If you’ve been with us for more than a day, you’ve probably at least heard about Copy Trading. Copying a trader simply lets you mimic his or hers portfolio, meaning that every position they have or will open/close during your “copy relationship” will automatically happen in your copy portfolio as well.
CopyTrading has been one of eToro’s key signatures from the get go, and it’s not too much to say that it has literally changed the industry. However, we are not ones to rest on our laurels, and we’re constantly working to come up with new innovations that will make your copy experience even better.
Today, we are launching not only a new feature, but a real game changer. It’s called Copy Dividends and what it means is that from now on, you get to enjoy the profits of the traders you’re copying while copying them (as opposed to enjoying it once the copy relationship has ended).
How will it work?
It’s actually really simple. Every time a trader you’re copying withdraws money from their account, the proportional amount of money will be taken out of your copy balance, and moved to your account balance. To put it in numbers, if you’re copying with a 1,000 USD a trader that has 10,000 USD in their account, and after a while the trader you’re copying gets his account to reach 12,000 USD and decides to withdraw 2,000, your copy balance (which started at 1,000 and has now reached 1,200) will be deducted of 200 USD that will be allocated back to your account balance.
Every time this happens, you will get a notification the next time you log in. The funds will be allocated immediately and in parallel to the withdrawal confirmation. In addition, when the trader you’re copying adds funds to their account, you will get a notification about that, in case you would like to maintain the same copy proportions as before.
Why are we so excited about this?
Copying traders is forming some sort of a relationship with them. Our traders takes great pride in being copied, and care deeply for their copiers. As in any relationship, we came to realize that when two sides benefit at the same time, it helps the relationship flourish. So instead of realizing your profits only once, and at the price of ending the copy relationship, you can now enjoy profits while maintaining the copy relationship with your selected traders. Simple as that.
Like many of our features, Copy Dividends is unparalleled in the social trading industry, and marks the beginning of a new era, full of endless possibilities. As always, we’d love to get your feedback on it, in order for us to better understand how you’re using it and how we can make it even better for you, our community.
The fine print
There are some rare cases in which the Copy Dividend feature will not allocate money back to your account balance, and it’s important to be aware of that. In order to protect the copy relationship and not to risk any funds you have left as unrealized equity, the dividend mechanism will calculate your new CSL (Copy Stop Loss) – the one that will be set after the allocation – before actually allocating money back to your balance. Should the new CSL will be too close, the funds will not be allocated, in order to significantly lower your chances of hitting the new CSL.
We’d love to get your feedback on this, and to hear your reaction the next time your account balance rises thanks to a successful copy relationship!