eToro was the first one to launch a social trading online platform and even if other brokers followed this path, they are still the market leader when it comes to investing trends based on connecting traders.
This broker has a worldwide reputation for making investments in the market accessible and even easy! Their goal is to help anyone invest in the market and have the chance to increase their profits and wealth. They have completely changed the game of investing.
But many people wonder how does eToro works and want to understand how does eToro make money. This is a valid question for those considering registering an account with eToro, of course.
Getting started with eToro is very easy, all new traders, or also those with a higher level of expertise, need is to have a computer and some money to invest.
What are you waiting for?
What is Social Trading?
Social Trading is a trendy investing strategy that appeared a few years ago. It basically connects traders making it possible for some to see the trading behaviors of others, intending to imitate, or even copying, their movements in the market.
Online trading had already broken all ties with the old traditional trading system, and it was to expect that the influence of social media would have an impact on trading too!
But it all didn’t just stop at social trading and brokers like eToro had a vision and that’s how Copy Trading and Mirror Trading were born.
These strategies are all great not only for beginners but for all types of traders looking into diversifying their investments.
Overall, social trading is a different way of facing financial data looking at what other traders are doing and copying or imitating their movements in the market. Social trading has made investing a much more human experience since it’s not all based on technical data.
It has also made the risk, which is always innate to trading, a bit more manageable since traders have more knowledge and information to predict what may happen with their investments.
How does Social Trading work?
Basically, social trading allows traders to see each others’ movements and strategies and copy them.
Thanks to the online world and the ever-developing tools that are available, it’s very easy to become a social trader nowadays.
Traders should subscribe to another trader’s portfolio and from there the broker has it all set up to copy automatically the strategies of the chosen trader. However, the trader copying has control over the operations to copy and can choose either automatic options or manual copying.
Traders are motivated to share their strategies by rewards and status.
Social trading has made available a lot of information about the markets, investments, and success rates.
eToro and their Social Trading history
eToro has worked very hard to open the world of trading to anyone everywhere, redesigning the way people invest their money and making it more accessible and easy to understand.
In 2010 they launched OpenBook which was the first social trading platform ever. Copy-trading proved to be immediately a successful strategy that not only beginners could take advantage of.
What came after was a rollercoaster of new platforms, features, additional stocks, and cryptocurrencies.
Social trading is today the trademark of eToro and one of their star features.