InvestinGoal Top Picks
  • 1.
    Rated: High
    78
    Visit eToro
    51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
  • 2.
    Rated: High
    92
    Visit AvaTrade
    76% of retail investor accounts lose money
  • 3.
    Rated: High
    76
    Visit ZuluTrade
    (Your capital is at risk when trading CFDs)
  • 4.
    Rated: High
    78
    Visit NAGA
    80.85% of retail investor accounts lose money
  • 5.
    Rated: High
    78
    Visit Darwinex
    61% of retail investor accounts lose money
  • 6.
    Rated: High
    76
    Visit Vantage
    74-89% of retail CFD accounts lose money
  • 7.
    Rated: High
    91
    Visit IC Markets
    74-89% of retail CFD accounts lose money
  • 8.
    Rated: High
    90
    Visit Pepperstone
    74-89% of retail investor accounts lose money when trading CFDs
  • 9.
    Rated: Medium
    64
    Visit Axiory
    (Your capital is at risk)
  • 10.
    Rated: High
    82
    Visit Tickmill
    73% of retail investor accounts lose money

The best social trading platforms and networks are eToro, AvaTrade, ZuluTrade, and NAGA.

To choose the best social trading platforms, platform features, minimum deposit required, number of tradable assets, demo account availability, and the overall quality of the broker are the most important criteria.

eToro is the best social trading platform overall, with a proprietary webtrader platform that lets users copy other traders, interact through comments and likes, follow investor profiles, supports over 1,000 assets including CFDs, real stocks and cryptocurrencies, and also provides an unlimited demo account,

AvaTrade, ZuluTrade, and NAGA follow eToro as the best social trading platforms, for platform design, interaction features, and asset variety. AvaTrade offers copy trading via ZuluTrade and its proprietary AvaSocial app, where traders can access 1,000+ CFDs, and use a 21-day demo account. ZuluTrade is focused on copy and social trading, offers features like ZuluRank to evaluate top traders, and supports unlimited demo use. NAGA provides community interaction, and smart portfolio investing with access to 1,000+ assets and a demo account.

Round-up

Warning

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

Trader Name Social trading platform Copy trading available
eToro eToro platform Yes
AvaTrade AvaSocial and ZuluTrade Yes
ZuluTrade ZuluTrade platform Yes
NAGA Naga platform Yes
Darwinex Darwinex platform Yes
Vantage Vantage Autotrade Yes
IC Markets DupliTrade and ZuluTrade Yes
Pepperstone DupliTrade Yes
Axiory  Axiory Copytrading App Yes
Tickmill CopyTrading myfxbook Yes

What are the best social trading platforms?

Below our curated list of the best social trading platforms and networks, with details of features and characteristics.

1. eToro

eToro offers a proprietary platform for social trading. eToro enables users to engage with traders. eToro includes features like liking, commenting, and following. eToro provides a news feed for updates.

78
InvestinGoal Rating
  • Regulations:
    FCA, MIFID-ESMA, ASIC, SEC, CYSEC, Offshore, FSA (Seychelles)
  • Avg. EUR/USD Spread:
    1 pips
  • Platforms:
    Proprietary Platform
Minimum Deposit: $50
Unlimited demo account available
Visit eToro
51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
About eToro

eToro is a global multi-asset investment platform founded in 2007, offering trading on stocks, ETFs, Crypto CFDs, commodities, and forex. eToro provides a proprietary web and mobile platform with social trading features. eToro is regulated by multiple authorities including FCA, ASIC, and CySEC. eToro is known for its user-friendly interface, copy trading functionality, and commission-free stock trading. eToro serves over 30 million users worldwide. The eToro CEO and co-founder is Yoni Assia.

eToro Features

The features of eToro are listed below.

  • eToro offers a proprietary platform which is top-notch in the copy and social trading area.
  • Within the eToro platform, clients can fully engage with other traders, as well as like, comment on and follow other clients.
  • eToro offers a news feed feature that allows traders to stay fully updated and follow their favorite traders.
  • The eToro social platform does not need to be downloaded.
  • eToro provides 1000+ assets, both CFD and real with a minimum deposit requested from $50 to $10.000 depending on your location in order to start.
  • An unlimited demo account to try out the platform is made available by eToro.
  • One of the best perks of eToro are the zero commissions on real stocks and ETFs as well as a good crypto investing service, which includes a crypto wallet.
eToro Pros and Cons

Advantages of eToro

The advantages of eToro are listed below.

  • Great copy trading and social trading features
  • Wide range of asset classes
  • It allows to buy fractional stocks from $10

Disadvantages of eToro

The disadvantages of eToro are listed below.

  • The eToro spreads can be high
  • Offers only USD accounts
  • Transferring cryptocurrencies to other platforms can be hard

2. AvaTrade

AvaTrade supports social trading with ZuluTrade and AvaSocial. AvaTrade enables user interaction and copying. AvaTrade provides a range of assets and a demo option.

92
InvestinGoal Rating
  • Regulations:
    FSA, MIFID-ESMA, ASIC, CIRO, FSCA, BVI (British Virgin Islands)
  • Avg. EUR/USD Spread:
    0.9 pips
  • Platforms:
    Mirror Trader, ZuluTrade, MT4, MT5, Proprietary Platform, MAC Platforms
Minimum Deposit: $100
Demo account available
Visit AvaTrade
76% of retail investor accounts lose money
About AvaTrade

AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.

AvaTrade Features

The features of AvaTrade are listed below.

  • AvaTrade’s copy and social trading are offered with 2 platforms: ZuluTrade and AvaSocial
  • With ZuluTrade, you can link your AvaTrade account to the platform and copy more expert traders’ positions.
  • AvaSocial is their proprietary trading app and has a partnership with the FCA-regulated Pelican Trading.
  • AvaSocial allows users to engage in copy trading as well as interact with other traders and even earn virtual trophies for reaching particular trading achievements.
  • AvaTrade offers a range of 1000+ CFD with a $100 minimum deposit to start trading.
  • An AvaTrade 21 days Demo account is available for clients.
  • AvaTrade is one of the few brokers which offers fixed spreads from 0.9 pips on forex.
AvaTrade Pros and Cons

Advantages of AvaTrade

The advantages of AvaTrade are listed below.

  • Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
  • The mobile apps are well designed
  • Can be connected to ZuluTrade and Duplitrade

Disadvantages of AvaTrade

The disadvantages of AvaTrade are listed below.

  • High inactivity fees
  • The demo account is limited to 30 days

3. ZuluTrade

ZuluTrade specializes in social trading. ZuluTrade allows interaction with signal providers. ZuluTrade includes tools for ranking traders. ZuluTrade offers customizable trading experiences.

76
InvestinGoal Rating
  • Regulations:
    MIFID-ESMA
  • Avg. EUR/USD Spread:
    0.3 pips
  • Platforms:
    ZuluTrade, MT4, Proprietary Platform
Minimum Deposit: $100
Unlimited demo account available
Visit ZuluTrade
(Your capital is at risk when trading CFDs)
About ZuluTrade

ZuluTrade is a global social wealth management platform founded in 2007, offering copy trading services across multiple asset classes including forex, stocks, commodities, and cryptocurrencies. ZuluTrade provides a broker-agnostic platform, allowing users to connect with various integrated brokers. ZuluTrade features advanced tools like ZuluGuard for risk management and a social feed for community interaction. ZuluTrade is regulated by multiple authorities including CySEC and FSC. The ZuluTrade CEO is Tajinder Virk.

ZuluTrade Features

The features of ZuluTrade are listed below.

  • ZuluTrade is a platform that specializes in copy and social trading.
  • Being a platform, the number of the assets depends on the broker chosen and are not provided directly by ZuluTrade.
  • With ZuluTrade, users have access to some social features to interact with signal providers, by commenting and leaving feedback on trading strategies.
  • Zulutrade also provides the ZuluRank feature, which ranks the best traders to copy.
  • The platform is highly customizable and excels in both connecting clients and giving them the best tools to find and copy more expert clients.
  • ZuluTrade requests a $100 minimum deposit.
  • A ZuluTrade risk-free demo account is available and unlimited.
ZuluTrade Pros and Cons

Advantages of ZuluTrade

The advantages of ZuluTrade are listed below.

  • Transparent Costs
  • User-Friendly Interface
  • Diverse Trading Options

Disadvantages of ZuluTrade

The disadvantages of ZuluTrade are listed below.

  • Limited Market Options
  • Dependence on Broker Fees
  • Less Customization in Strategy Filtering

4. NAGA

NAGA provides a platform for social trading. NAGA features auto-copying of traders. NAGA supports diverse funding methods. NAGA focuses on cryptocurrency engagement.

78
InvestinGoal Rating
  • Regulations:
    FCA, MIFID-ESMA, CYSEC
  • Avg. EUR/USD Spread:
    1.7 pips
  • Platforms:
    Proprietary Platform
Minimum Deposit: $0
Unlimited demo account available
Visit NAGA
80.85% of retail investor accounts lose money
About NAGA

NAGA is a German fintech company founded in 2015, offering social trading and investing services across forex, stocks, cryptocurrencies, commodities, and indices. NAGA provides a proprietary trading platform alongside MT4 and MT5. NAGA is regulated by CySEC and listed on the Frankfurt Stock Exchange. NAGA is known for its social trading features and copy trading functionality. The NAGA CEO is Michael Milonas since 2024.

NAGA Features

The features of NAGA are listed below.

  • NAGA Proprietary platform offers social networking, social trading, and copy trading, as well as innovative investment services, such as the NAGA Portfolios.
  • NAGA Proprietary platform enables social trading, with professional trading tools, the possibility to auto copy other traders and engage with a community of social traders.
  • The platform also accepts multiple funding methods, with a Personal IBAN and NAGA Card.
  • NAGA has a range of over 1000+ assets with a $50 minimum deposit
  • There is the possibility to open a NAGA demo account to test the platform.
  • The NAGA group is also extremely active in cryptocurrencies and the blockchain.
NAGA Pros and Cons

Advantages of NAGA

The advantages of NAGA are listed below.

  • User-Friendly Platform
  • Social and Copy Trading Features
  • Diverse Asset Selection

Disadvantages of NAGA

The disadvantages of NAGA are listed below.

  • High Spreads
  • Limited Account Types
  • No US Clients

5. Darwinex

Darwinex facilitates social trading via a webtrader. Darwinex enables community interaction. Darwinex supports strategy copying through MT4 EAs and APIs. Darwinex targets professional traders.

78
InvestinGoal Rating
  • Regulations:
    FCA, MIFID-ESMA
  • Avg. EUR/USD Spread:
    0.6 pips
  • Platforms:
    MT4, MT5, Proprietary Platform
Minimum Deposit: $500
Unlimited demo account available
Visit Darwinex
61% of retail investor accounts lose money
About Darwinex

Darwinex is a global broker and asset management company founded in 2012, offering trading on forex, CFDs, stocks, and other financial instruments. Darwinex provides MetaTrader 4, MetaTrader 5, and proprietary platforms. Darwinex is regulated by the FCA in the UK and CNMV in Spain. Darwinex is known for its unique DARWIN assets, which allow investors to copy successful traders’ strategies. Darwinex recently launched Darwinex Zero, a subscription-based trading platform. The Darwinex CEO is Juan Colón.

Darwinex Features

The features of Darwinex are listed below.

  • Darwinex allows social trading through the webtrader platform.
  • Clients can interact with other Darwinex community members and follow other traders.
  • For those who want to engage in copy trading with Darwinex, this can be done with the help of MT4 EAs, MQL, and APIs where clients can copy strategies and trading robots to reinforce their strategies.
  • Darwinex is better suited for professional traders who are willing to use high-level professional trading tools, also enjoying their overall low trading costs.
  • 300+ Darwinex assets can be traded with a $500 minimum deposit requirement.
  • A Darwinex demo account is indeed available for every client.
Darwinex Pros and Cons

Advantages of Darwinex

The advantages of Darwinex are listed below.

  • Access to Seed Capital
  • Flexible Trading Environment
  • Advanced Risk Management Tools

Disadvantages of Darwinex

The disadvantages of Darwinex are listed below.

  • Monthly Subscription Fees
  • Not user-friendly
  • Performance-Based Limitations

6. Vantage

Vantage allows social trading with AutoTrade. Vantage connects users with over 90,000 traders. Vantage offers robust tools and statistics. Vantage ensures browser-based access.

76
InvestinGoal Rating
  • Regulations:
    FCA, MIFID-ESMA, ASIC, VFSC (Vanuatu), CIMA (Cayman Islands)
  • Avg. EUR/USD Spread:
    0.00 pips
  • Platforms:
    ZuluTrade, MT4, MT5, MAC Platforms
Minimum Deposit: $200
Demo account available
Visit Vantage
74-89% of retail CFD accounts lose money
About Vantage

Vantage is a global multi-asset broker founded in 2009, offering trading on forex, CFDs, commodities, indices, shares, and cryptocurrencies. Vantage provides MetaTrader 4, MetaTrader 5, and proprietary platforms. Vantage is regulated by multiple authorities including ASIC, FCA, and CIMA. Vantage is known for fast execution, competitive spreads, and extensive educational resources. Vantage serves over 3 million registered users worldwide. The Vantage CEO is David Shayer.

Vantage Features

The features of Vantage are listed below.

  • Social trading at Vantage is carried out through Vantage AutoTrade, which is supported by Myfxbook.
  • Through this Vantage platform, users can interact with more than 90,000 other traders.
  • The entire Vantage platform is accessible online in browser.
  • Several Analysis tools with accurate statistics and figures are at the disposal of Vantage clients.
  • Vantage provides 400+ assets with a minimum deposit starting from $200.
  • A demo account is available.
  • Vantage provides low spreads from 0 pips on forexb and an efficient ECN execution.
Vantage Pros and Cons

Advantages of Vantage

The advantages of Vantage are listed below.

  • Competitive spreads and low commissions
  • Strong range of asset classes

Disadvantages of Vantage

The disadvantages of Vantage are listed below.

  • Not available to US traders
  • Customer service could be improved

7. IC Markets

IC Markets supports social trading through Myfxbook and ZuluTrade. IC Markets offers interaction with traders. IC Markets provides tools for copying strategies. IC Markets includes a risk-free demo account.

91
InvestinGoal Rating
  • Regulations:
    ASIC, CYSEC, FSA (Seychelles), SCB (Bahamas)
  • Avg. EUR/USD Spread:
    0.1 pips
  • Platforms:
    cTrader, Mirror Trader, ZuluTrade, MT4, MT5
Minimum Deposit: $0
Unlimited demo account available
Visit IC Markets
74-89% of retail CFD accounts lose money
About IC Markets

IC Markets is a global forex and CFD broker founded in 2007 and based in Sydney, Australia. IC Markets offers trading on over 2,250 instruments including currencies, commodities, indices, stocks, and cryptocurrencies. IC Markets provides MetaTrader 4, MetaTrader 5, and cTrader platforms. IC Markets is regulated by multiple authorities including ASIC and CySEC. IC Markets is known for its ECN execution model and low spreads. The IC Markets CEO is Andrew Budzinski.

IC Markets Features

The features of IC Markets are listed below.

  • IC Markets facilitates social trading through Myfxbook and ZuluTrade.
  • ZuluTrade has more social trading capabilities, allowing investors to check, rate, and interact with other traders.
  • IC has partnered with Myfxbook to offer Autotrade, which enables clients to copy strategies offered by signal providers on Myfxbook directly into their IC Markets trading account
  • MT4 is also made available.
  • IC Markets has a range of 1700+ CFD to choose from, and a $200 minimum deposit.
  • IC Markets also allows the use of a risk-free demo account.
  • IC Markets provides low spreads from 0 pips on forex and supports algo trading.
IC Markets Pros and Cons

Advantages of IC Markets

The advantages of IC Markets are listed below.

  • Low-latency trading environment
  • Institutional level liquidity
  • MT4, MT5, cTrader platforms are all available

Disadvantages of IC Markets

The disadvantages of IC Markets are listed below.

  • Small amount of educational tools for new traders
  • Small range of tradable assets compared to other CFD/Forex brokers

8. Pepperstone

Pepperstone enables social trading through DupliTrade. Pepperstone allows platform customization. Pepperstone connects users with traders. Pepperstone provides competitive trading environments.

90
InvestinGoal Rating
  • Regulations:
    FCA, MIFID-ESMA, ASIC, DFSA, CYSEC, SCB (Bahamas)
  • Avg. EUR/USD Spread:
    0.10 pips
  • Platforms:
    cTrader, ZuluTrade, MT4, MT5, MAC Platforms
Minimum Deposit: $0
Demo account available
Visit Pepperstone
74-89% of retail investor accounts lose money when trading CFDs
About Pepperstone

Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.

Pepperstone Features

The features of Pepperstone are listed below.

  • Those looking for copy and social trading through Pepperstone can connect their account to DupliTrade depending on the location.
  • DupliTrade works with Pepperstone’s MT4 to facilitate both copy and social trading.
  • Pepperstone clients find a customizable platform, with many ways to connect to other traders.
  • Connecting with DupliTrade through Pepperstone requires a high minimum deposit of $5,000.
  • Pepperstone offers more than 1350 CFDs, including 90+ forex pairs
  • New Pepperstone clients can benefit from a risk-free demo account.
  • Pepperstone’s main strengths are the lightning-fast trade execution, low spreads from 0 pips on forex, and trading through MT4, MT5, cTrader, TradingView and Proprietary Platform.
Pepperstone Pros and Cons

Advantages of Pepperstone

The advantages of Pepperstone are listed below.

  • Stable raw spreads (0,10 pips on EUR/USD on average)
  • Caters for algorithmic trading
  • Has won over 30 Forex industry awards

Disadvantages of Pepperstone

The disadvantages of Pepperstone are listed below.

  • The demo account is not unlimited

9. Axiory

Axiory uses the CopyTrading App for social trading. Axiory offers interaction and safety features. Axiory provides performance data. Axiory includes an unlimited demo account.

64
InvestinGoal Rating
  • Regulations:
    IFSC (Belize)
  • Avg. EUR/USD Spread:
    0.6 pips
  • Platforms:
    cTrader, MT4, MAC Platforms
Minimum Deposit: $50
Unlimited demo account available
Visit Axiory
(Your capital is at risk)
About Axiory

Axiory is a global online broker founded in 2012, offering trading on forex, CFDs, stocks, indices, commodities, and cryptocurrencies. Axiory provides MetaTrader 4, MetaTrader 5, and cTrader platforms. Axiory is regulated by the International Financial Services Commission (IFSC) of Belize. Axiory is known for competitive spreads, fast execution, and extensive educational resources. Axiory offers various account types including ECN accounts. The CEO of Axiory is Roberto d’Ambrosio.

Axiory Features

The features of Axiory are listed below.

  • Axiory CopyTrading App is the platform that enables social trading and it is handled by Axiory’s affiliated partner Pelican Trading.
  • The Axiory platform cannot be used by European clients.
  • Users can engage in copy and social trading only with an Axiory MAX account. This account type has an accessible minimum deposit of $10 and spreads that start from 1.8 pips.
  • Performance data, the possibility to interact with other traders, and safety are all ensured by Axiory CopyTrading App.
  • The app is available on both Android and iOS devices for Axiory traders.
  • Axiory provides more than 150 CFD assets alongside a minimum deposit of $10.
  • An unlimited demo account is also available.
Axiory Pros and Cons

Advantages of Axiory

The advantages of Axiory are listed below.

  • Competitive Spreads
  • Diverse Account Types
  • Robust Educational Resources

Disadvantages of Axiory

The disadvantages of Axiory are listed below.

  • Limited Regulation
  • High Inactivity Fees
  • Withdrawal Fees

10. Tickmill

82
InvestinGoal Rating
  • Regulations:
    FCA, MIFID-ESMA, CYSEC, FSA (Seychelles)
  • Avg. EUR/USD Spread:
    0.2 pips
  • Platforms:
    MT4, MAC Platforms
Minimum Deposit: $100
Unlimited demo account available
Visit Tickmill
73% of retail investor accounts lose money
About Tickmill

Tickmill is a global multi-asset broker founded in 2014, offering trading on forex, CFDs, stocks, indices, commodities, and cryptocurrencies. Tickmill provides MetaTrader 4, MetaTrader 5, and proprietary platforms. Tickmill is regulated by multiple authorities including FCA, CySEC, and FSCA. Tickmill is known for low spreads, fast execution, and extensive educational resources. Tickmill serves over 500,000 clients worldwide. The Tickmill CEO is Sudhanshu Agarwal.

Tickmill Features

The features of Tickmill are listed below.

  • TickMill has 2 social platforms through third-parties. These are TickMill CopyTrading, myfxbook, and for an increased focus on social trading, Pelican Trading.
  • Pelican Trading is an FCA-regulated service where traders can chat, share news, provide and sell trading signals, and engage in copy trading.
  • TickMill clients will find no additional software needs to be installed.
  • TickMill provides 80 CFDs with just a $100 minimum deposit.
  • A very useful demo account is available for TickMIll traders.
  • TickMill offers a good trading environment, with competitive spreads and several trading and educational tools.
Tickmill Pros and Cons

Advantages of Tickmill

The advantages of Tickmill are listed below.

  • Regulatory Trust
  • Competitive Pricing
  • Comprehensive Platform Support

Disadvantages of Tickmill

The disadvantages of Tickmill are listed below.

  • Limited Asset Variety
  • Higher Costs on Classic Account
  • Discontinued Features

How to choose a social trading platform

Choosing a social trading platform should involve careful consideration of a number of key factors.

  1. It is crucial to select a platform that is regulated by esteemed authorities like the Financial Conduct Authority (FCA) or the Australian Securities and Investments Commission (ASIC). This ensures that the platform adheres to strict standards of operation, security, and transparency.
  2. Make sure the platform charges minimal fees for copy trading. Typically though, these platforms do not impose additional fees on trade open-close, and users are only required to pay the bid-ask spread.
  3. A superior social trading platform will provide detailed information about traders’ performance and portfolio allocation, allowing you to gauge the riskiness of their strategy. Moreover, it should also feature a dedicated feed section, much like a social network, where news, comments, and shared opinions are accessible.

How do social trading platforms work?

Social trading platforms primarily allow traders to interact with each other as in a social network, and secondarily allow them to both invest independently and copy the activities of other traders on the platform.

In fact, although “social trading” originated primarily to allow traders to discuss the market with each other, to date many social trading platforms also implement copy trading or mirror trading within their service.

This makes social trading platforms very flexible, as more experienced traders can trade independently and earn commissions if some user copies their trades, while less experienced traders can copy experienced traders so as to have similar performance to an experienced trader.

Social Trading vs Copy Trading vs Mirror Trading

The difference is that social trading platforms focus on getting traders to interact with each other, while copy trading and mirror trading platforms focus on providing the ability to copy other traders and/or trading strategies.

Copy trading platforms offer, in fact, a form of automated trading. It allows traders to copy the trades of other traders. This can be similar to what is offered with social trading but without the same levels of social interaction.

Mirror trading, on the other hand, is essentially copying exact positions based on algorithmic trading strategies which have been coded to behave in a certain way. This means you follow the strategy exactly, with the same opening and closing times, in a fully automated environment that provides forex signals.

How to get the most out of social trading platforms

Social trading can be a highly beneficial practice if leveraged appropriately:

  • Prioritize following traders who have demonstrated experience and stability. Their insights and ideas can be invaluable, but always remember to conduct your own research before making any investment decisions.
  • While advice from other traders can be helpful, it is important to not open any position without performing your own due diligence. If an investment seems too good to be true, it likely is.
  • While a near-perfect order success rate might seem enticing, it often indicates the trader is following risky trading techniques such as the martingale strategy. It’s important to understand that occasional losses are a part of trading, and copying the strategy of these traders may backfire.

To gain a deeper understanding of copy trading, we recommend checking out our detailed guide for more insights about this trading strategy.

Risks of social trading

A key risk is the possibility of being influenced by a poor-performing or inexperienced trader. 

It’s easy to get caught up in the excitement of seemingly lucrative strategies, especially if they’re presented with confidence and enthusiasm. However, keep in mind that not all that glitters is gold. Overzealous traders might make grand claims that can’t be substantiated, and blindly following such advice can lead to significant losses.

Remember, the primary benefit of social trading is the sharing of knowledge and ideas. It’s a platform that allows you to learn from others’ experiences, gain insights from diverse perspectives, and tap into collective wisdom. Nevertheless, it doesn’t eliminate the need for due diligence.

Before you decide to follow a trader or implement a strategy, it’s crucial to validate the information independently. Do your own research, understand the risks associated, and make informed decisions based on your own analysis as well as the shared knowledge.

Are there alternatives to the social trading platform?

On the market there are some social trading platforms that do not offer trading services. These are:

  • Kinfo Social Trading: To share your portfolio and performances with other traders
  • Myfxbook.com: offers a comprehensive range of analytical tools for your forex trading account to help track your metrics and performance.
  • FX Junction: allows you to easily connect your trading account and analyze your performance against others in the community and copy them if you wish to do so.
  • MQL Forum: forum of traders who use the MetaTrader platform
  • FxStat: follow news from the traders, markets, and see their portfolios.

Pros and cons

Here then, is a look at some of the pros and cons of social trading we have found:

Pros

  • Social trading allows you to have contact with some of the best and most successful traders in the industry.
  • You can benefit from some professional market insights from many other traders.
  • This can be a great way to learn and quickly develop your skills as a trader.

Cons

  • There is always a chance of being easily influenced, particularly for newer traders.
  • The fact that even non-experts can share their thoughts means you must always conduct your own research on any information too.

Our final thoughts about social trading

Overall, social trading is a hugely popular segment within the industry, and whether you are trading on some of the best social trading platforms out there, or you are engaged with any social trading software, it can be a very useful system for all traders.

Social trading can be a great way to share knowledge with top-class expert traders, and can really help you to gain great market insights, particularly as a newer trader.

The only caveat is that you take care to research all of the information you come across, and not to jump into any risky investments no matter how well they may be promoted, or how safe they may seem. With these ground rules in place, using a social trading platform and broker can be a great experience for both retail investors and signal providers.