How to choose a trader to copy

In short

Do not choose a trader because of one good year: check the length of the track record, the worst fall, the risk level and what they actually hold.
Leverage, concentration and frequent trading are the main things that can turn a good record into a fast loss.
Copying does not remove risk and is not advice: past results do not indicate future results.

What should you check before copying someone?

Criterion	What to look at	Why it matters
Track record length	Years, not months, and across rising and falling markets	A few good months can be luck or one lucky bet
Maximum drawdown	The largest historical fall from a peak	It shows what you might have to sit through, and whether you could
Risk score	The platform's risk indicator and how it has changed	A sudden jump means the style has changed
What they hold	Shares, funds, crypto, leveraged products	You should understand the assets you will own
Leverage	Whether leveraged positions are used	Leverage multiplies losses as well as gains
Concentration	How much sits in one asset or sector	A concentrated portfolio can fall hard
Activity	How often they trade	Frequent trades mean frequent costs, for them and for you
Consistency	Whether what they say matches what they do	A stated long-term style that trades daily is a warning
Costs	Spreads, fees and currency conversion on copied trades	They reduce your result even if the trader does well

What are the red flags?

Very high returns in a short time. They usually come with very high risk.
A single large win behind most of the track record.
Heavy use of leverage without a clear explanation.
A risk level that changes suddenly.
Promises or guarantees in the profile or messages. Nobody can guarantee returns.
Pressure to copy quickly, or to add more money after a loss.

How to reduce the damage if you are wrong

Decide the amount in advance, as money you could lose without changing your life.
Do not rely on a single person. Diversification across different styles is a general principle, but it does not remove risk.
Use the platform's loss limit, if there is one, and understand when it triggers.
Review on a schedule, not after every bad week. Switching after each fall locks in losses.
Check how the person is rewarded: for example whether they are paid through a platform programme for being copied, which can influence behaviour.
Try the mechanics in a demo first: see what a demo account teaches.

Copying a person or buying a portfolio?

If you prefer rules to people, compare the options in Smart Portfolios versus ETFs versus copy trading. For the basic idea of copying, read copy trading versus copy investing.

A concrete example: how this works on eToro

Data from eToro's official help and CopyTrader pages, checked on 5 October 2026. They can change: verify on the site before deciding.

Who you can copy: only Popular Investors. The minimum to copy a trader is $200, and you can copy up to 100 investors at the same time.
How a copy works: your copy mirrors the percentage allocation of the trader's whole portfolio, including cash, and follows their future actions. A new copy can show a small initial loss because of the spread. Automatic reallocations can take up to 7 business days, during which you cannot add or withdraw funds or close single positions.
Risk score: eToro gives each investor and Smart Portfolio a score from 1 (very low risk) to 10 (extreme risk) based on historical volatility, recalculated monthly. For example, score 4 corresponds to annual volatility of about 19% to 32% and score 8 to about 94% to 131%. eToro says it primarily measures historical volatility and may not capture all types of risk.
Portfolio Risk card: in the Stats tab of a profile you can see the average risk score of the last 7 days, the maximum drawdown over different periods and each asset's contribution to risk.
Copy Stop Loss: set by default at 40% of the invested amount and adjustable between 5% and 95%. If the copy drops below that level, it closes and the remaining funds return to your balance, so losses are limited but not removed.
Leverage: eToro states that leveraged investments amplify gains and losses and that you may lose all of your invested capital.

eToro also states that copy trading does not amount to investment advice, that your capital is at risk and that past performance is not an indication of future results. If you want to look at the tools on the platform, you can open eToro through my affiliate link. I earn a commission if you open an account: read the disclosure.

Capital at risk. The value of investments can go down as well as up, and you may lose some or all of the money you put in. Copy trading and Smart Portfolios do not remove this risk and are not investment advice. Past performance is not a guide to future results.

Frequently asked questions

How long a track record should a trader have?

There is no magic number, but a few months say very little. Look for several years that include both rising and falling markets.

Is a low risk score a guarantee of safety?

No. Risk scores usually reflect past volatility and may not capture every type of risk. A calm past does not stop future losses.

Should I copy more than one trader?

Spreading across several people with different styles can reduce dependence on one person, but it does not remove market risk, and costs add up. It is a general consideration, not a recommendation.

What happens if the trader I copy loses?

Your copy loses in proportion. A loss limit can close the copy automatically, but you still bear the loss up to that point.

Who can I copy on eToro?

According to eToro, only Popular Investors, with a minimum of $200 per copied trader.

What is the Copy Stop Loss on eToro?

eToro describes it as a built-in limit across the whole copy: by default 40% of the invested amount, adjustable between 5% and 95%. When it triggers, the copy closes and the remaining funds return to your balance.