eToro Review: Copy Trading Is No Scam!
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Social Trading is a totally new way of trading on the Forex that uses the sharing of information and knowledge between different investors on a single trading platform. Launched not long ago originally by the broker eTorothe idea has been adopted by other brokers and attracts increasing numbers of traders who seek to make profits on the Forex without having to spend much time on their investments or learn to complete analyses or even trade in a straightforward manner.
Social Trading as we know it today could not have existed without the introduction and development of the online trading platforms. In fact, although the Internet is used by us to complete financial transactions, it can also be used to find useful information relating to our investments, particularly through the exchange of information with other traders on forums or social networks online.
Social trading was born from the idea of combining these two components in one single space. Basically, by giving traders the opportunity to advise each other and exchange tips directly on their investment trading platform. However, social trading goes even further as it enables you to follow the positions of other traders on the platform and copy the positions of the best of them and thereby benefit from the same level of profits as well as experience their losses.
Of course, for social trading to become an essential tool for Forex tradersa simple and ergonomic solution was required that could be used by all traders. Let us explain how social trading works:. For the others the principle is therefore to be able to consult the performance of the best traders. However the functions offered by the brokers for social trading do not stop there. In fact, apart from simply consulting the results of the best performing traders, it is also possible to follow one or even several individual leaders and even automatically copy all their positions.
Social Trading and the opportunity it offers to follow and copy the best traders offers a number of undeniable advantages, here are the major ones:. On the foreign exchange market, profitable strategies are unfortunately much rarer than losing strategies. To consistently earn money on the Forex requires a certain experience of the market together with a solid trading knowledge. Due to these influential factors, it is often very difficult to generate a benefit quickly when starting to trade and it can even take months, or years, before becoming highly efficient at short term investments.
This is why it can be very beneficial for beginner traders to follow the trades from the best traders. By observing the way in which these traders invest over a given period, it becomes easier to understand the logic of their Forex investments. As indicated by its name the latter enables you to copy the traders that you choose.
Basically, this social trading software enables you to initially obtain a list of the best traders on the platform with, for each of them, the details of positions taken and the profits achieved.
Using this list you can simply choose to observe these traders and even ask them questions so you can learn and thereby implement winning strategies using binare optionen autopilot analyses, or directly copy their trades using CopyTrader. CopyTrader enables you to copy several traders at the same time.
Your positions will be taken automatically and in proportion to those of the traders that you have decided to copy. Of course, the amount invested on each trader will also be in proportion to your total investment capital available. For the first, the fact of copying the best traders enables them, right from the beginning of their online trading experience, to make profits without any prior knowledge of the markets.
While your trades are being automatically completed you can take the time to study the technical and fundamental analyses and learn about the strategies implemented by these experienced traders. For the second, the CopyTrader function enables them to cover certain possible loss risks through the guarantee of some profitable trades which thereby leaves a margin for manoeuvrability and error. Social Trading through eToro in fact offers other functions with for example the opportunity to chat with other traders including those you are following.
Do not hesitate therefore to be curious and ask their reasons for taking a particular position. You can also exchange your opinions with other platform users with the objective of increasing your knowledge.
But where and how is this social trading practised? There are various ways in which you can follow the performance of other traders. The most frequent, but also the most complex, consists in meeting other traders on discussion forums or blog sites dedicated to finance and exchanging information with them in the hope of obtaining some advice. But this method remains very theoretical and does not really allow the observation in detail of their trading methods.
Another more recent method implemented by the broker eToro is a tool that enables both the possibility to see the performances of other subscriber traders on the platform in real time as well as being able to follow one or several particular traders. Thanks to this tool, you can decide to follow the movements of the best traders on the platform and even imitate them in order to quickly generate a benefit and so benefit from their market knowledge and experience.
No more need to spend hours trying to understand the market complexities and devising trading strategies using an e-book or a theoretical handbook. You can go directly to the practical stage by observing the causes and the effects of success through other traders experience.
As you certainly know, certain brokers such as eToro have implemented a social trading system that offers the opportunity to follow and even copy the positions of the best traders on the platform. But the choice or which trader s to follow remains entirely up to you. It can therefore be difficult to make the right choice and you should take time to reflect carefully before launching yourself into trades.
On the foreign exchange marketthe definition of a good trader is quite delicate as it takes into account a certain number of criteria, here are the major ones: Certain platforms such as eTorro offer you the opportunity of following the best traders on their platform, you can even follow several traders simultaneously.
It is therefore judicious to base your choice on different investor profiles so you can test their respective strategies and performance over the long term. For the rest, here is some advice on choosing your leading traders:.
The WebTrader trading platform of the broker eToro is, as its name indicates, a platform that enables online speculation on the Forex and CFDs, without having to download any software onto a PC or Mac.
This method equally offers the advantage of enabling new traders to try trading on eToro without having to install any software, also a demo version of the WebTrader platform is available free of charge. Here is a summary of the advantages and particularities of the WebTrader platform of eToro: The choice by the eToro broker of implementing Copy Trader was particularly influenced by the desire to attract beginner traders, often too lost to start trading. Thanks to this new tool, the risks are diminished for the beginner and they benefit from a collaborative trading to learn investing by copying the best.
On the other hand, the broker insists on their aim to be transparent on what happening on the platform. Therefore, everybody wins with this tool which enables responsible trading whilst encouraging individual traders to think on how to improve their strategy and so better master the risks taken. The targeted objective is therefore quite large as now even regular users can make use of the experiences of the other traders to improve their strategies or even diversify their investment portfolios by spotting profitable assets they could have missed.
One of the most popular particularities of the eToro online trading platform is of course its social trading function. In fact, using WebTrader, you can start to make profits online without any particular knowledge of the markets thereby profiting immediately from the advantages of the Forex and CFDs. In fact, thanks to the social trading system, you can directly follow the best traders on the platform and copy their positions without having to do anything else apart from follow the progress of the increase in your profits.
In this way you can train online without having to suffer the losses generally made by beginner investors. Social trading goes even further by allowing you to communicate with other traders directly online and ask them questions concerning their strategies. In this way you will have a more complete overview and understanding of what online trading can be like and how to analyse markets and recognise rising and falling signals. Using the WebTrader platform therefore offers certain major advantages that it would be a shame to ignore.
To use the CopyTrader function and start copying the best traders you simply need to join the eToro trading platform by opening an account. You can directly access the CopyTrader function as soon as you are logged in to your trading account. How to start using CopyTrader? Start copying the best traders now! CFD service - Your capital is at risk.