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Social Trading – Fad or Phenomenon?

Social Trading has been around for several years now, with well-known platform ZuluTrade set up. Social trading permits traders manually follow these positions or follow each of the trades of this specific trader and to see what places other dealers are starting in real time. The main thought behind societal trading is extremely straightforward; it enables individuals to piggyback on the outcomes of successful traders permitting them to make substantial amounts of gain. Giving successful traders a reason to talk about their successful techniques and strategies with the broader Forex community.

This type of trading takes a great deal of the difficult choices out of the trading process, and it is partially why brokerages have pushed greatly it. Although it brings a completely different strain of dealers, who don’t hold an in-depth knowledge of the commercial businesses but do realise there is enough money to be made from day trading etc. But social trading is not without its risks. This issue has been countered by these trading websites using several distinct methods, Even these kind of measures still leave dealers facing considerable risks.

This particular industry certainly will continue to prosper because of the fact lots of people will undoubtedly be brought to the possibility of making substantial returns on their capital from merely following the trading activities of others and has thrived. However, the significant risks involved with such trading are often vastly understated. Getting into social trading can be done for very little with some social trading brokerages requiring deposits. While I’m sure there have been some major success stories when it comes to social trading, I am willing to be there have been a similar number of substantial losses. Before getting involved individuals should take a long hard think about whether this activity is suitable for them. When you are trading in the Forex market online, you can make any transaction directly with the other party. There is no centralised exchange controlling the trading or asking commission for each purchase and sell. Thus, the Forex trading takes the shape of Over the Counter or ‘Interbank’ market.

Forex trading has always been a popular way to make money on the Internet. Over the last decade, literally hundreds of Forex brokers have popped up, each claiming to offer the best Forex trading training and education methods to help new traders earn easy profits. In the last few years, however, a new phenomenon has developed: social Forex trading. Several brokers have realised that new Forex traders are overwhelmed by the amount of education and practice necessary to become successful Forex traders. Simply put, most new traders expect to make currency trading profits immediately and are sorely disappointed when their broker fails to provide. Social Forex trading addresses this problem by allowing traders to view the trades carried out by the brokers’ successful, veteran Forex traders. The new traders can then copy the veterans’ trades exactly, earning similar profits.

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Social Trading – Fad or Phenomenon?

by John Doe time to read: 2 min