Overview
Table of content
- Market CopyPortfolios: these comprise assets into a portfolio, many times CDF stocks and ETFs, with a thematic trading strategy. These may be for example, portfolios dedicated to crypto assets, investments into a certain market like the firms in the gaming or automobile sector and so on.
- Partner CopyPortfolios: such portfolios are created by the partners of eToro, such as Berkshire Hathaway, Napoleon Capital etc. These portfolios likewise tend to focus on a specific trading strategy and a specific selection of assets around it.
- Top Trader CopyPortfolios: portfolios that trace successful traders’ portfolios on the platform.
The process
Every CopyPortfolio available on the platform provides a short overview of its operations, including performance statistics, feed with news and updates, a short description of its investment strategies and asset allocation. You can apply several available filters while making your choice, including portfolios’ risks scores, popularity and other performance metrics.
A CopyPortfolio itself is not an Exchange Traded Fund nor a hedge fund as it may appear at first sight.
Once you choose a CopyPortfolio, your invested funds will be split in proportion to asset allocation in the actual portfolio being copied and consequently same trades will open for you to replicate the positions in those markets, assets or traders. The process is very similar to copying a trader.
Associated fees and commissions
The eToro platform doesn’t charge any fees for management for opening or closing any CopyPortfolios. However, any spreads charged when opening a position may still be applicable.
Minimum Investment amount
CopyPortfolios comprise a great assembly of assets that are constantly monitored and balanced on your behalf with many positions held open. This explains the necessity for a minimum amount required for a CopyPortfolio is 5,000$.
Taking out the profits
You can take out the profit made on copying a portfolio once that investment is closed and any realized gains are then added into your balance on the platform.
A Note of Caution
Despite the multiple benefits offered by the CopyPortfolio option, do not undermine the importance of investing the time and research in selecting what portfolio to replicate.
Furthermore, once you have fully invested into the CopyPortfolio of your choice you cannot adjust it by closing single specific positions within it: the investment would need to be closed entirely for a trader to be able to change individual positions in it. Likewise, removing a portion out of your investment it not allowed and the investment would need to be closed completely to be able to do so.
Hopefully this quick overview gave you an idea of the CopyPortfolio option on the eToro platform and you can now fully enjoy your trading experience. Best of luck!
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GENERAL RISK WARNING
- eToro is a multi-asset platform that offers: Stocks, Crypto assets, and CFDs.
- CFDs are complicated and can make you lose money quickly because of leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. Think about if you understand how CFDs work and if you can afford to take the risk of losing your money.
- Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
- Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
- Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
- eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity-specific information about eToro.
Be warned!
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