New Broker Risk Management Tools Open The Door To Trading Opportunities in Crypto, Stocks and ETFs

Justin Freeman

Risk investment management

New protocols at eToro mean it’s a very Happy Christmas to any traders and investors looking to make a profitable return rather than blow up their account. The minimum size on trades in crypto, stocks and ETFs has been slashed to a tiny $10. This not only makes risk management easier to carry out but at the same time opens the door to profits being made in more speculative markets. Nothing is ever guaranteed in the markets, but for the +20m account holders at eToro, at least they now have enhanced tools for managing their accounts.

etoro minimum size

Source: eToro

Is Using Risk Management Tools Risky?

Stop Loss and Take Profit instructions, which are automatic instructions to buy some or all of a position at specific price levels, can be a trader’s friend but also their enemy. There’s no way of swerving the traditional advice that newbies should use them – they can instil some discipline into trading strategies. Stop losses also allow investors to bail out of a losing position before it potentially wipes out their account.

The problem with stop-losses is they can be triggered during freak market events such as a flash crash and traders can be kicked out of positions that would ultimately come good. Take profit instructions also have their critics as they put a cap on the upside. There is also the question of where to set them and that involves extensive practice, which is best done in a demo account.

eToro’s New Trading Minimums

etoro minimum trading size

Source: eToro

Why is Trading in Small Size Important?

Trading in small size offers a different route to successful risk management. By spreading cash allocation across a lot of small positions, single stock risk is mitigated and ‘noise’ is reduced. Ironing out the peaks and troughs of P&L performance can take some of the emotion out of trading and reduce the risk of panic-fuelled decisions being made.

eToro’s decision to allow positions in cryptos, stocks and ETFs to be as small as $10 can also help enhance returns. The countless stories of traders buying a tiny amount of crypto and seeing the value rocket to a life-changing amount have to be taken with a large pinch of salt. FOMO can result in chronic decisions being made. But eToro’s $10 minimum does allow traders to allocate small amounts of cash to a large number of cryptos in the hope of catching the next big thing.

eToro’s simplified functionality is incredibly popular, but the $10 minimum is now an equally important feature of its platform.


Crowdsourcing information about scam brokers can help others avoid falling into the traps set by disreputable brokers and you can share your experiences here. If you want to know more about this particular topic or have been scammed by a fraudulent broker, you can also contact us at [email protected].

Justin Freeman

Latest news

Are NFTs Really The Next Big Thing?
For many, non-fungible tokens (NFTs) look very much like the next big thing. Read more
Is the Regulatory Clampdown on Crypto The Cause of Lower Prices?
Bitcoin and Ethereum, the two flagships of the cryptocurrency market, have recently seen their prices go into a tailspin. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 Your capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2006 Global CFD & FX Broker
Number One Broker
#5 Forex Broker Pepperstone LogoBetween 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker

    Forex Fraud Certified Brokers

    Pepperstone Logo
    XM Logo
    BlackBull Markets Logo
    LegacyFX Small Logo Logo
    AvaTrade logo
    OctaFX Logo
    ATFX Logo
    IC Markets Logo
    HYCM Logo
    investous logo
    FXTM Logo
    Exness Small Logo
    IQ Option Logo
    skilling logo
    Plus500 Small Logo