Forex Social Trading: Upgraded Version Of Forex Copy Trade
Forex Social Trading is an upgraded version of Forex Copy Trading. The trading form is different from social trading in Binary Options, Cryptocurrency, CFDs, etc.
Mainly, you will get a social environment or platform that offers to interact with active forex traders in real-time. You can share knowledge with others.
Forex social trading also allows traders to trade online with the help of other expert traders.
Even after selecting the right forex broker, proper trading knowledge is necessary for new traders. So, we have placed some important factors to help you in this article.
You will also get all the information regarding forex social trading in one place without going through separate articles.
So, stay with us until the end.
What Is Forex Social Trading
Forex market is a decentralized global market, where all the currencies are traded from all over the world. It is the most liquid market in the world. Every day more than $5 trillion transactions happen in the currency trading market.
For currency trading, traders must assume the market price movement. However, the price movement depends on supply and demand. Depending on the market and price analysis, traders trade FX pairs.
A trader will buy the currency pair at a low price and will sell it at a high price. Brokers will get profit from the buy and sell price difference.
Forex social trading is the easiest way to earn money. It is a social platform where you can interact with active forex traders.
Moreover, the platform will also give you a chance to share and acquire trading knowledge. On the other hand, you can share your success with others.
How To Use Forex Social Trading Platform
Forex social trading is quite similar to the social trading of other trading instruments.
After opening a demo account in a social platform which we mentioned above, you can see the interface where, all the other commodities, indices, currencies, etc. are traded.
Even, you will find a lot of traders on that platform. You will be able to see traders like you as well as expert traders.
These expert traders perform forex trading. You will be able to see the expert forex trader’s portfolio, techniques, average risk on their trading statistics, etc.
Traders can follow and copy expert traders if they think their strategies are accurate.
Additionally, you can even see their news feed; how many people have copied them. Traders will also disclose their average profit and loss. Investors and Traders can put stop loss for your benefit.
How Social Trading Developed From Copy Trading
From the beginning, trading was not easy to perform. In the past, all users were not able to trade openly. So, they had to gather up in a distinct place to execute trades.
Additionally, a specific trader who is well experienced in different trading classes would share their strategies with the gathered people. Individuals would follow the same strategies and perform trades in the trading platforms.
The name of the whole process is copy trading
Traders and investors were able to communicate through emails and newsletters. They sent emails to everyone to start and close the trade positions. Through a chat room, traders shared their trading knowledge and opinion.
Unfortunately, in those days, new traders were unable to perform trade without gathering experience.
However, it’s better to gather some experience before performing the trade.
Social trading is a new form of copy trading. It has changed the game of traders and investors.
On the other hand, it brings advantages not only for the present traders but also for the generations that were coming ahead.
Hence, social trading became the talk of the town. It was such a rising step that many traders and investors started to gather in it.
This kind of trading started to benefit all type of traders with its simple features, easy access, allowing to copy, etc. Moreover, it is developing day by day.
Benefits Of Forex Social Trading
Forex social trading is easy to understand. All you need a platform where you can trade forex social trading.
Forex social trading is an excellent way to generate passive income. Apart from this, you will find a lot of benefits of Forex social trading.
The social network allows its users for starting their trades with a small budget.
Especially, the novice traders are the ones who are mostly having the advantage of trading with a small budget.
Social platforms give the facility to open trade. Novice traders can see the expert trader’s trading strategy, techniques, methods, etc. In one word it is transparent.
You can see the live trading results on the social trading platform. The news feed will show you all the social activity including your post and comments.
Traders from all around the world can follow the other trader’s movements in a social platform. Additionally, traders will able to see expert trader’s opinions on techniques, methods, strategies, etc.
Social trading is time-consuming. Traders do not have to waste their precious time for charts and markets. All they need to do is choose an expert trader and execute their trades by copying them.
The social networks platforms are effortless. Traders do not have to wait and analyze the markets like traditional trading. They can trade within a minimal effort.
Through networks, all traders are benefited to stay connected with each other. They can even stay connected from anywhere and anytime. Furthermore, through any kind of device, you can perform your trading.
It is easy to trade because you don’t need to analyze the market place. Traders can easily copy trades after opening an account. It has become a source of additional income not only for the expert traders but also, the new and intermediate traders.
In a social trading platform, you will get the ultimate number of expert traders. You will earn unlimited revenue from copying those numerous expert traders.
How To Pick An Expert Forex Trader
New traders are often unable to choose the right expert forex trader. Choosing the right forex trader is a necessary part for the newbie traders.
Your investment amount will go in vain if you can’t choose the right trader properly.
We have gathered some tips, especially for the new traders to choose the right forex traders.
Following tips will help you to pick an expert forex trader:
The longer The Better
It is better to pick a Forex trader who is running their account for more than 12 months in the social trading platforms. Remember the longer they were in it, the better they know about the forex trading markets.
Traders who provide consistent results
In social platforms, many expert traders are sharing their trading knowledge and strategies. Among these traders, pick the one who will provide you with a fitting result.
Following the trader with real money
There are two types of accounts in social networks. One is a demo account, and another is a real account.
When you are choosing the right forex trader, check out on their profile on how many people are copying them. Then, you will be able to see what others are looking into those traders account and copying them. The more the people copy with real money, the better it is for you to copy him/her.
Risk their own money or not?
Check the trader’s profile whether they risk their own money or not. If they are, then how much are they risking? Most of the social networks do not allow seeing the amounts. But it is necessary to see whether they risk their own money or not.
You can follow the traders who spend their money from the demo account and get followed more.
Traders trading strategy
Look at the traders trading strategy and portfolio description. See whether it gives any clear view or not. Furthermore, check out whether they are using an automated system or trading manually.
Does the trader put stop levels?
The traders after opening a position might put stop out level or might not. The reason is, if they put a stop level then it is better for trading and there is less risk, but if there is no put stop level there is a big risk.
Historical Draw-Down of the trader
Investigate the trader’s historical drawdown. See how negative it’s been. Explore their portfolio, strategies, etc. in a detailed manner. Look for how much profit they have gained through risking their trading lines. This will give you an overview of the trader’s trading history.
Do they communicate with their followers? How frequently?
Check out whether the traders you want to follow or copy is communicating with their followers or not.
The traders who keep up-to-date their followers with all the details on forex trading will be accurate to follow and copy. That means these traders care for other traders.
On losing do they start to panic & change system or stay calm?
For choosing a forex trader, it is necessary to see how they behave after bad trading.
Moreover, it is necessary to control trading emotions either it is a good trade or not.
Having patience is an ideal rule for every trader because losing in trade is a common fact here. If they do not have patience then they do not tend to accept the loss.
Forex Trading Community
You will get traders community in the social trading platform. A social trading community helps forex traders in many ways. This kind of community helps the traders to communicate with each other.
They can co-operate with each other and share their trading knowledge. Traders are the ones who are the most benefited through it.
So, it becomes difficult for them to understand how to start copy trading as they are new in this field. At that time, the trading community will help you to make decisions.
These communities provide the basic knowledge and education on trading. It also helps them to develop their trading skills while using a demo account and communicating with the other expert traders.
If, you wish to know more about the trading community, then feel free to go through our article social trading community.
Popularity Of Social Trading In Forex Industry
Everyone can copy trade in forex from anywhere and anytime. They do not need to have any kind of knowledge of social trading. Traders who are new in this field can easily use the technology of copying expert traders and make their living through it.
Because of its easy navigation, traders are showing interest in forex social trading.
Now the platforms are also adding benefits for its traders. The traders can co-operate with each other regarding market strategy, methods, opinions, techniques, and so on. They also share their problems in one community.
People can consider social trading as their passive income. They can also use a demo account to practice social trading.
Finally, we are in the end part of this article. We tried to give all the necessary information regarding forex social trading to help new traders.
After going through this article, you will fill the importance of choosing the right social trading platform for passive income.
Besides, you do not have to go through the hassle of choosing the right social forex trader. You will be able to pick the right trader within no time.