Will eToro’s New AI Attempt Reshape Social Investing?

Online trading platform eToro Group Ltd. (eToro) has announced a series of artificial intelligence (AI) initiatives designed to transform the way social investing operates. The company has introduced a suite of AI-powered tools designed to give selected traders advanced capabilities typically associated with professional quantitative funds.

The new tools will initially be rolled out to the platform‘s “Popular Investors”, that is a group of vetted top traders whose strategies can be mirrored by other users through eToro’s copy-trading technology. These traders will gain access to a range of AI-driven functions, including a new public API, allowing them to build and share investment tools with the wider community.

Among the capabilities are features for developing custom trading algorithms, automating trade execution, and integrating real-time market data with third-party analytics tools. Traders will be able to backtest strategies, identify market trends, and create personalised portfolio optimisation models based on individual risk profiles and prevailing market conditions. Risk management tools, including Value-at-Risk analysis and stress testing, are also part of the package.

The platforms AI Model Context Protocol (MCP) and agent-based services are designed to allow seamless interaction with its trading infrastructure. This means Popular Investors can create custom dashboards, build advanced charting interfaces, and design tools for both personal use and public distribution within the community.

Central to the initiative is “Tori,” an AI assistant built to guide users through the platform. Tori uses natural conversation to answer questions, provide personalised insights, and help users navigate investment decisions. The assistant is integrated into the trading experience, evolving alongside the platform to deliver increasingly relevant and data-driven guidance.

The company has also launched seven “Alpha Portfolios” as part of its Smart Portfolio range. These strategies are constructed using AI analysis of the platforms proprietary retail trading data. The aim is to give retail investors access to quant-style investment models, which are usually associated with hedge funds and are often inaccessible due to high entry requirements, management fees, or restrictive lock-up periods.

By using its dataset to inform these strategies, the company seeks to bridge the gap between institutional and retail investment approaches. The Alpha Portfolios incorporate quantitative analysis with AI-driven insights, offering structured strategies across asset classes such as equities, cryptocurrencies, and exchange-traded funds.