Social trading platforms increased in popularity together with online trading. They bring strong incentives both to the wannabe trader and the experienced trader to participate. The former hopes to learn more about markets and have some success by copying the trades and learning from the experienced trader. The latter can compound the success by sharing trades and ideas.
This article covers the best social trading platforms in 2021, what are the pros and cons of each and what is a social trading platform used for.
Our List of the Best Social Trading Platforms
Please find below our comprehensive list of the best social trading platforms in 2021:
What Is a Social Trading Platform?
As the name suggests, this is a social platform, but for traders. Thus, it brings together people with same interests (i.e., trading financial markets) and connects them so that both parties benefit.
Social trading platforms share ideas, trades, and even allow for copy-trading or social-trading. In doing so, the aim is to share the success of experienced traders with beginners and newcomers. All parties have something to gain, from the social trading platform provider, to the brokers, experienced traders and beginners as well.
How Does a Social Trading Platform Work?
A social trading platform acts like another intermediary. It brings together two actors – brokers and traders. On the one hand, the social trading platform recommends some brokers to be used by the traders. As such, this represents a big part of their income.
On the other hand, the traders get together, share ideas, copy their trades, against a commission shared between the social trading platform and the experienced traders. The more strict the process of selecting the master traders, the more successful the social trading platform is.
Key Features To Look In a Social Trading Platform
One of the most relevant things is the reason why you are on a social trading platform. More precisely, to copy trades from experienced traders and, why not, to interact with them.
Therefore, the main feature of a social trading platform is how popular it is among retail traders? Also, how many successful trading strategies it gives access to, at what cost and how did those strategies perform in the past?
Pros & Cons of Using a Social Trading Platform
How To Choose the Best Social Trading Platform for Me?
It depends what the final goal is. Some traders only want to be part of a community of traders, to share ideas, learn, without actually trading. Some other ones want to copy trading strategies. Regardless of the reason, the list with the best social trading platforms in 2021 that we provide here makes it easier to compare the platforms for an informed decision.
How To Safely Use a Broker to Make Money Online Trading?“ A brokerage house is a financial intermediary. It connects its customers with other traders and finds a match for every customer order. The broker provides the infrastructure to get access to the market prices and do the research, but the broker is not responsible for the actual trading. Instead, the broker makes sure that it routes the trades to the market in a timely manner and, for its services, charges a fee in the form of a swap, spread, and/or commission. ”- 100fb
Using a social trading platform makes the life of a trader easier. However, it also provides some challenges in the sense that it is difficult to choose the right strategy to copy based on the uniqueness of each individual trading account and one the fact that trading conditions differ from brokers to brokers. The list of the best social trading platforms in 2021 that we present in this article offers a comprehensive selection so that the trader may easily find the best match.
Frequently Asked Questions
No, they are not. Forex brokers often choose to avoid regulation due to the high costs that come with it. Some businesses are in the incipient phase and are not strong enough to support such costs. Moreover, regulation comes with strict rules and holding a license means ongoing costs. Therefore, some brokers choose to register offshore to avoid the financial burden. However, for the trader, regulation is very important as it better protects his/her interests.
It depends on the market traded. Forex traders favor the MetaTrader4 and 5. For many years, these two platforms are offered by most brokers and there is a lot of expertise behind them. Also, when in need for an indicator or something else related to the MT4 or 5, there is a strong community available to help. Other trading platforms also exist, most of them in-house built, that require learning the features, but that does not mean they are not good. However, for the FX retail trader, the MT4 and 5 are perfect.
Yes. The FX market is just one of the many other markets that they offer. Commodities, indices, even bonds and cryptocurrencies – the trader usually has plenty of markets to choose from. The advantage is that multiple markets allow for better diversification and the trader has an easier job protecting the capital in the trading account.
Fairly easy. The longest step is the document verification one, for obvious reasons. This may take from a few hours to a couple of days, depending on the broker. Other than that, opening a trading account with a Forex broker is a straightforward process – the trader just needs to follow the steps presented on the Forex broker’s website and answer some basic questions.