Etro Copy Portfolios Analyzed: Main Pros and Cons

Widely regarded as one of the greatest online brokers in the world, eToro is indeed a very convenient trading platform with attractive conditions and pretty low fees. However, many traders especially like it for all the additional features eToro offers. Namely, the broker features several interesting ways which can help you create a stable source of passive income without taking on too many risks. In this article, we analyze Copy Portfolios, a convenient investment feature, and tell you about its pros and cons.

About eToro

Even if you’re still unsure whether you should trade with eToro, you’ve probably heard about it. One of the most popular brokers in the world, eToro is known for its security and reliability: regulated by FCA, ASIC, and CySEC, it complies with their high transparency and responsibility standards. It also has a great variety of trading instruments, including stocks, Forex pairs, and even several crypto tokens. It’s very popular for its investment options that can be accessed with just $200 on your account.

How it Works

eToro Copy Portfolios is a special investment product that allows you to invest in ready-made packs of assets curated by professional traders. Basically, it works just like an ordinary portfolio, but you do not give away your capital: instead, the platform just manages positions for you in strict accordance with a strategy chosen by the algorithms. The product also allows you to open positions with leverage, so it’s possible to invest much more than you actually own. It makes investing in Copy Portfolios a little riskier but potentially very profitable.

Pros

Copy Portfolios is a very flexible and convenient instrument. You can use it to invest in several types of assets at once, and it’s up to your which portfolio you want to copy. You can start with just $200 on the account, and the upper limit is $2,000,000 invested in a single trader. The traders you can choose are professionals, and their portfolio-making skills are tested by the broker. The broker allows you to test these copying features using a demo account, so you can learn how to use it without risking money.

Cons

However, this product has its disadvantages, too. First of all, it’s not risk-free: you bear all the risks of investing even when you’re managing positions looking at the actions of experienced traders. CFDs are considered riskier than other available assets, so be especially careful with them.

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