To open a trading account on eToro, you’ll be asked for personal details such as your name and email address. This is required so that eToro can confirm your identity before being able to invest any money. Once this has been done, you’ll be prompted to create a new password.
To set up and start trading on eToro, you’ll need to:
– Open an account
– Set up your trading strategy with a £5 risk limit
– Connect your bank account
Please remember this password because it will allow you access to the rest of your account. You’ll also have the option of setting up two-factor authentication at this stage which is highly recommended. Two-factor authentication provides a second layer of security. It protects your account from unauthorized access by requiring you to log in using both an SMS code and a password every time you sign in. Once these details have been provided, they cannot be changed, so make sure they’re correct before submitting them.
Once this step is complete, the next thing to do is set up your trading strategy. Your initial deposit will dictate how much money you can use for trading – when we opened our demo account for social trading on eToro, we were given £5 to use for trades. The first thing we did was click ‘Trade’ from the upper left-hand corner of the app and then select ‘Strategy Builder.’ eToro review of strategies is based on technical analysis. Hence, you must find the system that fits how you view the market. After clicking ‘Create’ in the Strategy Builder, you’ll be asked to fill in a few more details and answer some questions. We chose to use a close-ended strategy which means that we can only take out a certain percentage of our investment every week, and the P/L ratio of our approach dictates this percentage. This ensures that we won’t lose too much money if the price falls at the end of each week. Once this is done, you can then decide whether or not you want to add an option or paper trading to your strategy. You can also add a ‘paper trade’ where you’ll only have one trade per week.