Social Trading with eToro - an alternative way of investing [TEST]

We start the adventure with eToro - another trading platform that allows you to use investment signal providers. Let us remind you that another platform is being tested in parallel - ZuluTrade - which ends today (summary on Monday). However, we are not planning to slow down. Now it's time for eToro which is very popular among retail traders.

REVIEW OF ETORO TRANSACTION PLATFORM

Social trading with eToro

The eToro platform offers manual and social investing functions. The so-called. Social trading involves copying the actions of other users on a system basis Copy Trader. This means that all transactions related to transactions made on the trader's account are reproduced from the machine on the investor's account. Everything, of course, is done in real time. 

An interesting product is the long-term investing instrument they are Copy Portfolios. Copy Portfolios are ready-made investment portfolios including the best investors on the platform with a carefully selected investment strategy or ready-made "baskets" of instruments with a diversified share. A prime example is the recently introduced portfolio to invest in the oil sector - OilWorld Wide.

Assumptions of the test

During our test, we will use individual signal providers as part of the system Copy Trader, but also check how effective the Copy Portfolios option is in the long run. This time the test will take place on virtual funds due to the large selection of instruments that require a high level of security. However, this will not affect the result due to the fact that the quotes and execution of orders are identical on both the live and demo accounts. Thanks to the large variety of instruments, after the test period we will receive results that (we hope!) Will select the best ones that will be worth investing in real capital.

The initial balance of the account is 100 USD (default amount). The start deposit itself is not important to us. We will pay the most attention to safety, efficiency and return on investment. We start on June 000, and just like in the case of Zulu Trade, a summary of the past investment week will appear every week.

76% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you can afford the high risk of losing your money.

eToro is a multi-asset platform that offers both stock investing and CFD trading.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford the high risk of losing your money.

Past performance is not indicative of future performance. The trading history shown is less than 5 full years and may not be sufficient as a basis for an investment decision.

Copy Trading is not synonymous with investment advice. The value of your investment may go up or down. Your capital is at risk.

eToro USA LLC does not offer CFDs and does not make any representations or be responsible for the accuracy or completeness of the content of this publication, which was prepared by our partner using publicly available information about eToro that is not specific to entities.