Still sounds too good to be true?
Alternatively, you can chose to "Follow" a trader. What this does is allows you to see all the trades the trader is making and chose specific trades you want to copy. Unless you already have good experience of trading I would recommend sticking to just copying traders for now.
I too was sceptical, but this is where it gets better. You don't have to invest real money on Etoro, when you make your account it will be credited with virtual (pretend) money. With this you can practice and play around until you are confident that this really is the real deal, and probably have a lot of fun in the mean time.
Trading is a risky investment, you should never invest more than you are comfortable with. However this is the part where Etoro is very clever. Etoro is designed so that you can set your own limits. The key to success on Etoro is good risk management. The first step you can take is to set a stop loss. What this does is it sets a point where your account will stop all trades and you cannot lose any more money. For example, if you invest $1000 and you set a stop loss of $60, you cannot lose more than $60 even though you have $1000 in your account. Etoro would stop your investment in that trader when your account drops to $940.
But what about the risks?
Etoro is the Facebook of online trading. It is a social network of traders that allows you to automatically copy some of the best traders with just a few clicks. Why spend years learning how to trade when you can copy well known profitable traders? Etoro allows every day people with little or no knowledge to trade successfully following experienced traders.
CFDs are leveraged products. Trading in CFDs related to foreign exchange, commodities,indices and other underlying variables, carries a high level of risk and can result in the loss of all of your investment. As such, CFDs may not be suitable for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with eToro by following and/or copying or replicating the trades of other traders involves a high level of risks, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders and the overall risk associated in CFD trading or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of his future performance. Content on THIS WEBSITE IS NOT FROM A PROFESSIONAL TRADER.
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