Forex social trading is a social environment that offers interaction between active Forex traders in real time. It provides significant benefits of sharing knowledge with others and allows traders to trade online with the help of others by comparing and copying their trades, techniques and strategies. With the best social trading platforms offered today, newbie traders can follow expert traders while those with more experience can improve their own trading by selecting and subscribing to one of many Forex social trading platforms available in the market today.
Social trading is a trend that has been around for many years but it has gained in popularity of late due to increased trading activity and the need by Forex traders to depend on the knowledge and experience of more savvy investors. The idea of being connected with other Forex traders on the network is attractive to everyone.
Before the advent of social trading, investors had to rely on fundamental or technical analysis to form their investment decisions. Using Forex social trading investors and traders are able to integrate into their investment decision-making process with social indicators from trading data-feeds of other traders.
The best social trading platforms allow traders to interact with others, monitor their trades and then decide whether they are worth duplicating. By copying trades, traders can learn which strategies work and which do not work.
Many of the top social trading platforms also include copy-trading, sometimes referred to as auto-trading, capabilities in their social platforms where investors can automatically copy or mirror the trades from other traders on the network in their own trading account. Forex social trading brokers display a real time listing of other traders’ activities and achievements directly on their websites in order to enhance a trader’s success.
Some social trading platforms, such as the Sirix Social Network, allow a trader to select to follow a specific master trader who already has a long list of copiers. When the master trader opens a new position, so do all of his followers thus widening the trader’s trading opportunities.
Choosing the best Social Trading Platform
Since social trading platforms are based on the ability to follow and copy as many traders as possible worldwide, the best social trading ¬¬platforms would be those that offer the largest and most active social trading community of Forex traders. They would also include those Forex brokers that offer the most efficient copy trading capabilities since this would allow traders to place more trades at any given time. Lastly, the ability to synchronize order executions between several trading accounts (between a signal provider and followers) is another feature that can push a social trader broker to the top of the rankings.
Check out the list below to see who we recommend as the best social trading providers.