One of the world’s largest forex brokers has announced the launch of a brand new ‘themed investment’ scheme.
eToro, the social trading network, has revealed their new offering CopyFunds; investments that work by bundling together financial assets by strategy or theme.
The investments will be created and traded on eToro, widely recognised as one of the globe’s best CFD brokers. CopyFunds are set to enable investors to invest in a bundled group of high-performing traders as well as predefined market strategies.
CopyFunds will be divided into Top Trader CopyFunds and Market CopyFunds. Top Trader CopyFunds will comprise the best performing and most sustainable traders on the network and will be built using machine-learning technology that selects the best performing traders on the eToro network.
Market CopyFunds will be made up of specially-selected instruments such as stocks, commodities or ETFs. These will allow investors to track a wide array of sectors around a defined market strategy.
eToro’s aim is to help investors minimise long-term risk and promote opportunities for growth by creating a diversified investments. CopyFunds will be analysed in depth and rebalanced automatically to maximise the potential of returns for investors.
Yoni Assia, CEO and founder of the CFD broker, said: “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.”
eToro aiming to support changing attitudes towards investing
CopyFunds are designed to address the way that investors are set to want to trade in the future.
Research from a leading consultancy shows that 26 per cent of all investors plan to follow the strategy of others using social trading, with three in ten millennials set to adopt this approach.
The research also found that 21 per cent of investors plan to rely more on ‘robo-advice’ than professional advisors.
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.