HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

A Complete Guide to Social Trading


Social trading has been rising in popularity among young traders due to the transparency that comes with this option. Like its name suggests, social trading can be thought of as a type of social network as it allows traders to interact with one another within the trading platform. Discover how social trading works and learn how you can potentially use this in your trading journey. 

What is Social Trading? 

Social trading can be seen as a type of strategy when it comes to trading and investing, where traders get to observe the trading history of others within the trading platform and subsequently follow their trades should they wish to. While most traders perform fundamental analysis or technical analysis to make trading decisions, some prefer to observe and replicate the trades of others. To take a leaf out of someone else’s book could work in your favour if you have selected carefully those with a proven track record and an appropriate risk appetite that fits yours. 

Social trading can also be used as a form of social networking, where you could share your latest trading ideas, strategies and actual trades made.  

New traders with limited financial knowledge can use social trading to hone their skills by learning from others. They can learn from successful traders based on the trading history documented and the trading strategies used. New traders can also better understand how trading strategies are derived, and how trading indicators are used, by observing the trades made of other traders. However, do note that not all trading platforms offer social trading as a feature. Here’s an example of the Vantage social trading platform on their app. 

How Does Social Trading Work? 

Social trading allows traders of various expertise levels to share their strategies and follow each other’s trades. Within the social trading platform, traders can check the historical performance and the risk level other traders are taking to achieve their current trading performance. Advanced trading platforms are user-friendly enabling traders to become social traders, for example, by allowing traders to directly copy other people’s trades. 

For professional traders, some incentives are offered by the trading platform to share their trading portfolio and strategies. These traders are often rewarded with money and status as social trading networks have a leader board of popular investors or best traders to follow with their trading success rate percentage shown. 

Some traders might prefer to use social trading for ideation but maintain control over their trades by using a range of signals and indicators. Traders can look at other traders’ market sentiment and activity, which can serve as a confirmation of their analysis. Then they can make their own decision based on all the information they’ve observed. The Vantage app allows traders to copy their preferred Vantage Top Trader on a large array of different CFD markets such as shares, commodities, indices, and forex.

By using the copy trading function offered by the Vantage app, you are able to directly copy trades of Vantage Top Trader and execute the trade without having to spend hours on your own before deciding to make a trade. Download the Vantage App now and join Vantage Social Trading today! 

Which Products Can You Use Social Trading For? 

Social trading first gained popularity in 2010 when a trading platform launched the social trading option within its platform for forex trading [2]. Since then, trading platforms have grown and begun to offer other asset classes for traders to trade. For example, Vantage, a global CFD broker, provides traders with a platform to trade CFDs on forex, commodities, indices and shares. By downloading the Vantage app, you can start to monitor and copy trade with other successful traders. 

Difference Between Social Trading and Traditional Trading? 

  Social Trading  Traditional Trading 
Skills required  You are able to monitor the trading activities of others and select those with a proven track record to learn from. If you are looking to beat the market, you will have to do your own technical, fundamental analysis and research before trading. 
Information Sharing  You can share your trade information and trading strategies easily on the platform, which will then be shared to all those who follow you.  You can only share your trading information and strategies to those you choose to tell. 
Time Commitment  You may need less time commitment to trade. You can use the trading platform and access the trade ideas and trading history of other traders on the platform before following their trade.  You may need more time commitment. You will have to do your own market research and spend time monitoring the markets before deciding on which trade to make.  

Difference Between Social Trading and Copy Trading? 

  Social Trading  Copy Trading 
Method of trading  You are able to make your own decision before following the trades of other traders on the platform.  Once you have chosen a trader to copy, the automated trading systems will help you copy and perform automatic trades. 
Education  You can learn from one another by sharing trading ideas through the platform.  Less knowledge is shared as you directly copy the trade of another trader. 
Time consuming  More time is required as you will have to monitor the trades performed by top traders before following their trades.  Less time is required as you just need to select the trader you want to copy from, and the platform will perform the trades for you. 

Social trading Pros and Cons 

Pros 

Cons

It is advisable to conduct due diligence on those you intend to follow, not just simply on winning trades but also from the aspects of strategy, skill technique, risk management among other key attributes of a long-time professional trader. After all, you will be solely responsible for deciding whom to copy from and the trading outcomes that follow. 

Social Trading Using The Vantage Mobile App 

Vantage Social Trading offers Top Traders (aka Signal Provider) not only as an avenue to study the financial markets, but also an opportunity to earn monthly extra income by letting others copy trades through the Vantage Mobile App. Start copying your preferred Vantage Top Trader on a variety of different CFD markets such as shares, commodities, indices, and forex. Download the Vantage App now and join Vantage Social Trading today! You can also start trading on the Vantage website with a demo account that allows you to practise trading risk-free, with virtual funds of up to $100,000.  

#source


RELATED

Behind the headlines: questioning the reliability of financial media

If you’ve been performing both fundamental and technical analysis of late, you may have noticed that some financial media and mainstream news channels...

Portfolio Diversification: What Benefits Can a Forex Trader Get by Using it?

Collect as many eggs as you can, and don't put them all in one basket - a fundamental principle of a wise trader. Trading is a big road where you can face sharp turns and bumps...

Everything You Need To Know About Investing In Crypto In 2025

Cryptocurrencies are quickly becoming one of the most dynamic investment opportunities going into 2025. With regulatory frameworks shaping the market and innovations taking over, staying informed has become more critical than ever.

Online Trading vs. Offline Trading

Nowadays, any person who wants to engage in trading is not faced with the question of how exactly to do it. Access to relatively free and fast Internet is available in almost every country in the world...

Mastering Forex Trading with MetaTrader 4

When it comes to trading platforms, MetaTrader 4 stands out as one of the most renowned and widely-used systems worldwide. In this guide, we'll delve into the intricate details of MetaTrader 4...

Long Position Vs. Short Position: What's The Difference?

The tried and true formula for successful sales, "buy low, sell high," applies equally to financial markets. Traders use various types of transactions to achieve this, including short positions...

Deciphering the World’s Foremost Economic Calendar

When discussing the world's principal economic calendar, one cannot bypass the US. The reason behind this is twofold: the supremacy of the US dollar in global transactions...

Three Ways to invest Your Red Packet Money in Times of a Worrying Economy

With Lunar New Year around the corner, preparations have been in full swing to welcome the Year of the Rabbit on 22 January. Friends and families will gather for feasting...

Ten Trading Quotes that Will Change Your Trading

Having trouble setting your mindset on trading mode? Need inspiration or a tip to improve your trading? Look no further...

FBS: The Crucial Role of Time in Enhancing Trading Efficacy

In the intricate world of financial trading, numerous factors contribute to a trader's success. While indicators, market analysis, and portfolio management often take center stage, the element of time remains critically underappreciated...

Seven Key Components of a smart trading plan

Trading decisions typically depend on several factors. These include market volatility, economic or geopolitical events or announcements, market sentiment, investment goals, etc...

Trading Glossary: Forex key terms in the P-T

Forex, like every other country, has its own language, or particular terminology. Before learning a language, you must first master the alphabet...

Tips for managing risk in forex trading with CFDs

Whether you are a beginner trader or more experienced trader, you will need to ensure that you have the right risk management plan in place to limit losses...

I can constantly make 1-2% on my money daily. Should I look at day trading as my full-time job?

If so, then obviously you should! Just think in the best case that if you began with $10,000 and were able to earn 1% of your money daily, you could become a millionaire or a billionaire in less than six years...

How to Avoid Overtrading

In Forex, when traders start excessively buying and selling currency while disregarding their strategy, they are "overtrading". Overtrading is dangerous as it often happens when traders get caught up...

Top 7 Richest Forex Traders in the World

If you want to attain high achievements in a specific sphere, it is essential to learn its history, which we consider the foundation to your personal successful career in trading...

Common mistakes to avoid in forex trading with CFDs

Read on to find out some common mistakes to avoid when trading forex with CFDs. The foreign exchange market draws a lot of new traders' attention due to its low entry requirements and extremely high liquidity (on average, more than $7.5 trillion is traded daily)...

Overbought Vs Oversold: A Trader's Guide

Technical analysis of the forex market includes many different concepts and definitions, one of which is overbought and oversold. These terms have existed on the market...

Is Forex More Risky Than Crypto?

In the ever-evolving financial markets, forex and cryptocurrency trading stand as two distinct realms, each offering unique opportunities and risks...

Different Types of CFD Brokers

CFDs are financial derivatives that allow traders to speculate on the price of the underlying assets without having to physically own the asset. CFD brokers enable traders to buy or sell CFDs...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.