How eToro – the social trading platform for investors – has disrupted the world of finance

[Sponsored article]

Today, more than 12 million traders from over 100 countries interact with each other, following and sharing ideas after joining eToro – a social trading platform for investors that is revolutionising the trading world – one trade at a time.

The founders of eToro saw new innovative technologies as an opportunity to disrupt the traditional world of finance.

Their mission was to make trading more accessible for anyone, anywhere, while reducing people’s dependence on traditional financial institutions.

For a long time, investing in financial markets was restricted to a limited group of people as it required a strong understanding of how different markets worked and the price movements of different products.

This meant that only people with the right knowledge and expertise, such as bankers and financiers, or people who could afford to pay a fund manager, could invest successfully, while millions of people were excluded from the system.

However, with the advent of the internet and web 1.0 – the first stage of its development – anyone could access information online.

The second stage of development, web 2.0, saw changes that allowed websites to be more interactive with user-generated content, and the rise of social media provided a dynamic web experience enabling users to interact with each other online.

eToro was born in 2007, creating an online trading platform that made trading easier and more accessible – and even fun.

It has become a one-stop shop for all trading needs, allowing users to trade multiple asset classes, including global stocks, indices, currencies, exchange-traded funds, commodities and cryptoassets such as bitcoin.

The platform also enables users to share investment ideas and strategies with one another.

Social media has allowed people to share the smallest details of their day; eToro applies this concept to investing. In doing so, it connects investors around the world to make the experience of trading and investing less opaque and more inclusive.

Besides connecting users, eToro went one step further and introduced copy trading, allowing users to copy the investments of other successful traders. This has proved helpful for people with little knowledge of investments or do not have the time and would rather delegate the task to someone with more expertise. This is what makes the platform unique.

Today eToro’s CopyTrader function is used by hundreds of thousands of traders worldwide.

Besides allowing users to replicate the successes of experienced traders for free, it also allows skilled traders to earn a second income through eToro’s “Popular Investor” programme and receive compensation based on the amount of capital their copiers have allocated to them.

Over the years, eToro has continually challenged the status quo of the trading industry through innovation and disruption.

In 2016, it introduced CopyPortfolios – thematic portfolios that grouped stocks or different asset classes based on a specific business idea or concept, allowing users to invest in areas such as 5G technology, drones or renewable energy, which cemented eToro’s position as a fintech leader.

The platform has a global presence and Asia has become one of the fastest-growing markets for the company.

While the general level of financial literacy in Asia may be low compared with some other regions, the market has some of the most tech-savvy and adaptive economies when it comes to mobile penetration and technology adoption – both key factors for eToro.

The company has been striving to reduce the financial knowledge gap in Asia, a region with some of the highest gross domestic product growth and a rising middle class.

eToro AUS Capital Pty Ltd, ABN 66 612 791 803 AFSL 491139. CFDs are highly leveraged and risky, and may not be suitable for all investors. You may lose more than your initial investment. Trading CFDs does not result in ownership of the underlying assets. Copy trading facilities cannot be construed as financial advice. Use these facilities at your own risk. eToro is not liable for losses incurred. You should obtain your own advice and refer to its FSG and PDS before deciding whether to trade with eToro.

The views and opinions expressed are those of the sponsor and do not necessarily reflect the official policy or position of South China Morning Post Publishers Limited. Any content provided by our sponsors is of their opinion, and is not intended to malign any religion, ethnic group, club, organisation, company, individual or anyone or anything