Social sharing is everywhere. Whether it is a Grande from Starbucks or a pair of new Pumas, people love to share their new conquests and achievements. Not everything on social media shares worthy. Not everyone wants to know what time you go to bed or what dinner you are cooking today, but there are a lot of people interested to know the trading binary options of the day. That being said, it is not a brilliant idea to skip trade learning processes and jump to the action part of it.
What is Copy Trading all about?
Copy trading is a subset of social trading. Therefore, not all social trading methods are copied trading, but all copy trading practices fall under the foray of social trading. Copy trading allows the traders to copy the positions of the expert traders they follow. When the copied investor makes a trading decision, it automatically reflects on your account. This makes copy trading a form of automated trading (algorithmic trading) that the market first saw in 2005.
Copy trading is not new, but it is responsible for the genesis of a new type of portfolio – the people-based portfolio of the financial market. The owner of the portfolio invests the funds in other expert investors, rather than market-based instruments. While engaging in copy trading, it is always better to opt for investment than short-term trades. Copy trading follows several algorithms that keep updating round the clock. Several platforms that enable automated trading exist right now, but each one has a distinct algorithm.
How Social Trading is Different from Copy Trading?
Social trading has thankfully opened the share market to novices, who lack a thorough knowledge about investment and market trends. This practice allows the investors to mimic the operations of traders in the market. This involves little to no knowledge of the actual financial market or the investment process. This is a very simple way to replicate the profits of expert investors by replicating their buying and selling decisions. Social trading bypasses technical analysis and fundamental analysis completely while trading online with the help of other experienced Forex traders.
One of the greatest features of social trading is the free flow of information between the investors in the market. It has made financial information accessible for all investors, amateurs, and experts. Social trading is quite ideal for small-time investors, newbie share traders and eager learners, who are in for some quick bucks. Social trading sites allow people to make the right investing decisions by offering market updates, finance trends and suggestions for making investment decisions.
eToro is the top social trading site that has contributed to the way social trading works right now. Yoni Assia is the founder of this social trading platform that is a global community, which connects investors and traders from around the world. This site empowers all users with news feeds containing updates from all corners of the finance market. All users can follow their favorite traders and copy their actions.
This is one of the newest social trading platforms that have been serving a global community of traders successfully in the last couple of years. Ayondo offers safety, security and increasing value of commissions for each online trader. Ayondo offers a plethora of new and traditional instruments of trade for the professionals all the time.
This website saw the light of day in 2007. ZuluTrade has been the face of reliability, trust, and success in Forex Social Trading for the last 11 years. The users can read the comments of previous investors and connect socially via Signal Providers. You can search through the entire database using professional search tools that boost the regular Copy trading function.
Darwinex is one of the new platforms that have evolved in the recent years. Its rise has ushered in a significant era of online trading ease and popularity. The trader strategies are not visible to the copy trader, but they are hidden within a “Darwin.” Therefore, the original trader’s trading strategy becomes the real asset, and the investor can also invest in the strategy and add it to his trading portfolio. This is a new enterprising move by Darwinex that makes it both interesting and unique for all online social traders out there.
Tradeo is setting the trend regarding social trading. It is a highly technically sound social trading platform that allows the users to see what the moves and signals of other traders. You can choose to operate personally on Tradeo, activate the copy trading function or share your trading experience for a round of social sharing. Tradeo does not put a limit on the demo account so that you will have an overall realistic experience from day #1.
CopyOp is the option for those online traders, who are only interested in the binary options. The guys who run Anyoption also run and manage CopyOp. This is great news since they bring years’ worth of experience and tech to the field of binary trading. CopyOp makes binary options simpler and more doable for the individual investor. It allows each member to copy the other or be copied by the other. Each trader needs to use a real account to operate on this social trading platform.
PeepTrade is the platform that works marvelously for investors. The expert investors are the main target audience of this social trading site. All investors can monitor and follow the regular performance of the Top Investors. They can also sneak a “peep” at the construction of their trading portfolios. This comes at a monthly fee that the Top Investor decides. Its social aspect is quite advanced, and it allows you to interact with all investors about the current range of market instruments.
Social trading is not a shortcut to success. Even the simplest of trading practices have learning curves. You should always invest time and effort to learn about the best practices of social trading and each trading platform before you start investing.