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Category - Social Trading Networks | trade through a community .
Social Trading Networks | trade through a community .
Social trading is one of the fastest growing trends on Forex, stock and other markets.
Social trading network works very similar to a regular social network, with the difference that on a trading network instead people share trading results with others instead of selfies and lunch photos.
An opportunity to copy trades of other users is an important feature of social trading platforms. When you find a successful trader with suitable investment style you can choose to follow his strategy and all open trades will be automatically copied into your account.
Unlike hiring money manager in social trading you don’t have to give access to your account or disclose any personal information to the person you copy.
it is also easy for a signal provider to join and find signal receivers. Another benefit of social trading is an opportunity to interact with other traders, watch trading results of other people and discuss situation on the market in real-time.
How does social trading work
Signal providers on most social trading networks receive compensation for providing their services to others. The compensation can be a fixed monthly fee, a spread from volume of assets under management or a small percentage of their followers profit.
Social trading networks, are often free for copiers and by following someone a trader doesn’t pay anything but his regular broker commission.
Because all signal providers in a social trading network are obliged to disclose all of their trades you can be confident that you’re selecting actually profitable strategy and be aware of real financial results
But Beware : Some social trading networks prefer to hide open trades from statistics or not to disclose the list of trades at all, but this may affect accuracy of profit/risk ratio and drawdowns.
Advantages of social trading
Social trading offers significant advantages to all users, such as
Additional income for successful traders from selling their trading signals
Passive income for copiers from following successful traders
Opportunity to follow other peoples trading results in real-time
Open concept, where data on signal provider trades is disclosed automatically and losses can not be deliberately hidden
Space for communication with other traders and listening to their forecasts and opinion
The Best Social Trading Networks
- eToro Openbook
- Ayondo Social Tradi
- Tradency Mirror Trader
- LiteForex Social Trading
- FX Junction
- CM Trading CopyKat