eToro Dividends Earning Guide

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Updated: 20 March 2020

eToro is an Israeli-based broker in social trading. It was established way back in 2006 and serves the clients of the United Kingdom through an entity regulated by the Financial Conduct Authority. The eToro trading platform has enhanced efficiency by incorporating the social element into trade investment, which is one of its own kind. This makes eToro platform rank high in every stock broker comparison. Having been present for more than a decade now, everyone who signed up as an eToro web trader has reaped huge eToro dividends.

  • Copy trading on eToro.
  • The working of eToro dividends on eToro shares.
  • eToro offerings on Meta Trader 4 (MT4)
  • How to use dividend calendar and Leverage to gain profit from eToro dividends.

The Aspect of Copy Trading at eToro

Trading takes years of consistent practice for one to perfect and requires an understanding of fundamental and technical economics. But if you want to be part of eToro take profit, use the secret of copy trading. This is because every trade made on eToro is shared, and it is therefore easy for you to see the trades professionals make. You just need to copy the trades of professional and experienced traders, and you will see yourself making big eToro dividends. Once you sign up, eToro will award you free cash to start with. But for you to start copy trading, you need an eToro minimum deposit of $100 for each trader followed.

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Tips for making more money on eToro:

  • Do not trade manually to begin with, unless you want to start with eToro practice account. Always use copy trading because you don’t have enough experience and knowledge to trade on your own.
  • Do not copy trade just one trader, as your account will be left vulnerable. Ensure to copy four different people to spread the risk.
  • Avoid copying traders who have 100% gain plus, because they are most probably employing high-risk strategies. Follow traders who are moderate risk takers with around a 30% gain, since this still gives awesome returns without much exposure to extreme risk.

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The Unique Features of eToro.

One of the major features that sets eToro apart from other brokers and makes it the best stock broker is the ‘Copy trader’ feature. It is really amazing having the opportunity to see the trading history of other users, including what they have made or lost in any given period. If you find someone on the list, you can trust a bit you can allocate some funds to copy their trades automatically. The ‘popular investors’ programme is another plus for eToro, which gives rewards to users based on the number of trade copiers they have in the form of monthly commissions (i.e. up to $10,000 per month). With the availability of copying and social features, little or no financial knowledge is needed to get started. Learning at eToro is quite easy as most of what you need to know you will receive this guide, but you can also use an eToro demo account. It is, therefore, your responsibility to ensure you are competent in trading before trading with large amounts of cash. Trading with eToro could be profitable, but it is also possible to lose money since you are dealing with uncertain markets. When trading, capital is usually at risk. Make use of these unique features to ensure a less flawless process of trading.

How do eToro Dividends Work on Shares?

The whole structure of trading on instruments (such as stocks, currencies, indices, bitcoin, and commodities etc.) is based on contracts for the differences, which are also derivative contracts. Essentially, a contract being a derivative means you don’t have to purchase anything or a product, you just need to make a speculation about the change in the price of that product. For example, when you buy a CFD using eToro, you are not buying the shares of IBM for example, you are only betting a certain amount that the price of IBM could rise. If this increase in price happens at the time of closing the trade, you will earn from the difference between the sale price and purchase price. And should the price fall, you will make the loss. To be more specific, when you use eToro CFDs to buy shares of a certain company, any dividends that arise from this can be cashed out any time when the company decides to make a contribution. Basically, eToro’s structure is purely based on CFD trading, and implements a hedging policy for the derivatives in the real market, with purchase of real shares. It looks at how a client is positioned on each instrument of CFD and conglomerates several positions into a single large position. It then enters the market to purchase the equivalent in terms of real shares. Through this, eToro dividends are received by eToro from the listed company and then distributed to each shareholder based on their specific proportions.

The Web-based and Mobile Platforms of eToro

EToro has a web trading platform which is swift and user-friendly, but at times in the past experienced breakdowns and outages. This happened in 2017 when most retail investors went crazy about crypto and eToro could not handle the demand. Logging in and executing trades was a problem, but the issue has since been resolved. Login and security are a straightforward username and password. The built-in search in this platform is easy to use and predictive. Placing orders is a self-explanatory process, which can be market or limit order. In addition to this, an eToro web trader can set leverage size, take profit or even perform an eToro stop loss at the time of opening this position. An alert function is available on eToro, which lets you know when a price target is reached by an asset. Investors always want to know how their portfolio performed and how much eToro fees were charged. Report of portfolios is quite easy on eToro. The eToro fees on this platform are, to some extent, hectic to access. At portfolio >History>top right circle tab>Account statement allows you download a well-structured pdf showing all cash flows and fees which are grouped into types. The functionality of the eToro app is not different than the web-platform of eToro. It has applied a mobile-specific function such as good chat interactions and push notifications. For example, you can swipe right or left allowing you to act quickly in accessing charts and the opening of a new trade.

Meta Trader 4 (MT4) On eToro

EToro has always made efforts to stand out in relation to broker comparison. When eToro’s competitors were using the famous MT4 forex trading platform, three forms of proprietary software were offered by eToro, which include the web trader, mobile trader and the open book. As other forex brokers gave rooms for trading, eToro unveiled its unique form of social Forex trading where copy trading happened to allow a search for a successful point of entry and exit. But in the long run, eToro MT4 is now available, joining the masses of Forex brokers using the same. A special page on the website offers eToro MT4 under the following conditions:

  • Minimum eToro deposit is fixed at $20,000
  • The depositing currency is USD
  • Leverage is 1:100
  • Roll over type is: Swap
  • Execution order type is: STP
  • The maximum transaction size is: 50,000,000 units
  • The minimum transaction size is: 10,000 units

Spreads for MT4 platform traders are available and have an EUR/USD spread of 2.5pips. There are other spreads on the website with spreads of 3pips. Although the proprietary platforms of eToro were impressive, it is not clear as to why eToro went ahead to offer an MT4 platform and set the deposit limit at a high level.

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How to use Dividend Calendar and Leverage to Gain Profit from eToro Dividends

When you trade on eToro CFDs (Contracts for difference), you will have the opportunity to earn on an upward movement when you purchase stock and earn from a downward movement when you sell the stock and perform trade by leveraging. In normal circumstances, most brokers don’t offer dividends on CFDs, but as mentioned before, eToro is an exceptional broker since it awards. “Does etoro pay dividends to clients in time,” is a question new traders could be asking. Yes, eToro dividends are usually paid out overnight. They are calculated automatically as refunds and then added to your profits. In case you had eToro fees from holding stock, the refunds will reduce the accrued fees. Note the following simple steps about the working of this strategy:

  • Research the stocks that will be paying dividends on a particular day
  • Open a ‘buy’ position a day before the dividends are paid out for any stocks with opportunity for dividends. You can use leverage if you intend to increase risk and profits
  • Receive profits from overnight dividend pay-out
  • Close at the opening and repeat the strategy the following day with a different set of stock

An important point to note is that you should always refrain from purchasing stock when the market is in a downtrend. To predict whether the price of a stock will go up or down the next day, use short-term technical to get a better view.

Fees and Gains Protection at eToro

EToro fees have one of the simplest fee structures for trading, and one of the most competitive among the CFD brokers. All fees here are incorporated into the trading spread, and for that reason, eToro spread seems high. But considering that they account for all fees relating to trading, from spread, commissions and overnight fee, the charges for spread are actually low. Therefore, eToro does not charge any fee for trading. Its income is fetched from overnight fees and high spreads. The first time eToro minimum deposit for a live account ranges from $50 – $1,000 depending on your location. The firm also gives an eToro refer a friend bonus of $200 for friends invitation. How does eToro pay dividends and provide protection for these earnings? Gains here are protected by eToro stop loss, which is a way of closing trade if price changes move in the wrong direction. Trade is meant to remain open for profits; on condition that price continues moving in the right direction once the stop loss has been set in place. For example, If you open a ‘buy’ trade of EUR/USD at 1.1000, then the stop loss should be set at 1.0900 which indicates 100 pips stop loss, and mark the ‘trailing stop loss’ checkbox. Now for each pip that moves in your favour for EUR/USD, The Stop Loss will automatically update accordingly.



Support Service and Best Feature About eToro.

Based on a recent eToro review, it had experienced some drawbacks towards the end of the year 2017, attributed to the overwhelming number of clients received due to cryptocurrency. It has since revived and now available by phone and email. eToro website has a dedicated customer service webpage where you can raise a ticket for any query then submit. A live chat is also available and response time is quite fast. An important point you ought to note is that investment in stocks involves a substantial amount of risk. The ‘free cash’ you receive as eToro dividends is not just a result of mere luck, you need to research and execute your trades carefully to get this reward. Lastly, eToro is definitely the best choice for social trading. It is innovative, a pleasure to use and also good for crypto CFDs. Trading fees and non-trading fees are competitive and mid-range. We then recommend that you should hurry and sign up to enjoy extraordinary social trading.