eToro Social Trading Platform | Mati Greenspan | Interview (2020)

eToro is now a massive player in the markets, with it’s social trading platform being something of a “new kid on the block”. Is social trading or copy trading for you?

Mati Greenspan was (until recently) Senior Market Analyst for eToro – he is a wealth of information and took some time to share his views on eToro’s expansion into Australia and explain the driving force behind the growth of eToro all over the world.

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By Trader Cobb -

Hey, I just bought Apple stock and look it went up and people are here I want to verify that is he telling the truth? Ah because everyone’s obviously post moves with hindsight trades, there are planty of them. Exactly You got anybody can say anything in the chat room, right?

So at the moment when we did that we built a separate website called the open book, which was for tracking people’s trades and then you can see exactly what they’re trading and their portfolio and their stats and everything like that. And then obviously, the next step in the evolution is, hey, that guy’s doing really well. I wanna copy him.

The TraderCobb crypto show talking business in blockchain.

This video is proudly sponsored by Get across the website and check it out. Today we are speaking with Mati Greenspan, who’s the senior analyst, I believe at eToro. Mate, it’s a pleasure to speak with you.

Pleasure is mine. How’s it going? Mate, great! These events are always pretty full on. How have you found so far here in Malta? It’s a zoo man.

I cannot argue with that. Lots of people that are doing all sorts of things. I want to talk to you about eToro, what you guys are doing. We said a big push from eToro into Australia. Yeah, of course. You’ve been around for a long time. It’s not a new business. So what’s the draw in Australia?

Australia is a beautiful market. Lots of amazing people. And I think I’ve always held high opinion of Australians for sure. But it’s it’s a great market, a lot of good people and people who like to trade and that’s what we’re all about. Opening up the financial markets for everybody to be able to trade in.

Excellent. So what took you so bloody long then? Well, you know, I don’t know. It, we’ve always we’ve always been interested in the Australian market. No doubt. Yeah. I suppose that, you know, regulatory and budgetary concerns, but I we’re here and very happy to be.

Mate it’s a pleasure to have you here. And we’re we’re looking forward to seeing what you put into the space. So tell me a bit about the products of your trading. I mean, I know that you’ve recently bought digital assets into the space as well. So what have you got for a crypto standpoint?

I know you’ve got equities. I think you’ve got bonds, commodities, stocks, all that sort of stuff, the full suite of package for trading and a lot of great margin project also a lot of great margin products, because we as traders love right. So what are you doing in the blockchain? Well, the crypto asset space.

So eToro is a social trading network. Yep. And there’s over 2000 different assets that you can trade on. And that’s anything from currencies, commodities, ETFs and indexes, stocks, and of course, crypto. So that’s the main idea is that just to allow everybody to have that freedom.

And as you’ll notice, it’s a very user friendly platform. So as soon as you download the app or go to, you’ll be able to just see how easy it is to open an account and open a trade and to see and copy other people. And that’s really for us. That’s the foundation.

Well, that’s the interesting thing about eToro is that you can I mean, I’m not sure if the inventors you could possibly could be that social trading aspects. How does it work? Tell us about how that social trading following copying how that system works. Is there a ranking?

Is there a competition? Like how does a whole follow me work? Yeah. So well, the best way to do it is just to experience it right? You know, of course! Try it out. Well, what I’ll say is that the way to think about it is like kind of Facebook for finance, right?

Where everybody who opens an account, automatically they upload their picture, you can see their portfolio, what are you what are they holding, obviously, in percentage terms, you know, the amount of money. Yeah.

But you can see what are they trading on when they open a position when they close the position and their stats. Right? You can see their stats and their risk score, the risk, everybody’s got a risk scoure from 1 to 10. You can see how risky they are. And then you can see their stats, how consistent they are.

And then basically if you like a trader, you can just allocate money to them, say $1,000 $10000, whatever you like, and then that money will automatically mirror whatever they’re doing in their portfolio.How does that work from the traders perspective? I mean, obviously, they’re putting themselves out there.

I mean I’m sure that they’ve got a lot of pseudonyms and, you know, profiles and all that is not showing who they actually are. But how does it work for the trader? What are their benefits?

So first of all, if anybody wants to amass a large following in eToro, they do need to show their real name. Ah okay. Good that’s really good to hear. And they do need to have a significant amount of capital from their own money in order to in order to rise up among the ranks.

The so the system is called popular investor program. Okay. Where anybody who wants to amass a following is going through tiers. So you start out at the lower tier, you can have up to a certain amount of assets under management.

And then once we see that they’re performing, okay, and that they’re adhering to the community standard, then they can rate rise up the ranks and then the top tier the top tier is the elite traders. Yeah. At that point, they’re already making a percentage of the total asset’s under management.

So 2% on an annual basis on annualized basis, they can make directly as as a reward for being… And how does it work for eToro? And you’re just basically making money off the transactions of trade? Like a normal broker?

Yeah, just for a broker we have the spread fees, there’s no fees for opening an account or anything like that. It’s just when you can make a trade you’re paying that you’re paying a spread, commission on that trade. And when you’re copy trading is the same thing.

There’s no additional fees for copying anybody. It’s just the it’s just the spreads. I mean the spreads is that does that go across for Bitcoin as well as it does for stocks? If I trade US equities and other platforms I’m paying a fee in and I’m paying a fee out, and that can become quite expensive when it comes to scaling out to manage your risk in your position.

Because you got to have two or three different positions with two or three different sets of commission times two at each of your entry and exits. How does that work? Is it just the fixed spread or is the you know fees on trading certain markets like the US equity market for example.

Yeah, well it is gonna be different depending on what you’re trading obviously. I try to make it as transparent as possible. We also introduced in some region, the free stocks with zero commissions. And we’ve seen that just after we did that Charles Schwab did the same thing. Right.

We’re we’re… – That had occured. – getting a trending market here. But you can always go to the fees page and see exactly what it is. And then as far as if there’s any kind of rollover or something like that, you’ll be able to see very clearly on the position itself.

Or even the dividends or you know, if you’re if you’re getting money for holding the position, you’ll see it right there on the position. It’s always transparent. Yeah, okay. And look when it comes to back to talk about Australia and what the business is doing that I know eToro it’s a it’s a global business now.

It’s huge. How many staff have you guys got around the world at the moment? I’m not entirely sure. I know that our Australian office is relatively new. Yeah. One of our power players, Mori Samama, he’s been in he’s been in eToro for years already and a very good friend of mine and we send them over there.

And of course, the managing director, Robert is an amazing guy. So I’m very confident that they’ll be able to they’ll be able to introduce and scale the region in the proper way to help more and more people trade. How long have you been in Australia for?

I mean I’ve seen the ads coming up, right? Some amazing ads, by the way, well done. But how long have you been… How’s that for a marketing team? Oh, I mean, they know what they’re doing. Absolutely nailed it.

Yeah. But I’m like, how long have you been in Australia? And how’s it going traction wise. I mean, a new player in the scene, obviously, a lot of power, a very strong brand. And an eToro is a new concept to what we have currently in Australia.

It doesn’t kind of exist in that sense of the following of people in that sense. It’s quite new the copy trading side. I’ve known there has been around for a long time. But, not in Australia. Copy trading itself is relatively new. Yeah, yeah. It’s something that was born inside of eToro.

Just as a way of us listening to user feedback. So the first implementation of copy trading was actually a chat room. Ah, our customers came to us and said: Hey, I want to talk to other traders. Yep. And you know, that was like 2010 2011 chat rooms were popular back then.

And we just put one right into inside the platform. And we thought people, you know, interacting with each other. The next level was, you know, obviously, you have people saying, Hey, I just bought Apple stock and look, it went up. And people, hey, I want to verify that, is he telling the truth?

Ah because everyone’s obviously post moves with hindsight trades, there are planty of them. Exactly. A guy, anybody can say anything in the chat room, right? So at the moment, when we did that, we built a separate website called the open book. Yep.

Which was for tracking people’s trades, and then you can see exactly what they’re trading in their portfolio and their stats and everything like that. And then obviously, the next step in the evolution is, hey, that guy’s doing really well. I wana copy him, right?

So this copy trading is not something that was born in a boardroom. Yeah, it’s a rather it’s an evolution… Organic growth. Of some of you know, social media, which is all around us. And something that is step by step by step and then obviously 2014 we put it together, which is the open book and the platform and we put it all into one.

Mobile trading was getting really popular then. And we said, okay, single experience, if you go to or if you download the app on Android or Apple, you’ll get that same look and feel. And you can log into the same account in multiple devices. And that’s just makes it easier.

It’s handy to monitor your positions and move your stops that’s the only reason I would do it. I am trading Yeah, just simply because you got your phone with you all the time. That’s right. It’s dangerous. It’s dangerous man. We’re giving people the opportunity. I hear what you are saying.

I mean, how’s the uptake going in Australia so far? There is there’s a danger of overtrading no doubt for me, you know, I’m going to be by the computer when I’m doing my analysis. I’m always going to be checking the market with my phone to see what the prices are doing and see what’s moving what’s not.

And I think that I think that for the everyday person, if you’re if you’re in danger of over trading, the best way to take care of it and the best way to deal with that is diversification. Right? If you’ve got hundreds of different positions, it’s okay if you tweak – Yeah – one or two of them every day. That’s Fine, right?

The problem with overtrading is if you’re all in on one thing, then you’re paying huge commissions. And you are scared, you’re nervous, you’re emotional. Yeah, exactly. But if you got hundreds of different trades, it’s okay.

You can take your time say, okay, I like that position, let me add to it or let me sub.. I don’t like that one, let me subtract from it. And then you don’t you’re not in that in that position of overtrading. And like, what can we expect to see as the rollout for eToro in Australia?

I mean, you’ve got obviously you want to get the market, you want to capture that market? How are you doing it? I know you aren’t one of the marketing team. But I mean, there must be a pretty big planning plan because we do have an active trading market.

What are your thoughts about how are we going to get people in. Unfortunately, wouldn’t be able to comment on that specifically. No – We tried. – No spoilers. We tried. But I know that there are the correct people, I know them personally.

They’re very sharp and just good people. So I have no doubt that they’ll be able to tackle this challenge and to and to bring it forward. Yeah, no doubt. So you’re at Malta Blockchain week. I’m at Blockchain week. As am I. Hence the interview you work that one out, ladies and gentlemen.

What like why are you here? Like, I mean, I know eToro does have the crypto asset space on its platform? Yeah. What’s your purpose being here man? I was invited. They said: Hey, come to Malta, we’ll put you on the stage and it’s okay, no problem.

And so they gave me a half an hour fireside chat that’s at 4:30. And they put me on another panel, which is talking specifically about the integration of crypto into traditional finance, which is a field which I find extremely fascinating. But other than that, as soon as I confirm this, I mean people on LinkedIn like.

Bang, bang, bang. Just yeah, back to back today. Like I said, a zoo. Yep, it is a zoo. It’s been an absolute pleasure talking to you. Where can people find out more in Australia and all over the world about eToro?

What should they be doing with them like? That’s go to if you’re on the computer or download the app. I’m always available if you have any questions on Twitter or LinkedIn so jus hit me up.

Mati Greenspan on Twitter? Mati Greenspan. Excellent ladies and gentlemen, it’s been an absolute pleasure speaking with Mati himself. Thank you so much for your time sir. Have a great day! Enjoy the show and we’ll get back to you very soon bye for now.

The TraderCobb crypto show talking business in blockchain

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