Social Trading: What we Can Learn from 50 Million Trades
50 million traded positions at eToro establishes social trading as an investment alternative
LONDON, May 21, 2013 /PRNewswire/ --
eToro, the world's largest social investment network, has reached the major landmark of 50 million trades by its users. This number shows the success of the company's vision of making the financial markets accessible for everyone to trade in a simple and transparent way.
eToro's social investment network has now grown to more than 2.75 million users. The scale of this community is one of its key strengths: individual users benefit from the collective knowledge and experience of the crowd. Indeed, 32 million (64%) of the trades were copied trades, in which one user copies the trade of another. This facility gives confidence to those dipping their toe into this new form of investing for the first time, and this figure demonstrates its popularity.
A very interesting take out of this study is that traders with a large number of users copying their trading activity, are adapting their trading strategy from high risk to medium risk and lower. This is what we describe as the responsible social trading phenomena. Evidence to this conclusion can be also found in the fact that 80% of all traded positions have been executed with medium risk, and held for an unexpected average of 13 days.
"It's amazing that we reached 50 million trades so quickly," said Yoni Assia, CEO and Founder of eToro. "It confirms that our users crave a simple yet innovative way to access and invest in the financial markets. Our users share a common financial goal and help each other to achieve it. This is best reflected by the readiness to copy the trades of any other user in the network. Since full transparency is the true essence of our social investment network, we see our network getting smarter and better at picking the right investment opportunities every day."
Later this year Prof. Sandy Pentland and Dr. Yaniv Altshuler of MIT will release a study made in collaboration with eToro. The subject of the study is finding a sustainable trading mechanism.
eToro is the world's largest social investment network, with over 2.75 million registered users in over 190 countries and thousands of new accounts opened each day. eToro leads the social trading revolution through its community powered network, which enables every investor to see, follow and automatically copy the actions of other investors in real time. eToro's mission is to revolutionize the way people access the financial markets and make their trading experience more social, simple, enjoyable and transparent. By harnessing the wisdom of the crowd every member of eToro's social trading network benefits from accelerated information exchange, knowledge sharing and the ability to quickly identify the best investment opportunities. With a wide range of award-winning mobile and web-based social trading tools eToro appeals to every level of trading expertise, and provides an investment experience like no other before. For more information, visit us at http://www.etoro.com
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