Social trading allows traders to interact in real time, sharing experience, methods and trading strategies. Less experienced traders can use the help of experienced traders and even copy their trades and methods. The following guide to comparing brokers can help you identify the most important variables to distinguish brokers from each other. One approach to find out about the broker is to go to their site. Each broker has its own policy, and you should know about it. Many brokers allow you to try Forex for free, using a completely free account to make demo money transactions. Forex trading is simple and profitable if the management and services provided by the broker are transparent and reliable. This is a very exciting activity that requires a person to combine discipline and analysis.
Top Comparative Social Brokers For Trading
Rating 2022 is very important for every trader! This is done to make it easier and faster for you to choose a company from a full range of services. Brokerage companies are scattered all over the world and have many differences in trading conditions and services. This page provides a detailed comparison of the best brokers. The comparison is presented as objectively and simply as possible.
What is a Social Trading Platform?
Copying trading platforms allows you to trade over the Internet based on the information provided by others. The social element comes from copying the transactions of other traders who are professionals or amateurs. Having spent time searching for traders who will meet your own goals and risk profile, you can outsource your own trading. If you carefully select your traders, you can profit from the successful transactions that they make.
Usually, when you copy a trader, you set the amount to invest in your strategies. Some networks limit this amount to a fixed percentage of your capital to avoid loss if a trader starts to lose money. When you start copying the trader’s strategies, the platform will automatically open a position every time your trader opens a position. Other systems offer alerts via email or phone, which gives you more control.
The main difference between social trading or mirror copying is that signals come from other people. Mirror Trading – automatic trading based on signals created by algorithms or “Forex robots”. In addition to being able to copy transactions, the main advantage of these social networks is the ability to discuss markets. You can keep an eye on traders without copying them. By communicating over the Internet, exchanging news and market tips, you can learn and improve your own strategy.
Some Popular Copy Trading Platforms
There is a wide selection of trading platforms that focus on social networks and copying.
eToro is one of the most visible and highly reliable platforms in the category. It is also one of the largest retail chains for copiers and investors. The focus is on the network side of copying to promote strategies. eToro recently made efforts to improve its “people search”. This makes it easier to find suitable traders for long-term gain, rather than highlighting more risky short-term gains. Just open a demo account and feel the system of followers before investing real money.
Tradeo and Ayondo are two more popular social trading networks. Of these two, we found that the Ayondo broker is the most in-depth, with real reputation risks that go far beyond eToro. Tradeo has a sleek interface, but it seems to be more focused on the “get rich quick” mindset. The “Trade Search at Tradeo” emphasizes traders making unrealistic gains of 6,000% or more. This implies a level of risk more similar to gambling than to trading.
ZuluTrade is another option, although it is less accessible for beginners. ZuluTrade provides full copy trading functionality and is compatible with major brokers. This allows you to track transactions using the broker of your choice.
And finally, there is SignalTrader, which offers an automated mirror trading through a set of tools. You can trade in various markets including Forex, stocks, commodities and bonds.
Making Money With Leading Gurus
This is not just a profitable opportunity for people who have more money than time. There are significant benefits for experienced or professional traders. By providing your own signals and letting people copy their trades, you can earn bonuses and cash. Most trading networks are aware that their advanced traders are among the largest assets. As a result, gurus with a large number of followers are well supported by brokers.
eToro offers its TOP Investors a 100% bonus on their transactions, as well as a monthly cash amount. It can be up to 2% of the funds that their followers invest.
Ayondo’s TopTrader program offers the opportunity to earn up to $5 per lot traded by your followers. Tradeo does not offer anything, but Zulutrade offers signal providers 0.5 points per lot. This will vary depending on the spread and currency, but the average income is $4 per lot.
Tips for Investing in Social Trading Platforms
Social trading does not necessarily increase your chances of becoming richer. It all comes down to following the right people and trading the right markets. It is not enough just to see the high profitability rating of the trader and entrust your hard-earned money.
Find out how they trade and what risk management strategies they practice. A trader who is lucky several times and manages to triple his account within a few days can be a bad bet for the long term and vice versa. Use the exact numbers that can be found in the “Performance” section on most trading platforms. They provide a graphical way to display key performance indicators. These include average wins in points, maximum open trades per day or week, and drawdown.
Try to distribute your capital in different financial assets and professional traders. This will give you more chances to make money in social trading, minimizing risk and benefiting from various price movements. It would also be prudent to diversify instruments such as indices, options, commodities and stocks.
Follow the Crowd: Another Alternative?
CFD brokers continue to innovate, and shortly before someone decided to find a third way between manual trading and copy trading. For those who want to benefit from an understanding of the social trading network, but still want to maintain control over their own capital and trading style, crowd trading offers an interesting alternative.
The premise is simple: by controlling market flows and other positions, you can understand what may happen in the future. Platforms such as Trade360 and Tradeo allow you to track “market sentiment“. This will allow you to see how other traders feel the current price and how the market will move, allowing you to open positions for or against the mood.
It is worth understanding what the analysis of moods in each platform is based on – this is extremely important. Ideally, this should include institutional investors as well as retail traders.