Social Trading: the eToro revolution

person using phone and laptop computer

Social trading has become a must in the world of trading in the last few years. And eToro has established itself as the leader in this trend.

Also known as copy trading, this strategy allows newer traders to learn from their peers’ actions in the market. This way, they can understand better how to operate in the market, and it creates a helpful environment where everyone can share their knowledge and experiences.

While social trending is a great strategy, the wisdom of the crowd doesn’t come with a few drawbacks. The best way to avoid acting on misinformation is to make sure you follow the advice of experienced traders. Doing research on whoever you’re trying to imitate will guarantee you do not make their same mistakes.

Social trading platforms allow users to check out each other’s trading record, how much money they made or lost, and how long have they been in the trading game. This is where eToro has really made a difference, they have transformed loads of information into useful trading tools that all their trader can benefit from.

Since many of these tools are designed for beginners (though many expert investors normally find them useful too), eToro has made it possible for those that found the world of investing complicated, a much closer and understandable reality.

What is Social Trading?

Social trading is a form of investing that permits users to see what their peers and other investors are doing in the market. It was specially designed for beginners to be able to learn from more experienced traders, and it’s also known as copy trading or mirror trading.

This trend is available to traders with little to no experience in the market, and it’s a low-cost and creative way to invite normal people like you or me into the world of trading, opening a lot of opportunities that had been available to only a very secluded group of people until recently.

While this new investment technique has been around since 2010, only in recent years it has reached its real potential. All due to technology, since it’s thanks to trading platforms like eToro that Social Trading is possible.

This alternative way of analyzing and using financial data, and allowing users to copy investment techniques or market strategies, has opened the world of investment and trading to a whole new section of the population that had found the trading market too scary or far away until now. That’s why eToro has really revolutionized the world of market trading.

When talking about trading there are three significant trends. There is a single trader that deals in the market following its own information and instinct.

Then, there is what is normally called copy trading. This trader copies another one, but on just one operation.

Finally, there is mirror trading. In this case, the trader copies all movements and strategies another maybe more experience trader has done.

How is Social Trading with eToro?

eToro is the world’s leader in social trading. Thanks to its millions of users and highly advanced platform, eToro has collected the necessary resources to start a revolution and take Social Trading to all corners of the world.

In fact, eToro has translated the endless operations of its users into trading tools that are available to all their traders. Obviously, this is added to their already wide offer of services and markets. No surprise eToro is so respected all around the world.

Do not miss this eToro review that will finally convince you to get started today in the investing world, if we haven’t already done it.