Etoro Copytrader Review
In this research we will talk about Etoro Copytrader system. It is forex signals platform where investors can follow other traders with great trading performance.Let we start with this introducing video:
1) About Etoro forex broker
eToro broker is a brilliant marketplace for the experienced and new traders. The platform has more than 1.5 million users from over 130 countries worldwide. It is considered as one of the biggest investment networks these days. In 2010, eToro was awarded with the “Most Innovating Trading Platform.”
eToro manages to provide high level of liquidity to the traders under the strict official regulations. The best thing about this platform is that is regulated and registered by the ASIC, CySEC, NFA, and CFTC. eToro provides latest trading news from the key financial sources worldwide.
The maximum leverage that is being provided is 1:400. The pip spread rate is as low as two pips. The minimum required deposit is $50.
It is quite easily to apply for the registration process. The website is available in many languages like Chinese, Arabic, English, Dutch, Korean, Japanese, Spanish, Turkish, and Swedish.
To help the new traders, eToro provides a variety of courses and training programs. The platform also offers a demo account that is loaded with a virtual currency of US$10,000. This is done so that new traders can practice all the techniques to get started.
Below are the several trading options provided by the eToro:
1. eToro Web Trader: User-friendly and simplified web-based trading experience is being provided by this platform.
The eToro platform is totally an online based trading platform, which helps you to trade from your internet browser on the go. The most convincing and useable trading platform is being provided to the traders. It is simple to use and promises with plenty of useful features.
2. eToro OpenBook: OpenBook is another kind of platform that takes the trading to another level. OpenBook allows the traders to communicate with other traders of the eToro community. It helps in getting knowledge and sharing information becomes very valuable.
Experiences of eToro Copytrader: Is it of value?
In our Etoro review you can read everything about Forex social trading and eToro platform. The eToro Copytrader, extension of Openbook, was founded in 2011. This type of trading instrument is revolutionary. By using Copytrader, you may follow the other traders as well as copy their entire future trades by only a single click of the mouse. To copy other Forex traders, you must start eToro OpenBook as well as the rankings of the other dealers. If you believe that an individual is very successful, you may bet 20 percent of your possessions capitals on that individual. However, if you assign US $1,000 and that dealer creates the position by 15 percent of his possessions, then you’ll automatically bet US $150 on the similar position. You may record a maximum of 10 winning traders.
Android and Mobile Etoro trading : Etoro offers mobile trading or Android platform for trading as well. Etoro Webtrader has nice interface and you can use it on your cell phone.
It sounds extremely enticing. Rather than constantly reading reports, attempting to draw results, and spending enough time with technical study of cost movements, you only copy the winning traders. Therefore, your mission is decreased to identifying the winning traders and, after that, copy their activities with the eToro Copytrader. It sounds like you might copy the most excellent chess player in the world and win each game.
The difficulty is this: “If it sounds too good to be true, it probably is.” There are no safe profits as well as no instruments that make you wealthy while you sleep. Continue reading to study more about experiences with eToro Copytrader.
See this Etoro Copytrader review video:
Can you make money with the eToro Copytrader?
Perhaps you were completely thrilled when you heard about this social dealing podium from eToro. Just copying the winning traders looks like a simple way to make money without actual work. Because of terrible experiences in the past, we did not deposit actual money to check the abilities and potential of eToro Copytrader. As an alternative, we only created a gratis demo account with eToro and used $10,000 play cash to build experience with Copytrader. Initially, we spent many years to actually find the winning traders. We realized it was vital not to select the dealers with higher income but rather the traders who have continuously made more money for a long time. Therefore, we ended up copying ten traders. We assigned them totals between $500 to $2000.Then, we used the remaining $7,500 together. The outcome of many months of following the traders was the loss of almost $2,000.
Despite the cautious selection of the most excellent traders, we experienced the loss of $ 2,000,which is minus 20 percent of the entire capital in a few months. Supported on the assets invested, the failure was in close to 27 percent. How’s this possible? We show a few reasons why the eToro Copytrader wasn’t successful. Therefore, let us initially have a view of the extremely copied traders and talk about the famous Fiscal Marketplace theory later.
Etoro Webtrader Signal Provider example
At the present, in the month of February 2012, the user, NMarijus, has over 2,500 trader she copied his deals from using eToro Copytrader. When we selected him, he looked like a very fine option for getting easy money while sleeping:
By taking a look at the graph, you may observe that Lithuanians stand to gain a profit of 450 percent for more than a period of 5 months. This increase wasn’t with some lucky dealers on a few large trades, but by continuous mini trades including good income. That’s why he seemed as the ideal dealer to copy.
Unfortunately, subsequent to the derivative of his deals, he began losing cash.
All his profits of 5 months were fully lost after some weeks. Still, NMarijus have 2,500 copiers. Moreover, we expect that many of those people aren’t risking actual money. Those who began following him made no wrong moves, and they did not lose a huge portion of their capital.
So how could this happen? Read on to learn about possible causes for this.
Losing Cash with the eToro Copytrader – Explanations and Reasons
The most important thing in copytrading is to pick good traders. A good trader has a strategy with low drawdown and a good take-profit/stop-loss ratio. For example, if the trader risks 50 pips (stop loss is 50 pips) and gains profit with 50 or 100 pips per trade, then that is a good trader. If you see an excellent result for some trader (huge profit, profit every month, and high winning rate of 80% or 90%) but you see that the trader risks 200 pips or 300 pips or 400 pips to gain 5 or 10 or 20 pips, then this trader can hurt your portfolio in the future. Besides statistics, try to see the trading positions history. I made a mistake in the beginning – you don’t have to!
Learn More About Social Trading
This is the famous phrase from the analysis of the mutual funds. Particularly in evading the fund business, survivorship bias is the general problem. What does it mean? It is a tendency to just look at the performance of the “survivors.” Take the following scenario as an example of the supposed “survivorship bias”: the hedge money is put into a risky investment. Some of this money creates big losses. The outcome is that the investor vents their shares, and the money won’t be closed finally. If this money is liquidated within 3 years, it won’t appear in the performance study of hedge money for more than the period of 5 years. Therefore, the analysis of hedge money is shown to be fine.
The same occurs at the time of copying the other traders. eToro has many clients. All their outcomes are evaluated. The dealers have some idea of Forex trading, and some percentage of those will be successful – just beyond pure opportunity. These traders will show in leaderboard of eToro and will be copied diligently. The other traders can’t know whether these individuals have been victorious due to their experience and their instinct, or their sharp logical capabilities, or whether they were only lucky.
Trading Policy No Longer Works
This scenario might be the case with an Nmarijus. You probably know about how the statement often looks in risk warnings and disclaimers: “The previous performance is not assured for the future incomes.” The Forex market may change rapidly. The policy that performed until now may rapidly lead to higher losses. These losses might happen because you pursue the trader with current working policy. If you pursue him for long enough, the policy might not perform anymore due to changed market situations.
Influencing a Market
It is improbable that some market actors may influence currencies in worldwide FEM, due to the big volume traded. However, if the trader, for example, Nmarijus copied 2,500 people, is the transaction accurate for a similar era? We don’t have an answer to this question. However, if few Copytraders have large capital, the rank of NMarijus could be swollen within in the moment with an issue of 10,000 or more. That’s why we cannot exclude an influence of the market for each set.
We have yet to be convinced that eToro has been found, but we are still convinced that eToro has launched a truly revolutionary innovation. Nevertheless, we suggest the following recommendations:
Be Careful Who You Copy
Spend time analyzing who to copy. For instance, the strong fluctuations in the graph show that the trader uses many of his assets on person trades, which can be good for a moment but continues to risk a huge part of the assets that might be mislaid in the single trade.
Moreover, we suggest following traders who’ve been victorious for a longer time.
Guru Searcher – Apply the Advanced Find Function
The recently founded Guru Searcher from eToro is the big instrument to search the really victorious traders. You may apply various filters in order to find excellent traders:
Average Location: It shows the size of the average position in relation to accessible asset. As you may be acquainted with the regulations of money management, the maximum of one to fifteen percent of assets must be hazarded in a single deal. The 50 percent default setting from eToro is extremely high. Modify the filter to ten percent or below to search for the traders who trade less dangerously.
Leverage: This filter doesn’t show leverage but show how frequently the dealer enters into a position where he’d leverage hundred or higher. It’s another gauge of the hazard concerned.
Weekly Draw down Indicates the biggest gauged failure within the week above the experiential period. Once more, the lower a worth, the lower a hazard is.
Victorious Weeks: The week percentages closed with the income for any period of time. If the traders have profits in twenty of twenty-five weeks, the worth is eighty percent.
Win Ratio: Shows deals with profit divided by total sum of deals. The trader who ended seventy out of hundred deals with profit has the seventy percent win ratio.
Gain: A filter that shows profit (comprising unrealized losses or gains) calculated like the percentage.
Minimum Amount of Trades: With this filter, you may find the traders who’ve completed the minimum amount of trades in a period. The upper amount of the trades is most significant as well as the additional analyzed values.
Average Trade Period: Here, you may set how long the average landing time must be minimized. The scale varies from an hour to one month.
Exposure: This filter allows you to find traders investing some number of their entire assets. If the trader uses just five percent of his assets, then you may assume that the maximum five percent may be lost during some periods. Conversely, the income, in relation to asset allocated, could be extremely low. It looks for us that the initial value in Guru Searcher, the “average location,” is necessary rather than the revelation measure.
Portfolio & History
Additionally, you must have a view of the portfolio as well as a trading history prior to copying the trader. In the portfolio, you’ll see what kinds of individual deals work, divided into groups foreign exchange, indices, and commodities. In the dealing history, you’ll view the last hundred implemented trades.
Essential: You may observe if the individual has copied deals from the others publicly. You have to think of it as your hazard management. Your hazard is higher if you pursue the people who pursue other traders, which, by now, you can copy yourself.
Experiences of eToro Copytrader: Summary
A Copytrader is a leap into another globe of FX trading. Thanks to transparency, you may simply find or automatically copy the victorious traders. We’ve revealed that this instrument is no assurance for risk-free and easy profits. It’s necessary that you spend time in the selection of appropriate traders and to check and copy these individuals regularly.
The Copytrader is absolutely worth a closer look. We suggest that you create your personal experience.
About Etoro – Etoro Review :
Bonus offers & accounts
There’re different types of accounts at the eToro relying on deposit amount. At what time your deposit the amount between $50 & $999, you will get the Bronze account, by $1000–$4999 the Silver account, and so on. Unluckily, eToro doesn’t offer the bonuses with stone-cold money any longer. There’re some other incentives such a best VIP support, daily analysis or webinars.
Deposit & Withdraw
You may use the following payment methods to make the withdrawal or deposit: Skrill/Moneybookers, Paypal, Credit Cards (Mastercard, VISA), instant cash, Neteller and Wire Transfer. It is very easy to make the deposit as well as withdrawal on eToro.
Spread: Three Pips EUR/USD
Currency pairs: 16
Maximum leverage: 400:1
Minimum Margin: 0,25%
At eToro, you can visit the eToro trading academy. Here, you can get free lessons, free Forex videos, ebooks, and access the Forex glossary as well as many other resources.
Also, there is one more interesting promotion:
For every friend a trader successfully refers to eToro, and when the friend deposits a minimum of $100, the existing trader will receive a personal bonus payment of $100.
The eToro is perhaps the major Forex broker in the market, 2013 and there’re many good causes for eToro attained something so sole: they could get to the ample with their groun-breaking approach, to making the Forex trading motivating to everyone. The people who didn’t even be acquainted with that you can’t trade with the currencies are rotating in Forex traders. Further success issues are stable innovations (with Copytrader and OpenBook), tremendously user friendly platform as well a huge client support. We are very confident that the eToro will develop these things in future also and that is the cause why this broker must stay on the top for an extensive a while.
Please write your Etoro Review and give us your opinion in comment…