My 2020 eToro Performance Results

eToro performanceWhile 2020 is not quite over, I thought I would share an update on how my eToro performance has been going.  2020 has been a crazy year.  We had a massive market crash earlier on this year due to Coronavirus.  We’ve also had more volatility with Brexit and the US election.    Luckily my eToro portfolio has so far managed a really good return and it’s been my best year yet…

What I’ve been investing in on eToro

  • Copy Trading – On eToro you can automatically copy the trades made by other traders.  You can find out more about my copy trading strategy here.
  • Shares – On eToro you can invest in real shares with zero commissions.  I’ve mainly been investing in Apple, Nio and Tesla shares.    Being able to buy shares and hold them for long term profits, without paying any fees is a huge feature and money saver!
  • Cryptocurrency – Although it doesn’t feel like it, Crypto has had a very impressive run this year.  I’ve been using eToro to invest in cryptos.  It’s nice being able to trade these alongside my traditional investments like shares.

You can find out more about what you can invest in on eToro in this review.

My eToro Performance

eToro has been my top performing investing of 2020.    So far this year ~84%.

eToro performance
Note: Past performance is not an indication of future results

This is not necessarily a result of using eToro, but more because I managed to invest in shares like Apple etc that had a big performance gain.  Although eToro’s copy trading feature is unique and I wouldn’t be able to replicate this type of investment on other platforms.   Being able to open and close positions on shares without paying any fees would have also contributed to this gain.

March was a pretty awful month – but this result was mainly due to Coronavirus.  It took me a little while to adapt to the volatility in the markets.  eToro does offer exposure to volatility ETFs (the price goes up with more volatility) that I could of potentially used.

A higher growth but higher risk investment

I consider my eToro investments to be higher risk than my other investments on Spaceship and Raiz.   This is due to two reasons:

  • Lack of Diversification – On eToro I trade/invest in a few stocks at a time.  On Spaceship my money is invested by pros across a diverse portfolio.
  • Crypto – I invested in crypto during 2020.  Crypto is a high risk investment.  I only recommend people invest a very small amount of their net worth in crypto.

I plan to reduce my risk on eToro by increasing the amount of copy trading I’m doing.  This will spread my investment across a huge number of trades.  I only copy lower risk traders on eToro.  I also plan to use less capital to open each trade.  That way one bad trade won’t have a huge impact on my performance.

My eToro Plans for the 12 months

Over the next year I plan to do less crypto trading and more share investing.  Now that eToro has real stocks with zero commission trading, it makes more sense for me to hold a portfolio of shares there.

I also want to do a lot more copy trading.  I think Copy Trading is an exciting (albeit still risky) way to invest.  As part of my portfolio I’m looking for copy trading to drive growth.

How to Get Started on eToro

Remember that my results won’t be indicative your future results.    If you’re looking to get started on eToro I would recommend sticking with investing in well known shares or index ETFs – always do your own research and never invest more than you can afford to lose.

You can get started with as little as $50 on eToro – they do support fractional share investing.  This means you can buy a fraction of a share which is a great way to get started with less money.  When you sign up to eToro you can also invest using just a virtual/practice account.  This lets you invest under real world conditions using virtual funds so you don’t risk any real money.  If you’re new to share investing this is a good place to start.

You can find out more about eToro here

Disclaimer:

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that 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.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. 

eToro AUS Capital Pty Ltd, ABN 66 612 791 803 AFSL 491139. CFDs are highly leveraged and risky, and may not be suitable for all investors. You may lose more than your initial investment. Trading CFDs does not result in ownership of the underlying assets. Copy trading facilities cannot be construed as financial advice. Use these facilities at your own risk and we are not liable for losses incurred. You should obtain your own advice and refer to our FSG and PDS before deciding whether to trade with us

This post is for educational purposes and should not be considered as investment advice. This post is based on individual experience and journalistic research.

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