Social Trading is a type of trade whose principle is that a trader relies on financial data from various platforms at the time of making his own decision. In other words, this is a completely new way of analyzing financial data that allows you to compare and copy transactions and strategies of successful traders. Internet trading and social networks have become leading Internet industries in recent years, and therefore it is not surprising that sooner or later someone came to mind the idea of combining them. It is in this way that traders have the opportunity to easily share their knowledge, experience and successes with the huge Internet community.
Social trade gives both beginners and experienced traders the opportunity to engage with experienced traders and follow their strategies. But despite the growing number of social trade networks, there are still many traders who are unfamiliar with social trade and do not know why social trade is so popular. People who have never tried social trade before may first get nervous and think about whether to spend their time on this activity. But as soon as they see the results or hear from friends what social trading is and what interest it brings, many start to take an interest and join the social community or simply copy the trades of successful traders.
For example, consider the popular platform – eToro. The platform includes an online trading community and copying trades by professional traders, allowing real-time surveillance of trade and top leaders, including their profits and losses, as well as their asset growth. In this social platform you can copy trades of the best leaders into your portfolio with just one click of a button. The eToro Social Trading Community brings together thousands of traders from all over the world and allows you to copy other successful community members with ease and simplicity.
About Broker NAGA
Founded in 2015 by a consortium of industry veterans, NAGA Group is an international financial technology company that is listed on the Frankfurt Stock Exchange. NAGA Markets offers extensive copy trading features with automatic copying enabling users to duplicate the activities of expert traders. Traders can make informed decisions based on statistics including win ratio and total trades.
Social trading goes far beyond simply copying trades — it also provides places for traders to interact with like-minded peers, discuss current market conditions, talk about results, and more, all in real-time. By joining NAGA, traders benefit from over 500 instruments including ETFs, forex, commodities, cryptocurrencies, and the range of professional tools for any type of trader.
About Broker eToro
eToro established in 2007 and is a successful social trading network with millions of registered accounts from more than 140 countries. Using popularity in people, eToro managed to redefine the social trading landscape and improve the collective knowledge and experience of its user base into practical trading tools.
The eToro network not only offers a simplified interface for intuitive trading of diverse assets on the Internet, but also allows users to easily follow and copy the strategies of successful traders thanks to its revolutionary CopyTrader™ technology. CopyTrader™ is responsible for the successful closure of 78% of all transactions on the platform with a profit.
MyDigiTrade Social Review
About Broker MyDigiTrade
Founded in 2010, MyDigiTrade is a platform for copy trading created by independent traders. With MyDigiTrade, in fact, you can choose to open an account with one of the several supported brokers (among the best in the world), and then connect it to the platform to take advantage of the Copy Trading service. Or otherwise, if you already own a trading account with a partner broker, you can directly connect it in and start using the service.
MyDigiTrade are a large-scale social and copy trading platform which provides traders with an active community of traders and the ability to select from top Forex signal providers through their service. They also provide a range of education options within their infrastructure to enable Forex traders to become more aware and knowledgeable about social trading, forex strategy, and how to get started trading Forex.
About Broker Myfxbook
Opened in 2011, Myfxbook soon became famous as one of the best communities for professional web trader. In Myfxbook traders can link all their trading accounts under a single personal profile, and keep track of all their trading statistics in a professional and organized manner.
Myfxbook also offers an Autotrading service, called Myfxbook Autotrade. Myfxbook is not a broker, but a cross-broker platform, this means that to use the autotrading service you will have to open a new account with one of the many supported brokers. Technically speaking, Myfxbook Autotrade is more a Mirror Trading service. The strategies to copy from, in order to be admitted, must pass a list of precise requirements that increase their security.
About Broker ZuluTrade
Founded way back in 2007 by Leon Yohai, a well-known greek entrepreneur, ZuluTrade has always been at the forefront in this new sector, especially in Forex Social Trading. Recently it has also introduced the Binary Option Social Trading. Users have access to some social features to interact with Signal Providers, especially to read the comments left by other investors before them.
Where the social trading broker ZuluTrade however excels is in the Copy Trading function. You can search thousands of Signal Providers with a professional and advanced search tool, you can analyse in minute detail their strategy, and above all you can replicate their performance by totally customizing risk and money management. Not sure about it? Clarify your ideas with a free demo account.
Advantages of a Trading Tradeo
Launched in 2012, Tradeo is an open social trading network for Forex traders from all over the world. In terms of Social Trading defined as the possibility for users to interact directly with each other and with the community (in constant growth), Tradeo has nothing to envy to the main and number one rival in the industry, eToro. Tradeo is a forex broker with a highly developed and full of social aspects online trading platform, such as the ability to directly see on the chart the orders and the signals of other traders.
With the Tradeo trading platform you can thus operate personally, but in a social way, or activate the Copy Trading function on your favourite trader in order to replicate their performance automatically. You can try everything with a very realistic and, above all, with no time limit demo account.
Advantages of a Trading Darwinex
One of the newcomers in the global landscape of Social Trading, but interesting from the outset. Darwinex is a company founded in 2014 by the Spanish Juan and Javier Colón Bolea, and Miguel Angel Gonzalez.
The newness that Darwinex introduced is the fact that the traders’ strategies are not shown, but are “hidden” within what is called a Darwin. In essence, the trader’s strategy becomes a real asset that the investor can buy and include in his portfolio. Then, the asset value increases due to earnings generated from the underlying strategy managed by the trader. The Darwins are continuously monitored by Darwinex itself, and the investor has access to sophisticated and automated risk control tools. Very interesting for those who feel themselves more as investors than traders.
Advantages of a Trading Ayondo
Launched in Germany in 2008, Ayondo is currently one of Europe’s fast-growing social trading networks. Its client base is slowly expanding outside Europe as well. They aim to connect investors who want to benefit from the success of other traders with (what they call) their “Top Traders” system. For doing this, they provide an easy-to-use interface and trading platform, very suitable for beginners.
Social trading platforms are an easy alternative for investors with less experience in financial markets. By copying or checking strategies from other traders, users are able to get better results and they don’t take the financial leap by themselves.
Advantages of a Trading FxJunction
Operating since 2011, FX Junction is one of the largest open social trading network targeted to MetaTrader traders. FxJunction is a Social Trading platform where users can create their own profile and connect their MT4 or MT5 platforms. The primary focus of FxJuction is the traders community, a place where to share ideas and trading strategies.
In addition to this, FxJuction also offers a Copy Trading system through which to replicate the performance of the signal providers. FxJunction is not a broker but a cross-platform too, but its connection system is not through supported brokers, but through MT4/5. This means that you can keep your current broker, avoid having to open a new account, and simply connect your metatrader platform.
InstaForex ForexCopy Review
Advantages of a Trading InstaForex
The company InstaForex provides internet trading services in forex market since 2007. InstaForex has been voted “best broker in Asia” and has a fast-growing worldwide customer base. They have prioritized the importance in providing a full range of services to their clients starting from registration up to the withdrawal process.
Their ForexCopy system enables you to follow successful Forex traders and copy their trades in your account on a set ratio. Alternatively, you can use their PAMM system to invest in other top traders and let them trade with it. You can see the full list of ForexCopy trading accounts which you can choose to copy on their website.
Advantages of a Trading Share4you
Share4you is the social trading network for the customers of broker Forex4you established in 2007. The service allows beginner traders to copy the trades from experienced Leader traders with accounts at this broker. Both companies are part of the E-Global Trade & Finance Group.
Share4You is a social trading network service that allows anyone to copy trades of successful traders, and gives an opportunity to profitable traders to become so-called ‘Leaders’, and share their trading with others, for a generous remuneration. Share4you is a truly remarkable service which has all the necessary functionality for copy-trading, and at the same time is very simple and intuitive.
Advantages of a Tradency Mirror Trader
Tradency invented mirror trading in 2005. The company is positioned primarily as a technology provider for forex brokers, so you cannot open a demo or live account on Tradency’s website.
Tradency is a financial technology company who’s a key trading platform, Mirror Trader, allows traders and strategy developers from around the world to open, close and share their trades. With the automatic mirroring functionality, these trades can be automatically copied. Their platform is available through a list of brokers, though currently doesn’t include social interaction capabilities yet.
Advantages of a Trading IronFX
In 2014 IronFX also started offering social trading to their client base. IronFx Social trader has a strong internal community and allows you to copy successful traders. It has support in many languages and allow you to easily control risk.
IronFX is a global FX broker with customers in over 180 countries and support in 45 languages. They allow their clients to follow and copy successful trading strategies from others within their trading community, in real time. IronFX uses the advanced Sirix Social WebTrader platform for their social trading offering. Free demo available via their website.
Advantages of a Trading CopyFX
This is the social copy trading service of RoboFOREX, an international broker established in 2009 with a focus on providing tools for expert auto robot traders. Via their CopyFX service, you can view their best performing traders and automatically copy them via your account.
The CopyFX service offers the customers of RoboForex the possibility not only to simplify the negotiation process and reduce the risks, but also additional benefits for their experience and skills to predict the behavior of markets, in the case of the more experienced traders.
Advantages of a Trading Kinfo
Kinfo is a social trading app that was created in 2016 and tracks your trading performance and lets you view other investors portfolios. Kinfo integrates directly with the most popular brokers in the US and calculates trading performance metrics based on transactions and holdings.
A DIY investment app that is connecting investors with influencers and bloggers, rather than Robo-Advisors. The main goal is enabling their investors to educate themselves by providing a platform that connects members with people who share a similar strategy and stimulates their users to be better investors.
Advantages of a Trading cMirror
This new mirror trading platform was launched in November 2014 by Spotware, the same company who develops the cTrader Forex trading platform. With cMirror any trader can become a strategy provider by broadcasting their trade signals and optionally charging commissions. Other social traders (investors) can then search through the available strategies on the network and mirror/copy the ones they like.
One of the key factors which made cMirror stand out to me is that any Strategy Providers and Mirror Traders are able to interact regardless of who their broker is, this means that the potential of the cMirror community is essentially unlimited.
Advantages of a Trading SIRIX
Sirix is an all-in-one Forex social trading platform. It is developed by Leverate, a specialist IT solutions and services provider for FX brokers. Leverate was established in 2008 and they launched the Sirix platform to their clients in 2014.
SIRIX is an advanced trading station and platform for forex and CFD traders, a brokerage technology provider. In addition to the trade execution and charting functionality, the platform also includes a social trading component. This allows you to follow and automatically copy other traders. The tool is being sold directly to brokers (you can try it for free at IronFX and CMSTrader).
Advantages of a Trading LiteForex
While LiteForex started in 2005 with a strong focus on the Asia Pacific markets, they’re now a true global broker. Their social Forex platform allows you to automatically duplicate the best trades from other successful traders, to share information and to communicate live with these experts. LiteForex also offers PAMM accounts and significant deposit bonuses.
LiteForex social trading feature allows clients to follow and copy successful traders and for those traders to earn a fee based on follower’s trade volume. There is no fee to copy trade, Traders currently earn between 10% and 30% of their followers volume depending on success, assets traded, and number of followers.
Advantages of a MetaQuotes MetaTrader
Trading Signals: Over 600 brokers and banks around the world use the MetaTrader 4 and 5 platforms. From 2013 they added functionality which allows every trader on their platform to become a subscriber or a provider of trade signals. The signal providers can be discussed in their online community as well.
Social trading with MetaTrader will allow you to monitor trading activity and profitability of successful traders, and most importantly, copy their trades. If you see a positive trend in performance of one of the traders whose signal is available for subscription, go ahead with it and start copying his trades. The trading terminal will automatically mirror all trades of the signals provider in your account, without any manual intervention necessary.
Advantages of a FxStat
Started in 2010 as a Forex analytics provider allowing traders to analyze their own performance with more than 150 statistical tools, graphs, and ratios, and compare this with other traders over the world. Over time they added a social trading community and auto-trading functionality.
FXStat social trading are copied as Connections. This means that every user can establish the whole network of traders who are sharing their open positions with each other. You can add the strategy by clicking on “Add as Connection” at the trader’s profile. Consequently, the trader’s performance would be copied into your MT4 platform.
CM Trading CopyKat Review
Advantages of a CM Trading CopyKat
Created in 2011 and a great innovation of CM Trading is their Copykat platform, which harnesses the power of social media to make Forex trading easy. Using this unique trading platform traders can search and follow other traders on the network.
This online brokerage lets you follow and copy other traders through their “CopyKat” feature. This uses the advanced SIRIX trading platform which is also used by various other brokers. CM Trading does, however, use an open approach which means you can mirror the trades of everyone on SIRIX, so also top professional traders at other brokers.
Collective2 Social Review
Advantages of a Trading Collective2
Collective2 is a unique social trading platform created in 2008. Collective2 offers to its users a way to match up traders and followers as well as many other interesting tools.
This technology provider also offers a trading-system platform which allows the tracking and auto-trading of trades from multiple sources. They sell their solution to 3rd party Forex brokers or financial service companies who can white-label it, though offer the service through their own brand and website too via a few partner brokers.
TradingView Social Review
Advantages of a Trading TradingView
TradingView is a cloud as well as a web-based social trading platform for Futures and Forex traders established in 2011. It offers incredible charting tools and social components for beginners and advanced traders to view and share trading ideas. As of today, there are more than 5 million investors and traders who are using TradingView on a regular basis with more than 3 million published ideas.
What really makes Tradingview so complete is the social trading aspect. These guys did it right, you can post trading ideas to the TradingView feed right from your chart as well as participate in chat-rooms tied to each of the assets.
What Is Social Trade?
Social trading is a particularly convenient way to trade in financial markets for beginners who can increase their profits only by copying other traders trades. The main advantage of social trading is that to make a profit does not need any experience or special knowledge. In addition, thanks to the social trading you can more quickly learn how to trade the most. In seminars and courses on trading it is impossible to learn everything and at once, especially if the seminar is very limited in time, and during social trading it is possible to constantly communicate and interact with experts of financial markets and learn from them all the time.
Social trading also has an advantage over auto trading, where you are invited to automatically repeat everything behind the robot. Again, in trading, an element of communication is essential, at the expense of which the opportunity to learn quickly and interestingly is achieved. It should also be noted that due to social trading, the risk of a beginner trader is limited, as copying trade takes place in automatic mode, so there is no temptation to «put on the map» more than should be. Finally, social trading can be done through a variety of online resources – blogs, forums, sites, and any other web pages where comments can be left.
How Social Trade Works
Signal providers on most social media get a commission for their services from traders who copy them. The commission can be fixed and make up a monthly fee, a spread on the amount of assets under management, or a small percentage of the profits of their followers. Social trading networks are often free to copy, and by following someone, the trader pays nothing but his usual brokerage commission.
Since all signal providers on the social trading network are required to disclose all their transactions, you can be sure that you choose a really profitable strategy and know about real financial results – another advantage of social trade compared to the PAMM account. The exact statistics available to the subscriber for analysis before copying depend on the platform. There are trading platforms that reveal a full list of trades, including those open so far, along with profits, maximum downturns and other details to ensure users have the most complete and reliable results. For beginners who have just learned about what is social trading, this information can be useful for learning and over time you will become successful and start making a profit. Some social platforms prefer to hide open trades from statistics or do not disclose the list of trades all, and this can affect the accuracy of profit/risk and drawdown.
Types Of Social Trading
Social trade as such can be talked about as much as you like, but this phenomenon itself is divided into several types.
The word «social» in itself implies interaction between traders through forum, comments or blogs. Recently, however, due to the proliferation of relevant platforms, new popular types of trading have emerged, consisting in copying transactions – Copy Trading and Mirror Trading.
«Copy Trading» is often understood to be the same as «Social Trading», because recently it is this kind of it that has become the most popular. The essence of copy-trading is simple: subscribers automatically copy positions that are opened and managed by professional traders, all this happens, as a rule, in the mode of social network. The capital of the subscriber copying the transaction is scaled relative to the capital of the trader, and thus the subscriber copies absolutely everything: stop-losses, take-profits, closing of positions, etc.
Problems Copy Trade
One of the most important factors of copy-trading is the time interval between the placing of an experienced trader’s order and the execution of a trade copied from this order. Often this interval is a fraction of a second, in which case there is no special problem here. However, it also happens that the interval is greatly delayed, and then the trader copying the transaction, can lose a lot of profit on the price difference.
The difference between copy-trading and mirror-trading is that the latter is related to clear setting of goals and tasks. First, the mirror trader assesses the market situation, investment strategies, and historical data, and then selects the appropriate strategy. Then the same happens as in copy trading: traders copy transactions of experienced market masters using the chosen strategy. If in copy-trade it is meant to be copied solely on the basis of the success of a trader, in mirror-trading the choice is largely due to strategy, as well as risk levels, credit arm, types of assets, etc.
Advantages Of Social Trade
Social trading is extremely beneficial to both sides of the process, both signal providers (experienced traders) and those who copy their transactions. For signal providers on any social trading platform, there is a certain compensation model that always takes into account the interests of the trader. So it’s a great way to make extra money for Forex experts and other financial markets.
There is a fee for copying successful traders transactions, but it is quite low and is often comparable to the amounts paid by traders on conventional platforms in the form of spread and commissions. In addition to the ability to copy transactions of successful traders, it should also be noted that it is possible to communicate with traders through social networks.
Social trade offers significant benefits for all users, such as:
- Additional revenue for successful traders from trading signals
- Passive income from copying successful transactions of traders
- Ability to monitor the results of other people’s trade in real time
- An open concept where signal provider transaction data is automatically disclosed and losses cannot be deliberately hidden
- Space to communicate with other traders and listen to their predictions and opinions
Regulation Of Social Trade
Before a trader starts investing, he needs to make sure that the broker or trading company is regulated and licensed to do so. The best brokers are those who have obtained a license from reputable and strong supervisors:
- ASIC (Australian Securities and Investments Commission) of Australia;
- FCA (Financial Conduct Authority) in the United Kingdom;
- CySEC (Cyprus Securities and Exchange Commission) of Cyprus;
- MiFID (Markets in Financial Instruments Directive) in the European countries.
Disadvantages Of Social Trading
Whether you enter forex or CFD trading on your own or by copying the trade, you should always know how risky these markets are. Trading and spread rates should always be considered very risky and losses could exceed initial deposits.
The disadvantage of social trading, oddly enough, is the flip side of his dignity. In social trading, beginners are happy to learn to trade in financial markets, but many of them never move from the category of «copie traders» to the community of real traders. It is important to understand that social trade, of course, can generate significant income, but dependence on the work of other traders is always associated with a certain risk and may not like everyone.
In addition, choosing an authoritative social trading platform can be confusing and time-consuming. Especially since finding a top trader, or one who is constantly successful, is often not an easy task. All available social trading brokers show trend traders, funds or trading strategies differently. Forex traders should always carefully analyze these copies of trading brokers and their network of traders and investors before making an investment decision.
Of course, past indicators can never be used as an indicator of future success. So any copy merchant should always carefully choose the right portfolio and strategy that fits their own needs and appetite for risk before opening a trading account.