ForexEzy
No Result
View All Result
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Review Platforms
  • Forex Education
    • Getting Started
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Review Platforms
  • Forex Education
    • Getting Started
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
No Result
View All Result
ForexEzy
No Result
View All Result
The World’s Leading Social Trading Platform
Try now
Home Forex Education Forex Trading Strategies

A Complete Guide on Social Trading in Forex

by Chintan Patel
August 31, 2021
in Forex Trading Strategies
0
A Complete Guide on Social Trading in Forex
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

Social trading refers to a strategy where traders take cues from other experienced traders using social media platforms. Another option of social trading is where a trader copies the actions of another experienced professional. In this article, we will look at the history of social trading, how to use it well, its alternatives, and some of the top social media platforms to use when trading.

The Best Forex Robots Report Is Already Here!
best forex robots
Check out 30+ best expert advisors with daily updated live results and statistics
Click Here

History of social trading

The use of social media in the forex and the rest of the financial market has been around for several years. Still, the concept of social trading can be traced to 2006, when a company known as eToro was started in Israel. It was one of the first companies to incorporate the concept of copy trading and social media in trading. 

Today, the company has become one of the biggest forex, CFD, cryptocurrencies, and commodities brokers in the world. It has millions of customers and is valued at more than $10 billion. In 2021, the company was said to be considering going public by merging with a Special Purpose Acquisition Company (SPAC).

eToro’s concept was relatively easy in that it made trading look like a two-sided marketplace. On the one hand, there are experts traders who have a proven experience in the market. And on the other hand, there are new traders who don’t have any experience in the market. Therefore, experienced traders would continue with their trading as usual as the newer ones copied them.

This, in turn, led to a mutual situation. The new trader will make money without trading, while the experienced trader will take a cut from these profits. 

Over the years, the social trading industry has evolved. Other companies like OctaFX and AvaTrade have introduced similar products. At the same time, social media platforms like Twitter, StockTwits, and Reddit have become popular among traders. Indeed, they are often excellent platforms to get breaking news and analysis about forex.

How social trading works

From traders’ perspectives, social trading is a relatively easy process. Besides, all you need to do is to create an account, fund it, analyze the master traders, and then copy them. By doing just that, you will be making money as the master trader does his thing. 

Still, under the hood, the process is relatively more complicated than that. For one, the broker needs to build a social trading ecosystem that can help traders make decisions. 

For example, they need to create a specific page that collects all data from the master trader. This data includes the master traders’ trades and profit and loss, and user reviews. The platform also has a tool for the master and their followers to communicate. The chart below shows some of the key stats of one of eToro’s master traders.

Copy-trading profile chart

Copy-trading profile chart

In addition to copy trading, the use of social media platforms like Twitter and StockTwits is also a method of social trading. In most cases, traders use these platforms as a way of doing their research about currency pairs and other assets. For example, a quick search of the term EURUSD on Twitter brings some important analysis like the one shown below.

Using Twitter in forex trading

Using Twitter in forex trading

Other popular social media platforms where traders post their ideas are TradingView and StockTwits. Regardless of your experience in trading, it is possible to use this information in trading.

How to use social trading in forex

If you are a beginner, social trading in forex will help you to improve your skills and even make money without doing a lot of work. This is particularly true when you are using the copy trading strategy. If you are an experienced trader, copy trading is an ideal process that will help you diversify your income. 

Additionally, regardless of your experience, you will benefit from using social media platforms in trading. A good example of this is what happened in 2021 when Reddit users managed to push unpopular stocks like AMC and Blackberry substantially higher. Let’s start with copy trading and then look at how to use social media in trading.

How to use the copy trading approach

Copy trading is a relatively easy process to execute. First, you need to find a good broker that offers that feature. Fortunately, there are many brokers who offer that service these days. You should look for a broker who is regulated by a leading regulator like the Financial Conduct Authority (FCA) and the Australian Securities and Investment Committee (ASIC).

Second, you should create an account, which is a relatively quick process provided that you have your identity card and proof of residence.

Next, you should deposit your funds with the broker. These days, many brokers offer options like PayPal, Skrill, wire transfer, and cryptocurrencies. The process is also quite fast. 

After this, you should read the profiles of the master traders with the goal of identifying the best performers and those who are cost-efficient. We recommend that you copy several traders since doing that will help you diversify your income. Finally, you should track the performance of this portfolio periodically.

Social media in trading

You can use social media in trading in several ways. The easiest method is to first follow people and companies that are influential in the forex market. By doing so, you will be the first to see what they post. Second, you can always search for a currency pair before you start trading. For example, you can search $EURUSD or $USDTRY to see what other traders are sharing. You should then incorporate some of these views into your analysis. 

Final thoughts

Social trading is a growing concept in the forex market that many people are using today. In this article, we have looked at the historical perspective about social trading and its two main types in the industry. We have also looked at how to create a copy trading portfolio and how to use platforms like Twitter in analysis.

The Best Forex Robots Report Is Already Here!
best forex robots
Check out 30+ best expert advisors with daily updated live results and statistics
Click Here
ShareTweet
Previous Post

MT Forex Indicator Review

Next Post

8 Best Forex Demo Accounts

Related Posts

Best 5 Leverage Calculators Use Can Use for Free

Best 5 Leverage Calculators Use Can Use for Free

by Chintan Patel
May 30, 2022
0

Leverage is an important concept in forex and stocks trading. It refers to the amount of money that a broker...

KeyDifferences Between the Simple and Exponential Moving Averages

KeyDifferences Between the Simple and Exponential Moving Averages

by Chintan Patel
April 18, 2022
0

Moving Averages (MAs) are often the first indicator introduced to a newbie in any financial market. They remain the bread-and-butter...

Best Strategies for Trading the Japanese Yen USDJPY

Best Strategies for Trading the Japanese Yen USDJPY

by Adam Stanley
April 6, 2022
0

The Japanese yen is one of the most popular currencies globally because of the position of the country’s economy. Japan...

Best Strategies for Trading the Swiss Franc USDCHF

Best Strategies for Trading the Swiss Franc USDCHF

by Chintan Patel
April 4, 2022
0

The Swiss franc is a popular currency around the world today. It is often viewed as a safe-haven currency because...

How to trade using Larry Connor

How To Make Money Using 2-Period RSI Strategy

by Adam Stanley
February 16, 2022
0

2-Period RSI strategy is a common trading strategy that traders and forex expert advisors leverage to squeeze profits while trading...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Best Forex Automated Systems

  • TechBerry 9/10
  • Happy Galaxy 8.5/10
  • Forex Cyborg 8.5/10
  • Forex Fury 8/10
  • FXgoodway 7.5/10
  • Best Forex Brokers
  • Best Forex Robots
  • Best Forex Signals
  • Best Forex Managed Accounts

Top Trading Markets

We are dedicated to demystify the world of forex trading for you – no matter what level you are on.

Categories
  • Automated Trading
  • Crypto Robot Review
  • Cryptocurrency Trading
  • Day Trading
  • Forex Basics
  • Forex Brokers
  • Forex Education
  • Forex Forecasts
  • Forex Indicators
  • Forex Market Commentary
  • Forex Robots
  • Forex Signals
  • Forex Signals
  • Forex Tools
  • Forex Trading Strategies
  • Forex VPS
  • Fundamental Analysis
  • Managed Accounts
  • Money Management
  • News
  • Review
  • Review Platforms
  • Risk Management
  • Social Trading
  • Technical Analysis
  • Top World Traders
  • Trading Apps
  • Trading Psychology
  • Uncategorized
Tags
Acquisition AI Amazon Apple Artificial Intelligence Bitcoin bond yields CEO China earnings earnings report economy Electric Vehicles Federal Reserve financial performance Financial Results forex ea forex software reviews Growth Guidance Housing Market inflation interest rates Investing investment Investors Market Volatility merger mortgage rates net profit Nvidia Oil prices Q2 Results revenue Revenue Growth Sales sales growth Stock Futures stock market stock performance Stocks strategies technology Tesla Video
  • Terms of Use
  • Privacy Policy
  • Compensation Disclosure
  • Risk Disclosure
  • About Us
  • Contact Us

Copyright © 2023 by ForexEzy.com

No Result
View All Result
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Review Platforms
  • Forex Education
    • Getting Started
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts

© 2023, Forexezy. {copy} {year}