What Are Social Trading Platforms?
If you are tired of trading alone in the volatile world of online trading, then it is time to try social trading. It is a trading practice in which a trader follows/copies the trading position of the experienced or master trader. Social trading is an easy way to understand and implement forex trading practices as it is designed to help traders of all experience levels.
You can learn from the strategies and techniques of top traders, and it is a great option for those looking to improve their own trading skills, or for those who don’t have the time or expertise to trade on their own. You can join a social trading platform to make the best of this trading style. In this article, we will see how you can use a social trading platform to do so.
What is a Social Trading Platform?
A social trading broker offers financial services and provides a platform for traders to follow and copy the trades of more experienced traders. Such platforms typically offer a range of features and tools to help traders identify and track the performance of top traders. Many copy trading platforms also come with educational resources and community support to help traders improve their skills.
Tips for Selecting a True Forex Broker for Social Trading:
- Check the commission and other fees charged by the platform. Ensure that they do not apply any hidden changes
- Always prefer an easy-to-use trading platform.
- Check the working time of the trading platforms. Most of the trading platforms work 24/7 or 24×5.
- Always check the security features of the trading platform.
- Prefer the trading platform that allows you to start social trading with a small account.
How to Open a Social Trading Account?
To open a social trading account, you will need to find a broker or platform that offers social trading services. You can do this by searching online for brokers that offer social trading, or by asking friends or colleagues who may have experience with social trading.
Once you have found a broker or platform that you would like to use, you will need to follow the steps they provide to open an account. The registration steps are mentioned on their website and this requires you to fill out an online application. This data they require might include some personal – such as name, email id, phone no, etc. After your application gets verified, you are ready to use the platform.
Benefits of Social Trading Platforms
There are multiple social trading platforms, each providing different services and facilities to traders. Here are some benefits of social trading platforms:
- You can choose the master trader by checking his/her trading history.
- You can start social trading with a small amount.
- The risk level in social trading is limited as you are working on or replicating the strategies of an experienced trader.
- You can learn trading strategies and implement them with on your account in your unique ways.
Disadvantages of Social Trading Platforms
- Social trading platforms develop a false confidence that you are ready to trade.
- Your ideal trader’s strategies are not always beneficial in all trading scenarios.
Through the social trading platform, the new trader can communicate, discuss and share ideas with more experienced traders. It’s a good way of finding a stable foot in the market.