In order to avoid unnecessary investment risk, you need to have a diversified asset portfolio. Experts say a minimum of 20-30 stocks spread out across multiple industries make up a diversified portfolio.
Challenge: buying just one (1) share from each company might be very costly because each share costs at least $100-$150. Microsoft shares cost upwards of $200 and Amazon shares are priced at over $3000 per share. That means you’d need from $20,000 to $50,000 of initial capital to have a diversified capital.
Solution: eToro allows you to invest in fractions of a share:
- a minimum of $50 per company if you’re investing on your own
- a minimum of $2 per company if you’re copy investing with a Popular Investor
The minimum initial capital for copy investing is $500 which means that your copy portfolio may be very well diversified. How is it possible? It’s CFD magic.
All you have to do is:
- Sign up with eToro
- Deposit $500
- Pick a Popular Investor you like and trust
- Wait for your profit a few days / weeks / months (depending on current market conditions)
Sounds good? It is.
- eToro is going public on Nasdaq – watch a CNBC interview
- See eToro investor relations slides
- Sign up with eToro to easily copy successful investors and multiply your money in time