Why use Copy Trading and Social Trading with eToro?
Copy-trading and social trading have become very popular investing strategies in the last few years. eToro, the worldwide famous online broker has established itself as the leader in this area.
These strategies have created a revolution in the world of trading cause they allow traders to learn from their peers’ actions in the market, instead of basing their trading decision on technical data.
Using someone else’s trading experience, and learning from their successes and mistakes is an opportunity that has already shown its potential.
If you want to learn more about copy trading platforms we would recommend visiting investingoal.com and reading on how they can improve your investing profile and make sure they are a good match for your trading style.
But, while social trading and copy trading are popular and well-regarded, it doesn’t mean that there aren’t some drawbacks to them. And, as with every market operation, there is always an innate risk to take into consideration.
The best way to avoid falling into a trap is to do research and make sure the traders you’re copying from are serious and have lengthy experience.
In any case, eToro has made online trading not only more accessible, easier, and faster, but also much more fun and approachable activity.
What is Copy Trading?
Copy trading is a natural consequence of social trading. It’s a strategy that allows a trader to copy, and even automatize, other trader’s movements and deals in the market.
Copy-trading may be a good idea for those with limited experience in a certain market, or traders looking to diversify their profiles, or even those with little time to dedicate to research the market.
However, copy trading may lead to some laziness, impeding traders from learning and developing their own investing strategies, as well as resulting in higher fees and slower execution. While a valid strategy should be complemented with other aspects and used as a learning tool.
A short story of eToro. From the beginning to the boom it is today
eToro’s story starts in 2007. Their slogan, even back then, was to make the world of trading more accessible and bring it closer to a much wider part of the population.
Old fashion trading was complicated, slowed, expensive, and reserved for just a few privileged people.
eToro took advantage of the technology available after the 2000s and created a platform that was friendly and clear, making trading already a more approachable activity.
In 2009, eToro decided to take it a step further and created a platform that allowed anyone to trade financial assets online. Having live access to the market was something new and represented much larger flexibility for the traders.
But, what made a huge difference was the launching of social trading in 2010. Its potential became clear immediately. Social trading made it all even more accessible and targeted a large portion of the population still uncertain about getting into trading.
The beginning of social trading is considered a revolution since now complete beginners could access information from more experienced traders, and have the chance of copying their strategies.
The next step for eToro was to work on the mobile platform, making it possible for traders to literally access the market from anywhere, now having only a smartphone.
eToro is without a doubt constantly developing new tools and creating new services, always loyal to their original idea of making trading more available and helping newer investors to be successful in the market.
We can say that eToro has achieved its original mission.