While it’s impossible to predict how much you’ll make from copy trading, I can share with you what some of the people on popular copy trading platforms are making. Remember that past results are not indicitive of future performance.
The Top Traders on Etoro
As you can see from the image below, there are traders on eToro who have made returns of 20%+ Some of them have made returns of even more. There are some traders on eToro that have made larger returns, but I wouldn’t copy them – they are using too much risk and are likely to wipe out their accounts.
On eToro when you copy a trader, their trades will be mirrored in your account, using the same proportions. So if a trader opened a trade using 1% of their account capital, the same trade will be made with 1% of the funds you allocated to copy that trader.
How much can you make on eToro
In this scenario I’m going to be using the trader: JeppeKirkBonde. Over the past 12 months he has delivered a 36.35% return (as of writing). So how would translate to copytrading:
- If you copied this trader with $200: You would have made a profit of $72 over the past 12 months.
- If you copied this trader with $1000: You would have made a profit of $363
- If you copied this trader with $5000: You would have made a profit of $1817
Remember these are just rough figures are based off past results and I can’t guarantee you will see the same results in the future. This is just to give you a rough idea of how much you would need to invest.
This figure doesn’t take into account the compounding effect. The profits a trader makes, is automatically kept allocated for copy trading. This means that the amount you’ve allocated to a trader will increase over time and the amount of $$ used for each trade will increase.
As you can see, you’re not going to get rich overnight investing in eToro. But if you’re copying the right people, you can make more than you would investing in an index fund and obviously way more than a bank pays you in interest. Obviously there is more risk involved. You’re copying real people and people do make mistakes.
Hopefully this will give you a bit of an idea as to how much money you can make with eToro. Remember it’s best to think about eToro as a longer term investing tool and not a get rich quick scheme. In order to make money on eToro, you do need to start with capital.