EToro is a true pioneer in the field of copy trading which has profoundly altered the world of online trading and made it even more accessible to the masses, while giving the opportunity to experienced traders (aka eToro’s Popular Investors) to earn an extra income from those traders who chose to copy them.
Restless in the pursuit for further innovation and improvement to its offering, eToro has recently launched ‘Copy Dividends’, thus allowing eToro members to now be able to benefit from the profits generated by the trader or traders they are following by copying them in real time. Before this innovation, potential profits were transferred to copy traders only when the copy portfolio had expired and closed, which meant that the copy relationship would have to be closed first, before any profits were banked.
With the introduction of Copy Dividends, the new set-up entails that each time a copied-investor withdraws profit made from their investments, the proportional amount of money will be automatically saved in the copier’s account balance. According to the eToro announcement on the launch of this new capability, eToro will be notifying traders every time this happens as they log in to their account. Moreover, if followed traders add funds to their accounts, the traders copying them will also be notified accordingly to be able to decide if they would like to maintain the same proportions as before.
Commenting on this new offering, eToro points out that: “Copying traders is forming some sort of a relationship with them. Our traders take great pride in being copied, and care deeply for their copiers. As in any relationship, we came to realize that when two sides benefit at the same time, it helps the relationship flourish. So instead of realizing your profits only once, and at the price of ending the copy relationship, you can now enjoy profits while maintaining the copy relationship with your selected traders. Simple as that. Like many of our features, copy dividends is unparalleled in the social trading industry, and marks the beginning of a new era, full of endless possibilities.”
Finally, eToro points out that in certain cases, in order to protect the copy balance and the equilibrium of the copy relationship, the mechanism of copy dividends may not work. More specifically, copy dividends will be calculating the Copy Stop Loss (CSL) for the copy portfolio and if conducted a transfer will bring one’s balance too close to the CSL, then the specific transfer will not be conducted.