Here’s how you use crowd wisdom to make benchmark busting investments
0Here’s how you use crowd wisdom to make benchmark-busting investments.
eToro’s CopyFunds combine traditional investment management with cutting-edge financial technology to create a unique investment product.
The “Fintech Revolution” triggered numerous innovations and investment methods that have changed traditional trading and investment industries. While initially, the internet gave almost anyone access to day-trading and other investment practices, it was only when features unique to online trading emerged that fintech became an industry of its own.
A prominent aspect in fintech, which was prompted by the Web 2.0 revolution of the early 2000s, is social trading. This practice adds a community aspect to trading and investing, encouraging dialogue and a mutual exchange of knowledge. Pioneering social trading, eToro has created a community that numbers millions around the world and has leveraged its massive user base to create a brand new financial instrument: CopyFunds.
Comprising a group of top traders, or several financial instruments following a predetermined market strategy, CopyFunds offer a new way to invest in the long-term by accessing a ready-made portfolio. Each CopyFund is managed by eToro’s Investment Committee, a team of financial experts, including licensed brokers, and some are even powered by artificial intelligence and machine learning algorithms. CopyFunds are roughly divided into two types: Market CopyFunds and Top Trader CopyFunds.