Social trading at eToro

Yes, social trading is available at eToro.

What's more, eToro is the world's largest social trading platform that allows users to follow and copy the trading activities of several other traders.

My key findings in a nutshell

My key findings in a nutshell

Gyula Lencsés, CFA

Stock Market • Investment • Market Analysis

I’ve been a professional stock trader for more than a decade, investing into equities, ETFs and many other asset types in my capacity as a pension fund and investment fund manager. When it comes to equities, I prefer value-based fundamental long-term investment over short-term trading.

Learn about our methodology

Gyula Lencsés, CFA

Stock Market • Investment • Market Analysis

I've thoroughly tested eToro services with our analyst team by opening a real-money account and these are my most important findings:

• Social trading is available at eToro, allowing you to copy the portfolios of more experienced traders.
• Social trading lets you see what other traders are doing and how their portfolios perform
• Before you copy anyone, make sure their trading goals match yours
• Be mindful of potential costs and risks such as too much leverage
• Other research tools may be available if you don't want to rely on social trading only

Do you feel overwhelmed by the choice of stocks and other instruments out there? If you can't decide what to invest in or if you're worried that you'll make a wrong decision, it's a good idea to take your cues from more experienced or successful traders. The easiest way to do this is via social trading or copy trading.

Available at an increasing number of brokers, social trading lets you see what assets other people are trading; what their trading strategies are; and how much profit or loss they made over a specific period. Often, there's a forum where you can discuss each other's activity, just like you would on social media.

Copy trading takes this a step further. If you like someone's portfolio or trading strategy, you can simply copy it at the push of a button. It's like going to a restaurant where, instead of poring over a long menu, you'd tell the waiter, pointing to the table next to you, “I want to have what that guy is having!”

Is eToro the best choice for copy trading? Find out in our rundown of the best social trading platforms in 2024.

To find traders worth watching or copying, you can use a search or filter function at most brokers. You can narrow down your search using categories such as popularity, trading results over a specific period, risk score, or instruments traded. Once you have a shortlist, you can click each user's profile to read more about their trading strategies and see exactly what assets they hold.

If you fancy someone's portfolio, simply press the “copy” button (or equivalent), and set the amount you want to invest in it to create an exact replica. From then on, any changes made by the trader in their portfolio will be replicated in your own copy of it.

Keep in mind that just because you're investing in a trader's portfolio, it doesn't mean they handle your money to buy assets on your behalf. Your money is handled by the broker, just as it would be if you compiled a portfolio on your own. Also, you can exit (or add to) copied portfolios any time you want.

Copy trading is easy, and often tempting for inexperienced investors. However, there are a few things to bear in mind if you want to avoid disappointment.

• If you're interested in copy trading, it's best to choose a broker with a sufficiently large trading community.
• Many social trading platforms are dominated by traders of leveraged products such as forex or CFDs, where there is significant risk of rapidly losing your money. Pay attention to what leverage levels are being used and set your exposure accordingly.
• Be mindful of trading costs - these apply to you whenever the trader you're copying buys or sells an asset. Sometimes a separate fee is charged for access to the copy trading function.
• Choose a trader to copy whose investment goals align with your own. If you're saving for retirement, it may not be wise to copy someone who professes to be “daytrading just for fun”, no matter how successful they may be.
• Be aware that traders at some brokers may be incentivized to attract as many copiers as possible.

Copy trading is a great feature, but if you have a bit more time, it's worth checking out other research tools - such as analyst recommendations or market news - that can help you pick the right investments. Let's see what eToro has to offer.

Recommendation refers to experts at eToro giving advice for assets to buy/sell