Dub Bets on the Social Appeal of Copy-Trading

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Dub Bets on the Social Appeal of Copy-Trading

As the sweeping influence of social media pervades all aspects of society, dramatically reshaping business, culture and politics, the copy-trading phenomenon is accelerating as digital natives increasingly ditch conventional investing practices and follow high-profile traders and financial influencers on social trading platforms, replicating their trades and performance to build wealth.

The rise of copy-trading among retail investors is being driven primarily by three things: access to high-speed internet, massive smartphone adoption, and the ability to automatically copy the positions of high-profile traders and hedge fund managers (aka signal providers) in real-time. Other factors that could impact the adoption rate of copy-trading include social media’s large user base, culture with mutual trust and good financial regulation, said Eric Zheng, a professor in the department of information systems and operations management at The University of Texas at Dallas’ Jindal School of Management, in an email to FIN.

For digital natives, notably Millennials and Gen Z, the greater the transparency on social media, the greater the trust. With copy-trading, that trust of expert traders translates into more “social accreditation.”

That’s what the newest market entrant, dub, is betting with its copy-trading app that allows social media-savvy retail investors to replicate the portfolios of emerging investment managers, high-profile hedge fund managers, financial influencers and elected officials.