Social trading is a way for online investors to use information gathered from various sources to make financial decisions.
It works on the same basis as social networking, such as Facebook or Twitter, which connect you to family, friends, and colleagues. Social trading networks provide a platform where new and experienced traders can swap methods, data, strategy and ideas. If you have never used them before you may be wondering which ones are the best, so here we will tell you a little about each of the top 5 social trading networks.
eToro has stayed true to its original vision of being a completely open network for everyone to learn, copy, interact, share and compete with each other. Its simplicity and ease of use has made eToro a user favourite, giving more people access to the financial markets. They were not the first in social network trading but have proved one of the most successful, and most used. According to this review from InvestinGoal, eToro has approximately 4.5 million users in over 140 countries, proving its popularity throughout the trading community.
Relative to other social trading networks, ZuluTrade has the most advanced risk management features. They have an additional tool known as ‘The Automator’, which works like a personal assistant, letting you know by email when things happen. This is a very useful tool for limiting your losses or extracting your profits. Their user guide is basic and the forums are very active with ZuluTraders helping each other. It’s an easy to use social trading platform with no entry costs and very low on-going fees.
A Swiss social trading network launched in 2009, Ayondo is ones of Europe’s fastest growing platforms, and now they are expanding beyond Europe. It gives the option to diversify your investments and follow a varied mix of traders with different risk profiles. Ayondo has its own integrated broker, negating the need to use an external one and letting you take full advantage of their services.
Darwinex is a Spanish social trading network that works slightly differently to the others. Here you buy DARWINs, the value of which fluctuates, and you can sell or stop following and investing at any time. A DARWIN, which stands for Dynamic Asset and Risk Weighted Investment, can be bought and sold at any time. Which DARWIN trader you follow and invest in affects the profit or loss you will make.
SwipeStox is a social network trading app that lets you copy top performing traders with a simple swipe left or right on your screen. A very clever site, it only shows you trades that match your profile. They have tutorials available for beginners and social interaction with other users and traders is possible. Use of SwipeStox is growing rapidly among smartphone users.
The Top 5
There are many other social trading networks, but these have been chosen as the top 5 because of their ease of use, as well as their features and specific strengths that make them head and shoulders above the competition.