Best Social Trading Platforms 5 Best Picks

Many social trading platforms and providers require that you have an account with an approved third-party online broker, such as FOREX.com. This is usually because they don’t offer online brokerage accounts themselves and cannot execute market orders for their clients. Social trading platforms can offer a sense of community for traders and investors as well as serve as valuable sources of information. Trade sharing platforms like Public, Kinfo, and Profit.ly enable traders to see what stocks others are trading and why.

If you’re looking simply to keep track of your own trades, then it’s recommended you put less regard to things such as incentives. The downside is that you never for sure on any social trading platform which traders will be 100% correct; you need to be subjective. First, start by choosing a platform that you’re comfortable with using. We recommend any of the previously mentioned exchanges or providers as they’ve been previously vetted and have demonstrated reliability within the space. You’ll have to create an account, in the same manner, that we previously mentioned as well, however, in this instance, you do not have the choice for verification or deposit linkage. On most, if not all platforms, you cannot use a demo account as a standard for other traders to copy.

Fee comparison at the best brokers for social trading

Social trading platforms as we know them today were born in 2010 thanks to eToro, which was the first broker to implement a social section within its trading platform. Don’t forget, you can add and remove assets to and from your social trading portfolio on eToro, so you always maintain full control over your investment funds. If you’ve read our guide https://www.xcritical.com/blog/what-is-social-trading-and-how-it-works/ up to this point, you should now have a firm grasp of what to look for in a social trading platform. EToro not only allows you to copy your chosen trader but easily adds individual assets to your portfolio as and when you see fit. For example, you might be copying a forex day trader but at the same time – decide to invest in some blue chips.

This includes the ability to comment on and communicate with other traders using the platform. You can also connect your AvaTrade MT4 account with ZuluTrader to allow copy trading through that trading platform directly. It is important to keep in mind that social trading apps are a type of brokerage platform. In other words, they give you access to the financial markets, so reputation and trust are vital. Because of this, reputable financial bodies heavily regulate the best social trading platforms. Finally, if you’re looking to utilize social trading tools to make money, you will need to make a deposit before you can start trading.

FXTM – Best Social Trading Platform for MT4

Social trading is a form of investing whereby you copy the investment strategies of others using copy trading or mirror trading. It’s suitable especially for people who don’t want to spend too much time trying to find good trading opportunities or strategies. A social trading platform is a service that, in addition to normal trading, lets you copy other people’s trades.

Even experienced traders can have losing streaks, and investors who follow them can also experience losses. Therefore, it is important for investors to conduct their due diligence and carefully consider the risks involved before allocating their https://www.xcritical.com/ funds to any particular trader. Then, you can sort the list of suitable forex market traders by specific metrics – such as monthly average returns. When it comes to the platform itself, FXTM supports MT4 as well as its own web-trader.

Assets available

Platforms provide software for investors to make their trades online via a website or app (for mobile devices). The biggest drawback of social trading is the risk of ‘pumping and dumping’, where investors promote shares they hold in a company. By ‘pumping’ or spreading false, misleading or exaggerated information about a company, investors are able to artificially inflate the share price beyond its underlying value. At this point, they ‘dump’ or sell their shares, before the shares fall back to their intrinsic value. Other platforms, such as eToro, have gone a step further with ‘copy trading’ where investors can automatically replicate the portfolios of other traders on the platform. This is explained in more detail in the Frequently Asked Questions below.

However, the mix of online financial markets and social networks has birthed an entirely new wave of possibilities where platforms can allow for facilitated ‘copy trading’. You can find a list above of the social trading platforms that operate in the U.S. For the copied trader, the social trading platform keeps track of all trades and compensates the copied trader for each copied trade.

#2 Best social trading platforms

This significantly limits the instruments that can be traded by those whose trades you might copy. Select the system you’re interested in, pay the monthly fee and trades are copied directly into your brokerage account. The network offers a wide array of trading systems that you can copy, with assets such as equities, derivatives and fixed income securities that conform to U.S. trading restrictions. C2 also offers an annual discounted subscription that varies according to the number of strategies and the trade leader you might select.