Making a little extra cash on the side is everybody’s dream. Actually making a fortune by day trading in pyjamas is everybody’s dream, but let’s do this one step at a time.
Playing in the stock markets is a risk but eToro provides everyone with an opportunity to copy professional traders and potentially make money in your sleep.
eToro say it only takes 10 minutes a day to manage your account.
It all sounds like a dream. In reality, you get hooked in and find your analysing charts and profiles constantly.
However, the dummy run on the eToro demo account is the best option for anybody new to trading.
It’s a risk-free way to discover if you have what it takes to make money in the markets.
In this article, you will learn:
- What is the eToro Practice Account?
- How to create an eToro demo account?
- Difference between a real account and practice account
- Login and start practising
- Selecting traders on eToro
What Is The eToro Practice Account?
eToro created an online trading portal that gives anybody the opportunity to buy stocks and shares without having to pay brokerage fees.
Instead, you copy the portfolio of professional traders and hopefully make some easy money.
The eToro practice account is a blueprint of the actual trading account. From here you can test the performance of different traders, learn how to use the platform and, more importantly, learn how to make money from trading – all without losing any money.
Of course, in the demo account, you don’t make any money either. However, you are handed $50,000 of eToro virtual money and unlimited access to the trading platform.
If you drain your $50,000 and still want more time to practice, contact eToro’s customer service ninjas and they will top your account up with another 50,000 virtual dollars within 48 hours.
How To Create an eToro Demo Account?
Creating an account is straightforward, free of charge and it has no obligations to use it for real.
All you have to do is Google eToro Practice demo and enter the website. Or, for ease, click this eToro demo account link.
When you set up your account you set up a real account.
However, there is no charge or obligation to trade to set up an account. All you have to do for now is enter a username, email address and telephone number.
Alternatively login with Facebook or Google+. You will then be asked to create a secure and private password.
Your account is activated immediately. From here you have the option to update your profile. You need to update your profile before you can use the real of the virtual tools.
To start using the practice demo click the green widget in the left-hand menu that says ‘real.” This will bring up a drop down box which gives you the option to go virtual.
Difference Between a Real Account and Practice Account
In terms of look, feel and functionality there is no difference between a real eToro trading account and the demo account.
The only difference is that the demo account allows you to go through the motions of finding traders to copy or trading in your own.
To start trading for real, you have to make a minimum deposit of $200.
The eToro community can only see your public profile and real portfolio.
So if you have no activity nobody will follow you. And traders that are followed, earn a commission from other traders following them.
Login and Start Practising
Newcomers to the eToro trading platform are best advised to select a virtual portfolio and practice with the demo account first.
You will need to update your profile before you can copy other traders.
The easiest thing to do is select “copy people” in your sidebar menu and analyse the performance statistics of active traders. In the mini-profiles, you will see their username, the return in the last six or 12 minutes and their return in the last 7 days.
The number in the right top corner is the risk score of the trader from 1-9.
Low-risk scores mean they do not take many risks but will only make moderate returns. High-risk traders will sometime make you more money, but they might also lose more too.
For the time being, add investors you would contemplate following and add them to your watchlist.
A good spread of high and low-risk takers will give you a broader idea. You will be sent a list of suggested traders that best match your profile. eToro sends these emails every 2-4 weeks.
Select The Trader
When you decide to copy a trader, go into their profile and click on copy and select “virtual money”. The operation formed by the trader will be virtually replicated in your practice account.
The best traders are not always the ones that are performing best that day or week, but that has shown a consistent performance over a six month period. When you click on a traders profile you will find a selection of performance charts.
You can also click on their portfolio to see if they have the type of investments you are interested in or not.
Users are also advised to take advantage of the social nature of the eToro platform. The newsfeed has the latest news updates, insider tips and predictions etc.
You should also communicate with the trader you are copying.
This helps to build trust and share thoughts. If traders are not very communicative with you, it is probably a better option to choose another trader, if only for peace of mind.
If you do decide to switch from an eToro demo account and fund your eToro account with real money, start small.
The minimum deposit is $200. If your account balance is not higher than your original deposit after 30 days, eToro will refund $100 via Paypal or MoneyBookers.
To request the $100 refund, all you have to do is contact the support staff through live chat, email or Skype.
If there is a better way to learn how to trade than the eToro Demo Account, we don’t know what it is.
Risk-free trading – seriously!?
Take the practice test first and if you find you’re not very good at trading, you don’t lose anything. You don’t even get an offer like that when you first take up sports.