Deep Dive: Copy trading 'narrowing the gap' between tip sheets and asset management

Innovation vs costs

Since the GameStop saga of 2021, there has been an increase in appetite for retail and DIY investing; at times, away from traditional products and services.

Although stock picking is no easy feat, and being successful at it even harder, several trading platforms have started rolling out ‘copy trading' functions, where clients are able to copy and track the portfolios of successful investors at no, or very little, extra costs. With the rise of such propositions, there has been a worry that copy trading could pose a threat to traditional asset management, as the race against lower costs intensifies, considering the incredibly rapid expansion of passives and active ETFs. Franklin Templeton partners with eToro to launch more 'Smart Portfolios...