Monday, June 24, 2024

Which are the best social trading networks to use?

You may have thought about trading in the currency, commodity or stock markets in the past but have been a little cautious. After all, to stand any chance of making consistent profit in these kinds of financial markets previously meant many years of rigorous study and testing of strategies. However, all this changed at some point around 2005.

This was the year that mirror trading was invented, which performed the same basic function as social trading (also known as copy trading). With a few improvements and tweaks over the intervening years, true social trading came into effect and made the financial markets truly open for all to trade on.

No knowledge – no problem!

Social trading took mirror trading and moved it into the 21st century – but what exactly is social trading, and how does it work?

This type of trading allows you to connect with other more experienced traders via dedicated social trading networks and copy the trades that they are making. It took the copying element of mirror trading but added an extra social element into it. You can now interact with the trader you were copying as well as leaving comments or feedback for them. You were also free to interact with others on the network and copy other traders who you thought gave better returns.

Trading made simple

As the above shows, copy trading makes trading as simple as clicking a button. To trade and make money now, you don’t have to have any knowledge of the financial markets or spend time keeping an eye on them. Simply copy the trade that a successful trader has put on and wait for a good return.

Which are the best social networks to try out?

 If you are interested in trying out social or copy trading, then there are lots of different social networks to try out. Here are some of the best around to enjoy:

  • eToro – this is probably the most well-known social trading broker and deals in the FX, stock, commodities and indices markets along with cryptocurrencies. It was one of the first to begin offering true social trading to its users and has remained committed to this vision since. It is a very easy-to-use platform that looks great and makes trading simple to understand when using it. There are lots of great traders here to connect with and copy – it is thought to have 4.5 million users in over 140 countries globally. And if you choose to stop trading, the platform has made it easy to close your eToro account.
  • ZuluTrade – another very popular social trading network now is this one. As with eToro, it has many successful traders to copy but is a very active forum to ask questions on. Many users also love a tool called “The Automator”, which sends email updates out when anything significant happens to affect any of your trades. With low fees and no entry cost, this is a very easy and powerful network to use.
  • Ayondo – this is a Swiss-based social trading network that has been going since 2009. Mainly for traders based in Europe, it has a great mix of traders and an opportunity to trade across a range of investment types for full diversification. Each trader has their own risk profile, so you can select one that matches up with your own. Like eToro, this network is also its own broker, which cuts down on any fees that you would otherwise have to pay.
  • TradeCrowd – this is another social network that acts as its own broker to make things easier and less costly for you. This is a joy to use with a clean layout and easy-to-read information on the traders you can follow. While you can copy traders in the same way here, the Contra Copy Trade feature is what helps it stand out. This means that you can find the worst-performing traders and do the exact opposite of any trades they place!
  • MyDigiTrade – one of the newer social trade networks to hit the scene is this one, based in the BVI. This stands out for its very sleek and easy-to-use platform, which makes trading very enjoyable. Although not its own broker, there are many fully regulated ones to place trades with along with some very experienced traders to copy, who show good returns.

Social trading has changed the landscape

When it comes to trading the various financial markets, social or copy trading has opened it up to all. Where once it was only financial whizz-kids or wealthy speculators who could trade, now you can do it without any knowledge of the markets you are entering. This means that there has never been a better time to get involved yourself!

Elliot is the Editor at ABCMoney. He manages a team that writes and contributes to many leading publications across a number of industries.

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