Social trading and investing platform eToro represents more than six million registered members from 140 countries, revolutionizing the way people access financial markets.
The company makes the trading experience more social, enjoyable and transparent by offering FX, commodities, indices, CFD stocks, ETFs and cryptocurrencies. David Berg, eToro’s UK regional manager, talked with RewardExpert about how traders are in more control than ever.
Social interaction in financial markets
Yoni and Ronen Assia founded eToro in 2007. The idea was originally designed to help people trade easily online, but the pair saw demand emerging for social interaction among traders and investors.
This includes fitting unique investments to individual users, as well as promoting sustainable trading that involves taking risks, precautions to minimize risk, and understanding that past performance is not always a clear indication of future results.
Traders can also invest in CopyFunds, which provide access to quick and effective pre-defined investment strategies. They come in Top Trader CopyFunds, which comprise the best performing and most sustainable traders. Or, Market CopyFunds that bundle CFD stocks, commodities or ETFs under one chosen market strategy.
In 2011 the Openbook platform sprung, offering all eToro users the opportunity to benefit via knowledge and trading insights. Users could literally follow, copy and track others. “Our strength lies in our very active online community and the sharing of information, ideas and trading,” he said.
In 2015 a new website was launched, updating functionality in one consolidated platform. The company is a fixture on both web-based and mobile-based platforms.
A different strategy
Berg said that as a company, eToro prides itself in having introduced the world to social trading and being a market leader in the field. The platform crosses over several spheres, encompassing asset management, trading and the cutting edge with cryptocurrencies.
“Active, traditional fund management has been failing investors,” Berg said. “Active managers have to pay hundreds of experts to make trading decisions, all for strategies which very often underperform investment funds.
“eToro has completely redefined how investment strategies are designed and executed, giving traders access to the very best performing strategies for millions of individuals conducting their own research and using their own expertise, all over the world.”
Reaching a wider audience
eToro is about staying active, Berg said, and thrives on the sharing of information, ideas and trading. As a regulated entity it does not offer rewards or bonuses, but various club benefits are offered to clients who possess equity more than $20,000.
He had some advice for budget-conscious individuals, or those who look to enter the trading atmosphere. “Manage your risk carefully and do not invest or trade with funds that you cannot afford to lose,” he said. “Start small, you can always scale up later on.”
eToro aims to further its global expansion, reach new markets and develop new products. “We are constantly refining our app and suite of products to meet the demands of our ever-growing worldwide community,” he said.