Social trading/investing

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9th Jan '18 by Investor & Trader

8 comments 4764 reads

Just a thought.

There are sites like Etoro that support copy trading but the selection of securities/stocks is limited and aim at trading only, so is of no interest to me.
The closest I can find is Wikifolio which is a German site but again seems slightly limited to stocks available.

Are there any other sites where we can copy investors and have a broader selection of stocks i.e UK stocks

It would be great if some of the 'gurus' on here would be willing to allow copy trading to i.e PhilH etc....

Thoughts....

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Investor & Trader

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Investor, Trader and Financial Educator As a long term investor/trader I have consumed hundreds of financial books and endured countless hours of self education. Hopefully my contribution through my channel will reduce the learning curve duration of many aspiring traders by providing the key information in a concise and enjoyable manner. https://www.youtube.com/channe... more »

8 comments

PhilHofGrowYourDough

10th Jan '18

I'd love to run a social trading fund but the stocks I invest in just aren't covered by the existing social trading platforms.

Investor & Trader

10th Jan '18

Sure that's what I'm finding Phil, shame really as I was hoping to allocate circa. 10% to a social fund, and if we could get a few from here it would be great.

A well followed fund seems to offer decent reward to the 'fund manager' too.

Gromley

10th Jan '18

Not totally sure what you are advocating here gpacker?

Are you specifically talking about a "fund"?

I believe Paul Scott ran a fund at one time, but didn't like the responsibility - which I can understand.

OTH - If you have any favoured contributors here who run a fantasy fund, you could ask if that is broadly representative of what they really think.

On a more "social" note, your post reminded me how popular "share investment clubs" seemed to be back in the 90s. I'm not sure if they still are popular, but I wonder at the logistics of setting up such a club online?

There are certainly a number of contributors here with whom I'd be happy to pool investments (no idea if that would be a mutual feeling however).

Investor & Trader

10th Jan '18

Hi Gromley,

The closest example I can give is Wikifolio, you can copy a traders exact trades as and when they trade automatically, so theoretically you get the same result passively.

The more followers of the portfolio being followed the more earnings for the trader running the portfolio.

I see it as a win win providing the trader (as you say) is willing to take on the responsibility.

pippasfan

11th Jan '18

I think I would be worried about who holds the purse, with everyone’s subs

Investor & Trader

11th Jan '18

Hi Pippasfan,

No individual has access to the funds, it works via a broker who executes in the same way as the trader.
I too would not be keen on handing over funds to an individual, if that were the case.....

cig

11th Jan '18

It's still a bit hazardous as the fund manager could leak funds through side channels, for example once you get material funds "under management" it may be tempting (for the fund manager or a hacker who gets their credentials) to say use it to run a pump and dump on a micro-cap (buy illiquid stock from another undisclosed account, pump it with subscribers' funds, sell secret account holding to subscribers).

In any case it's a regulatory minefield, I cannot see the wikifolio model getting approved by US or UK regulators. It works in Germany (for now) as regulators there are a bit slow and not really doing consumer protection.

Investor & Trader

11th Jan '18

Hi CIG

I believe ETORO in the UK are approved and have the same model.

I hear what you say in regard to trusting the fund manager, I'm sure you can set a limit of exposure to any one position though too.

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8 comments

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