Why do you promote eToro?
It's the best social trading platform I've found so far. I've been using it since 2016 and it's where I document my own copy trading experience. I have an affiliate relationship with eToro — if you sign up through my link, I may earn a commission at no extra cost to you. That relationship doesn't change what I write or how I report my experience.
Is copy trading free to use?
Yes. There are fees associated with trading on all exchanges — eToro included — but copying another investor's trades is free. You don't have to pay the person you're copying any kind of cut or commission. They're investing with their own money; your account is simply automatically copying all of their trades. The person you're copying receives incentives from eToro — the more people copy them and the more money they're being copied with, the more eToro pays them. They gain from the situation, just not directly from you.
What are the fees on eToro?
There are a few to be aware of:
- Spread fees — built into each trade. When you open a trade, you'll notice it's immediately at a small loss. That's the spread fee. As the asset moves in your favour, you'll recover it and then move into profit.
- Withdrawal fee — eToro charges a flat fee when you withdraw money from the platform.
- Currency conversion — since everything on eToro is in USD, if you're depositing or withdrawing in another currency, an exchange rate will apply.
- Overnight/weekend fees — if you hold leveraged positions overnight, there may be additional fees. If you're using the copy trading feature with non-leveraged positions, this is less of a concern.
Do I need any trading experience?
No — that's rather the point of copy trading. The whole idea is that you can benefit from the experience of people who do know what they're doing, without having to become an expert yourself. You still need to choose who to copy carefully and understand the risks involved, but you don't need to know how to read charts or analyse markets.
Can I lose money?
Yes. Copy trading does not eliminate risk — it's still investing. If the person you're copying makes losses, you make losses too. You should only invest money you can afford to lose. Read the How Much Can You Make? article for a realistic look at risk and reward.
Is eToro regulated?
Yes. eToro is regulated by multiple financial authorities including the FCA (UK), CySEC (Cyprus) and ASIC (Australia). Regulation means there is oversight and legal accountability. Read my full Is eToro a Scam? article for more on this.
How do I start copy trading?
The basic steps are: open an eToro account, verify your identity, deposit funds, browse the 'Copy People' section, choose someone whose statistics you like, set your copy amount, and click copy. The Copy Trading guide covers this in more detail.