The popular investor program is a great way to build a new business and earn extra income. This article will show you how to be a successful investor in eToro.
eToro is arguably the top leading platform in the world that focuses on social and copy trading. The platform was designed to connect novice and expert traders in order to build a massive trading community and create a win-win situation for both sides.
One of the best features offered by eToro is called the Popular Investor Program, which is a paid program that allows eToro users to automatically copy the trade and strategy of successful investors on the platform. Whenever someone copies the expert investor, he or she will be rewarded for being copied. The program can make investors stand out and increase their popularity, as well as give them the opportunity to build a new business and earn extra income.
Some popular investors on eToro have successfully managed to gain a significant amount of money from the program, while simultaneously gaining profits from the actual trades. One example is a trader who goes by the name Jaynemesis who shared his two cents on how to be a successful trader.
By joining eToro and its Popular Investor Program, investors can get motivated to build a better strategy and gain more copiers.
eToro established in early 2007, with a mission to make trading accessible to anyone, anywhere, and reduce dependency on traditional financial institutions. The company has head offices in the United Kingdom, Cyprus, USA, and Australia.
eToro (Europe) Ltd operates as a Financial Services Company authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) under license no. #109/10. Meanwhile, eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263.
As for eToro AUS Capital Pty Ltd, the legal standing is acknowledged by the Australian Securities and Investments Commission (ASIC) to provide financial services under Australian Financial Services License 491139.
A broker that belongs to the 4-digit type, eToro offers both short-term options for day traders and long-term options for investors, such as their innovative CopyPortfoliosTM, a fully managed thematic portfolio.
Since 2007, eToro has been at the forefront of the Fintech revolution. The most recent was launched in 2017, which is CopyPortfolios powered by Machine learning Al. Beyond developing CopyPortfolios, the company integrated Microsoft's machine learning technology into Momentum DD.
The new CopyPortfolio investment strategy uses artificial intelligence to find the steadiest traders who are most likely to generate a double-digit return and bundle traders into one fully-managed portfolio. eToro has hundreds of financial assets for trading across several categories including stocks, commodities, crypto assets, currencies, indices, and ETFs. Each asset class has characteristics and can be traded using a variety of investment strategies.
Some positions on eToro involve ownership of underlying assets, such as non-leveraged positions on stocks and cryptos. Employing CFDs will enable a variety of options, such as leveraged trades, short (sell) positions, fractional ownership, and more. For example, traders can invest as little as USD100 in gold, even if a single unit of gold cost USD1,000. Some of eToro's most popular CFD commodities include gold, oil, natural gas, silver, and platinum.
Currencies are traded on eToro only as CFDs. Also, CFDs enable Sell (short) positions and leveraged trade, even for assets that don't offer the option in traditional trading. Some of the popular currencies include EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CAD.
Furthermore, An Exchange-Traded Fund (ETF) is a financial instrument comprising several assets grouped to serve as one tradable fund. After opening an account in eToro, traders can invest as little as USD250 in an ETF that costs USD500. Some of the popular ETFs on eToro include SPY, VXXB, TLT, and HMMJ.
However, eToro also offers additional functions using CFD trading. All leveraged ETF positions in the UK are under FCA regulations. Meanwhile, all CFD positions executed by eToro Australia are under ASIC regulations.
The company has other advantages. In all financial assets that can be traded, eToro does not charge any deposit or trading frees other than spreads.
eToro charges a USD25 fee for withdrawals and the minimum withdrawal amount is USD50. Long (Buy), non-leveraged crypto, stock, and ETF positions are not executed as CFDs and do not incur any fees. eToro does charge overnight or weekend fees for CFDs positions, such as leveraged positions and short (sell) orders.
Fee updates always apply to open positions. Fees are subject to change at any given time and could change daily, without prior notice, depending on market conditions.
As a beginner, trader can use CopyTrading eToro. Different from the features of other brokers, traders can copy the strategies of professional traders without fee or profit-sharing. Therefore, 100% profit is fully owned by traders. For example, while trader A who is copied by trader B, produces a profit of 10% this month, then trader B also gets a profit of 10%.
The company is the world's leading social trading network. Since eToro operates in complete transparency, each trader has valuable information on their eToro profiles, so other traders that are interested to copy their trades can have assistance in creating their best portfolios.
Another feature that is unique to eToro is the personalized, social News Feed. Just like on any social media, traders can post their updates on feed, comment on other's posts, and gradually create a feed that is tailor-fitted to trader's trading and investing interests. On eToro social trading platform, traders will also get notifications when a trader writes a new post and many other important updates.
They are rewarded based on the number of the overall equity that follows and copies them, which are called the Assets under Management (AUM). Based on the number of AUM range, the investors are divided into several tiers on eToro, namely Cadet, Champion, Elite, and Elite Pro. The higher the level, the bigger the rewards. If you believe that you have effective strategies, a balanced portfolio that statistically profitable, then you have the quality needed to be a popular investor.
However, as the number of popular investors keeps growing each day, it becomes harder to climb to the top and get more traders to copy you. Growing your AUM and convincing the audience can be a challenging task if you don't know how to be a good popular investor and build an eye-catching profile. Below are the tips on how to be a successful investor in eToro.
1. Engage with the Audience
One of the simplest ways to convince potential copiers is to make conversation with them. Let the audience knows how good you are as a trader and how profitable are your strategies. You can create a dedicated website or forum where you could share your experience and discuss your trading strategy. By constantly talking to other traders, they will learn about you just as much as you learn about them.
There's a chance that they'll get more interested and believe in you after they see more than what's shown on the statistical data on your profile. And if you want to step up the game, you can also sign up to be an eToro partner and earn some extra income every time someone opens an account from your website.
2. Build a Professional Look
The next important thing is to build a professional profile in eToro. Your profile is most likely to be the first thing people check when they hear about you, so make sure that you look your best in order to grab their attention. If you just started, you don't have to show impressive years-worth track records or even manipulate the winning rates only to gain more potential copiers. It is more important to show that you really know what you're doing and you have a steady profitable journey going on.
You can write an informative and interesting bio that summarizes your strategy, target, and recommendations for your followers, such as the minimum copy amount that would generate profit or whether or not they should copy open trades. In addition, it would be great to take a decent photo and put it as your profile picture as it can convince people even more.
See Also: How to Invest in Stocks with eToro
3. Expand Your Offline Network
Other than managing your online profile, you can also make yourself known offline. You probably have friends and family members who ask you about financial matters and ask you to give them trading advice. You can tell them about the platform and that you have joined the Popular Investor Program in eToro. It can be easier to convince them as they already know you in real life and how successful you are as an investor. After hearing about copy trading, they will probably want to try it themselves and become a regular copier of yours.
4. Be a Part of the Community
eToro provides an excellent platform for traders to interact with each other. If you check the eToro News Feed, you'll find a lot of interesting debates about financial assets and the sharing of ideas and knowledge about trading. In this case, it is vital for you to stay updated and make sure that your voice is heard by other members involved in the eToro social trading platform. As such, you have to actively participate in the discussions and share your own thoughts and experience.
You can also post weekly updates on your feed, answer some questions from your followers, explain how your strategy works, and leave comments on other traders' posts. Other than talking to potential copiers, you should connect with other popular investors and join the community, especially those who are from your own country. Being friends with your fellow popular investors will help you gain a reputation on the platform and exchange crucial information.
See Also: 10 Ways to Find the Best eToro Trader
5. Make an Informative Pin
Knowing that your profile would be the first thing that people see, you must make sure to make a good first impression by putting a welcome message on your feed. In order to do this, you should write the message and then pin it to your profile so the post will stay on top. Write about yourself and the best quality that you have, such as your strategy and experience. You can also include some photos in addition to the message for extra attention. As your trade improves over time, you can edit this post at any time so it stays updated.
6. Announce Your Targets
Another way of convincing other traders is to show them your goal. How is that? Naturally, every trader would want to copy an expert who makes consistent profits and can help them build a great, profitable portfolio in eToro. But in this case, they wouldn't know for sure how good a popular investor is until they copy the trade themselves. Simply promising them that your strategy would work and would give them much profit is usually not enough. Thus, you should set a realistic expectation so you can prove the worth of your strategy by sharing your goals and showing them how you achieve them.
7. Make use of Social Media
You can say that copy trading is a part of social trading. Therefore, you should be socially active in order to succeed. Apart from gaining an audience on the trading platform and convincing friends and family members to start copy trading in eToro, you can also make use of various social media platforms.
Through these channels, you can allow your followers to know you better. You are free to express yourself and maybe combine other things that you are also good at. It's highly possible then that you will be able to connect with a much wider audience, maybe even convinces those who are still not interested in trading yet to join.
You can post pictures that illustrate your trading journey on eToro or share your personal trading experience that has led you to be in this position. Don't forget to use hashtags so people can find your content easily.
The Bottom Line
The many advantages of the Popular Investor Program have gained a lot of attention from eToro broker users. Therefore, it becomes harder to be a well-known popular investor without proper preparation. Based on the explanation above, we can see that the more AUM you get, the higher your level or tier will be. However, focusing on getting more copiers should not be the very top priority of your to-do list.
What's more important is to build a great trading strategy and make consistent profits. Once you fulfill that, you can start convincing people that you are capable of helping them reach their goals with your strategy.
So if you're still struggling with your trades and earning money on your own, it's better to fix that first because a successful popular investor needs to have a professional profile and portfolio. After all, the money you earn from this program is only an addition to your overall trading outcome. Think of it as a reward for being successful at trading.
In the end, convincing people to believe in you and risk their money for your strategy is indeed not easy. It takes time and patience to do it. But don't worry, as long as you stay consistent and active in the community, you will see yourself progressing in a short time.