eToro CopyFunds everything you need to know
Introduction
eToro CopyFunds is the newest investment to be added to the eToro trading platform. Now allowing diversification in your portfolio through eToro CopyFunds, which is compromised of traders and assets. In this article, we will go over what an eToro CopyFund is and how to evaluate it and the 3 categories available. eToro is a global social investment marketplace for people to trade currencies, commodities, stocks, and indices online. Allowing you to execute trades yourself (just like with any other broker), and the option to interact, learn, and copy successful traders.
Table of Contents
1. What are eToro CopyFunds
eToro CopyFunds are investment vehicles that bundle together a collection of financial assets or traders. The 3 categories of eToro CopyFunds are Top Traders, Markets, and Partners. The portfolio is rebalanced every month or quarter using a profit measuring algorithm. The minimum deposit is $5,000 and there are no fees. However, the underlying financial transactions initiated by an eToro CopyFund in your account incur eToro spreads. Overnight and roll-over fees also apply.
“CopyFunds are alternative investment products, tailor-made for serious investors. Especially those who looking to generate returns in today’s low interest-rate environment.”
2. How does it work
Besides trading yourself and copying other eToro trades, you can now also invest in three types of eToro CopyFunds:
- Top Trader CopyFunds
- Market CopyFunds
- Partner CopyFunds
3. Top Trader CopyFunds
Top Trader eToro CopyFunds are great if you want to invest in multiple profitable traders and have your capital automatically invested and maintained. The Trader Funds are compiled of traders that are available to copy on eToro and subsequently separated by investing strategy. For example Gainers, Trending, and Active traders. Allowing you to invest in multiple traders and making your investment safe and diversified. As well as, every trader has a strict stop loss to keep your investment safe. If the stop loss is crossed the investment will be closed, capital returned to your account, and reinvested at the end of the month.
GainersQtr Fund: Traders who are most likely to generate an alpha in the next quarter with a risk score of 4 or less.
Active Fund: Traders who have a proven track record, chosen using risk/reward ratio algorithm, with a risk score of 5 or below.
Trending Fund: Top 10 fastest gainers of copiers on the platform with a risk score of 7 and below.
Bonus Tip: Every eToro CopyFund has an online summary which you can review. Included is the strategy, allocation and real historical performance in the previous six months.
4. Market CopyFunds
This eToro CopyFund is a great option if you believe an industry or sector is going to perform well and want to diversify with multiple investments. The Market Funds are a combination of assets that are separated by an idea, performance metric, or an algorithm that picks top performing assets. Fund portfolios vary from Financial Sector, Big Tech stocks, and Cryptocurrency. The portfolios are chosen by market or an algorithm that selects top performing assets.
The Big Banks: Diversifies your investments across the financial sectors.
Big Tech: follows the leading technology companies, and finally.
Crypto: Includes a vast portfolio of cryptocurrencies, focusing on coins with a Market Cap of $1 Billion.
Bonus Tip: Every eToro CopyFund has an online summary which you can review. Included is the strategy, allocation and real historical performance in the previous six months.
5. Partner eToro CopyFunds
This eToro CopyFund option is for people that want a highly reputable and safe fund. The category is compromised of “Wall Street” Hedge Funds, managed by some of the greatest investors in the world. Created by the partners of eToro CopyFunds, these funds are a collection of a wide range of markets and assets. Led by the top fund managers in the world using their own values and strategies to invest in markets. The most reputable include: Warren Buffet, Edgar Wachenheim, and Carl Icahn. Rebalances occur every quarter by the Portfolio Manager of eToro CopyFunds (Europe).
EWachenheim-CF: Investing firm located in NewYork and manages over $5 Billion in assets under management.
AlphaCore: Based off of platform WeSave, invests in multiple markets and designed for long-term returns.
WarrenBuffet-CF: Known as the Godfather of finance, Warren Buffett has been considered one of the most successful investors for decades. His firm Berkshire Hathaway has averaged annual growth of 19% since 1965.
Bonus Tip: Every eToro CopyFund has an online summary which you can review. Included is the strategy, allocation and real historical performance in the previous six months.
Start for Free
If you want to experience the platform without risk and for free open a Demo Account. A Demo Account allows you to invest with $100,000 of paper money with no minimum deposit or fee. You also get to be a part of largest network of investors in the world.
- Minimum Deposit: between $200 and $500. (Account: USD)
- Trading: Manual Trading, Copy Trading, Copy Funds.
- Markets: Forex, Crypto, ETFs, Stocks, Indices, Commodities.
If you need more information do not hesitate to contact us, it will be a pleasure to assist you.
Remember that you have all the information about copy trading in our sections:
- Platforms: Information of each of the platforms of copy trading. Go to Platforms
- Guides: The best guides on copy trading. Go to Guides
- Reviews: Best reviews on copy trading platforms. Go to Reviews
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Currency trading with leverage implies an important risk for the investor and there is always the possibility of losses. These instruments carry a high risk if they are not managed properly and a profit can quickly become loss as a result of price changes. Due to the risk factor inherent to this type of trade, only funds intended for risk investments should be used. If you do not have extra capital you may be willing to lose, you should not trade in the forex market. It has never been proven that there is any system or portfolio of systems that is completely safe and no one can insure future profits or losses. Before you start trading in the forex market you should think carefully about your goals as an investor, your level as an investor and your risk aversion to determine if this is the type of investment you want to make. If you are in doubt you should seek advice from a professional financial advisor to advise you about the investment.
