Top 4 Benefits of Etoro copy trading

Investing in stocks is very time consuming and risky so letting a professional do it for you is very tempting. Let’s look at the benefits of copy trading on Etoro.

Copy trading is very simple. When you copy an investor any trades they make you also make. This also includes closing those trades so it’s completely left to them. You don’t have to do anything.

When you copy an investor on Etoro you copy them with a certain amount of cash. All of the trades the investor does on their account is copied on yours proportionally. So if the investor invests 10% of their balance into Google you also invest 10% of your balance.

Here is my top 3 benefits of copy trading over picking stocks yourself:

1. Take advantage of Strategies and Expertise you don’t know.

To successfully invest in stocks you need to do alot of research and study. To know which stocks are worth putting your money into you need to learn alot about how business and the economy works. There are also many investment strategies to learn. Finding a strategy that works for you will require alot of trail, error and lossing alot of money.

Learning to pick stocks is a hard road so why not take advantage of someone who has already done it?

You can find many professional investors on Etoro, who do this full time and have done so for many years. They have been through the pain of learning and are now able to deliver stable returns. Every investor has their own strategy and unique background that you can take advantage of. You can use investment strategies that you don’t need to execute or even know yourself.

Why stop at copying one investor?

You can build a portfolio that covers lots of different strategies and investments by copying multiple investors. Implementing multiple strategies means a portfolio can deliver returns regardless of what the overall market is doing. Investors with different backgrounds and expertise invest in different things diversifying your Portfolio.

2. Transparency

Copy trading isn’t some black box. It’s not a case of giving someone your money and only being able to see the profit or loss of your investment. When you copy an investor you can see every trade. You can see everything about all opened and closed trades. You can see the what the trade is in, value of the trade, leverage used, stop loss and anything else you want to.

There’s no hiding anything from you. You can see actually what your cash is invested in. You can even close any of the trades yourself. Although you should probably leave it up to the investor, that’s why you’re copying them after all.

And if there is anything that you are puzzled about just ask the investor directly. This isn’t some fund that you have no eyes or access into. These are professional investors who you can just talk to.

3. No Management Fees

Other then the spreads paid on each trade there is no other management fees. You keep all of the profits from the trades, the investor does not take any percentage, .

Pretty simple right?

4. Performance

7% is a pretty famous number. It’s what many people say you can expect from investments in stocks per year. The s and p 500 average annual return is between 8-11 depending on the time frame you measure. Both these numbers are averages. They won’t go up by that much every year but if you hold them long enough it will average out to those numbers.

Many of the popular investors on Etoro beat this. Here’s the 5 most copied investors on Etoro and their returns for the past 12 months:

Past performance is not indicative of future result but it does show what can be achieved. And what can be achieved is pretty good. You can find investors on Etoro that have been able to beat the S&P 500 consistently for many years.

I hope you liked the article :)