- Name : eToro
- Website : etoro.com
- Established : 2007
- Regulation : CySEC, MiFID, FCA
- Country : Cyprus
U.S. Clients Allowed :
NoDue to strict US regulation many brokers aren't able to accept traders with US citizenship.
See our list of recommended brokers that do accept US traders.
eToro CopyFundseToro CopyFunds
In November 2016, eToro made a new, innovative financial product available to its traders: CopyFunds™. eToro is one of the first and most established providers of copy trading services, but CopyFunds™ takes copy trading to a new dimension. Instead of being required to comb through thousands of possibilities to select traders and investment strategies to copy, traders can use CopyFunds™ to simplify and expedite the process by choosing from a selection of pre-packaged funds that wrap together a selection top traders or investment strategies/positions in choice markets. There are two types of CopyFunds™: Top Trader CopyFunds and Market CopyFunds.
Top Trader CopyFunds
These funds are selected according to eToro’s own criteria, and work to give an equal investment weighting to a selection of top-performing and active eToro traders. The funds are managed and rebalanced by a machine-learning engine and operate under the supervision of eToro’s investment committee. There are current two funds within this category:
- GainsQTR (Quarterly Gainers): the fund selects up to 50 traders whom eToro’s algorithm identifies as most likely to generate a positive trading performance over the forthcoming quarter year. Investment is equally weighted between the selected traders in copying their trades. The selected participating traders are periodically reviewed and when any are found to have performed at too wide a deviation from their anticipated positive performance, they are removed from the fund during a rebalancing event. Of course, new traders may be selected and added at these rebalancing events.
- ActiveTraders (Top Active Traders): the fund selects a large number of traders whom eToro’s algorithm identifies as having proven positive track records and also being most likely to achieve the best possible reward to risk ratio over the following quarter. In this fund, a tight “stop loss” is enforced on selected traders, who are removed immediately from being copied by the fund, without waiting for the next scheduled rebalancing event. The capital allocated to such deselected traders is carried over as cash within the fund’s balance until the next rebalancing event.
In July 2017 eToro launched the Crypto CopyFund to allow eToro traders to exposure to today’s most popular digital currencies including Bitcoin, Ethereum, DASH, LiteCoin, Ripple and Ethereum Classic. This offering, launched in July 2017, is analyzed regularly and rebalanced monthly to offer traders a diversified portfolio weighted according to market cap. As with all CopyFunds, a minimum $5000 is required.
Top Trader MarketFunds
This offering is markedly different than the Top Trader option: MarketFunds are based upon taking a directional position in one market sector. Just as banks, pensions and mutual funds offer themed investment products in market sectors, so eToro now offer the same. At the time of this review we are not aware of any similar investment opportunities offered by other Forex brokers.
eToro currently offers two MarketFunds:
- TheBigBanks: offers a diversified “long” (buy) investment in a diversified selection of shares in financial sector enterprises, such as banks, and other financial service providers. The fund’s share allocation is periodically rebalanced by eToro’s investment committee.
BigTech: offers a “long” (buy) investment in shares of technology sector companies. The investment is diversified among sub-sectors including but not limited to telecommunications, entertainment, e-commerce, and software solutions.The CopyFunds™ service continues to expand so expect that the choices available from eToro will continue to widen.