Founded in 2007, eToro is making its name in the fast paced world of CFD/Forex trading. From its origins in Cyprus, eToro is now available in the United Kingdom and United States. eToro attracts a variety of traders: day traders, news traders, shorts/commodities/FX traders, and various speculators with high risk appetites. The Forex brokerage market is crowded, and it is difficult to find quality, but there are certain characteristics that distinguish eToro from the rest of them.
Social Trading – Openbook
The key to eToro’s success is their innovative social trading model. Using their proprietary Openbook platform, users can freely discuss trades and strategies. They can also directly copy the trading strategies of well-known and successful users. This isn’t cheating; in fact, it’s encouraged. Copying is central to eToro’s brand identity. It lets users allocate certain portions of their portfolio to mirror the trading behaviors of certain “gurus” and Popular Traders.
It’s easy to see the success of these Popular Traders over time so you get a good idea about who you are getting involved with. This is just one of the ways that eToro encourages transparency in their fast-paced trading format. eToro goes a step further in verifying their Popular Investors. Many of these users have verified accounts. Other users see their real names and pictures, building an important level of trust into this social trading platform.
In late 2015, eToro merged their Openbook and WebTrader platforms to create one seamless experience. They launched this as “The New eToro”, and the results have been excellent, especially for people who were already fans of the service. Their new suite of mobile apps for phones and tablets work well and sync perfectly with your regular desktop account. In July 2016, eToro added CRM (customer relationship management ) for their Popular Investors. These investors now have a lot of ways to communicate with their copiers. Some of these investors have more than $300,000 that they manage, and eToro makes it worth their while with 2% the annual value of the funds they manage.