Here’s a really interesting tidbit that I recently discovered. During the recent Brexit event, when markets were wiped out and a huge the pound dropped to record breaking levels, traders on etoro still managed to make a profit. In fact the majority of traders correctly predicted the outcome of the referendum.
According to etoro’s CEO, traders made a 2.41% return during that period.
Why does eToro perform so well in turbulent markets?
The majority of people on the platform are copy trading. They aren’t making trades themselves, but rather using the natty copytrade feature, which lets you automatically copy the trades of guru traders. This means that beginners aren’t betting wildly on the market, and instead are letting better and more experienced individuals make the tricky analysis.
This whole just goes to show that social trading is the way forward. Forex is extremely risky. And so is CFD trading. That’s why I love the approach of etoro. By copy trading across numerous traders, you spread out the risk and forex suddenly looks like a more profitable investment.
Were you copy trading on etoro during Brexit? How much money did you make? Let me know in the comments.