eToro was founded as RetailFX in 2006 in Tel Aviv, by brothers Yoni Assia and Ronen Assia together with David Ring.
In 2010, eToro released the eToro OpenBook social investment platform, along with its “Copy-Trading” feature. The eToro OpenBook enables investors to view, follow and copy the network’s top traders automatically.Later that year, eToro released its first Android apps so investors could buy and sell stock via mobile devices.
eToro is also the official sponsor’s of football club West Ham United F.C
What is eToro?
eToro is a social trading application that enables traders to benefit from one another’s knowledge and market insights. At eToro you can follow any traders you like, whether a friend or any other trader you want to track and learn from. In exchange, any other eToro users can follow your activities as well, so you too can gain a loyal following. With eToro you get live trading feeds of everyone’s activity, performance analysis and trading patterns of your own and other’s performances, and more social interaction features that can help you engage with other users.
What`s the best way to get started?
As an eToro registered user, you`re ready to go. Dive into anything you like, but on your way, you might want to check out these three main features:
See what real traders are trading in real time.
Find and Follow traders, based on your personal preferences.
Copy the trades you like instantly.
How is performance calculated?
The performance displayed in in your eToro account is based on a daily or accumulative gain percentage, winning positions ratio and the number of trades. In addition, eToro shows statistics based on your trading patterns such as instruments you trade, risk/reward levels, average trade duration and much more useful information.
How often do you update the data?
All data is updated constantly and automatically – most of the time you’ll see the live activity feed updated in real time. In certain times, it may take up to a few seconds to see your latest activities published. The public feed, in times of high volumes, is designed to omit activity to allow for better browsing experience. The filtered feed (traders you follow) is always accurate and displays all real time activity.
What is Copy Trading?
Copy trading is one of eToro’s most powerful features. It enables you to: See what real people are trading in real-time, find and Follow the traders you like and most importantly, Copy their trading activity with one “click.” Copy trading will change the way you and all people trade, as it enables you to build a real people-based portfolio.
How does it work?
Copy Trading is easy as 1 – 2 – 3!
1. Find the traders you want to copy
2. Set up your Copy Trade amount
3. Manage your people-based portfolio
We encourage you to engage with the trader you are copying in order to gain insight into their strategies. Our community is all about openness, and your Popular Investors would love to explain the reasons behind their decisions.
1. Picking who to Copy
I’d like to Copy the top performing traders. Where can I find them?
Use the search function on the trading platform, check the People page, or look for feature articles on the eToro blog, in the media or on YouTube.
How do you choose the top ranked traders?
The rankings are based on total gain or winning ratio. We use several different filters and criteria to rank our top traders. Filters include, but are not limited to the following and may differ for different time periods selected:
Minimum number of positions opened or closed for a time period
Minimal winning ratio for a period
Number of days/weeks which the investor was active (had at least one open position)
Minimal average position duration
Maximum ratio of high leveraged trades
Maximum leverage amount placed in a single trade
Minimal total investment for the period
We are continuously improving our ranking algorithms and therefore, our ranking criteria may change from time to time. If you want to keep up with our product updates please follow our eToro blog. If you believe you should have been ranked and don’t see your name on the list you are more than welcome to contact us.
How is gain calculated?
The gain is calculated based on the “Modified Dietz” formula.
Can I copy a trader that is not listed in the rankings?
Of course! We give you the freedom to copy whoever you like. If you have spotted someone you want to copy, go ahead! Functionality remains exactly the same as for a ranked investor.
2. Copying a Trader
How do I start copying a trader?
On any user profile page, you’ll see a big blue “Copy” button next to the trader’s profile. Click it and you will be prompted through the rest.
How much or little do I need to allocate to Copy a Trader?
You can Copy a Trader using as little as $100
Can I use my Practice account?
You can use your existing Practice account to try out eToro under real market conditions, but using virtual money. Your practice account completely replicates the live trading experience and gives you a chance to practice investing with no risk of financial loss. The drawback of trading with a practice account is that any profits you make will also be in virtual money, and cannot be withdrawn.
Does it cost to copy another trader?
No, you never pay to copy other traders! eToro is a social trading platform and you can set your account to automatically copy other traders without any charge. eToro is compensated through a portion of the bid/ask spread of the trades you place. Spreads remain the same regardless if you are copying someone or manually trading yourself.
How long does it take for trades to be executed in my account once I copy someone?
Trades are typically executed in less than a second from the instant the trader you copied executes their own trades. eToro has been built from the ground up, so you should not experience any delay whatsoever.
What does it mean to “follow” someone?
When you spot an interesting trader you would like to keep track of, you can click on the “follow” button on their profile pages or on any of their trading activity items. Following helps you keep track of these traders better. Once you start following other traders, their activity will start appearing in “My Friends” feed, and they will be listed as one of your connections.
Remeber before depositing any money in eToro make sure your account is verified, till your account gets verified start with the virtual practice account.