The exciting development of social trading is levelling the playing field for avid traders. For those that aren’t in the know, these innovative platforms like eToro and ZuluTrade bring traders and investors together. Traders can virtually share their lives, knowledge and trading ideas with one and other. Groups of traders can follow every move, communicate feedback and even copy each other’s trades and strategies. As an added market dimension, SociumTrade has added blockchain technology to the equation.
How Social Trading Works
The very first social trading networks provided online information and ideas sharing. Today, they feature the exciting social aspect and pair it with fully automated trading. From a trader’s perspective, it’s profitable and easy. Simply search for others who share strategies, historical results and ideas, then hook up. You can then replicate their transactions in one click, known as mirror trading.
Based on the concept that collective wisdom is superior to our own, these social trading networks now connect millions of traders globally. They are enabled to share analyses, strategies and trades in real-time. Not only can you view and communicate about performances, but you can then use this experience and information to conduct your trades. Alternatively, you can opt to follow any number of real traders and copy their trades.
The Benefits For Online Traders
Social trading platforms offer traders multiple ways to share knowledge and expertise and pool resources to develop successful strategies.
With social trading, traders can continuously learn as they share ideas and insights. New investors can learn from more experienced traders by being able to watch the traders performance.
Fast data access
Real-time data, news and alerts are critical for making effective decisions. With these trading platforms, social media features provide a detailed, steady flow of information.
A sense of community
Social trading platforms form communities of like-minded traders. Sharing knowledge benefits everyone and is actively encouraged and rewarded.
An objective environment
Social trading mitigates your biases and opens up new possibilities. You are networking with other traders, always aware of new developments and can follow their lead.
Following decisions is a great way to learn and you can choose which traders to trust. You have access to their portfolio, trading record and risk analysis. With such transparency traders, are more accountable.
New trader opportunity
Social trading platforms are ideal for new traders, as you can learn quickly and gain valuable insights. You can start trading much faster and take advantage of profit opportunities from more experienced traders before decision-making yourself.
The Future Of Social Trading
Popular social trading platforms like eToro and ZuluTrade have provided the innovation to make these benefits available to all. However, there are still some limitations caused by processes, costs and overall transparency. Using the advanced abilities of blockchain technology, SociumTrade is currently producing the next generation platform.
It offers unparalleled levels of transparency, as each transaction is recorded on the blockchain, guaranteeing safety, security and reliability. Along with this comes many other features, including smart contracts with lightning fast transactions, and no centralised intermediaries. So, if you are thinking about social trading and want to experience the ultimate in social trading, keep your eyes open for the imminent launch!