Social trading in the forex market refers to a social environment where active traders can interact with each other in real time. It can provide a number of benefits that come from sharing knowledge with others and enables traders to trade various foreign currencies online with the assistance of others by comparing and also copying their profitable trades, strategies and techniques. You can find a multitude of social trading brokers nowadays and these can be used by newbie traders for following expert traders. Similarly, even those traders who have some experience can use these social trading brokers because they get the opportunity to improve their skills.
While the trend of social trading has been around for a number of years, it has gained popularity recently because of increased trading activity due to which Forex traders now need access to the experience and knowledge of more savvy investors. Everyone finds the idea of connecting with other Forex traders quite attractive. Before the concept of social trading was introduced, traders had to depend on technical and fundamental analysis for making their investment decisions.
But, times have changed since then and technology has also advanced considerably. Now, with the option of forex social trading, both investors and traders are able to integrate the social indicators and investment decision-making process of other traders into their own. This allows them to benefit from their expertise and use their profitable strategies to enjoy benefits of your own. However, this can only be done when you sign up with a social trading broker.
You will find plenty of options when you do a search for social trading brokers, but not all of them are reliable and trustworthy. If you want the best options, the top 3 social trading brokers in the market are outlined below:
Broker 1: eToro
Even though eToro is not the first broker to delve into the world of social trading, but it has become of the top ones to have given this concept proper share. In addition, it also created visibility and awareness of what is now recognized as social trading. eToro was founded by Yoni Assia and has become a global platform where traders get the chance to interact with each other in the same way they would do on a social media network, such as Facebook. The broker’s headquarters are located in Limassol, Cyprus. eToro provides its users with access to a newsfeed, which can be used by traders for monitoring their favorite traders and copying them manually.
Furthermore, the most interesting feature it has to offer is undoubtedly copy trading. This can be used for copying other traders, but in proportion, which can help in managing risk and exposure. An unlimited and free demo account is a great bonus the broker has to offer to its clientele. Another appealing fact about eToro is that it is a heavily regulated broker, which assures traders of its reliability. In Europe, the broker is subject to the regulations outlined by CySEC, in Australia it has to comply with the standards of ASIC while in the UK, it is subject to FCA rules and regulations. When it comes to trading platform, eToro provides its traders the option of using WebTrader or they can also opt for mobile trader, which works on both Android and iOS platforms.
The broker offers high leverage to its users, which is around 1:400, which is also an attractive option for new traders. Nonetheless, it should be noted that leverage comes with a lot of risks as well. As far as sign up is concerned, there are multiple account options available on eToro and each of them have their own minimum deposit requirements. The deposit requirements also varies according to region, but it is usually within the range of $200 and $10,000. Other than trading foreign currencies, eToro has also expanded its asset portfolio by adding other instruments, such as cryptocurrency, stocks, commodities, ETFs and indices.
The broker offers several payment methods for the convenience of its traders and backs up its services with excellent customer support, which makes it a good and comprehensive option for trading.
Broker 2: ZuluTrade
When you are looking for social trading brokers, you will definitely find the name of ZuluTrade on every list. The broker was founded by a well-known Greek entrepreneur, Leon Yohai, back in 2007, which means that it has been around for more than a decade. Nevertheless, the broker has remained at the forefront of social trading, especially when it comes to the Forex market. In fact, the broker also introduced Binary Options social trading on its platform. It specializes in providing its users with access to various social features that they can use for interacting with signal providers, particularly to read the comments that are left by traders before them.
However, the true area where of social trading where ZuluTrade is known to excel is copy trading. The broker’s offering is second to none as it offers an advanced and professional tool that can be used for searching thousands of Signal providers. You have the option of analyzing their strategy in minute detail and most importantly, you can replicate their performance by customizing your money and risk management. Even if you are unsure about it, you can clear all your doubts by taking advantage of the demo account provided. This makes it easy to test all strategies and see how they would play out.
When signing up with ZuluTrade, you do not need to worry about scams. As mentioned earlier, the broker has been around for a long while and it is also regulated by the HCMC. The leverage varies, depending on the broker you select and so does the deposit requirement. As far as trading platforms are concerned, you will have the option of using the web platform, which is certainly a good option because it doesn’t require downloads and can be used with minimal fuss. Other than that, you can also download apps on your smartphones if you want to enjoy trading on the go.
ZuluTrade gives you the option of downloading mobile apps for both Android and iOS. Even though it is the broker’s own proprietary platform, it is certainly a powerful one and is equipped with all necessary trading tools and features that you will need during the course of trading for making good and smart decisions. The broker has ensured that its platform is incredibly easy to use and all kinds of traders, whether newbies or experienced ones, will have no trouble in using its services to have a smooth trading experience.
Broker 3: Naga Trader (formerly known as SwipeStox)
SwipeStox was originally introduced as an app for smartphones and came to be recognized as the ‘Tinder for Trading’. It didn’t long for the app to become one of the most important players in the universe of social trading. The leaders of its management team made the decision to undergo an expansion in 2017 in which they decided to rebrand all the services that they offered. Thus, this transformed SwipeStox into Naga Trader, which is one of the platforms offered by the Naga Group AG.
Naga Trader is known and recognized for providing traders with access to a variety of innovative investment services, which include social trading, social networking, copy trading, NAGA Portfolios and NAGA CYBO. As a matter of fact, the NAGA Group also plays a very active role in the world of blockchain and cryptocurrencies, so much so that they have also launched their own crypto coin, which is called the NAGA Coin. Therefore, the broker gives you the option of using the NAGA Coin as the base currency in your account with the broker and this can provide a number of economic advantages, particularly at the trading level, such as low commissions.
The Naga Trader is referred to as Market Maker and it is strongly regulated by CySEC as its headquarters are located in Limassol, Cyprus, which is an assurance to all traders who may be worried about the broker’s security. The broker offers you impressive leverage during trading, which is around 1:200. The sign up process is quite straightforward and traders only need to deposit a minimum of 500 GBP in order to get started. This is reasonable enough for even beginner traders to afford.
When using Naga Trader, people will be able to access the market popular MT4 trading platform, which includes its web version and also its iOS and Android mobile apps. This is quite convenient for traders who prefer to have both options at their disposal so they can use it as per their preference. The MT4 is a powerful and advanced platform that is equipped with various tools and features that can be extremely useful during trading. Naga Trader also gives traders the opportunity to trade assets other than foreign currencies, including cryptocurrencies, stocks, ETFs, indices, commodities and gaming items.
You can use any of the three above mentioned brokers when you are interested in social trading to reap the benefits of others’ expertise and experience.