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Due to the pandemic that is upsetting the whole world, during the last year the interest for online trading has grown significantly. More and more people are looking for informations about investments on the stock exchange. The main objectives are: obtain a profit from one’s capital and / or obtain an alternative income to that which derives from one’s work.
In this particular context, Etoro’s growth has been very strong in the last 12 months! As many of you already know, eToro is one of the most recognizable trademarks regarding online brokerage and online stock and Forex trading.
This broker has operated in the retail broker sector since the end of 2008 and is well regulated. It operates in the European Union with CySEC, the regulatory agency of Cyprus, and in other countries around the world with other big names such as FCA, ASIC and many others.
But the reasons beyond eToro’s notoriety goes beyond its offer or security, and has to be explored into the innovative concepts brought up by this famous broker. And we’ll start from here, with the one which has revolutionized the trading world as we know it: Social Trading. To learn more you can read a Etoro review by InvestinGoal.
Social Trading: What Is It?
Just as it works for social networks, with social trading you have the chance to know what your contacts or famous figures present on the platform that you have followed are doing at that moment.
You’ll find tips, insights and much more under most financial assets present on eToro, and they’ll be spread by other traders just like you.
As a matter of fact, social trading on eToro has started a new era for trading platforms, and nowadays competitors have to keep pace with it. Plus, this concept is at the core base of another signature feature of eToro that we are going to discover in the next part of our guide.
Copy Trading: An eToro Signature
Copy trading is the renowned eToro feature that allows you to follow a fellow trader step by step in an automated way, by literally copying its portfolio.
It means that every position opened in the selected trader portfolio is going to be opened in your portfolio, recalibrated, and that will be the case also for any other position opened in the future. Traders targeted to be copied will be chosen usually between the so-called Top Investors.
To decide a Top Investor to copy trade, our suggestion is to start with a low risk ratio trader. This kind of traders usually have low profits, but they are usually more careful in their investments. Their trading style imposes them to follow a series of rules in order to avoid big losses.
By doing so, they will not expose your capitals at risk.
Demo Account: The Best Choice To Start
Starting with a demo account, instead of one of the many accounts available with eToro, will open plenty of learning opportunities in front of you.
Thanks to a demo account you’ll be able to practice any trading technique you learnt during your studies, or just explore the many features present in eToro, without having to worry regarding losing money. That’s because this kind of account works with a virtual balance which will operate as any equal amount you’ll eventually deposit or gain on the platform.
With that being said, we have always to remember that doing trading is a financial speculation, therefore the risk cannot be taken out of it once we decide to put real money in it.
InvestinGoal: the benchmark on trading and forex
On the InvestinGoal website you can find many guides dedicated to Etoro and the world of social trading, but also many reviews of the main brokers to invest in forex and in the main financial markets. Advice, investment strategies and rankings dedicated to the best brokers by single geographical area make InvestinGoal one of the leading resources in the financial field for anyone who wants to start trading online!
