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On: April 20, 2020


Grab the Bull by the horns - How to make a living getting paid by eToro


Grab the Bull by the horns - How to make a living getting paid by eToro eToro is a unique online trading platform that allows investors to earn an income, in addition to making money through their investing. In this article, I’m going to provide some insight into how you can achieve this. I know I can just say, become a[popular investor](https://stockupwithjoe.com/popular-investor/)and eToro will start paying you but that won’t make for an interesting article, so I’ve broken down the various elements for you. ## What is eToro? The first one is simple - eToro is an online trading platform that primarily deals in CFDs but that they recently have begun purchasing the underlying assets in certain countries. You can trade currencies, commodities, indices, cryptocurrencies, stocks and ETFs in a relatively simple way. It focuses on the social aspect of trading – here you’re able to see other people’s trades, talk on the forums and let people know your thoughts. It’s like a combination of Facebook, Twitter and a brokerage account all in one. **If you don’t have an eToro account – you can set one up**[here](http://partners.etoro.com/B13050_A69971_TClick.aspx)**!** ### So many traders and markets There are several million accounts on eToro, from all over the world. eToro is just breaking into the US Market (they can only trade cryptos at the moment) but once they are able to open it, you can expect those active trader numbers to jump. \ They predominantly have US stocks but also have access to the English, Italian, French, Chinese, Swedish and Norwegian stock markets. They aim to continue increases the markets within each of these exchanges as time goes past. There are also significant forex, indices, ETFs, commodities and cryptocurrency markets available to traders. ### What is the brokerage fee? The short version – nothing. The longer version – eToro incorporate a spread into some of their trades and that, along with fees from leveraging CFDs, is where they make their money. This appealed to me as an Australian when I wanted to buy and hold some American stocks. Normal brokerage in Australia is $10-20 per trade. I’ve opened about 60 trades in the last 12 months, so that would have cost me a pretty penny if I was to do it through NAB or CommSec. Besides the obvious method of buying an index tracking ETF and letting it run, there are other ways that you could use eToro to your advantage. One of the key things that set eToro apart from other online trading platforms, is the[CopyTrader option](https://stockupwithjoe.com/etoro-copy-trader/). There are over 9 million traders on eToro, many of them spend many more hours reviewing charts and signals – and you can leverage that. Or, you can become the one that traders want to copy. **Are there any other fees?** There are fees if you[leverage](https://stockupwithjoe.com/leverage/)a trade though. This is where you are essentially borrowing against your equity for a leveraged position. Fees are added to each trade depending on the trade size, the market you’re trading and the leverage amount. Of course, the larger the trade and leverage, the larger the fees. One thing you’ll need to know that the majority of traders lose money this way – 76% in fact. The thing most people don’t know with leverage is that if you have a trade – say the SP500 on an x10 leverage, for every 1% SP500 moves, your trade moves 10%. So, if it drops 3% in a day, you would lose 30% in one day. Not many people can handle these loses and imagine if you put a large amount of money on that trade. If you put up $1,000 for that trade, that it $300 gone. So please, exercise caution when using leverages. My recommendation is to use the virtual account on eToro first to see if your strategy works. **Is it regulated?** eToro’s brokering services are provided by eToro (Europe) Ltd. (“eToro Europe”), a registered Cypriot Investment Firm (CIF). The company’s registration number is HE20058. eToro Europe is regulated by the Cyprus Securities & Exchange Commission ([CySEC](http://www.cysec.gov.cy/default_en.aspx)) under license number[109/10](http://www.cysec.gov.cy/licence_members_1_en.aspx). In the UK, eToro (UK) Ltd. (“eToro UK”), company registration no. 7973792 is authorised and regulated by the Financial Conduct Authority (FCA), under firm reference number 583263. eToro Europe and eToro UK both operate under and comply with the Markets in Financial Instruments Directive (MiFID). In Australia, services and products are provided by eToro AUS Capital Pty Ltd. (“eToro Australia”), ABN 66 612 791 803 is the holder of an Australian Financial Services Licence (AFSL) 491139 issued by the Australian Securities and Investments Commission (ASIC), and regulated under the Corporations Act (Commonwealth). eToro Australia arranges for its clients to be provided services by eToro Europe. You can find more information[here.](https://etoro.tw/38hKDdD) ## What is an eToro Copytrader? **[eToro](https://stockupwithjoe.com/what-is-etoro/)**Copytrader is a function that allows one trader to copy another trader’s investments automatically. It is mimicking another trader and the investments they make. You allocate a portion of your funds to copy what another trader is doing. If the trader buys $GOOG stock, then the relative portion of your copy funds will buy $GOOG stock. You are trusting the trader enough to copy their trades automatically. It is important to note that none your money actually goes to the trader but their trades are replicated within your eToro copy trader funds. You can choose to copy someone and/or someone can choose you to copy. They are essentially acting like a Fund Manager – and like the real world, when they get to a certain level, the Funds manager will get a kickback from eToro based on the Assets under Management (AUM) – via the[Popular Investor Program](https://stockupwithjoe.com/popular-investor/). This is where the fun starts for those who are being copied. If you get a big enough following, eToro actually pays you. The more AUM you have, the more money you can earn – this is on top of your investing growth. In my portfolio, I currently have 26 copiers and an AUM of about $51,000 USD (at time of writing). This allows me to be a *Rising Star* popular investor, which gives me a $500 USD/month payment from eToro – not bad for a few hours work each month. I would guess that it’s taken me longer to write this blog post than I’ve spent trading in the last 30 days. In addition to Copytrading, there are Copyportfolios ## What are eToro[CopyPortfolios](https://stockupwithjoe.com/what-are-copyportfolios/)? CopyPortfolios are similar to Copytraders but you focus on a particular market segment or portfolio style There are three types of CopyPortfolios: 1.**Top Trader CopyPortfolios**. These portfolios look at the best performing traders, according to a predefined strategy. 2.**Market CopyPortfolios**. Bundle together stocks/ETFs etc that have a certain theme. Things like Healthcare, travel, gaming, driverless cars, or cryptocurrency. 3.**Partner CopyPortfolios**. These portfolios have been created by eToro’s partners. These mimic some of the best fund managers in the world and some of the best companies. Think Tipranks, Berkshire, WeSave, and Meitav Dash. You could look at them as a type of ETF – specialising in a market segment or trend. Copyportfolio is designed to help traders take advantage of current market opportunities. Each CopyPortfolio is periodically re-balanced in order to get the most out of the strategy used. When you use the CopyPortfolio, each person or market is counted as a single trade. Each trade will open with the same proportional amount. This is the same as when you copy a trader on eToro. A few things that don’t sit quite right with me are -Minimum buy-in can be upwards of $5,000 -eToro is in charge of the rebalancing (I like to have a handle of my own stock portfolio if I can) A good thing when compared to ETFs, is that there are no management fees associated with CopyPortfolios. However, there are spreads, as mentioned before, when opening the underlying positions. ## **What is an eToro Popular Investor?** Whilst you can certainly grow your portfolio through traditional methods of trading on eToro, one of their incentives to attract good traders is the[Popular Investor Program](https://www.etoro.com/en/popular-investor/). When someone chooses to copy you, you can apply to become a Popular Investor. There are 4 levels of Popular Investors: 1.Cadet 2.Rising Star 3.Champion 4.Elite I’m currently at the Rising Star level. Levels 2-4 offer financial incentives to reach and maintain that level. Each level has various criteria you must meet in order to progress to that level (and the next). Understandably, the higher up you go, the harder it is to meet the criteria, but the incentives are worth it. For Rising Star Popular Investors, they receive $500 USD per month they meet the criteria. Champions, they receive $1,000 USD per month. Not a bad kickback for just doing your normal trading. For Elite, they receive $1,000 USD plus 2% of their annual assets under management per month. Assets under management are the funds all of their copiers have allocated to them – so if 200 people have allocated $1,000 each, that means they have $200,000 AUM. I remember back in 2017, there was a trader that had $36 million AUM and he was an Elite Popular Investor. That means he received $1,000 plus a portion of the annual AUM. 2% of $36million is $720,000. Then that would break down to $60,000 per month! Not bad for a bit of online trading! So if you manage to get a following of copy traders, build up your AUM, you can easily get an incentive for doing your normal trading. One good thing is that if your portfolio grows, so does the copy of your traders. So the more money you’re making, the more money you make for your copiers, which will, in turn, make more money for you! If you’re interested in[joining eToro](http://partners.etoro.com/B13050_A69971_TClick.aspx)(affiliate link) and becoming a Popular Investor, these are the criteria you need to meet. ## What is the[eToro Partners Program](https://etoro.tw/32EfcJ2)? Another way to make money via eToro is through the eToro Partners Program. If you have a significant social media presence, this could be for you. eToro Partners is the partner's program that offers monetary payment for traffic directed to eToro from the sources (e.g. website, blog, social networks, etc.) and/or offline activities. Becoming an eToro partner entitles you to a share of the profits your traders bring to the company. Essentially, if someone signs up to eToro via one of your links – cha-ching. If they deposit money – cha-ching. The more people you can steer towards eToro and get them to sign up and deposit money, the more money you can make! I’ve had mixed results with the Partners Program, as the majority of my blog readers are already on eToro and are looking at how to up their trading. It is an effective way to earn money from your traffic. Simply use any available marketing material (e.g. direct links, banners, mailer, etc.) for your online and offline activities. Check out the eToro’s Partner Program[here](https://etoro.tw/32EfcJ2). ## How to make money via eToro’s Popular Investor Program I’ve done an extensive review into the[CopyTrader program](https://stockupwithjoe.com/etoro-copy-trader/)from a copier’s point-of-view but this is about you – the Popular Investor, the dynamite trader, the Oracle of eToro sharing your wisdom to the masses – plus how you can start to fatten your bank account courtesy of eToro. The main thing when it comes to getting more copiers and thus more kickbacks is how marketable you are. ·Are you profitable? ·Are you socially present online replying to questions? ·Do you update followers with your trade reasoning? ·How long have you been trading for? eToro needs to know that they can market your profile and that your profile is going to bring in more customers. It’s a simple business strategy – if you are unable to bring in more users, why would they invest in you? ### **Your Popular Investor Journey** Unfortunately, you can’t go from signing up to making $200k in kickbacks a year in only one week. Many of the best traders on this platform have a consistent pattern of success with decades of experience behind the decisions that they make. You don’t need to have a specific qualification to gain this status, but you do need to be good at what you do – again = marketability. Anyone can make a couple of successful trades at some point in their life. Even a broken clock tells the correct time once or twice per day. There are a number of prerequisites you need to meet for each Popular Investor level and there are also requirements for each Popular Investor – things around responsible trading, risk, allocation etc. All these are in place to ensure the copiers are going to flush their funds down the drain in some stupid highly leveraged trade. You must spend a minimum of two months at each Popular Investor level before you progress to the next – you’ll also have to meet the requirements to progress to the next level. ### **eToro Popular Investor criteria** In order to become a Popular Investor, there are certain criteria at each tier you need to reach. ![PI Requirements](file:///C:/Users/Nick/AppData/Local/Temp/msohtmlclip1/01/clip_image002.jpg) **So if you have 1 copier and at least $500 of your money invested in eToro (your equity), you can apply to become a Cadet Popular Investor – simple really!** ### **eToro Payments** If you’re lucky enough to get to the Rising Star or above tier, eToro will pay you US$500, $1000 or above each month you meet the criteria for that tier. There are also other benefits for those lucky enough to become a Popular Investor. ![PI benefits](file:///C:/Users/Nick/AppData/Local/Temp/msohtmlclip1/01/clip_image004.jpg) ### **How to Improve Your Member Status** There are many benefits to consider with the Popular Investor program if you can grow beyond the Cadet tier. Fee-free withdrawals begin at Rising Star, and you will receive a Financial Times subscription as a Champion. When you reach Elite, then you’ll have access to a platinum account manager as well. Here are some ways that you can begin to grow your presence on this platform. ##### **1. Continue to trade regularly.** It is more likely that you will receive copiers when investments are happening. Waiting months to see a first trade will not create results. Try to maintain a steady pace that follows the strategy you described on your account. ##### **2. Trading regularly doesn’t mean overtrading.** eToro assigns a risk profile to each account. You will want to be trading in a way that can maximize gains without using a significant portion of your assets. Most Popular Investors use less than 3% of their account capital, using a low level of leverage, to limit the adverse impacts that could happen to their copiers. ##### **3. Specialize in a specific area.** The best investors on eToro typically stick to a specific strategy that generates long-term results. A lot of members tend to focus their copying on particular asset classes. Instead of trying to be everything to everyone, it helps to carve out a niche where your expertise can shine. ##### **4. Share your strategy on your social feed.** Informed members are more likely to copy you if they know the specifics about your investment strategy. Leave a weekly post on your feed that outlines the reasons behind each trade so that your experience can help other investors begin to build their wealth too. Most Popular Investors see their AUM grow because of their actions rather than an ability to spam asset pages with ridiculous self-promotion. ##### **5. Take some time to answer questions.** Although you won’t be touching the assets of your copiers, eToro does give you the option to answer their questions. Most of the people who follow you will not have extensive trading experience. Providing them with answers can help each copier to understand why you make specific choices with your account. When there is a greater understanding of your position, then there is a higher chance that you’ll get copied. ##### **6. Start an investment blog.** When you begin the process of becoming a Popular Investor, then you are creating a brand for yourself. It can help to expand your online presence to a personal investment blog where you can write with greater detail about your decisions. ##### **7. Promote yourself on social media.** Don’t be afraid to talk about your experiences with your family, friends, and followers on your favourite social media platforms. You still need a successful history of trading on eToro to become a Popular Investor, but this brand outreach effort can help you to grow over time as well. Don’t be afraid to promote your[Twitter](https://twitter.com/stockupwithjoe),[Facebook](https://www.facebook.com/stockupwithjoe/)or[Instagram](https://www.instagram.com/stockupwithjoe/). Although you don’t receive a monthly payment as a Cadet, Rising Stars and Champions earn $500 or $1,000 respectively. ## **Hell yeh – I want that sweet Popular Investor Money - What to do now?** Firstly, you need an eToro account - You can join eToro by clicking on this[link.](https://etoro.tw/2LEkAWU) Check out all my other[eToro posts](https://stockupwithjoe.com/etoro-posts/)on copytrading filters, the top 25 traders I’ve handpicked on eToro ([Top CopyTraders Competition](https://stockupwithjoe.com/top-copy-traders/)), check out my[portfolio](https://stockupwithjoe.com/etoro-portfolio-review-2020/)and my insights to trading and tips and tricks for the copytrading program. Don’t be afraid to reach out to me if you ever want to learn more about eToro, you can check out my[eToro Portfolio](https://www.etoro.com/people/jmilazzo), hit up my[Twitter](https://twitter.com/stockupwithjoe),[Facebook](https://www.facebook.com/stockupwithjoe/)or[Instagram](https://www.instagram.com/stockupwithjoe/)or hit me up on If you’ve already joined eToro and you are interested in copying other traders, then you can check out my[Copytrader post](https://stockupwithjoe.com/etoro-copy-trader/). I’ll go through everything you need to look for when you think you found the right trader. If you are having trouble finding the right trader, then I suggest taking a look at[this page](https://stockupwithjoe.com/who-to-copy-on-etoro/)to help break it down for you ### PLEASE READ – DISCLAIMER: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Some of the links in this document are affiliate links and as such, I might receive a payment if these are utilised. These are at no cost to you and help me continue to run my blog.

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