The financial sector is undergoing a change. An increasing number of people are willing to invest money on their own. Thus, a new trend emerged that provides access to capital markets in an easy way and for reasonable prices. The concept is referred to as social trading and is based on internet websites, their communities and innovative financial products such as the so-called “Wikifolios”. This thesis is giving insight on positive as well as negative aspects of this new investment possibility. Hence, all strengths and opportunities as well as weaknesses and threats are thoroughly discussed by means of a SWOT-analysis. On the basis of that, the performance of such financial products will be analysed to determine the risk return profile. Therefore, the distribution of the returns is analysed and tested on autocorrelation. Applicable risk and performance measures will then be used to compare the results of social trading products to certain benchmarks representing the regional and the overall market. The objective is to find out whether or in what way this kind of investment can be recommended and how it could change the way people invest their money in the future. Overall the results show that social trading products on average do not outperform the market. For instance, in the analysed time period, the US market performed much better. Its also safe to say that these products are not necessarily better den investment funds. Even by creating an equal-weighted portfolio or the active selection of Wikifolios, these findings couldnt be contradicted. However, social trading products and in particular Wikifolios provide further possibilities for diversification and speculation. Since the society permanently becomes more familiar with computers and the internet, the significance of social trading will continue to rise in the future.