Investing and trading are now easy because of the online trading platforms. Making profits is right at your fingertips. Numerous trading platforms are on the run to attract investors by providing lucrative features. It is plausible for investors to be in a dilemma about which platform to choose.
eToro has been the most popular social trading platform since 2006. Thru this platform, users can trade anything and everything. Let’s dive into details about what eToro plus500 is all about.
What makes eToro so popular?
eToro is different from other trading platforms in terms of several features. These are:
eToro introduced an entirely different concept in the world of trading. The development of ‘social trading’ attracted many eyes to this platform. In short, eToro is social media for trading purposes. Here, users get their profile. They can share regular updates and interact with others who share the same passion for trading.
Copy Trading, as the name suggests, is simply the method of copying trades from other successful investors. You can copy anyone on eToro. However, when you are copying a trader on eToro, you allocate a part of your funds for that.
If you are a new investor, make use of your eToro virtual account before using real money. Once you are investing actual cash, the return on investment will depend on a lot of factors. Make sure you do some research on the investor that you are copying. You can take note of their success rate in the past year. It will give you a rough idea about who to shortlist on your CopyTrade list.
CopyPortfolio is a premium feature on eToro that will revolutionise your trading experience on this platform. There are three different types of portfolios on eToro’s platform as of now. With these portfolios, you can invest in multiple trades at once and not just a single one. Once you invest the money, everything is managed by eToro’s professional investment team. These features help minimise long-term risk and promote growth opportunities.
How to sign up on eToro?
eToro has the simplest signing up process. You can set up your accounts within a matter of minutes.
Here’s a step-by-step method on how to sign up.
#1: Visit eToro’s official website and click on the ‘Join Now’ key. It is the first stage of your application procedure.
#2: Fill in all the details about you. Make sure you provide accurate information as this info is used for further verification. Any discrepancy might create issues.
#3: After filling in your details, you have to add the deposit to your account. eToro accepts a variety of payment methods-Visa, Maestro, PayPal, and many more.
#4: Next, you will be redirected to the verification procedure.
After all these steps, once your identification and funding are complete, you can start trading.
Pros of Being an Investor on eToro at a Glance
- More than 2000 kind of tradable assets
- Numerous payment methods available
- Insightful educational offerings
- CopyTrade and Copy Portfolios advantage
- Zero percent commission
- Access to 10+ cryptocurrencies
The eToro online trading platform’s most apparent benefits is that it offers both manual trading and social trading features. Social trading allows clients to follow other clients’ financial trading activity and use the CopyTrader system to replicate everything they are doing to gain more profit. The eToro platform also operates in full transparency, displaying every client’s relevant data, such as gain percentage, risk score, and portfolio composition. For many traders eToro provides a selection of stocks, currencies, commodities and cryptocurrencies.
eToro has also developed an innovative system called Copy Portfolios. CopyPortfolios are ready-made investment portfolios that comprise either top traders from the platform or several financial assets following a predetermined market strategy.
Another advantage of using eToro is the ‘Popular investors program. This rewards user based on how many copies they have in the form of monthly commission. The program also incentivizes responsible trading, and we’ll discuss this in more depth towards the end of the guide.
Common Mistakes to Avoid
There are numerous mistakes beginners make right away. When most people look into the ‘Copy People’ section looking for a trader to copy, it’s is always a good idea to sort by ‘most copied’ and blindly copy the top results. You’d think that the most copied people have lots of copiers for a reason, right? The wisdom of the majority of the people prevails. But the reality is that most people on eToro are beginners and don’t really know what they are doing. If a few people copy a trader for the wrong reasons, that trader can quickly ‘go viral’ with exponentially more copiers the following suit without thinking for themselves.
If you want to know more about the advantages of being an Investor on eToro, make sure to go thru Brokerage Compare’s eToro plus500 review.
How to Find the Best Traders?
- Who demonstrate their market knowledge and experience on their profile feed.
- It offers low weekly and daily drawdowns. Any data that is below 10 percent is a red flag.
- Don’t have amazing returns or values that are too good to be true. I know this may seem counter-intuitive, but if you see someone with 1,000%+ returns in a very short period of time, realize that this is unsustainable luck and can only be achieved by being reckless.
- An account that has a 100%-win rate. It’s perfectly normal to close some trades in the red; this is a sign of discipline and experience.
- Look for those who are communicative. You want to copy someone who can help you learn and share your trading methodology. If they don’t reply to your messages, they either don’t care (likely to trade carelessly too), or they don’t know how to answer because they don’t have a clue what they’re doing!
There are several platforms where you can start investing online. eToro is a great platform if you are starting your journey as an investor. You can use the virtual profile, at first, to get acquainted with all the features that it offers.
The social trading feature unlocks numerous possibilities for newbie investors to learn from seasoned investors and employ strategies that will skyrocket their income.