Short answer is no.
I use the eToro platform to conduct my trading. I use this platform primarily because I like the social aspect. I like the sharing of knowledge and debates you can engage in which I feel helps my trading!
Furthermore, eToro Europe is regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 109/10. In the UK, eToro (UK) Ltd. (“eToro UK”), company registration no. 7973792 is authorised and regulated by the Financial Conduct Authority (FCA), under firm reference number 583263.
And you can also check out this page for more information on the company.
I use the eToro platform to trade on. In general, the eToro platform is safe to use as it is regulated by most financial regulatory authorities.
However, while the platform itself is safe your capital is still at risk! You can lose money if you do not know what you are doing. Luckily, eToro as a social program allows you to copy more experienced traders and learn from them!
I like to think of eToro as a middleman. eToro allows you to purchase financial assets and charges a small fee for opening each position.
I explain how I make money in the transparent trading section!
It is important to set realistic expectations based upon what level of risk you are willing to take. The eToro platform luckily has a risk score that you can see. The risk score ranges from 0-10 with 0 being no risk and 10 being very high risk. In general, the higher the risk the higher your returns should be! However, you must be careful with who you copy as your capital is at risk !
My risk score averages at 6 for the last 6 months. I am actively looking to reduce my risk score to below 5 while maintaining my profit target of 5-10% a month.
In my FREE beginners guide to trading on eToro I suggest a strategy to grow your capital and reduce your risk!
You can copy each trader with any value between $200 – $500,000. Each trader will have a recommended investment amount which is based on how they trade.
In general, if a trader opens numerous smaller positions then they will suggest a higher investment amount. This is due to the way that copy trading and the eToro platform works. If you have a small amount invested and they invest your copy amount maybe so small that eToro cannot issue the trade! Therefore, you will not open all the trades and not receive the same results as the person you are copying!
I suggest $400 minimum to copy my trades.
Copying new or open trades depends on your risk tolerance and time horizons.
Copying open trades means you will immediately open positions at the current market price for every position held by the popular investor.
Copy new trades only means no funds will be invested until new positions are opened.
If you copy open trades you should expect more volatility as you will open all trades at the current market price which means some trades which were good trades are no longer good trades.
As a rule of thumb, if you like a popular investors style and they are in red you should copy open trades if you notice a lot of green then you should not copy open trades but instead use the copy new trades option.
If you like a trader you may find yourself wanting to add more funds to a trader. There are two options:
You can uncopy and then copy again. I do not recommend this approach as this will close all positions at a loss and then when you reopen you will have to pay all the fees to open new positions. Ultimately, this will cost you money!
you can use the add funds button to have your funds added over time!
To close a copy trader all you have to do is press the stop copying button. This will close all trades as soon as the relevant markets are open.
If you are looking to take profits instead I would suggest using the pause copy button and then withdraw some funds then resume copying.
You should stop copying if you have hit you profit target or stop loss.
Instead, I would recommend using the ‘pause copy’ function. Using the ‘pause copy’ button will stop new trades being initiated and instead you will have funds move back into your account as trades are closed, which should minimize losses and maximize gains !