eToro is a company founded in 2007 to offer a specialized trading platform that is accessible to everyone. eToro stands out because it allows social trading on its platform. Social trading allows copying and monitoring the trades and strategies of other successful traders to reduce the operational risks and get better returns from the investment.
Social trading allows people to come together and share their recommendations, strategies, and success stories so that everyone can generate gains. Following and unfollowing is a simple process. You can stop copying someone by just one click, it’s as simple.
To give an extra edge to its users, some social platforms have created special portfolios of securities. These portfolios allow the traders to invest in pre-set CopyPortfolios. Some of the CopyPortfolios follow indices, markets while others invest in a group of elite traders. When a trader has a wide range of investment options, he/she can use these CopyPortfolios to diversify and reduce the risk & you can visit here to know different investment options of eToro.
Here Are eToro’s Proprietary CopyPortfolios:
- Top Trader CopyPortfolios: Top traders CopyPortfolios that allow spectacular diversification for investors having small capital. Even a few amounts can be used by many traders. This diversifies your portfolio and reduces the risk associated with it. Copyportfolios group traders according to their trade type, performance, and frequency of the trade. As per eToro vs NAGA 2020, Complex algorithms choose ideal traders for CopyPortfolios.
- Market CopyPortfolios – You can also invest your money into a bundle of securities of a specific class where you gain access to different market sectors and can also choose a specific area of the economy that you believe is heating up. These portfolios can also be used to diversify. If you copy a trader who invests in indices, you can choose to hold a CopyPortfolio that invests in indices to reduce your risk. Such CopyPortfolios allow trading in assets of a particular sector in opposition to the fluid trading. Some of the market CopyPortfolios on the eToro platform are The Big Banks, In the Game, Big Tech companies, All stocks, Cryptocurrencies, US Market ETFs, crypto CopyPortfolio, etc.
- Directional CopyPortfolios – Some traders may want to look at the CopyPortfolios that focus on the market direction. With many CFDs and shorts, it is even easier to exploit downturns. Many investors believe that some stocks may lift a market, however, when the market falls, 80% of the stocks see a drop in their value, irrespective of their fundamentals. When investors see technical analysis which indicates potential pullback, they may want to invest in the CopyPortfolios that make it easier to take advantage of the drop. As per eToro trusted reviews, it has many CopyPortfolio that is designed to make a profit even during a bear cycle.
- Partner CopyPortfolios – Some platforms offer a branded CopyPortfolio of professional traders. It is advantageous for the professional as they get the support system and exposure from a whole group of investors. Another reason why eToro advantageous is that they have an opportunity to build a good experience and skill.
Such CopyPortfolios are maintained by a professional trader who chooses securities to invest, the asset allocations, and the time when rebalancing of the CopyPortfolio is needed.
According to the comparison of eToro vs Tickmill 2020, the platform has chat rooms and feeds, copy traders can access the CopyPortfolio administration and they can ask questions and give suggestions.
eToro offers many partner CopyPortfolios like AlphaCore by WeQuant, Warren Buffett-CF follows Berkshire Hathaway, WorldEquityPlus by Tachlit Tracking, EWachenheim-CF based on Greenhaven Associates Inc, etc.
The purpose of CopyPortfolios is to make investing more accessible to the average trader. It offers simplicity and accessibility to traders all over the world and brings possibilities to invest in commodities, currencies, global stocks, etc.