Taking advantage of this trading strategy can be highly lucrative. In fact, many social traders, new and experienced, have had the opportunity to gain direct access to the top traders on the platform and have increased their trading success significantly. The growth of copy trading in the past 5 years has been exponential. The main reason is that many traders ‘trust’ this system and have a comforting feeling knowing that they are not trading alone. AvaTrade offers you access to popular signal providers via the AvaSocial app. Copy trading is a service that allows copying successful deals of professional traders to get real profit in a convenient way.

• Investors can just select the traders that they want to copy and automatically replicate the exact positions in their portfolio.
• A risk score like the Sharpe ratio shows the average return, divided by the standard deviation of the returns.
• However, it can be helpful in analysing and selecting a good trader to copy.
• Syntellicore is developed by Dynamic Works, the regions’ key vendor, with numerous important projects in the public, banking, and private sectors.
• This can help you find investors who most closely align with what you’re looking for.

Social media makes it easy to stay connected to friends, family – and even your investment portfolio. The rise of social trading platforms allows investors to mimic the movements of their favorite investing influencers. It’s similar to copy trading, in that social traders look at what other top investors are doing then replicate that in their own portfolios. It sounds easy enough, especially for investors who don’t want to spend hours researching stocks or other investments on their own. It provides traders with psychological support and can offer different points of view.

How much does social trading cost?

Their profile includes other traders they follow, their basic information, trading techniques, and, most importantly, their entire trading history. Once it is clear what are the pros and cons of the social trading strategy, please feel free to check what are the most widely used methods and tips. In this article, we will explain what social trading is and how it works, how it differs from other well-known methods together with some of the key benefits and downsides of these solutions. In the end, we will share some of the most valuable tips and strategies that might help you in social trading. The investors that are copied receive a compensation from the platform depending on the assets under management and the returns generated month by month. When investors share information about investing or about events that are occurring in the markets and industries, the newcomers gain more knowledge into investing.

Using social media in different forms has grown to all financial service providers. It is a sophisticated and beginner-friendly trading method but still isn’t magic. When you copy trade, you don’t invest in currencies, energies, cryptocurrencies, or indices. That’s where copy trading got its name from because when you invest in a trader, you copy their trades. When trading using signals, it’s important to note that past performance is no guarantee that the market will repeat itself.

Convenient Way for Beginners to Start

In everything, do not forget that positive results are not always assured in trading. A financial advisor can offer valuable insights and guidance as you create and hone your investment strategy. Some trading strategies seem very promising but they can only yield good results under certain market conditions.

For copy trading, a copy trader normally needs a minimum amount of 50 USD. To make copy trading as efficient as possible, consider the amount of the trader’s funds, his/her trading volumes, number, and types of trading tools used for trading. Use the Trader’s Calculator to calculate the margin amount, eventual risks and profits, and 1 pip cost for a particular instrument.

Social trading

While social trading is becoming more accessible, it’s not to say it works for everyone. It does remove a lot of the mystery around financial markets, opening the door for more retail traders. When you use IG Community, you’ll get access to an online trading forum that enables traders of all backgrounds and experience levels to share their knowledge and ideas. Through this interactive space, you can chat with other traders and a host of trained IG staff to advance your trading. Traders from different platforms and servers now may limitless share and copy trading signals in real time.

All current copy traders will still work under the conditions valid at the moment of their attachment. Although the process of copying is very fast – less than 0.5 seconds, the trades copied to the account of the Copying Trader are executed at current prices. Therefore, the execution prices on the account of the Copying Trader may differ slightly from the execution prices of similar trades on the Trader’s account. There are no restrictions, trading on a trader’s account is no different from trading on a standard trading account. Each time a Copy Trader detaches his/her account from the Trader or withdraws money from his/her account, a rollover is performed automatically in the Copy Trader’s account.

Inflexible Strategies

Here at AvaTrade, we also offer other well-known copy trading options, like ZuluTrade and DupliTrade. Using the intuitive interface of Social Trading, traders may add all their accounts and start to copy trades how social trade works from MetaTrader 4 and 5 servers in a few clicks. This flexibility ensures all conditions to promptly react to market changes and comfortably control the trading process on all connected accounts and servers.

Hence this type of activity may not be suitable for all investors and for you in particular. You clearly agree that loosing your investment will not entail your life quality decrease and will not affect your health in any ways. By using Geratsu website and its services you agree that you fully understand all the risks involved, and confirm your investment objectives and level of experience. Social Trading is a form of investing that allows investors to observe the behavior of experienced traders and follow their investment using a form of copy strategy or mirror trading.

Plan your trading

Adding indicators to your MT4 account can help to enhance your trading and take greater control of your positions.

Traders should test drive their trading for a while first before they start copying other investors. Traders should also ensure that the risk score is in line with their expectations and the maximum drawdown is not outside their tolerance https://xcritical.com/ level. Most traders join social trading platforms because they look for trustworthy trading information. Additionally, clients have the opportunity to communicate with experienced traders on platforms throughout the world.