How Much Is Financial Advice Worth? The Transparency-Revenue Tension in Social Trading
Published Online:25 Oct 2021https://doi.org/10.1287/mnsc.2021.4147
References
- (2020) Do individual investors trade on investment-related Internet postings? Management Sci., ePub ahead of print October 20, https://doi.org/10.1287/mnsc.2020.3733.Google Scholar
- (2020) Copy trading. Management Sci. 66(12):5608–5622.Link, Google Scholar
- (2017) What’s going on in the social trading and investing space. Accessed June 3, 2018, http://blog.thomasbrand.xyz/2017/10/19/what-does-social-trading-and-investing-mean-in-practice/.Google Scholar
- (2017) Social recognition and investor overconfidence. Working paper, Leuphana University, Lüneburg, Germany.Google Scholar
- BrokerNotes (2018) The modern trader: A report on the 13.9 million online traders. Accessed October 9, 2018, https://brokernotes.co/modern-trader/.Google Scholar
- (2012) Effective delays in portfolio disclosure. J. Financial Regulation Compliance 20(2):196–211.Crossref, Google Scholar
- (2015) A primer on social trading networks–institutional aspects and empirical evidence. Working paper, Ruhr-University Bochum, Bochum, Germany.Google Scholar
- (2017) How social media is shaping financial services. Accessed August 1, 2018, https://www.huffingtonpost.com/richard-eldridge/how-social-media-is-shapi_b_9043918.html.Google Scholar
- FX Empire Editorial Board (2017) The Forex industry in 2018: Regulation, market size, and the future. Accessed June 3, 2018, https://www.fxempire.com/education/article/the-forex-industry-in-2018-regulation-market-size-and-the-future-447777.Google Scholar
- (2018) Effects of transparency: Analyzing social biases on trader performance in social trading. J. Inform. Tech. 33(1):19–30.Crossref, Google Scholar
- (2016) Peer pressure: Social interaction and the disposition effect. Rev. Financial Stud. 29(11):3177–3209.Crossref, Google Scholar
- (2011) Tell me a good story and I may lend you money: The role of narratives in peer-to-peer lending decisions. J. Marketing Res. 48(Special Interdisciplinary Issue 2011: Consumer Financial Decision Making):S138–S149.Google Scholar
- (2018) The fund industry is overdue for change. Accessed October 9, 2018, https://www.barrons.com/articles/fund-industry-1538767780.Google Scholar
- (2017) Average mutual fund return. Accessed October 9, 2018, https://www.creditdonkey.com/average-mutual-fund-return.html.Google Scholar
- (2013) Social trading targets savvy retail investors. Financial Times. Accessed June 1, 2018, https://www.ft.com/content/7fbe1624-d9bf-11e2-98fa-00144feab7de.Google Scholar
- (2015) Whom to follow on social trading services? A system to support discovering expert traders. Tenth Internat. Conf. Digital Inform. Management ICDIM (IEEE, Piscataway, NJ), 188–193.Google Scholar
- (2018) Fintech: Ecosystem, business models, investment decisions, and challenges. Bus. Horizons 61(1):35–46.Crossref, Google Scholar
- (2014) Do security analysts speak in two tongues? Rev. Financial Stud. 27(5):1287–1322.Crossref, Google Scholar
- (2012) Which information should entrepreneurs on German crowdinvesting-platforms disclose? Thünen-Series of Applied Economic Theory Working Paper 127, University of Rostock, Rostock, Germany.Google Scholar
- (2020) eToro reaches 13 million users, spurred by covid-19. Accessed February 14, 2021, https://finovate.com/etoro-reaches-13-million-users-spurred-by-covid-19/.Google Scholar
- (2016) Benefits from social trading? Empirical evidence for certificates on wikifolios. Inteernat. Rev. Financial Anal. 46:202–210.Crossref, Google Scholar
- (2012) Decoding social influence and the wisdom of the crowd in financial trading network. SOCIALCOM-PASSAT’12 Proc. 2012 ASE/IEEE Internat. Conf. Soc. Comput. 2012 ASE/IEEE Internat. Conf. Privacy Security Risk Trust (IEEE Computer Society, Washington, DC), 203–209.Google Scholar
- (2018) About the fear of reputational loss: Social trading and the disposition effect. J. Banking Finance 94:75–88.Google Scholar
- , Yonker SE (2015) The people in your neighborhood: Social interactions and mutual fund portfolios. J. Finance 70(6):2679–2732.Crossref, Google Scholar
- Reuters (2018) Israeli social trading firm eToro raises $100 million in private funding. Accessed August 1, 2018, https://www.reuters.com/article/us-tech-etoro-fundraising/israeli-social-trading-firm-etoro-raises-100-million-in-private-funding-idUSKBN1GZ15S.Google Scholar
- (2019) What drives investment flows into social trading portfolios? J. Financial Res. 42(2):383–411.Google Scholar
- (2017) MiFID II: Entering the age of the completely self directed traders, as the final nail goes into the copy trading coffin. Accessed October 7, 2020, https://financefeeds.com/mifid-ii-entering-age-completely-self-directed-traders-final-nail-goes-copy-trading-coffin/.Google Scholar
- SocialTrading Guru (2020) Social trading for USA residents. Accessed October 7, 2020, https://socialtradingguru.com/social-trading-for-us-residents.Google Scholar
- (2013) Better than the original? The relative success of copycat funds. J. Banking Finance 37(9):3454–3471.Crossref, Google Scholar
- (2018) The persuasive and informative effects of information disclosure: Evidence from an online supply chain finance market. Working paper, University of Washington, Seattle.Google Scholar

