The Israeli forex broker and social trading platform developer eToro announced the launch of a new generation of investment product – the CopyFunds, which will enable traders to develop and follow investment portfolios on various market strategies.
Each CopyFund has a unique market strategy and bundles together financial assets of any kind, under a chosen strategy or theme. The CopyFunds will be packaged in Top Trader CopyFunds with the best performing and most sustainable traders on eToro’s platform. Another package will be Market CopyFunds consisting of specially-selected instruments, such as stocks, commodities or ETFs allowing investors to track a wide array of sectors around a defined market strategy.
Top Trader CopyFunds are selected and ranked by an algorithm that selects the best performing traders on the eToro network.
The machine learning technology will also make sure that the CopyFunds will be analyzed and rebalanced automatically to maximize the potential of returns for investors.
According to eToro, the CopyFunds are mostly addressing the millennials’ intentions to trade in the future. The company quotes a survey of the consultancy Roubini ThoughtLab which shows that 26% of investors plan on following the trading strategies of others via social trading and 21% plan to rely on robo-advice rather than on professional advisers.
“We have dedicated the last decade to shaking up the world of trading. With the launch of CopyFunds™, we’re taking aim at a closed and traditional fund management industry by combining the wisdom of the crowd and machine learning,” said Yoni Assia, CEO and founder of eToro.
The minimum sum that can be invested in a CopyFund is $5000.
eToro was launched in 2008 and offers a social platform for investors to communicate, share strategies and trade in forex, CFDs, commodities, indices, stocks and exchange-traded funds (ETFs). It has more than 5 million registered users from 170 countries across the world.
eToro has licenses by UK’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and Belize’s IFSC.