eToro probably is the best place now where to invest money without any experience and trading background. Really! eToro have made a system, that is Called Copy People, that allows new users of their platform to copy experienced trader’s portfolios and make profits easily. Firstly, if you are not familiar with eToro trading platform:
What is eToro?
eToro is a social trading and multi-asset brokerage company that focuses on providing financial and copy trading services. It has registered offices in Cyprus, Israel, the United Kingdom, the United States, and Australia. In 2018, the company’s value was $800 million. You can trade and invest in cryptocurrencies, stocks, ETFs, currencies, indices and commodities or copy leading investors on eToro’s disruptive trading platform.
eToro offers 100 000$ free DEMO account to their new users to explore the trading platform without any risks. You can open your free account here.
You can read about my first insights about eToro social trading platform here: My experience with eToro social trading platform.
How to choose the best accounts to copy on eToro?
As I said previously, this is an unique chance to make money trading stocks without any prior experience. My first question was – how can it be profitable, if everyone on the platform makes money? Then I was looking for answer on this question and found out that eToro is making money on spreads, commissions and fees. But the good news is that stock trading on eToro is completely free of any charges. If you choose to copy people whose portfolios consists only of stocks, then you wont have to pay any commissions. The only fee that you will have to pay will be withdrawal fee – 5$ per each withdrawal.
There are thousands of People that can be copied on eToro and you will definitely need some guide to choose the right ones for yourself. Of course, you can go with the most copied traders and rest assured that, you will make some nice returns on your investments.
So, what do you need to look for when choosing traders to copy on eToro?
Guess what! There are no right answer to this question! You will have to make your own formula, but here will be some tips what to look for when you look for people to copy:
Look for traders with at least one year of track record.
The longer the trader has been on platform, the better. You will be able to see all of his past performance in his profile.
Decide if you want to copy people who trades cryptocurrencies, indices, ETFs and other risky financial instruments.
In my opinion, stock trading is the safest route, so I avoid to copy traders whose portfolios contains more than 10% of cryptocurrencies.
Pay attention to the number of profitable months and yearly returns.
More profits almost in all cases means more risk, so you will have to decide if you are willing to take more risk and get more profits or play it safe and get less profit but better sleep in nights. For example, my goal is to get 50% yearly return on my investments, so I am looking to copy people whose return last year was at least 50% (if their profit is over 50% for the last two years, then it is even better).
Pay attention to the number of copiers.
Of course, each of the People that can be copied started with 0 copiers, but it is great indicator of their performance. There are 4 levels of popular investors and if they want to reach the next level, they need stable performance over long periods of time.
Also, popular investors are getting paid for their work, which is nice addition to their profits made with trading portfolios. This fact made me sure that eToro Copy People feature is not a scam and it is profitable for everyone – eToro, Popular investors and You!
Maximum risk score.
When searching for Popular investors, you will see their maximum risk score number. The risk score shows the risk the investor is taking, and is calculated using a special formula developed by eToro. The score is calculated for each user from 1 to 10, where 1 is the lowest possible risk, and 10 is the highest possible risk. Popular investors can only go to the risk score 6. This will save you from investors doing stupid things, like investing all his money in one stock.
Top 3 Popular investors on eToro
There are some MEGA popular investors on eToro, that have rpven their trading skills for many years and therefore they are copied by thousands of eToro users.
#1 Popular trader on eToro – Jeppe Kirk Bonde
Jeppe Kirk Bonde have achieved over 30% average annual return since 2013. If you copied him back then for $1,000, you would have over $7,500 today.
Jeppe analyses trends in global markets, politics, tech, and society and perform fundamental valuations, investing in companies that are evaluated worth significantly more than their price. Jeppe manages the total portfolio risk through diversification and hedging. He generally avoids leverage, short positions, and high-fee instruments to minimise fees. He relies on a strong personal network, two assistants and expensive data and IT tool subscriptions to continuously stay ahead.
His background is in Strategy Consulting, advising some of the world’s largest banks and tech companies. His education is an M.Sc. in Finance & Strategic Management from Copenhagen Business School.
How can you copy Jeppe? Go ahead to eToro website www.etoro.com, register your free account and search for “jeppekirkbonde” in search bar. Remember to tick ‘copy open trades’. Minimum to copy is $300. The largest copiers copy with over $100,000. Consider making it a habit to steadily invest a share of your income.
#2 Popular trader on eToro – Heloise Greeff
Heloise Greeff is Popular investor from United Kingdom. Her investments are made only in stocks, that means, you will be paying zero commissions to eToro.
Her investing strategy focusses mostly on US indices, tech and pharma, promising future (5-10years) growth. Heloise’s trades are based on technical analysis using machine learning to understand patterns and trends in the markets. She prefers keeping a diverse portfolio to spread risk while achieving great returns. Investments are made on long term (> 5years)
Heloise Greeff is from Cape Town, South Africa but is currently living in the UK. After specialising in machine learning and completing her MBA degree at the University of Oxford, she joined social trading to combine her interests in financial markets and technical analysis.
She is maintaining low risk score (3/4). No day trading, so you will have to be patient if you want to see steady growth of your trading account.
How can you copy Heloise? Go ahead to eToro website www.etoro.com, register your free account and search for “rubymza” in search bar. Remember to tick ‘copy open trades’. Copy with at least $1000 for +2 years. Less than this may result in some of the trades not executing.
#3 Popular trader on eToro – Mariano Daniel Pardo
Mariano is a long-term investor who trades mainly in Technology, Consumer Goods, Services, Finance, and Utilities. He uses self-made software in order to obtain and categorize large amounts of data from each company, its competitors, its industries, and the markets in general. Then he applies data analysis and machine learning in order to obtain the intrinsic value of each company and project its growth rate. Pardo combines this information with Fundamental and Quantitative analysis in order to make smart trading decisions. Using this strategy, he has closed the last 6 years on eToro in profit, and during this time he consistently outperformed the S&P-500 and NASDAQ-100 indices.
How can you copy Mariano? Go ahead to eToro website www.etoro.com, register your free account and search for “marianopardo” in search bar. Remember to tick ‘copy open trades’. Copy with a minimum of $500 for best results.