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If you have ever bet on sports, you likely found sites which give tips on what you should bet. It’s similar to social trading in the world of trading
Social trading
Social trading definition
Social trading is a form of investing that allows you to copy investment strategies from others. It’s suitable for people who don’t want to invest too much time to find good trading opportunities or strategies.
What is a social trading platform?
A social trading platform is a service that let’s you copy other people’s trades and actually do social trading.
Social trading
How social trading works?
The way social trading works from your perspective is simple. In the platform of these brokers you just search among other traders who share their strategy, trading ideas, and historical performance. After you find the most suitable trader for your needs you can replicate their activity by one click.
The flip side of it is that you need to be careful when selecting the trader to be followed. Check their historical performance and also the risk level they are taking to have realized that historical performance.
Not every broker provide this service, so you have to find a good one, for example, eToro.
Social trading
eToro – Best Social Trading
VISIT ETORO
Social trading
What is copy trading?
| Interactive Brokers | TradeStation Global | Zacks Trade | CapTrader | ARMO Broker | |
|---|---|---|---|---|---|
| US stock | $0.005 per share, min. $1, max. 1% of trade value. Free for US clients choosing IBKR Lite plan. | $0.007 per share, min. $1.5 | $0.01 per share commission for stocks above $1 share price, or 1% of trade value for stocks below $1 share price. The minimum fee is $1 minimum. | $0.01 per share; min. $2, max. 1% of trade value | $0.01 per share with a minimum of $3, but capped at 1.20% of trade value |
| US stock fees class | Low | Low | Low | Low | Low |
Copy trading is a trading approach in which you copy parts of someone else’s strategy. Copied elements can include but are not limited to order types, assets and allocations.
Social trading and beyond – continue learning
HOW TO BUY SHARES
ETORO REVIEW
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