What you need to know about Social Trading Forex Or Copy Trading Forex
Social trading is a popular system through which Forex traders can share trading strategies while trading currencies. The major benefit of social trading, it helps traders to practice the skills of other successful traders or to copy them smartly and profitably. It helps to link traders all around the globe. One of the major challenges you will face with social trading is the screening of signal providers. Most platforms have no way of controlling who becomes a signal provider and who does not, and this can be a problem because the quality of the signals provided may vary wildly within the same social trading platform. Social trading networks are becoming more and more popular due to a single fact that they enable ordinary people or investors to automatically copy best traders who trade stocks, currencies, commodities or indices. This way they can make money from market without knowing how to trade. Investors or traders, who are new to the world of Forex trading, can explore the advantages of copy trading or social trading can be rewarding. For beginners, the financial market becomes challenging to earn the profit without having the knowledge of forex trading. If you are sticking to the conventional way of trading money in forex, you have to practice with demo accounts for months until and unless you are completely confident of trading with real accounts.
Existence of Social Forex Trading
One advantage is the interaction between the social network and the trading platform. On the trading platform is a small window with information from the social trading platform. It provides the trader with information about the recent trades on the social platform and which trader is top traders and has a high win ratio. It is an advantage of the information from the social net is inspirational and gives ideas of which currency pairs to trade. If the trader wants more information about a trader he can click on the traders' link and find the history of the traders and see how he has managed the trades he had made in the past. If he has managed the trades well he will be, a valuable inspirational source or even a trader considering copying. With no doubt, we can say that its one of the most different platforms. Social Forex trading gives the opportunity to other traders to interact with each other. The most interesting part of social forex trading is you can interact, copy, see and follow the copy trades that are most in the profitable term for current days. With this ability to see and copy traders are one of the most efficient ways to learn for newbie traders by reading articles and practically executing them. It will be much convenient to learn and trade various strategies of successful traders.
Advantages of Social Trading Forex or Copy Trading
What is copy trading?
Copy trading allows traders of all levels to access the market. All they have to do is just pick a list of top-ranked traders and replicate their trades. With the copy trading, followers need not learn themselves about the trading techniques; they just need to follow and execute practically about the nuances of successful traders. Automatically, the winning chances remains high for long term.
What is Social Trading?
The social forex trading networks, on the other hand, are platforms where traders with varied levels of expertise can connect with each other to share trading ideas, styles, opinions and tips and to put up and answer queries. The newbie traders cannot expect to “copy” trades of the leaders but incorporate trading ideas, tips or suggestions in their trading styles.
Social trading offers a wider scope of analysis to traders
The traders can now easily depend on the “cumulative” wisdom of investors rather than falling back solely on their own evaluation. As we say— the “more the merrier!” Irrespective of your experience in the relevant field you can share all types of ideas from your end, get others’ ideas for free and even get your queries fulfilled!
Social trading is fun
Sticking to the conventional means of trading might turn around to be a mundane activity after a period. Here, you are trading individually without being exposed to the innovative ideas being shared by co-investors. Social trading, on the other hand, introduces the element of fun in trading. There are some brokers who run various competitions for members— which can act as potent incentive for you to stick to the market.