trader or Smart Portfolio you copy.<\/li>\n\n\n\n<li>You may lose funds allocated to copying.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">3. Exposure to CFDs and Cryptoassets<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<p>When copying a trader or Smart Portfolio, you may be exposed to complex and high-risk instruments such as:<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list wp-block-list-circle\">\n<li><strong>CFDs (Contracts for Difference)<\/strong>\n<ul class=\"wp-block-list wp-block-list wp-block-list-circle\">\n<li>Often involve leverage, which can amplify both gains and losses.<\/li>\n\n\n\n<li>Prices can move quickly, increasing the risk of significant losses.<\/li>\n\n\n\n<li>You do not own the underlying asset.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Cryptoassets:<\/strong>\n<ul class=\"wp-block-list wp-block-list wp-block-list-circle\">\n<li>Highly volatile and can experience extreme price swings.<\/li>\n\n\n\n<li>May be subject to low liquidity, market manipulation, or regulatory uncertainty.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p>Even if you are not actively choosing these assets, copying a trader or Smart Portfolio means you are automatically exposed to the instruments they trade.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">4. Performance Differences<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<p>Your results may differ from the trader or Smart Portfolio you copy due to factors such as:<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list-circle\">\n<li>Deposits or withdrawals from the copied position.<\/li>\n\n\n\n<li>Market conditions and execution differences.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">5. Past Performance Is Not a Reliable Indicator<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<p>Statistics such as:<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list-circle\">\n<li>Risk scores.<\/li>\n\n\n\n<li>Historical performance.<\/li>\n\n\n\n<li>Portfolio data is not a guarantee of future results.<\/li>\n<\/ul>\n\n\n\n<p>Actual outcomes can vary widely due to changing market conditions and investor behavior.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">6. No Guarantees on Execution or Risk Controls<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<ul class=\"wp-block-list wp-block-list-circle\">\n<li>Stop Loss mechanisms (including Copy Stop Loss) are not guaranteed.<\/li>\n\n\n\n<li>Trades may not execute at the expected price.<\/li>\n\n\n\n<li>Losses may exceed expectations due to market gaps or volatility.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">7. Traders You Copy Are Not Advisors<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<ul class=\"wp-block-list wp-block-list-circle\">\n<li>Other users may share opinions or strategies, but they are not necessarily qualified or unbiased.<\/li>\n\n\n\n<li>Information shared on the platform should not be considered professional financial advice.<\/li>\n<\/ul>\n\n\n\n<p>Always treat social trading content as a starting point-not a recommendation.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">8. Strategy &amp; Behavior Risk<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<p>Copy Trading depends entirely on the trader or Smart Portfolio you follow:<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list-circle\">\n<li>Their strategy may change without notice.<\/li>\n\n\n\n<li>They may take on a higher risk than you expect.<\/li>\n\n\n\n<li>Emotional or inconsistent decisions can impact performance.<\/li>\n<\/ul>\n\n\n\n<p>Additionally:<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list-circle\">\n<li>Concentrating funds on a single trader increases risk.<\/li>\n\n\n\n<li>Diversification does not eliminate losses.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">9. Copy Trading Is Not Safer Investing<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<p>Copy trading can help with diversification and reduce the need for active trading decisions, but:<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list-circle\">\n<li>Your performance depends on the traders or Smart Portfolio you copy.<\/li>\n\n\n\n<li>You remain fully responsible for any losses.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-etoro-simple-collapsable-item\"><div class=\"wp-block-etoro-simple-collapsable-item-heading\">10. Do Your Own Due Diligence<\/div><div class=\"wp-block-etoro-simple-collapsable-item-content-wrapper\"><div class=\"wp-block-etoro-simple-collapsable-item-content\">\n<p>Before copying a trader or Smart Portfolio, review:<\/p>\n\n\n\n<ul class=\"wp-block-list wp-block-list-circle\">\n<li>Their risk score.<\/li>\n\n\n\n<li>Trading history and strategy.<\/li>\n\n\n\n<li>Portfolio composition.<\/li>\n\n\n\n<li>Activity and communication (e.g., posts, updates).<\/li>\n<\/ul>\n\n\n\n<p>Even with this information, there are no guarantees of success.<\/p>\n<\/div><\/div><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator wp-block-separator-color-dark-grey wp-block-separator-spaces-medium wp-block-separator-weight-1\"\/>\n<\/div>\n<\/div>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>eToro Group Ltd. and its affiliates provide social trading features that allow you to interact with, follow, and copy other traders (\u201cSocial Trading Features\u201d), including Copy Trader\u2122, Smart Portfolios, rankings, and community tools. While these features can help you discover investment strategies, they might involve risks. You should carefully consider the following before using them:<\/p>\n","protected":false},"author":158,"featured_media":0,"parent":382688,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":true,"inline_featured_image":false,"sticky_cta_settings":"","footnotes":""},"asset_type":[],"class_list":["post-1259357","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<title>Risks Associated with Social Trading (Copy Trading)<\/title>\n<meta name=\"description\" content=\"Understand the risks of social and copy trading. 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Learn about automated execution, CFD volatility, and why past performance does not guarantee results.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.etoro.com\/au\/wp-json\/wp\/v2\/pages\/1259357\" \/>\n<meta property=\"og:site_name\" content=\"eToro\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/eToro\/\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-30T06:46:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.etoro.com\/wp-content\/uploads\/2019\/12\/etoro_logo_social_share1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"240\" \/>\n\t<meta property=\"og:image:height\" content=\"240\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@eToro\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.etoro.com\/au\/copytrader\/risk-warnings\/\",\"url\":\"https:\/\/www.etoro.com\/au\/copytrader\/risk-warnings\/\",\"name\":\"Risks Associated with Social Trading (Copy Trading)\",\"isPartOf\":{\"@id\":\"https:\/\/www.etoro.com\/au\/#website\"},\"datePublished\":\"2026-04-20T07:10:55+00:00\",\"dateModified\":\"2026-04-30T06:46:17+00:00\",\"description\":\"Understand the risks of social and copy trading. 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