Social network for investors eToro opens a representative office in Russia

    Sberbank Venture Fund SBT Venture Capital became a co-owner of the social network for investors eToro in November 2014, having invested $ 27 million together with the Chinese corporation Ping An . Now it has become known that eToro opens a representative office in Russia.

    The head of the social network in Russia Pavel Salas confirmed that a full cycle of services in Russian is being launched in our country. eToro combines the functions of a trading, social and mobile platform. Social network users can invest in portfolios of other traders, manage their investment portfolio, open and close positions, and place trading orders. In addition, the investor can “copy” to himself any deal that he likes.

    The number of network users in 140 countries reaches 4 million. Among them, Russian users are still less than 5%. “But the market has high potential, we hope to increase the Russian audience many times over, ” Mr. Salas told Kommersant.

    To start in Russia, eToro plans to invest about $ 3-4 million in marketing. After a year and a half of work in the Russian market, the project is expected to reach profitability. eToro earns revenue from the price difference between buying assets from counterparties and selling it to the end user, Salas explains. Of the proceeds thus obtained, a commission is paid to counterparties and deductions to popular investors, whose transactions were “copied” by other users.

    EToro's Russian competitors are Alpari ,Plus500 , Forex Club , and Finam . But, according to Andrei Romanenko, Run Capital managing partner , their competitive advantages lie only in the size of the commission, the stability of the trading terminal, the range of instruments, and so on. “At the same time, the potential market size is quite small and amounts to several million active users in the world. In such conditions, platforms are fighting for their users, primarily through marketing, ”said Mr. Romanenko. Therefore, in such a situation, eToro as a social network, especially for the younger generation, looks preferable to other similar services.

    According to Interfax-CEA, Forex market over the past year declined by 20%. The leading players were: Alpari - 120.0 thousand customers (28.3% of the market), Forex Club - 71.8 thousand (16.9%) and Teletrade - 61.5 thousand (14.5%).

    According to Alexey Solovyov, Managing Director of Prostor Capital , the largest online brokers are waiting for the growth of the Russian Internet trading market.

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