Collection

I heard in the collection edition, you get the sparkly fire hand effect an it cannot be traded. does that mean u gotta carry a item in ur bag all the time for it to work? (filling your bag with 1 item) or does it work automaticly?

No it just starts working automatically, you don't even see this item.

are you able to take it on and off? or does it work forever and you cant take it off
and how do you take it off if so?

You get sparkles around your hands when doing /emotes , that is all divine aura does (its not a item its an added animation effect).