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 advice. 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.

List of Social Trading Forex Brokers

There are not many social trading FX brokers, but the ones that have the option for social trading are the best. These include: AvaTrade, eToro, and easyMarkets.

Broker
Description
Trade Now
Octafx
OctaFX
Regulation: CySec
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.4 pips

Review


FP Markets
FP Markets

Regulation: ASIC, CySEC
Min. Deposit: $/€/£ 100
Leverage: 1:500
Spreads: Ultra Tight from 0.0 pips

Review


NSBroker
NSBroker
Regulation: MSFA, BaFin, FCA,
Min. Deposit: $250
Leverage: 1:100
Spreads: Low as 1.2 pips

Review
XM
XM
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.1 pips

Review
Avatrade
Avatrade
Regulation: ASIC,JFSA,FSCA
Min. Deposit: $/€/£ 250
Leverage: 1:400
Spreads: Floating from 1 pip

Review


IC Markets
IC Markets
Regulation: ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:500
Spreads: Low as 0.0 pips

Review


Etoro
Etoro
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:30
Spreads: Variable

Review

XTB
XTB
Regulation: FCA
Min. Deposit: $/€/£ 250
Leverage: 1:30
Spreads: Low as 0.1 pips

Review


IQOption
IQOption


Regulation: CySec
Min. Deposit: $/€/£ 10
Leverage: 1:1000
Spreads: Floating from 1 pip

Review


OlympTrade
OlympTrade
Regulation: IFC
Min. Deposit: $/€/£ 10
Leverage: 1:500
Spreads: Low as 0.0 pips

Review
Globex360
GlobeX360
Regulation: FSCA
Min. Deposit: No min Deposit
Leverage: 1:500
Spreads: Low as 1.6 pips

Review

 Advantages of Social Trading FX Brokers

There are many advantages when it comes to social trading, which is why many traders prefer to join the community. The first benefit for social trading in Forex is that increase a trader’s profits, whether if the trader is a novice or has advanced knowledge. For novice traders, social trading allows them to gain profits while learning about the trading industry. On the other hand, advanced traders use social trading as a method for hedging. Experienced traders use some of their capital in social trading, and simultaneously trading with other funds. This guarantees traders that they will always be able to generate revenues and restrict any financial losses.

The second benefit is that social trading is a great educational resource, since it allows traders to experience through observation. A new trader to the FX industry interacts in social trading gives access for them to observe and educate themselves from the greatest traders with the best experience. They can also repeat the same trading strategies that they observed and become better traders themselves. They could also learn the mistakes of the other traders they are observing and avoid it when it comes to their own trading strategies.

The third and final benefit is that social trading providers are doing well for themselves, in regarding to profit. The social trading offers them with a secondary resource of income, and in exchange, they get the most out of it. The best social trading providers could have hundreds of traders who willingly pay for the social trading service, and they gain many profits in return.

How Do Social Trading FX Brokers Work?

Forex brokers handle most of their social trading operations in the FX market since traders are operated by them; the most common structure for social trading is the PAMM Account. Traders who are confident in their skills in FX trading establish a PAMM Account, and once the account is created then other traders can be able to make deposits into their trading account while the PAMM Account holder operates all the trades. In order to return money back, traders ask for a withdrawal request and the amount is calculated proportionate to the initial deposit and compared with the entire account capital.

There are more direct methods of social trading, which include traders getting advice from their equally-qualified traders through different social trading networks. Social trading networks include, but not limited to, social media, forums, and blogs. There are some FX brokers also offers this service, but it is often through their VIP\Gold Accounts. However, this is also considered a form of social trading.

The several forms of social trading allow traders to observe other trades and gain experience, through the mode they prefer. It all depends on the preference of the trader, and their needs.