Forex trading has become one of the biggest industries worldwide. It is estimated that the daily turnover of the Forex market is approximately $3 trillion, which would make it more than 30 times more fluid in terms of liquidity than the New York Stock Exchange. With that having been considered, it is perhaps quite obvious why there is so much interest in Forex trading. However, while Forex trading is quite interesting, at the same time it is quite difficult to do. This is the problem that many have run into and the way that the problem is solved by eToro is one of the most innovative ideas to cross over in a long time.
The Challenge
The main challenge for eToro according to its CEO Jonathan Assia was to come up with a software package that actually allowed for the presentation of Forex related data in a way that allows it to be user friendly to the average person. This means that not only should it be easy to get all the information one needs, but that information should also be viewable, easily organized and it should be presented in a way that is easy for the average person to understand. Considering the relative complexity of how Forex trades work in general, this is definitely something that has been a challenge for Forex agents for a very long time.
eToro’s Model
Well, the way that eToro decided to solve the situation was to create a visualization of the situation that would be very easy for the average person to understand. This visualization can take four different forms and each one of them is very interesting indeed.
The first form is the Forex Marathon, where the currencies are represented by people in a foot race with each other. You can therefore make trades and watch in the same way as if you were betting on a race and this makes it much easier than typical Forex trading. The Dollar Trend game is similar in this respect, with you being able to conduct a race between the USD and your other currency of choice.
The third game, the Globe Trader, allows you to assume the reigns of foreign policy in a way that allows you to make trades represented by establishing relations with different countries on a world map. To people that are geography junkies, this is a great way to trade.
Finally, the Forex Match is a visual representation of two currencies with each currency being represented by a team in a tug of war match. As one currency does well, one team does well and as one currency does poorly, one team does poorly. Even to people that do not like any of the other representations, this one is extremely simple and easy to understand. It is completely impossible to watch this representation and not know exactly what is going on between two different currencies.
eToro’s methods have completely changed the way people look at Forex transactions and that ultimately is probably to the good of the trading business.
