Social trading has become one of the favorite investing strategies in the last few years. It offers attractive advantages and it’s convenient for beginners, but also more experienced traders.
Traders looking to use social trading, or maybe copy trading, need to make sure their broker offers these tools. Here you can check out the 10 best social trading networks.
What is social trading?
Social trading is an investing strategy that allows users to access information about the movements and operations of other investors in the market. It was originally designed to keep beginners in mind, giving them tools to learn from more experienced traders.
With time other strategies started to develop, like copy trading or mirror trading.
This strategy is available to traders even if they may have no experience in the world of trading, making investing in stocks, currencies, or other assets, more accessible than ever before.
eToro, the famous broker, was the first one to push the idea of social trading, mixing the technologies available, social media, and their wish to make trading an activity that everyone could get into.
But, why traders would be more interested in other people’s market history than hardcore data?
Social trading makes it possible to have a different perspective. Now, traders can base their trading strategies on the experience of others and learn about the market at the same time. They can even copy other traders’ movements!
It all makes trading more approachable, more real, something that beginners can relate to, instead of numbers and statistics.
Advantages of social trading
These are the most important benefits social trading brings to the table
· It’s easy.
· It’s educational.
· It helps traders control risk.
· It makes trading more approachable and accessible.
There is no question that social trading is easy. Even for newer traders, all they have to do is base their movements on what another more experienced trader has already done.
And this is also why we think social trading is an educational tool. Beginners can use all this information to give their first steps in understanding the market and its reactions.
Additionally, because it is a learning tool and an easy one for that matter, social trading can help manage risk and keep it under control. In fact, social trading helps to prevent losses and manage expectations.
Finally, as a consequence of all the above, social trading has had a huge impact making trading as an activity more accessible and open to people that hadn’t considering investing this way before.
Best brokers that offer social trading networks
The following are the brokers that offer social trading among their features and services. We have chosen our favorites.
eToro. There is no doubt this broker has been working hard through the years to attract a large portion of the population that have always had the means to invest, but found the market daunting and risky.
They have developed social trading to the trend we know today, and have certainly taken it to a completely different level with their tools and platforms. In any case, the most interesting feature eToro has is Copy Trading, meaning the possibility of automatically o manually copy movements and strategies from other traders.
ZuluTrade. Another broker that has focused on social trading, and has earned respect especially when it comes to Forex Social Trading.
Their Copy Trading tools are also an interesting feature ZuluTrade offers and they are always trying to innovate when it comes to social tools for trading.
NAGA Trader. This newer broker was born as an App for phones, and now they are offering a variety of services like social trading, copy trading, and some innovative options in the same direction.