eToro in the Financial Times

by Joe Oliver, Forex Trading-Pips

eToro in the Financial Times: 

 

 

newspaper

The final proof that we’re not the only ones excited by the possibilities presented by eToro’s social trading revolution is here – a full length article about eToro in the Financial Times!

 

The article, entitled “Wake up to the #Twitter effect on markets”, is inspired by the recent live video hangout we held with Professor Sandy Pentland and Dr. Yaniv Altschuler of MIT. As you may have heard, we are collaborating with Professor Pentland and Dr. Altschuler on a research project that aims to find a “Sustainable Trading” mechanism to elevate the performance of traders across our network. If you missed this very informative hangout, you can catch up on all the details here.

Like many other people whose eyes have been opened to our social approach to investment, the Financial Times reporter praises eToro’s move against conventional investor wisdom:

“Now, luddites who hate social media…will find the thought of following a tribal trading guru bizarre. It might also look downright foolish, given that classic investment theory suggests the best returns occur when people trade on information not freely available to the crowd.Yet 2.7m traders have flocked to eToro, performing over 40m trades, and other similar sites are springing up,” writes Gillian Tett.

“When Pentland and Altshuler conducted studies on those eToro investors, using different control groups, they found that this received wisdom about crowd behaviour did not hold true. ‘Social traders’ who received information from a wide variety of social groups – and copied a range of gurus – performed 10 per cent better than ‘normal’ traders. Those ‘socially aware’ traders also performed about 4 per cent better than traders following one or two gurus…The pattern that is emerging is clear: maintaining diverse social ties – and swapping information with several different crowds – tends to raise returns.”

To read the full article click here. (You may have to register – but it’s free)

We at eToro are very proud to be singled out by such a time honored institution as the Financial Times, and as we continue to innovate we’re certain that more and more news outlets will start paying attention to the real disruption we’re causing in the financial industry.

So look for eToro at the news stand near you!

What did you think of the article? Let us know in the comments.

….more at eToro in the Financial Times

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