Welcome to my next article. I would like to focus on the theme, which includes the social investment. Why did I choose this topic? Well … I have come recently to the conclusion that there is no investment project that would be for me indifferent. Of course, regardless of whether everything seems to be so beautiful that even unlikely, or contrarily. Personally, I have realized that in this type of industry it is impossible to predict and analyze the viability of the project and the good intentions of the company, which often manage them.
And in this way you can lose a lot for something in which you place great hope, and vice versa – you can gain something in which initially you did not believe. Why I talk about it? Recently, I have met with the project such as – eToro. Cypriot trade project on Forex currency exchange.
Of course, the Forex platform somehow never deterred me, although I have not, because it was sometimes doubtful, but I have always been attracted to this. I like eToro maybe because it is the platform that the premise is to allow you to copy the movements that are to have a good effect of capital management. I thought, therefore, that what could be more beautiful? But in turn, we choose here a few promising traders. Sequentially we monitor their actions, respectively moving the capital in order to reduce risk to a minimum. It should however be borne in mind that it may happen that after a few months there you will not diversify…
But I’ll start from the beginning, i.e what types of brokers we have and I’ll also mention what they actually earn.
Broker – intermediary in a transaction between investors and the user and the platform, we can call eToro as the broker. We distinguish two types of brokers:
- Market Maker.
What is it with these brokers
The first of them occurs when we play against the platform. You can go ahead and compare the online bookmaker. That is a way to determine the value of currency and take bets to earn, of course on Forex is similar situation. Here, playing against the platform, it is in its interest that we were losing. ECN occurs, then, when the broker mediates between us and other investors with whom we somehow assume. The broker in this case is not interested in which party ultimately earn, because he will charge his fee from each market participant.
So you can easily conclude that playing at the Market Maker is very easy to lose money, because the broker depends on that we lost.
Now I think you can already guess that eToro is a broker of the type of Market Maker and earns it, when we lose. Therefore, if the trader goes to some very well and generates high profits with big capital, eToro immediately tries to dispose of such delinquent. It might seem, therefore, that it is impossible, in the longer settlement of that success on the platform.
However, at high intentions you can really earn. The evidence of this can be the fact that some traders the profits reach as high as several hundred percent per year at 100% profitable weeks. The reality of course is difficult and eToro cleverly camouflages everything. What’s more, the application on the Forex currency market is written in the form of „a web” andit is more like a toy for children than a tool for investors. Therefore, we do not find here charts, various studies and so on. But it’s a very simple to use.
We get this information for example. – ,,Now 68% of traders open short positions on the pair USD / JPY „what can be very helpful in making investments.
Why are there popularity and the many positive recommendations from existing members of the community? In fact, the secret lies in the affiliate program, from each of the closed position, the person who recommended you eToro receives a small commission. However, the commission multiplied by the number of opening and closing position gives you a very good income. Especially when we have a lot of recommended people in the structure. Therefore, many people will unscrupulous argue to profit at eToro.
How much can you earn by recommending eToro?
On the website is the information that I can earn up to $ 100.00 which may be true, as the affiliate programs of forex exchange systems are among some of the most profitable. Social platform can also be recommended using CJ affiliate network. Here you get for Lead up to $ 200.
If you want to start making money through recommending affiliate programs be sure to check the entry describing the passive income.
You can earn here, but you must be lucky, for example, when we stop copying a given trader at the right time. In other cases, we may be almost certain that the capital eventually starts to melt, because the trader suddenly begin to lose. I am in favor of telling the truth, so I do not mind that someone will profit from my investments, because he invited me to the project.
Social Investment is the future
One of the best way to get to know the functionality and properties of the social trading is handwritten test at the free demo account. The ideal educational tool allow you to make mistakes that cost nothing! But we get the knowledge, skills and experience that are invaluable.
In summary, if such investments are profitable? I’ll say this, as in life, every success-oriented action is accompanied by the risk of failure. Also in this area we do not get one hundred percent guarantee, because social trading is not without flaws. It provides a whole range of different investment opportunities and it is just not to be underestimated. But the most important skill is properly choice of suppliers of systems and to copy to your portfolio.
After noting the opinions on the Internet I decided that now I remain under the traditional method of investing, but I will continue to follow the development of the platform and try to look for other systems that have a more positive opinion. And most importantly I personally think that we should not focus on the Market Maker, because there is a suspicion that the platform can work to our disadvantage.
The following video presents well explained the basics of forex trading platforms.
But this form of investment is certainly very interesting and it is worth to take a closer look at it. Please write if you ave some experience with eToro social investment platform.
But this form of investment is certainly very interesting and it is worth to take a closer look at it. Please write if you
NOTE: I present private opinions and I am not responsible for the readers’ decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser.