It is said that a good forex broker is essential to make or break your trading journey. But what should you choose between the two: social broker or social trading platform? In this article, we have covered the most significant considerations that you should know about. Read More
A primary feature of a social trading platform is that it enables traders to take advantage of how others trade on the same platform. Thus, the more users for the broker’s platform, the more tactics you can learn about. Furthermore, various studies show that when a wide range of trading styles are present within a network, there are more chances for the members to execute profitable trades based on copy trading. This is true, a prominent social broker has much more to offer than a smaller one. When the social trading network has a relatively smaller number of investors, you can access a narrower range of trading styles. In addition, there is a substantial tendency to “copy trading bubbles, ” meaning that a large proportion of the traders within the network are using the same handful of techniques. Of course, it goes without saying that a popular social trading platform is under more scrutiny by the regulator than one which isn’t. For a trader, this is going to help them as there shall be fewer chances of shady and risky manipulations, trading scams and conflicts of interest. Just to be on the safe side, you can go through some social trading platform reviews to make the right decision. Various social brokers have various commission structures based on what copied traders make. Hence, all the traders interested in copy trading must be aware of various commission structures provided to traders as it affects their portfolios. Furthermore, the trading platform must offer traders excellent tools and features for a smooth forex trading experience. The best social trading platforms have a wide range of ways to compensate popular investors, such as: Another critical factor that you must consider when choosing a social broker is the range of assets offered. If your objective is to diversify your portfolio, you must select a broker who can provide you with various financial instruments. Furthermore, the more comprehensive the range of instruments, the better the potential profits because when you have a variety of instruments at your disposal, you get ample opportunities to make a profit. An efficient trading platform is vital for traders to trade with the broker. Choose a social broker who can connect you to various forex brokers through various trading platforms such as MT4. In addition, the social broker can also have their own proprietary trading platform, which may be better equipped for social trading as compared to standard trading platforms such as MetaTrader. However, many users still use MT4 because of its ability to provide forex signals to other traders who copy their trades. Video Source: forex signals daily Another significant consideration you should keep in mind when choosing a social trading platform is whether it allows automated trading with EAs or not. Many traders prefer to opt for automated trading to save time and effort, so if this is the case with you as well, ensure that the social trading platform you wish to use can execute trades automatically. Interested in copy trading but don’t know where to begin? If this is something you are worried about, you can choose a trading platform that can let you copy trading signals through a demo account. Although many traders like to copy trades via real trading accounts, many copied traders have found demo accounts to be very grateful in their social trading journey. It is worth mentioning that social brokers charge a little bit higher than retail brokers. However, this price is worth paying for the benefits you will be getting. But, it is highly recommended that you go through the spreads and commissions of various social brokers to make the right decision. Another essential criteria on the basis of which many social trading platforms vary from each other is the level of transparency they offer. An excellent social trading platform will ensure that the traders have all the relevant information in their hands for efficient decision-making. However, ensure that the information is not too much to scroll through and sufficient to help you measure each trader’s performance. Broker’s Size And Number Of Uses
Size Matters
Popularity
Commission Structure
Compensation
Financial Instruments
Compatible Trading Platforms
Automated Trading
Demo Account
Spreads And Commissions
Transparency
