Social Trading Platforms

One of the most important decisions you make when you venture into social trading is which platform to choose. Below we help you find, compare, and choose from the leading and most reputable social trading sites. 

Social Trading Platforms 1
Social Trading Platforms 8

Compare Social Trading Platforms

We’ve compared some of the most popular social investment networks using 12 main variables so that you can make the right choice when looking for the Social Investment Network that best suits your needs.

Social Trading Networks Comparison Table

Important factors when choosing a Social Trading Platform

 

#Number of users and signal providers

Social and copy trading derives from people. Thus, one of the most important factors is the number of users and the number of strategies/traders you can copy/follow. It increases your range of choice, the chances that you will find good traders, and it is also a way to use the crowd’s wisdom in your favour (if it has the most number of users, chances are it shouldn’t be that bad).

#Reliability and security

Is it regulated by top-tier institutions? Does it offer investment protection? Where is it based, and operating for how long? Is it publicly listed? What do their customer reviews say?

#Products and Markets

Is the platform specialized in forex? Or does it offer a more broad product portfolio? More products and markets mean more diversification possibilities for the average investor, so it is better, but it will depend on your own profile and preference.

#Copy feature

Many social trading platforms don’t allow you to replicate the signals automatically, but only to communicate and see real-time signals from other traders. You then have to place them manually, after making your own judgment, if that’s what you wish. All the platforms here mentioned include this feature.

#Social feature

Does it allow you to communicate with other traders/investors? You might want to know why a certain trader has behaved in a certain way, so this is also an important feature to consider.

#Supported Brokers

Some social trading platforms operate with their own brokerage, while with others, you will have to connect it to a 3rd party broker.

#Data about the trader

You should understand, analyze, and assess their strategies, style, and track record: the more information, the better.

#Fees

This is a very tricky part. Most social trading platforms differ in terms of the fees charged. It can be tricky to understand them and optimize them to make sure they aren’t burning your profits. For example, most social trading platforms only operate in USD, so you will incur huge currency conversion fees when you deposit EUR. There are ways to minimize this. At Investing in the Web, we create an article on tips to help investors save fees on social trading platforms like eToro or Zulutrade.

 

Which Social Trading Platform should you choose?

 

As an investor, choosing the right social trading platform is crucial, but it is tough and time-consuming to choose the best to start with. Besides the factors mentioned above, there are many other factors such as having a demo account, mobile app, the user experience, copy limitation, education materials, minimum deposit, or maximum leverage, but the factors above should be enough for a start.

Take a look at the ones you find interesting, open a demo account, take your time, and decide! Also, feel free to reach out to us at success@investingintheweb.com. We would love to hear about your experiences!

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