Recently, I’ve started exploring how forex trading works. I’ve been using etoro to practice forex trading and learning all about how it all works. One feature that helps is that etoro has a social trading copytrader feature that allows you to automatically copy the trades of other users of etoro.
This is an awesome feature that gives me a sense of security in being able to assign a portion of my account to automatically copy the trades of successful forex traders. This way, I can literally see how others are using their knowledge of financial markets to successfully trade forex, and at the same time take advantage of their skill to make the same investment.
Use the Education Center
First off, I recommend getting a basic education and doing some research before jumping in. eToro has an education center that provides written materials, a 12 step forex trading course (must make a live deposit to go past the first step in the course), live webinars, etc…
I reviewed their written materials and signed up for a live webinar to learn a bit about forex trading before getting started.
There’s a good amount of educational materials available for free, so I would definitely take advantage of getting a free forex education.
Using Copy Trader
I’ve always felt that the copytrader feature was the best part of eToro. Being able to see the activity of other forex traders and then follow the successful forex traders of your choice is a big advantage. It can also feel a little like a safety net.
Here’s a quick video on how it works:
For myself, I jumped right in with my virtual currency to get some personal impressions of the copy trader system.
First off, I noticed that being from the US, eToro routes me over to eToroUSA. It’s not a big deal, but the navigation looks slightly different on the eToroUSA site. It took me a few minutes to figure out how to get to the copy trader features from the US site.
First off, I had to sign up for an account. Don’t worry it’s free.
Once I signed up for the account, it gave me the option to login directly to either real trading or the practice trading.
I just selected the practice trading. It then took me to the forex trading platform.
Here’s what the trading screen looks like:
Notice how it says practice up at the top left. You’ll also notice that my balance is only $5,500 in virtual currency. That’s because I’ve already used some of my virtual money to follow some traders.
As you can see, it’s a good simple design and easy to use. But you don’t see right away how to get to the copy trading feature.
To get to the copytrader features, you just have to go up to the explore menu and click the dropdown there. In the dropdown, click the first item called openbook:
That will take you to the copy trader section. Here’s what that will look like after you click on openbook:
Now, you’ll notice a couple of things, but don’t get confused. First off, you’ll see over at the top right that you are no longer in the USA site. In my case, it shows the UK. However, I found that the country code didn’t affect my ability to use copytrader at all.
The other thing I noticed was that I needed to login again. Just use the same account credentials to log back in. There’s no need to open another account.
Now, that you’re logged back in, you can start using copytrader.
As you can see, you can find top performers and track the forex trading activities of other forex traders very easily. Over at the right side, you can see the top performers of the last 6 months and the features users.
I started there to see the trends of the top performers and began following a few of the top forex traders.
When you click on the name of the person you are interested in following, you’ll go to a more complete profile page:
On that page, you’ll see the chart to the left of their trading performance over the last month.
Below that you will actually see a feed of their latest forex trading activity. If you like how that person is performing, you can choose to copy their forex trading activity.
There is a big green copy button to the left that you click which will bring up the copytrader book.
This is the book that comes up. In my case, I haven’t deposited any money. However, I can still use the feature using virtual money. So, I just click on the using Virtual Money link down at the bottom of the book.
That brings up the regular copy trading book:
I just select how much money I wish to use to copy this trader and hit the copy trader button.
You can follow as many traders as you want. I followed a few so that I could diversify my forex trading activity.
Now, whenever someone you are copying makes a trade, you will make the same trades with the same proportion of money that you assigned to copy that trader.
That’s it. It’s fairly simple to use and a pretty awesome feature in my mind. I still need to give the account some time to see how it performs, but I’m fairly optimistic about the feature.
If you want to try it out, you can also open a free account with eToro and start trading with virtual currency. It’s a great risk free way to start learning about how to trade forex.