How to Choose the Right Social Trading Platform
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Introduction to Social Trading
Social trading is a modern investment style that allows traders to learn from and copy the strategies of successful traders Since these social trading sites are based on the concept of community, they allow you to solicit and share information, find profit-generating avenues in trading, and even improve your trade performance.
If you want to learn about social trading in-depth, check out this article.
What is a Social Trading Platform?
A social trading platform is a platform where people can safely commercialize their trading skills by posting how to trade, what strategies to use, and how well they perform in the trading cycles.
Such platforms enable you to meet other traders, track their trading activities, and even copy their trades automatically. Social trading platforms seek to enhance your capability of making sound investment choices and thus improve your trading results by incorporating expert wisdom into the process.
Benefits of Social Trading
- Getting Access To Professional Traders: Social trading networks allow you to learn and imitate the methods of skilled traders and make use of that knowledge. In turn, that can enhance your abilities and master the art of trading.
- Combating Risks and Effecting Investment Portfolio: By engaging in social trading, your level of trading can be raised thereby reducing risk.
- Learning Together: Social trading does come with a number of advantages such as access to other traders who are members of the same social platform where one will be able to share ideas and tackle various issues including how to trade and the current market situation.
- Copy Trading: Most social trading ecosystems include the option to perform copy trading of your favorite traders which makes it very convenient to follow the steps even when you are not actively supervising the process.
- Reasonable and Measurable Approach: Most social trading networks allow for proper and reasonable performance management as well as tracking enabling you to assess the performance and types of trades that the forex traders perform.
Factors to Consider When Selecting a Social Trading Platform
When choosing a social trading platform, it's essential to consider the following factors:
- Regulatory Compliance: Make sure that the platform has the proper and relevant licenses and is regulated by the financial authorities in your area so that your investment is safe.
- Reputation and Track Record: Analyze the reputation of the platform its user ratings and the activities of the best traders in the platform in order to assess the general quality and reliability of the service.
- Ease of Use: Review the interface, the ease of navigation, and the overall experience offered by the platform to make sure it corresponds to your trading style and degree of technical sophistication.
- Trading Tools and Features: Look for platforms that provide complete third-party trading and charting interfaces along with other components such as market research and risk management in order to help implement your trading strategies.
- Social Interaction and Community: Consider the degree of socialization and interactions within the trading community, as well as the social features and mechanisms present on the platform.
- Fees and Commissions: Be informed about the platform’s cost structure also known as the pricing model, as it pertains to the trading commissions, the account maintenance fee, and profit sharing where applicable to avoid exceeding your trading budget or expectations.
- Mobile Compatibility: If you prefer to trade on the go, consider platforms that offer robust mobile apps or responsive web interfaces to ensure a seamless trading experience across devices.
- Customer Support: Assess the level of customer support for the platform, as there may be instances when you will require assistance regarding your trading activities.
Popular Social Trading Platforms
UpTrader
The UpTrader Invest social trading solution is advanced in its design, self-sufficient for Forex brokers, and provides several modules increasing both trading effectiveness and involvement of investors. Solutions such as MAM, PAMM, and copy trading help brokers meet the needs of different traders and investors.
In a social trading environment, investors can choose to copy the trades placed by other skilled members (masters). The investors can either turn on the mirrors on their accounts and carry out trades with the hope of pleasing the performance, or settle for a simpler app found on both mobile and desktop, which allows monitoring the investments’ performance and carrying out the trades. UpTrader boasts seamless flexibility, multiple currencies (including the use of digital currencies), and instant trading, providing an enjoyable experience to users.
If you want to give UpTraders social trading platform a try, then talk to a consultant on our site today and start your social trading journey.
NAGA
NAGA is a social trading app that has a presence of all trading instruments such as currencies, equities, fuels and minerals, and crypto assets. The NAGA platform allows users to follow and copy trades from more experienced users automatically. NAGA also comes with a social feed where traders can talk about the trends in the markets and how they plan on trading them. What makes this one special is that there is an internal crypto wallet and an exchange that all the traders can use, which is quite interesting for crypto lovers. The platform aims to be affordable, but it might have a steeper learning curve than others, mainly for first-timers.
Covesting
Covesting is a social trading platform that is integrated into the PrimeXBT exchange. It enables members to duplicate portfolios of traders ranked according to their performance using some open system. This particular feature of letting users follow top traders has made it easy to use Covesting even when trading cryptocurrencies. However, the Covo future trading drawer also deals with forex and commodities, which are traditional markets as well. Among the numerous pros of Covesting is the abundance of risk management tools available on the platform that support high-risk high-reward trading approaches. On the flip side, the platform can also be less user-friendly for those without experience as it covers a wide scope and involves market analysis at a more advanced level.
eToro
eToro is one of the largest and most well-known social trading platforms, which is one of the largest, most popular, and most trusted, and it enables its users to easily copy other traders’ strategies. At the same time, the platform has a lot of social in nature and interactivity, where traders provide their analysis and comments and exchange them about various market connections like stocks, forex, and cryptos. The platform excels in the ease of use, abundance of learning materials, and fair metrics which allow the users to evaluate the leaders before following their strategies. The disadvantage, however, is that the spreads may turn out to be on the higher side, in particular when one is trading on cryptocurrencies.
ZuluTrade
ZuluTrade is another major player in the social and copy trading space, supporting a broad range of markets including forex, stocks, and crypto. Different functionalities are integrated to allow the end users to manage the level of risk involved when copying the trades of the best-rated investors. One of the benefits of ZuluTrade is its compatibility with different brokers which opens it to most traders. It, however, has its downsides, whereby even though it is user-friendly and enables trading in different classes of assets, the execution of some trades may experience a delay due to the broker that has been integrated.
Conclusion and Final Thoughts
Social trading sites come with the significant advantage of utilizing the vast pool of wisdom from other traders, increasing the chances of making profitable investments. With the information indicated in this guide as well as with the most appropriate platform for your needs, social trading can be actualized and a desired journey of making better investments can be achieved.
If you are willing to take advantage of incredible features like Social Trading, PAMM, and MAM modules, Copy Trading platforms, CRM solutions, etc, then talk to a consultant on our site, or try UpTrader today.
