How CopyTrader of eToro Works?
What is CopyTrader on eToro?
eToro has become one of the leading social and copy trading platforms in the world with millions of users. If you are a beginner and want to open your online trading account, you should consider eToro. eToro lets you trade different kinds of online assets like cryptos, forex, commodities, stocks, and more. And the best thing about eToro is that it lets you copy trades of other people.
Whether you don’t have enough time to keep a watch on the market regularly or are a newbie, you can make trades successfully by copying the trades of other traders on eToro. CopyTrader is one of the best features of eToro. It lets you find out what other experienced traders are trading through eToro. You can see and follow different traders using this feature and also copy their trading activities. This feature does not restrict you from copying any trader. You can copy the trades of any trader on the platform. In short, CopyTrader of eToro allows you to automatically copy any top-performing trader on the platform and replicate their trading.
Working Procedure of CopyTrader on eToro:
The revolutionary CopyTrader of eToro is quite simple to understand and use. Let’s have a quick look into the working process of eToro’s CopyTrader:
- Find Out the Best Trader on eToro: eToro is created with an OpenBook approach. So, you can see updates and trades of people you like and follow. Simply, find out the traders who are successfully trading on the platform and start following them.
- Replicate Their Trades: Once you start following the best and most successful traders on eToro, you can get their trade updates and copy their trades. You can either copy their trades automatically or choose to do so manually.
- Create Your Following: Once you begin trading successfully, you can create your following who will choose to copy your trades.
Tips For Trading Using CopyTrader
To become a successful trader on eToro using the CopyTrader feature, here are a few simple tips you can follow:
- Copy 3 Traders at Least: Be careful while selecting three traders because even the best trading experts can have some bad trading times and trades.
- Do Complete Research: When on eToro, you can make use of filters to find out the traders you wish to follow. Keep in mind that the traders who are featured aren’t the best always. Ensure to consider the trading history, trading frequency, and holding time of the traders you choose.
- Test the Traders: Use the free demo account offered by eToro to test the selected traders.
- Copy Low-risk Traders: You can identify how risk-averse a trader is by viewing their risk score. You should stay away from those having a score of more than 4.
- Stop if You Are Afraid: If your following trader is making decisions that you think you wrong, you should stop following them.