The UK investment landscape is changing. As interest rates stabilise and more retail investors enter the market, platforms like eToro have become go-to options for those seeking market exposure. But building a portfolio from scratch can be time-consuming and intimidating for beginners.
Copy trading offers a simpler route. Rather than choosing assets yourself, you can mirror the trades of experienced investors. For many in the UK, it’s a practical way to get started while learning how others manage risk and returns.
What is Copy Trading?
Copy trading lets you invest by mirroring the trades of a more experienced trader. Rather than selecting individual assets yourself, you assign funds to follow a professional trader whose investment style matches your objectives.
Your money stays in your account, and you can stop copying at any time. It’s like following a recipe; you remain in control, but benefit from someone else’s method. The goal isn’t guaranteed profit, but exposure to structured strategies and portfolio discipline.
Unlike a managed fund, the trader isn’t responsible for your capital. They’re trading for themselves, and your results depend on their performance and how actively you monitor the setup.
Copy trading is best used as a learning tool or for diversification, not as a shortcut to returns.
How eToro Copy Trading Works
eToro is one of the most established copy trading platforms and is regulated by the Financial Conduct Authority (FCA) in the UK. It’s designed to make investing more accessible by combining a simple interface with detailed trader data.
Here’s how it works:
You browse a public list of verified traders, each with performance charts, portfolio breakdowns, risk scores (1 to 10), and follower counts.
After selecting a trader, you allocate a fixed amount (minimum £200) to copy both their existing and future positions.
As they open or close trades, the same actions are automatically mirrored in your account, in proportion to your investment.
You stay in full control and can stop copying, adjust the allocation, or close individual trades at any time.
Because you’re only copying a portion of their portfolio, you don’t need the same level of capital. This gives beginners access to strategies like sector rotation or tactical allocation without managing the trades themselves.
Why Choose eToro for Copy Trading?
While other platforms offer copy trading, eToro stands out in the UK for its scale, transparency, and simplicity.
- Regulation: eToro is FCA-regulated, meaning it must meet strict standards on client protection and platform integrity.
- Open trader data: You can view detailed trading history, performance statistics, and portfolio breakdowns before copying anyone, which is essential for informed decisions.
- No added management fees: You only pay the standard trading costs (like spreads and conversions), with no extra charge for copying someone.
- Beginner-friendly design: The interface is clean and designed to guide new users through the process without confusion.
- Social features: The platform includes trader posts, updates, and comment threads, which help explain strategies and give insight into market moves.
eToro’s CopyTrader system isn’t a set-it-and-forget-it solution. Even the best traders have off months. Smart users stay active, review who they’re copying, and remain aware of market shifts. Copy trading can help flatten the learning curve, but it’s not a replacement for basic investing awareness.
How to Copy Trade With eToro
Getting started with copy trading on eToro in the UK is straightforward, but it’s important to stay engaged throughout the process. Here’s a step-by-step guide:
1. Open an account
Register with eToro’s UK platform, which is regulated by the Financial Conduct Authority (FCA). You’ll need to verify your identity with a photo ID and proof of address, and complete a short questionnaire about your investing experience.
2. Fund your account
After your account is approved, you can fund it using a debit card, bank transfer, or e-wallet. For UK users, the minimum deposit is usually £50. Keep in mind that trading is done in US dollars, so a small conversion fee will be charged.
3. Browse the CopyTrader section
Use filters to search for traders by risk level, return history, asset type, and activity. Each profile includes performance data, portfolio mix, and strategy insights.
4. Choose a trader
Look for steady performance, controlled drawdowns, and a balanced portfolio. Consider how they’ve managed past market volatility and whether their style suits your own risk profile.
5. Allocate your funds
The minimum to start copying is £200. Your portfolio will automatically mirror the trader’s positions in proportion to your allocation.
6. Monitor your investment
You’re free to stop, change, or pause the copy relationship whenever you like. You can also close trades manually if needed.
Although copy trading automates the process, you’re still responsible for your choices. It’s a bit like letting someone else drive, but you’re still choosing where to go.
Choosing the Right Trader to Copy
Choosing who to copy is the most important decision in copy trading. Past performance can offer insight, but it shouldn’t be your only guide. Here are key factors UK investors should consider before allocating funds:
Each trader has a risk rating from 1 to 10. Lower scores reflect a more cautious approach, while higher scores often indicate aggressive, high-volatility trading. Choose a level that matches your own risk tolerance.
Look for traders with steady month-by-month growth rather than unpredictable spikes. A consistent 2–4% return per month is often more sustainable than occasional big wins.
This shows the largest decline from a portfolio’s peak. It helps you understand how much the trader lost during tough periods, and whether you’re comfortable with that level of risk.
Review what they invest in. Traders focused solely on crypto or tech can be high risk. A more balanced portfolio across sectors like healthcare, energy, and global ETFs often signals a longer-term strategy.
The longer a trader has been active, the more insight you’ll have into their strategy. Look for traders with performance history across different market conditions, including downturns like in 2022 and early 2024.
Rapid increases in follower numbers can sometimes reflect short-term buzz rather than proven performance. By contrast, gradual and steady growth in copiers often signals trust that has been earned over time through consistency.
The ideal trader to follow is someone whose approach aligns with your goals and who has shown discipline across various market conditions, not just strong monthly gains.
Costs and Fees of Copy Trading on eToro
Copy trading on eToro doesn’t come with a separate fee, but you’ll still pay standard trading costs. These are the same charges you’d incur if placing trades manually. Here’s a clear overview of what to expect in 2026:
| Fee Type | Cost |
|---|---|
| Copy Trading Fee | £0 (no additional charge for copying a trader) |
| Currency Conversion | 0.5% (applies when converting GBP to USD) |
| Spread (buy/sell gap) | Varies by asset (e.g. ~0.09% on FTSE shares) |
| Withdrawal Fee | £5 per withdrawal |
| Inactivity Fee | £10 per month after 12 months of no trading |
Because most assets are priced in USD, UK users will usually pay a conversion fee when depositing funds or placing trades. These costs can increase if you’re copying someone who trades often.
Every time the trader opens or closes a position, the same transaction is made in your portfolio, which can raise your overall expenses, particularly if they follow a high-turnover strategy. If they open and close positions often, your costs may rise due to spreads. Following a high-frequency trader can be more expensive than copying someone with a slower, long-term strategy.
Cost efficiency isn’t just about platform fees, the trader’s behaviour matters too. Choose with that in mind.
Risks of Copy Trading You Should Know
Copy trading can make investing more accessible, but it still carries risk. Handing over the strategy doesn’t eliminate uncertainty – it just changes who is making the calls. UK investors should keep these key risks in mind:
Market exposure
If the trader you’re copying loses money, your portfolio does too. Even skilled investors have bad months, and no strategy is immune to broader market downturns.
False confidence and a passive mindset
Early gains can lead to overconfidence, prompting you to increase your investment without fully understanding the risks. At the same time, it’s easy to go hands-off and treat copy trading like autopilot. But you’re still accountable, regular reviews and a clear understanding of your trader’s strategy remain essential.
Strategy changes
A trader may change their approach, reduce trading activity, or hit a rough patch. If you’re not paying attention, you might not spot the shift until your returns suffer.
Slippage in volatile markets
In fast-moving markets, copied trades might not execute at the same price as the original. This small difference, known as slippage, can eat into profits or worsen losses, especially with high-volatility assets.
Copy trading works best when treated like any other investment: with defined goals, regular checks, and a realistic view of the risks involved.
FAQs
Yes. eToro is authorised and regulated by the Financial Conduct Authority (FCA), which ensures strong standards on transparency, client protection, and fund segregation. However, while the platform is secure, any investment still carries market risk.
No. eToro provides negative balance protection, so your losses are limited to the amount you’ve allocated. However, it’s possible to lose your full investment if the trader performs poorly.
You can stop copying at any time through your portfolio. When you do, all linked positions close automatically, and your remaining funds return to your account balance.
Yes. All trades are mirrored in proportion to your investment. You can’t pick individual trades, but you can pause or stop copying whenever you like.
Yes. All trades are mirrored in proportion to your investment. You can’t pick individual trades, but you can pause or stop copying whenever you like.
Conclusion
For UK beginners, copy trading on eToro can be a practical way to enter the market without building a portfolio from scratch. It allows you to learn by observing experienced investors while keeping full control of your funds.
But ease of use doesn’t mean hands-off. The most successful users stay involved, understand who they’re copying, and treat it as a tool, not a shortcut. As with any investment, outcomes depend on how well you manage risk, expectations, and your financial goals.
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. {etoroCFDrisk}% 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.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recom-mendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
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.
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