How ‘Social Trading’ is innovating financial advice

Social Trading is a leading fintech proposition that allows investors to follow other traders of their choice and automatically do the trades that the choosen trader does on their own account.

It enables investors to follow traders in the same way you may follow someone on Facebook or Twitter, but instead of following someone’s lifestyle and likes, you follow their trading activity.

This method of trading financial markets is one of the foremost innovations in the ‘Fintech revolution’ and the numbers of people choosing to trade in this way is growing exponentially.

The global leader in Social Trading is eToro, we met CEO Yoni Assia at Web Summit 2016 where he unveiled their latest offering, ‘CopyFunds’.

Wealth Management Disruptor

Yoni explained to us how ‘CopyFunds’ allow investors to follow large groups of eToro’s best performing traders.

This means you potentially have thousands of vetted and monitored traders trading your money for you.

eToro are targeting a revolution and democratisation of the wealth management industry by providing a real alternative to mutual funds.

Unlike traditional OEICs and Unit Trusts, ‘CopyFunds’ enable investors to follow traders that are trading a wide range of underlying instruments such as equities, currencies, commodities and ETFs.

‘It’s like having thousands of traders, all working for you!’, Yoni said.

When asked about the risks of following many individual traders and the possibility of a trader in a ‘CopyFund’ going rogue, Yoni explained that ‘CopyFunds’ are spread across many traders who are constantly monitored for performance so if a trader falls outside of the stringent criteria, they are removed.

eToro have over 5 million registered users globally and is regulated by the FCA. For more information on how you can open an eToro account and get up to a $1000 bonus to get you started, please click here.

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