Well known social trading network eToro, which has traditionally focused primarily on Foreign exchange trading has announced that it plans to introduce 50 new stocks onto it’s platform. Recently eToro has been trying to move away from being focused primarily on Foreign exchange and the introduction of new stocks to the platform seems to continue to this trend. A limited of stocks have been available to trade at eToro for some time now, with eToro offering its user base the possibility to trade Yahooo, Zygna, Facebook, Apple, Microsoft, Facebook, Amazon and Ebay. However the introduction of 50 new stocks looks to move away from eToro’s stock offering being primarily focused on tech and internet companies, with major brands such as Coca-Cola, Nike and Disney being mentioned.
This seems a strategically sound move by eToro who are differentiating themselves from many of their social trading rivals who are solely focused on Forex trading. At the time of writing for instance those using the ZuluTrade social platform could only use the platform to trade Forex, though I am aware that ZuluTrade has been looking into the possibility of adding non-Forex instruments to its platform. The introduction of a wider range of stock instruments is surely likely to attract a new customer who is interested in the possibilities of social trading but are not interested in Foreign exchange. By going for big global brand names eToro is hoping to attract the largest possible audience to it social trading network and this seems a sound business move.
I imagine the next big move in the world of social trading will see those in the industry moving away from simply offering traders the ability to use their networks to trade Forex, to include a more diverse range of instruments. Many in the general population see Foreign exchange as a rather exotic instrument and are much more familiar with stocks and commodities. By offering a diverse range of instruments social trading platforms can reach a wider range of customers. It still remains to be seen whether the most popular trading gurus at the eToro platform will begin to embrace stock trading.