I’m always on for an easy way to invest. I can’t be bothered spending hours, weeks, months studying markets, pouring over company reports and choosing the best stocks to put my money in.
This is one of the reasons why I like to put my money into cheap, easy index-tracking funds that are run by computer and generally do much better than ‘managed’ funds run by highly paid investors in the City.
However, when I came across eToro recently, for the first time I thought it was very interesting. If you have some knowledge of investing already, it’s a creative, new way to do a bit more!.
Read on to see how it works.
- eToro, a social investing platform
- How does it work?
- How can you invest on eToro
- What sort of money could you make through eToro?
- Jay Nemesis – one of eToro’s top performing investors that you can invest in
There are all sorts of ‘platforms’ to help you invest in shares, currency, bonds and more nowadays. You set up an account with them, put some money in and then trade (i.e. you buy and sell) through this ‘platform’. Generally they make money by charging you a commission as you trade, or they might charge you a monthly fee to be there.
With eToro, it’s a similar thing (they charge a commission when you trade) but the difference here is that you get to see what the other people on the site are doing – what they are investing in, what they are selling – and, importantly, how successful they are.
Now, I’m not saying that it’s good to copy other people, but if you’re wanting to make some sensible money by investing then you need to get some education in how it all works. But if you know people who have had that education, are putting it to good use and have made regular gains through it….well, why not get ideas from them and, yes, even copy them?
With eToro you can do exactly that. In fact, you can kind of invest in other investors…at least you can put money into a vehicle that just copies all of an investor’s movements.
whats the risk?
There is risk in this, of course. Just because someone has done really well in the past, it doesn’t mean they are going to carry on with this good run.
However, if someone has done well over, say, the last three years, you have a fighting chance of them knowing what they’re doing (and you can check their profile to see their background). So they’re likely to continue to do well.
Also, with eToro, investors are using their own money. It’s not like fund managers who play fast and loose with other people’s money (and often lose). When people are investing their own money they’re more likely to be cautious about it and do do their very best to pick the right investments.
Firstly, you join up and create your own profile for free.
Setting up your own profile is a bit more involved than you would find in social media platforms. They need proof of your ID and your address so you have to upload a picture of your passport and one of your household bills which is a pain.
They also want to know what your attitude to risk is and what you are planning on doing with the money you make through the site. They’re pretty nosey about this, mainly because they want to know what kind of products to allow you access to. If you don’t know much about investing they won’t offer you the riskier products.
They really don’t want people to lose money so if you don’t have much experience or much money they will make you start with the gentler, easier stuff first.
If you do join up come and say hi to me – I’m JasmineMagpie.
Once you’re on the platform, it’s not a bad idea to start with a virtual account. eToro gives you $100,000 in pretend money so that you can play on the site, invest in different things, copy people and see how you do.
When you feel confident enough to start investing or trading, that’s when you can put your own money in and trade with that. You might like to start by copying one or two top traders that you think are really knowledgeable and successful.
for the experienced investors
If you’ve been investing for a while and you know what you’re doing, you could take a look at their new product which is ‘Copy Funds’.
They have two types: “Market Copy Funds” and “Top Trader Copy Funds”.
Market Copy Funds include different CFD (Contract for Difference – a type of derivative) stocks, commodities and ETFs under a chosen market strategy, idea or theme.
Top Trader Copy Funds basically copy a group of the best performing traders on eToro. So you end up investing in a bunch of people instead of just one.
Once you have signed up, for free, and you have had a go with virtual money, you can start transferring money into your account (it is turned into dollars as they trade in dollars only).
Then it’s just a question of being cautious, finding out as much as you can about what you’re investing in (or who you’re investing in) and keeping an eye on things here and there.
Many of the people on eToro trade every day but you don’t have to.
For many people, a better policy is to invest for the long-term: invest in something (or someone) you think will do well in the long-run and that way you don’t have to keep trading and watching your investments every day.
It all depends on you and how you invest.
If you’re someone like Jay Nemesis (see below for an interview with him) you could be making thousands each month.
With Jay, not only is he making hundreds of percent on his investments at the moment but he is also making money each month from people investing in him. Nice work!
Jay Nemesis – one of etoro’s top-performing investors that you can invest in
The current top trader on eToro is Jay Nemesis (Jay Smith) who works in the eGaming industry. He invests pretty much exclusively in tech stocks as that is what he knows.
With Jay (who has a 276.97% return at the time of writing!) his in-depth knowledge of the tech industry and gaming in particular has given him a big advantage in his investment strategy.
Here’s a video interview I did with the amazing Jay which gives you an idea of his investing principles and why he likes eToro: