Interview with Dennis Austinat
eToro now has more than 10 million users on its trading platform. What is special about it and why should investors open an account with eToro?
Dennis Austinat: Investors have been using our social trading platform to trade stocks, forex, commodities and other markets for more than ten years. You get access to all our trading and investment opportunities. There you can trade cheaply yourself or, which is now being used by more and more investors, you can automatically follow successful traders 1:1 via our CopyTrade function. Everyone can benefit from the experience and success of others. In addition, fund-like investments can be implemented on the eToro platform, namely via the so-called CopyPortfolios. You can invest in two types of portfolios: on the one hand, in a top trader portfolio, which is made up of investors at eToro who have the best sustainable performance. On the other hand, in a market portfolio that depicts different markets, such as commodities, shares, ETFs or CFDs. In both cases, the risk can be spread widely without sacrificing opportunities for returns.
There are many ways to become active in the stock market. What do investors use the most and are there possibly gross investor mistakes?
One thing that is noticeable to many investors in this country is the lack of thinking outside the box. This means that they have too strong a “home bias” when making investment decisions, which means they very often only trade the DAX or German stocks. There are also enough attractive trading opportunities on other markets that investors should not miss. Another common trading mistake is closing losing trades too late. Investors hope for a positive turn but forget that a big loss can be very painful.
Which markets can actually be traded on eToro?
All major stock markets and stocks can be traded on eToro. It does not always have to be an index or a share, ETFs can also be traded on the eToro platform. There are many other investment opportunities via the CopyPortfolio option to cover other markets as well, such as cryptocurrencies, commodities and foreign exchange. Investors can also use the copy function to follow other top traders and thus not only benefit from different markets, but also from a variety of strategies.
How does copying work, what else should investors consider when trading on the eToro platform?
Trading platforms should always be a good link between the individual investor and the markets. At eToro we offer a full service. This includes chart tools, news, courses, analyzes from banks and brokers or fast order execution, to name just a few advantages and services. The social aspect of trading also sets us apart from other trading platforms. We have become the Facebook of trading and investing by being able to follow and connect with other successful traders. Following is very simple: with a push of a button another trader can be copied.
What advice can you give to newcomers, how should they use the platform?
Beginners should first do dry runs. The platform and how to use it can best be learned by simply being able to follow other investors on eToro and ask them questions. With a demo account, the first steps on the trading floor can be taken and experience in dealing with the platform and other users can be learned. In addition, we also offer comprehensive support.
Learning is high on the agenda at eToro, what actually makes a successful trader?
With eToro you can see very well that there is no one way to become a successful investor, but that different strategies can lead to success. What they all have in common, however, is a disciplined approach that puts risk management first. Disciplined trading is therefore important and anyone who follows other successful investors can learn this at eToro. The advantage of this is that not everyone has to find out for themselves, but the successful ones can simply be copied and at the end of the day the copier achieves exactly the same performance as the successful trader – a real win-win situation.