Meet EToro: A Smooth Entry Point into Online Trading
The world of online trading is vast, and offers many different options. eToro is the world’s leading social trading platform, and is an excellent place to begin
The concept of trade is almost as old as the human race. While in ancient times, trading was usually done by physically exchanging goods, society has moved light years ahead in the thousands of years that have passed, and today (as you probably already know), it is all done digitally. The digital age has not only made trading global, faster and much, much bigger – it has also made it a lot more accessible.
When the internet revolutionized global communication some 25 years ago, a new form of trading emerged, as people began trading stocks, commodities, currencies and other financial instruments online, from their homes. One form of trading that became extremely popular is Forex (foreign currency exchange), as it enabled traders to perform multiple trades a day and a quick return for those who saw profit.
The birth of eToro
Despite the accessibility, for many years, Forex trading (and online trading in general) remained the realm of those who were willing to delve deep into the realm of graphs, charts and stats. However, as with many other fields, it was only a matter of time until online trading was also made accessible to the masses. Founded in 2006, eToro was established to make online trading transparent, intuitive, and even fun. Ten years later, it is the world’s leading social trading platform, with tens of thousands of clients worldwide and hundreds of financial instruments available.
In the years following its inception, eToro has generated a lot of interest from both investors and clients. As the platform grew in popularity, it began expanding the variety of assets available to clients, and placed a growing emphasis on making the platform as user-friendly as possible. In 2010, the company unveiled OpenBook, a social investment platform that included social media elements, such as a news-feed, client-to-client interaction, and Copy Trading.
A friendly approach to online trading
The introduction of social features has not only made eToro friendlier, it has also given it new functionality. If in the past, most of the decision-making process was made using the aforementioned graphs, and various news sources, now traders had another crucial aspect to lean on: Each other. The social aspects enabled clients to connect with one another, follow each other, get tips, gain insight, and even copy other traders.
The introduction of the Copy Trading feature gave eToro a unique aspect, and solved a main problem for its clients. As was mentioned before, not everyone has the “professional” approach to day-trading, and many people lack the time or patience to be constantly looking at screens. To solve this problem, and expand each client’s familiarity with different assets available, eToro enables clients to allocate funds for copying a certain investor’s portfolio. This means that, if a client sees a successful investor they would like to copy, the system will automatically duplicate any of the investor’s actions, respective of how much money the copier allocated. Therefore, clients who use Copy Trading don’t need to constantly monitor their investment, as they have an experienced trader doing it for them.
It IS a popularity contest
In order to make Copy Trading possible, eToro operates in full transparency, meaning every user’s portfolio, success/fail rates, track record and risk factors, are available for all to see. As a result of this transparency, and the Copy Trading feature, some successful investors have been copied by hundreds, sometime thousands, of other clients, earning the title of Popular Investor. Since eToro rewards Popular Investors with certain perks and discounts, many traders aspire to become Popular Investors, as this gives them both financial benefits and credibility.
The social featured offered on the platform are a great example of how the web and mobile revolutions have disrupted traditional industries. A field that was once reserved for professionals is now not only accessible via the web, it utilizes its power to enable users to gain more control, knowledge, and insight into how it operates. The added value brought forth by the social features, gives a wider array of potential users a smoother entry point into online trading.