ETORO is one of a number of new social investing platforms that rely on the “wisdom of crowds” to dispense advice and guidance to all users. eToro’s specialty is foreign currency trading, with users flipping dollars for euros for pounds for yen, and so on. You can see the recent trades each user has made, and how successful or unsuccessful each position was. It’s an outgrowth of general social networking, applied to something far more serious and personal than Facebook’s updates and photos: money. Which is why it’s a bit surprising that eToro would attract so many users. After all, there’s nothing more intimate than money, and traditionally people have gone to great lengths to keep money out of their social relationships with people they know, much less to perfect strangers on the Internet. But the world is changing, and people are a lot more willing to share intimate details online. EToro doesn’t require you to reveal information about how much money you earn or have. EToro just share your trades, so that others can see what you’ve done and learn from them. Sharing information about transactions is helpful, not harmful. EToro’s main feature is its “OpenBook network,” which lets users see what trades users are making and how they are ranked. But the most innovative aspect of the platform is that it allows users to “copy” trades made by successful traders. So if a user likes the trading style of a successful user, he can copy them to his own account and activate the same trades. You’re allowed to invest 20% of your funds (real or virtual; you get $10,000 in online money to practice when you open an account) in this manner. Of course, copying the moves of others can be risky if you don’t know their strategy or long-term plan. But it’s a good way to learn the system, and to learn about forex trading in general. ETORO tools, including copying, have simplified the world of trading an investing for users, making it global and connected. So does it work? Most definitely, eToro have statistics that show that copy trading is profitable, more so than manual trading. It makes sense. Instead of people making their own decisions, they can delegate their trades to more experienced traders.” That’s the power of social networking as applied to a site where users can make money.
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