Etoro has delivered on its promise of expansion in 2015 as it launches its real time single stock CFD trading. The Cyprus based social trading company allows its users to watch the financial trading activity of other users and copy them.
Previously, stocks were tradable on etoro’s platform but not in real time. Client orders were taken and aggregated, with the orders being filled once a day similar to a mutual fund operation. The new system allows full CFDs trading, but rather than the full price, stocks will be offered with a fractional share trading method as position sizes will be taken based on dollar amount rather than on share price. Therefore, in an Apple contract for instance, a client can only by Apple CFDs in increments of $25 rather than 1 share of Apple (AAPL) at $127. The fluctuations in price will be based on real time market movement.
As Etoro launches stocks trading, this upgrade serves a dual benefit to traders. The new stock trading capabilities serves as a means of diversification, as well as to leverage on the broker’s social trading capabilities to earn additional income after the trader creates a following.
Other new benefits include the ability to short trade stocks and the addition of 2x leverage. Many more instruments are expected to be added inline with the company’s motive of offering a very wide range of stocks and other instruments.