eToro, a multi-asset broker and social trading network, launched earlier in January a new investment product called CopyFunds, which is a new reading of exchange-traded funds (ETFs). The minimum investment required for CopyFunds is $5,000.
CopyFunds implements a concept, under which investors can choose from two types of investments – Top Traders CopyFunds, which comprises of the top performing eToro traders, and Market CopyFunds, which presents a predetermined market strategy for trading in a portfolio of assets, being it ETFs, currencies, contracts for difference (CFDs), stocks, indices, or commodities. While the first type is based on a trader-only portfolio, the Market CopyFund is asset-based.
CopyFunds are structured rather as medium- to long-term investments with conservative risk and gain. For this reason, they require medium- to long-term period of time, although investors can claim their money back at any moment at market price.
In late 2016, eToro hinted it was working on such a product.
The eToro brand combines the companies eToro UK, regulated by the Financial Conduct Authority (FCA), and eToro Europe, regulated by the Cyprus Securities and Exchange Commission (CySEC). The brand is active in more than 170 countries worldwide. It has more than 4.5 million clients with more than 200 million opened trades.