Social Trading Forex Brokers, are fx brokers that provide a social trading network or platform for their traders to interact and exchange trades, trading strategies and ideas.
What is Social Trading?
Social trading refers to the a service that allows forex and CFD traders to follow, copy and share the trading strategies of experienced and successful traders. This happens through the use of copy trading or mirror trading techniques. Social trading, as the definition explains, requires very little or no knowledge about the financial markets. It only requires careful observation and research into the past and present performance of the potential copied investor.
The social trading culture, allows new traders to trade the markets with the help of other traders that have the experience of opening and closing a few positions. Social trading can be considered an alternative way to analyzing the financial markets, by taking into consideration what other experienced traders re doing and copying their strategy.
Before this concept, investors and traders were heavily relying on fundamental and technical analysis to make important decisions on trading. These social trading networks can be compared to the most popular online social networks like facebook and twitter.
How to Choose the Right Social Trading Platform
A successful social trading network or platform, will have a sufficient user base with traders from all around the world. When choosing a social trading community, you need to make sure that it is full of active forex traders that enjoy providing guidance and advise. Furthermore, it is important to choose a forex broker that has the latest technology and supports a copy trading platform for you to utilize.
If you do not feel entirely confident interacting with other traders, visit our simple guide to learn forex trading and improve your knowledge in the financial markets.
Here is a list of forex brokers that offer social trading
MAS, JFSA, DIFC