Social Trading

Social trading platforms reveiws in the FX market, TopForexBrokers.com experts conducted list of the best social trading brokers in this article, You will also finding out what is social trading binary options and what are top trading social networks.

Computers and the Internet completely changed the way people live, work and play. This is also true of the financial investment industry which has been transformed into an online endeavor in which millions of people all over the world participate daily. 

Before the Internet, anybody interested in trading assets in financial markets had to rely on a stockbroker whose physical presence on the trading floor was essential to conducting successful trades on behalf of clients.  Today’s traders and brokers can manage every aspect of their trading portfolios using the computer and worldwide web. 

This improved access to trading markets makes it easier for every level of trader to engage in financial investment trading in a variety of global marketplaces. Every aspect of investment activity can be accomplished on the computer, from researching brokers, assets and markets to opening demo or real trading accounts that provide access to live trading in various global investment markets. 

Traders have traditionally had to rely on the wisdom and expertise of the particular broker with whom they maintain trading accounts to research, formulate, place and track investment activities.  The advent of the computer enabled traders to perform many of these tasks on their own, but they still must rely on a duly licensed stockbroker’s trading platform to access active trading in financial marketplaces around the world. 

Even though computers and the Internet introduced financial marketplaces to millions of people, many do not feel qualified to make choices as to which assets or what marketplaces owhich to focus their investment activities.  To accommodate those traders, brokerages offer managed trading accounts that are completely overseen by a professional investment broker, which may or may not result in successful trades, but contribute very little (or nothing) to building the trader’s personal knowledge of various financial assets and the markets in which they are traded. 

As computers and the Internet gained momentum in transforming the way we do everything, social media sites began to emerge that connected people all over the world with shared interests or professional expertise, as well as connecting family and friends in ways that were previously impossible.

Broker Min Account Size Leverage Spread US Traders Review Open Account
Fxstay $1000 1:500 EUR/USD: 0.6 Review Free Account Demo

What is Social Trading? 

The popularity of social media sites crossed over into the world of financial investments with the introduction of “social trading” that allows individual investors to share among themselves knowledge and trading expertise, much like Facebook and Twitter allow people with shared interests to connect and share information. 

Before social trading existed, investors had to depend on market or technical expert analyses to reach conclusions about various assets and the markets in which they are traded and formulate trades based solely on their own conclusions regarding that information.  Social trading links individual traders from all over the world whose combined trading enhances and empowers the trading activities of other investors who are part of the social network.  By tapping into the wisdom of multiple traders, an investor can take investment trading activities to a whole new level and successful traders can rise to the level of “gurus” or experts in the fields in which they trade.   

Social trading allows investors to rely on information gleaned from various trading data feeds and other investors, which enables them to analyze financial investment data, compare and copy trading strategies and techniques without having to rely on the trader’s own limited investment knowledge about assets or the global marketplaces in which they are traded by millions of people every day.    

How Does Social Trading Work? 

The advantages of social trading are many and include the ability for traders to interact with each other, share research data and trading strategies to formulate successful financial investments.  

When an investor becomes part of a social trading network, it enables that investor to utilize detailed statistics and historical data from the trading activities of more seasoned or successful traders in multiple markets.  Social trading enables investors to intentionally copy the trading activities of one or more selected successful traders, which can be accomplished automatically, implicitly or manually.  Implicit copying of trading activities are unintentional influences made by the trading activities of other investors.  Automatic and manual copying are self-explanatory options available to traders and differ between social trading brokers.  

The learning curve for investment activities has been greatly reduced with the influx of multiple social trading sites that enable investors to learn from the trading activities of other investors, while building their ongoing personal knowledge of financial assets and the markets in which they are traded.

Forex Social Trading Platform

Trading foreign currencies (forex) has become a very popular means of financial investment even though most people don’t know a lot about foreign currencies or the fluctuations in values that occur which are the basis of forex trading. 

For new investors, forex social trading enables successful trades by allowing real-time sharing of information that has enabled very successful fellow traders to emerge as experts in the forex social trading arena.  By following the forex trading activities of those successful investors, newbies can build knowledge of forex trading while benefiting from the successful trading activities of more experienced traders. 

A forex social trader (newbie or experienced) could ignore all other asset and market indicators and rely solely on the financial decisions made by and based upon the opinions and trading strategies of other traders who have emerged as successful forex investors within the social trading network.  

Social Trading Binary Options 

Binary options are all or nothing investments that can be made in a wide variety of financial assets.  Investors who trade binary options agree to a payoff that is either a predetermined fixed amount of money or nothing at all.   

Binary options are extremely risky investment propositions that are varied and complex which were previously appropriate for only experienced investors.  With social trading binary options investors can access a plethora of knowledge and trading expertise of individuals who have many years’ experience trading binary options on a variety of assets in multiple global marketplaces. 

Social trading binary options is beneficial to both novice and seasoned investors who may lack knowledge of investments involving binary options.  Social trading allows traders to engage in trading binary options without any knowledge of that type of investment and based solely on the decisions of other successful traders within the social network.

Trading Social Networks 

As you may have guessed, there are hundreds of social trading sites from which an investor can choose to engage in social trading of a variety of financial assets. Selecting a social trading network is the hardest decision involved in social trading because of the plethora of social trading brokers currently available and the similarities of the services they provide. 

Investors should research various social trading sites and select one that allows traders to interact with each other, as well as monitor the trades of others from start to finish to help investors decide which are successful trading strategies worthy of copying.    

Potential social traders can peruse multiple social trading reviews on the Internet that include reviews of the most popular social trading brokers and their interactive social trading platforms. 

Social Trading Brokers  

Broker Min Account Size Leverage Spread US Traders Review Open Account
Fxstay $1000 1:500 EUR/USD: 0.6 Review Free Account Demo

As previously mentioned, there are too many social trading brokers to list and more information can be found about each one in social trading broker reviews on the Internet.  Some of the most popular brokers are eToro social trading, Tradeo social trading, FXTMInteractive brokers and a variety that provide social trading in the UK.    

Investors should choose the social trading broker that allows them to not only interact with other traders, but also follow to fruition the trades of other people to determine if their trading strategies and techniques are worth copying.  In order to make that determination, social traders must also be able to access data related to social trading profits (and losses) from trade activities of individual members of the social trading network. 

Additionally, the best social trading platforms allow investors to follow and copy traders from around the world and offer trading of a wide range of financial assets.  Investors should seek the social trading platform that has the most active traders and largest network of social trading activities in the particular asset in which one may want to invest.  In other words, if you want to invest in forex social trading, for example, choose a broker that has a lot of clients actively trading in forex markets.  If you want to invest in social trading binary options, choose a broker with the most investors actively conducting trades of those types of assets.  

Efficient trading copy tools provided by social trading brokers allow traders to make multiple investments at any given time and traders should look for social trading brokers that allow the synchronization of order executions between multiple social trading accounts to enhance the possibility of successful trades and increased broker rankings. 

Different social trading brokers offer different platforms and assets to trade and potential social traders should conduct as much research as possible on the broker they choose using the internet, as well as invaluable opinions and trading successes of other investors in the social trading network.

The professional investors and financial advisors at TopForexBrokers.com invite you to share this Social Trading Review with family and friends who may share an interest in financial investments and the markets in which they are traded.   

Visit TopForexBrokers.com often for the most up-to-date news and information in international world of financial investments.