Avner Meyrav
By Avner Meyrav

Getting started with eToro: What you should know

It’s not always easy to dive head-first into the world of online trading. There’s a lot to know, and there are risks involved – so the more you know, the more tools you have to reduce risk. While eToro’s trading platform is intuitive and easy to use, there are several steps that you can take to make the beginning of your online trading journey smoother. Here are five recommended ways to get started with eToro:

  1. Copy other traders and investors

Perhaps the most popular feature on eToro, CopyTrading was introduced in 2010, positioning eToro as a leader in the social trading space. By enabling users to follow and copy one another, the entry barriers were lowered, enabling even those who lack time or experience to trade online. Once you copy another trader, anything they do is automatically replicated in real-time in your portfolio.

Essentially, CopyTrading lets you sift through millions of traders, see key statistics, such as gain, success rate and risk score transparently, and choose the ones you wish to add to your copy portfolio. Since all the data is available for you to see, you can take into consideration additional factors, such as trading strategy, asset-types, long-term investing vs short-term trading and other factors. To trade responsibly, make sure to familiarise yourself with any trader before you copy them.

The Popular Investor program rewards top traders and investors, who gain a lot of copiers, with great benefits, such as a full spread rebate, cash payments and 2% of the assets they manage. The Editor’s Choice section on eToro features Popular Investors who are worth checking out.

All trading involves risk. Only risk capital you are prepared to lose. This post is not investment advice.

2. Practice with a virtual account

After you sign up for eToro, you will receive a $100,000 virtual money account to experiment with. This service is absolutely free and enables you to hone your trading skills before risking your own funds. Use it wisely – $100,000 is a lot of money to practice with, so you can pace yourself and take as much time as you need to learn all of the different functions and practice all sorts of trading strategies.

All trading involves risk. Only risk capital you are prepared to lose. This post is not investment advice.

  1.  Start trading or investing manually

Once you’re comfortable enough with the platform and feel that you have gained the necessary information on the financial instruments you’d like to invest in, you can start using the eToro platform manually. eToro offers a unique trading experience, which has all the features traditional trading has to offer, such as short orders, stop loss, technical analysis and more. Since eToro is a CFD platform, you are not buying the underlying asset. Therefore, unlike traditional trading, you can make a fractional investment in an asset. For example, even if the Google stock is at $900, you can invest less than that amount and do not need to keep to multiples of $900.

On the eToro platform, you can create your own Watchlist and follow all of your favourite assets – and even receive real-time updates about them right to your smartphone. Use the detailed charts to track each asset’s performance and try and find the optimal time to open a new position. Our unique ProCharts tools enable you to create layouts which compare different assets over different time periods. You can also save your personalised layouts and come back to them at anytime.

  1. Use our unique trading tools

On eToro, you can choose between more than 1,000 different assets, open “buy” (long) or “sell” (short) positions, set stop loss and take profit orders (which close the position automatically when reaching a certain profit or loss point) and explore many other features. One such feature is One Click Trading, which enables you to predetermine your preferred amount, leverage, take profit and stop loss, to later apply those values to every future trade on that instrument. You can set different One Click Trading parameters for different assets, saving you time when opening future positions.

CFD trading also enables you to open leveraged positions, using leverage of up to X50. For example, if you invest $100 at X10 leverage, you’re essentially trading with $1,000. However, remember that leverage works both ways, so losses are also leveraged.

  1. CopyPortfolios™: long-term investment option

eToro realises that some of its clients are looking for a long-term investment tool, so it created CopyPortfolios – an innovative thematic investment tool programmed for profit. Each CopyPortfolio bundles together top traders, or various assets following a thematic investment strategy, into a single investment instrument. CopyPortfolios are created and managed by eToro’s investment committee and are optimised by a machine-learning algorithm.

There are three types of CopyPortfolios:

The first, Market CopyPortfolios, focus on a specific segment of the market (such as tech, gaming, finance etc.) and group together key assets from each segment into one CopyPortfolio.

The second, Top Trader CopyPortfolios, bundle together various traders on the eToro platform into a single asset, enabling users to invest in their cumulative experience and knowledge. Lastly, Partner CopyPortfolios are created by eToro’s partners, which are some of world’s leading financial institutions, and operate similarly to Market CopyPortfolios.

All trading involves risk. Only risk capital you are prepared to lose. This post is not investment advice.

Conclusion: eToro is your gateway into innovative trading

Choosing eToro for your online trading adventure could prove to be a very good choice. To sum up, here are some of the advantages eToro offers:

  • Trusted: eToro is a regulated, secure platform, with more than six million traders and investors worldwide.
  • Innovative: eToro is constantly introducing new innovations and tools to improve its clients’ trading experience, such as ProCharts and One Click Trading.
  • Social: The CopyTrading features enables those who lack time or experience to trade online. Additionally, eToro encourages top traders to join the Popular Investor program, giving them an opportunity to earn a second income by letting others copy them.
  • One platform fits all: Whether you’re new to trading or already have some experience, and whether you’re a short-term trader or long-term investor, eToro has everything you need to fulfil your online trading and investing needs.

All trading involves risk. Only risk capital you’re prepared to lose. The information above is not investment advice.