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What is Social Trading?

What is Social Trading?

Social trading is a new way for retail traders and investors to access the financial markets. It builds on the concept that the collective wisdom of thousands of traders is better than the wisdom of one. By connecting traders all over the world to a network, it allows for real-time information sharing. This can include live trades, ideas or general news and can used to make trading strategies and decisions rather than using fundamental or technical analysis.

As a trader you can either use this “social” information to make your own decisions and trades (i.e. self-trade) or decide to automatically follow and copy one or more traders (i.e. auto-trade).

Top Social Trading Brokers 2021

1
Min. Deposit
$50
Exclusive promotion
Our score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
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Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
2
Min. Deposit
$50
Exclusive promotion
Our score
9.3
Trade on popular Crypto markets
Go long or short on cryptos from 10p a point
A trading partner you can trust
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Description:
Founded in 1999, part of GAIN Capital Holdings. Licensed in highly regulated jurisdictions, FCA, IIROC, NFA, CFTC, CIMA,FSA. Payment methods ACH, debit card, bank wire transfer. $50 minimum deposit.
Payment Methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Full regulations list:
NFA, CFTC, FCA, FSA, IIROC, CIMA, FFA Japan, MAS, SFC of Hong Kong
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$1
Exclusive promotion
Our score
8.7
The world's largest cryptocurrency exchange with over 2bn daily users
Innovative trading platform offering enormous range of crypto coins
Supports over 60 methods of payment including PayPal
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Description:
Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.
Payment Methods
Cryptocurrencies
Full regulations list:

 

 

What is a Social Trading Network and Platform?

 

Social Trading NetworkThe social trading network is the glue that connects all the successful traders and trade followers, just in the same way Facebook and Twitter connect friends and family. While the initial trading networks were very much based around information sharing, the new networks very much focus around the “social” and “automated trading” aspects. I.e. these networks not only allow you to view, analyze and comment on the performance of real live traders, but … they also allow you to automatically copy the trades in your account from the traders you decide to follow.

Can I make money with social trading?

Make Money Social TradingIt is a known fact that only a small number of traders are consistently successful, but the social online trading networks allow you to try to find them and directly invest your money like they do. Because the traders you can copy can both buy or sell positions (e.g. of a Forex currency pair) they can make money both when a price goes up or down. Your performance is therefore not dependent on the overall market direction (which is the case when you buy a stock share or basic investment fund), but only on the way the traders you copy perform.

If you’re a trader yourself, the social trading networks give you access to an additional revenue stream by sharing your trades on the network. The better you trade, the more people will copy you and the more extra money you make.

Who is the Guru?

Who is the Guru?The Social Trading Guru has invested significant amounts of real money in live accounts with the social trading networks and platforms reviewed and discussed on this website. We have made and (yes) sometimes lost money, and have learned some valuable lessons on the way. We also have years of prior experience in Forex, share and commodity trading as a retail investor. Therefore we are in a great position to guide you through the social trading landscape.

We provide you with:

  • Honest and independent reviews of the social trading networks and platforms
  • Guides to help you get started and find your way through the trading terms and acronyms
  • Tips on how best to select the traders to follow on each network
  • The latest social and auto trading news
  • Discussion blogs on which we actively request your comments and feedback from your social trading experiences

We strongly believe in the concept and profit potential offered by social trading. However, unlike some of the marketing materials want you to believe, this is not as easy as putting money in a bank account and watching the interest come in. For the potential rewards, there’re also some risks. Anyone considering trading and investing through these social networks should do some basic education first. We hope the Social Trading Guru can help you get started on this journey and be with you along the way as new networks, features and traders join this new and exciting industry.