Is Social Trading a Legit Opportunity?

What is Social Trading?

Social Trading appeared about ten years ago, attracting both advanced and novice participants in the financial markets. Social trading describes a form of investment that allows less experienced and knowledgeable investors to follow and copy sophisticated and successful traders.

By using the social trading, investors can achieve significant profits without necessarily becoming experts themselves. Social trading is attractive as it is relevantly easy, requires minimum administrative efforts, and it is quite a transparent process. Intelligent social trading platforms enable their members to manage their capital according to different criteria and apply various risk management standards.

Is Social Trading hard to understand?

No, not really. Social trading has an apparent structure, and even complete beginners can join and start trading without preparation. The first step is to register with a user name and create a profile. After you complete your profile, you need to search for an experienced trader to follow.

You can use different criteria to narrow the search according to your goals – risk, yield, type of assets, etc. Once you shortlist traders that match your requirements, you can start following them and eventually apply their strategies yourself.

Why is social trading becoming so trendy?

The global pandemic has shaken the labour market significantly. Many people are searching for alternatives to add some extra income to their budgets.

In a time when the interest rates are decreasing, and most of the funds are performing not so robust and social trading comes a great alternative to those who wish to take control over their finances through online trading. It offers access to top-ranking professional traders and an opportunity to make the most of following their example.

It takes only a few clicks, and you could enter the financial markets with a bam. You can start with any amount that you feel comfortable with. If you wish to learn and progress, there are tons of helpful information and educational resources to support your journey.

A good trading platform is also straightforward to navigate with an intuitive and clear interface. It provides you with all the necessary information to make your inform decision.

Is Social Trading Legit or Scam?

Like with any other opportunity in the financial world, you should look at social trading with open eyes. With the success of the concept in the last decade, there are more and more social trading platforms appearing online.

One way for you to be sure you’re using a legit platform/broker is to check their financial regulation and the license they have. Do some research before you joining. The efforts you invest in checking will pay off in the future. You can save some time researching by checking the profiles of some of the biggest forex social trading platforms here.

In conclusion: Social trading is a legit opportunity for investment in the financial markets. It connects novice investors with experienced traders with a good track record enabling the beginners to benefit from their experience.

Like any other trading style, social trading provides some risk level but overall, it is possible with less effort to achieve high yields following the experts’ footprints.

The UPs of Social Trading:

► Follow and copy expert traders

► Access multiple trading assets

► Manage risk levels yourself

► Benefit from the profit potential of the global financial markets

The DOWNs of Social Trading

► There is capital risk involved

► You need to make thorough due diligence before starting