eToro offers a great variety of assets for investors to choose from but it is also a social trading platform, allowing its users to share their strategies, interact and replicate positions of more experienced and successfully performing traders. In fact, letting others copy your trades allows you to earn an additional income by sharing unique and favorable investment strategies.
(NOTE: Before we continue, we have to give a disclaimer that the trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. CFDs are complicated instruments that are never guaranteed to provide you supplemental earnings. In fact, Around 68% of all retail investors experienced a loss while trading CFDs. Make sure to keep this in mind before attempting to use the eToro platform yourself. All the information found on this website is not official trading advice and all practices shown are referenced for the use of the Demo account only.)
eToro offers this unique opportunity to earn a second income on the platform by allowing others to copy your trades as part of the Popular Investor Program. There are currently over 1,000 traders who joined the program worldwide, all with different investment horizons, strategies and preferences for the choice of assets. The income earned from the program is directly related to a trader’s performance and has certain conditions that need to be met. Below you can find a detailed overview of this option.
The most immediate prerequisite is actually joining the program by applying for a membership. You need to have deposited sufficient funds into your account as the minimum amount of equity is 1000$, and also spend at least 2 month trading on the platform to begin with. A Popular Investor cannot breach certain risk levels and the maximum risk score allowed is 6 or below over the time period of at least 2 month; likewise, leverage restrictions need to be met. Your profile and bio need to be complete with a description on yourself and the strategies used in trading, a full name provided and a clear professional profile picture.
There are 4 tiers that can be reached on the platform, depending on whether your satisfy the performance conditions; each of the below tiers offers its own benefits:
- Elite Pro
There are certain criteria, such as the AUM and Minimum Equity requirements, that need to be met before moving onto the next level. These requirement are summarized in the table below.
|Minimum time||2 months||4 months||4 months||2 months|
|Payment (monthly)||–||400$ or 800$||1.5% or 2%||2% or 2.5%|
Note that Elite traders need to additionally submit a declaration of their strategy and an exclusivity agreement, while Elite Pro also need 3 years of trading on the platform/ being a financial professional.
A trader needs to spend 2 month in a Cadet tier before they can move up; these upgrades happen at the day of the payment at the beginning of each month. Moving to the Elite level would require being in a Champion tier for 4 month or more, and another 2 as Elite before you become an Elite Pro investor.
Finally, a Popular Investor cannot themselves copy others, which is quite a consequential requirement.
Reaching each new tier does not only increase your earnings but offers several additional benefits to assist your trading experience, such as a reduction in some fees, perks, events invitations, additional support and education. These are summarized in the table below.
|eToro Marketing Featuring||✓||✓||✓||✓|
|Withdrawal with no fees||✓||✓||✓|
|VIP tickets to football games*||✓||✓||✓||✓|
|Invitations to conferences/ exclusive events||✓||✓||✓|
|Subscription to Financial Times||✓||✓||✓|
|Manager for your account||✓||✓|
|Online Investment Courses free access||✓||✓|
|Weekly Team Video calls||✓||✓|
If you believe your performance is outstanding and eToro team agrees, you can become a featured investor on the platform.
Your income from being a Popular Investor depends on the tier achieved, as previously summarized. Payments are made every month by the 10th by adding the amount into the account and transferring them to your bank account or any other method of payment you have chosen. Your income increases with a greater number of copiers and a higher AUM.
Note that there are two values for payment available for each tier (the percentage in the payment row represents the percentage out of the total value of AUM). Earning the higher amount is possible if the value of AUM has increased by at least 1% from the previous month.
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Transparency and security are some of the main characteristics eToro platform stands for, and are likewise greatly valued by investors who choose a trader to copy. Informing your copiers on your strategies, performance or any other important information is expected at least 2 times per months, although more frequent updated would certainly be appreciated.
After joining the Popular Investor program your profile becomes public and other users are able to view your actions in real time as well as copy the trades. Once someone decides to copy you, your trades will be replicated on their accounts in the same percentage. Any time you open a new buy or sell position, the same activity will occur proportionately for the traders who are copying you.
Joining the Popular Investor program requires you to understand and accept the associated risks and responsibilities, as well as adhere to the ‘Responsible Trading’ policy. Risk requirements are taken seriously on the platform, so breaking them (such as surpassing the risk or leverage requirements) would entail a trader being blocked for 2 month (usually) until they are trusted to be copied once more. During this time of suspension no payments are made to the trader.
Hopefully, this guide has made the Popular Investor program more clear to you. Enjoy your demo trading process and best of luck! 🙂
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eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high 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 is a portfolio management service, provided by eToro (Europe) Ltd., which is authorized and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
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.
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