Forex social trading broker, eToro, has been granted UK financial regulation approval from the Financial Conduct Authority (FCA).
eToro is a pioneer in social trading and has one of the largest active social networks available today. Social trading encourages traders to network with one another to discuss, invest and share knowledge by way of a broker's online platform. According to eToro, the appeal of social trading is that it "?opens up the market to people who are interested in experiencing a new investment alternative". eToro expressed appreciation to the FCA for classifying it as a UK regulated company and for giving it the stamp of approval for investors who would "?like to explore the simple, engaging and exciting world of social investing."
Since its inception, eToro has officially steered away from traditional Forex trading and it is now branching out as a social platform only. One of its unique features is its ‘Social Guru Trading Program' where ranked traders can make additional money when another trader copies his/her investment. These social mavens cover a broad base of trading across many different countries.
As first reported by Forex Magnates, in addition to receiving its license, eToro is planning to open a new office in the UK. Avi Sela, COO at eToro, indicated that the UK office will handle trading opportunities to larger groups while the operation in Cyprus will provide mainly customer service to all its clients. eToro also pointed out that the UK licensing is by no means any indication of contracting its Cyprus operations, with the UK business solely working alongside the broker's main operations.
There are still only a few Forex brokers who focus primarily on social trading. eToto's successful regulatory approval can have a significant impact on the entire Forex arena. It remains to be seen whether this trend will truly catch on and if eToro will revolutionize the trading community, or whether such a shift will be a turn off for truly professional traders.
So, are you trading socially yet? Do you plan on it?