As of today, social trading is one of the most popular investing mechanics that you can find on trading platforms. It has become so important in today's investing world that most brokerage firms made available some sort of social features in their offers.
Those tools can be used wisely to gain insights and useful information from other traders, still, they should be used carefully. And even more important: you should learn to recognize the best services around and divide them from scams.
To learn more about the topic, you can visit InvestinGoal at: https://investingoal.com/.
What Is Social Trading?
Social trading is a last generation form of investment discipline that allows investors to observe and analyse other traders' behaviours in the market. Most of the time, this form of investment works well with copy trading or mirror trading tools.
Between its main PROs there are:
- Little or no knowledge of the market: because of its copycat nature and automated trading possibilities, many traders can invest in a financial market without having actual knowledge of how it works thanks to social trading.
- Low-cost Strategy: compared to many other trading strategies and tools, social trading doesn't require large funds or many investments for acquiring knowledge on financial subjects.
- Chance Of Monetization: advanced traders can monetize their strategies by becoming 'Top Investors' and gain money. This works in a similar way like influencers on other social platforms through sponsors or percentage of investments made by other traders copying them.
- Transparency: in a social trading environment, investors can watch and analyse other traders' performance stats and investments made (both successful ones and failures). This results in a complete transparency from both traders and the platform.
As every other trading strategy though, there are always risks involved in it. Plus, you should only use services on social trading platforms enabled from regulated brokers.
Best Social Trading Platforms Today
As of today, we have many different examples of social trading platforms which became successful during the last decade. Thanks to the information gathered through exercise and useful informational websites such as InvestinGoal, we decided to suggest you the one that we consider as the best social trading platforms available today: eToro.
This brokerage service founded in Tel Aviv more than 10 years ago has become today a leading social trading platform and an example for others brokering services too.
As of today, eToro has become an international renown brokerage service especially for their social trading features and for copy trading. Thanks to It, you will be able to copy any other traders' portfolios in order to open automatically any position present in it until there and in the future.
Most copied traders on the eToro Social Trading Platform are called Top Investors and should be seen as 'human' assets.
While it is true that you do not need to have particular financial skills or knowledge to invest through copy trading, it is also true that you should study traders portfolios and their performances before investing in them.
With all that being said, remember that eToro is a broker regulated by international top regulators, therefore it can be considered as more than trustworthy.