eToro: New minimum deposit

From 24/1/2016 on eToro will be raising the minimum deposit in further regions to USD 200. This is to attract more serious traders as the social network has recognized that in regions where the deposit level has already been increased, the life time value of traders improved.

The idea behind the raise in the deposit: With small accounts it is very hard to apply a serious risk and money management. Thus “Gamblers” open an eToro trading account, just click on “Long” or “Short” without knowing what to do and hope for the best. In most cases the life time period of such “Gamblers” (don’t call them traders) is very short and there is no additional value for the social trading community.

Reduce to the max

In order to trade properly a small account scale down your position size. Trades with small accounts of just several hundred dollars should always trade microlots (0.01 Lot) where 1 Pip equals 0.1 USD. In this way you can apply a proper risk and money management even with small trading accounts. The new minimum deposit of USD 200 will apply across the UK an French speaking regions.

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