Social trading is on fire right now which means that you can easily copy other successful trades. With some research you can find the best traders to copy and simply let them do the work for you while you go about your day. eToro is the world’s leading social trading network that gives you the opportunity and the platform to open manual or copy trades. So in this video we are going to discuss the good the bad and the ugly. But first things first guys – the financial market is evolving all the time. So if you find that any of the info here is different because you might be watching this video a year after it’s been released please let us know in the comments. Ok, so what can eToro offer you? They offer all the major exchanges, all the big stocks, ETF’s, CFDs, cryptocurrencies and of course numerous currency pairs. Trading opportunities are almost endless. The only drawback is that eToro doesn’t offer the much smaller stocks, so if you’re looking for small stocks you might have to go elsewhere. The company offers a serious amount of leverage for almost all instruments from 1 to a whopping 400 but because of the limit that the European securities and Markets Authority placed on trading, traders can only work with leverage up to 30. However, eToro does let you apply for higher leverage, but your request may be rejected If you are not a professional trader. The only thing that hasn’t changed with the new regulation is cryptocurrency trading which was and still is the only asset where leverage is not offered at all. Trading with leverage gives you more buying power, which means if you’re successful you can make hefty profits. But if your trade is going downhill you can make substantial losses. Let’s take a look at eToro’s user interface. As you can see eToro has a super user-friendly trading interface. They have their own trading platform called Open Book. They don’t offer Metatrader4. So if you guys have been using Metatrader4 or other platforms, then it might take a little time to figure this one out. Nevertheless eToro offers demo accounts so you can play around and get used to the platform before you begin investing for real. In the trade section You have your watchlist. Those are the assets you are interested in. Inside your portfolio is what you are actually trading and then in the newsfeed you can post your trading suggestions, trading strategy or anything else finance related. The discover section is by far the most important place where you will be doing your research. If you are trading manually You will be clicking into a trade markets and there you will find all the top assets across the top of the screen. Copy people you’ve guessed it, right this is where you find traders that you want to copy. You can filter it down by location, by asset type, by percentage gain and during what time frame. It’s recommended that you copy traders who have at least 12 months experience. And just a side note – a great trading performance in the past does not necessarily mean that future performance will be the same. So let’s find some traders to copy and we’re going to filter it by 100% gain over the last two years. So here’s JeppeKirkBond with a massive three hundred and eighty percent return. The risk level is quite high at five and when we click in we can see that his best performance was in 2017 not doing as great this year. He’s been a couple of months in the red so far, so you have to check out the traders overall performance. Then there are copy funds which are a number of assets that are bunched together to make up a fund. Here in CarlIcahn’s portfolio our stocks such as PayPal, AIG,FCX and so on, This fond has actually been doing much better from year to year. Now one trading your only objective is to make a profit. So it seems like you can do this by low and sell high and all that but you have to take into consideration all the fees that the broker charges. Please please, please don’t make money just to cover fees. Make profits on top of fees. So let’s start with trading fees, which is the spread. That’s the difference between the bid and ask or the buy and sale price. For each currency pair You’ll pay a different price. For example EUR/USD It’s a minimum of 3 pips. Whereas USD/PLN is a minimum of 20 pips. So let’s say that EUR/USD sell price is 1.1790 the buy price would be at least 3 pips more at 1.1793. So that’s the first thing that you have to consider – the spread. And by the way eToro spread is not the lowest out there some brokers charge as low as one tenth of a pip. Then there are non trading fees such as conversion fees, which means that if the funds that you are depositing are anything other than US dollars you will be charged to convert it to US dollars. For example – eToro charges two hundred and fifty pips for converting euro to dollars so if you convert 100 euro at a rate of 1.2250 you will be charged three dollars and six cents for that conversion. And remember before withdrawing you have to convert back, so don’t forget that charge. And then there is the withdrawal fee which not all brokers charge but eToro does and it’s a flat fee of $25 per withdrawal. The minimum you can take out is $50, but it makes much more sense to withdraw a large sum of money at once, so you aren’t hit with multiple withdrawal fees. There is also an inactivity fee which is $10 a month if you are away from the platform for more than 12 months, this is quite an annoying one. So we just wanted to let you know about it. The financing rate then is charged when you use leverage. Remember we briefly talked about it – it’s essentially a loan from the broker so that you can trade with more. The fees apply to all positions that are kept overnight and are tripled when kept over the weekend. The overnight fee for each position is clearly display when you open a new trade. And the last one we should mention is slippage – this happens when the price slips between the time you put the order in and by the time it is executed. For example, you opened a EUR/USD trade at 0.12250 but when it came into effect It was 0.12249. So you just experienced slippage of one pip.Slippage can also sometimes work in your favour or it may not even happen at all. Just be aware of it. Depositing and withdrawing from your account is super easy. You just need to select the amount and the method. However, there is one problem and that’s the long waiting time. It takes anywhere from 3 to 8 working days to receive the money in your account. And If you write to Customer Support on the weekend don’t expect an answer because they don’t work on the weekend. eToro doesn’t offer trading in quite a few countries such as the US for one. So make sure your country is supported before you try to open an account. And the last important thing to mention Is that the minimum required deposit is 200 US dollars. It’s not a negative just be aware that this is how much you need to put in to start trading. So guys save yourself some time and happy copy trading!