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Understanding Social Trading

Updated this week

What is Social Trading?

Social Trading is a platform that connects experienced traders with investors looking to enter the financial markets. This collaborative approach allows investors to automatically copy trades made by skilled traders, creating opportunities for both parties to benefit.

Key Participants in Social Trading

The Investor

  • Follows and copies trades from experienced traders (Signal Providers)

  • Benefits from expert knowledge without developing personal trading strategies

  • Maintains control over investment decisions and capital allocation

The Signal Provider

  • Creates trading strategies that investors can follow

  • Executes trades that are automatically replicated in investors' accounts

  • Earns performance fees (0-50%) from profitable investments at the end of each billing period

How It Works

When an investor joins a strategy created by a Signal Provider, all trading decisions made by the provider are automatically mirrored in the investor's account. This system allows investors to leverage the expertise of seasoned traders while Signal Providers can earn additional income from their trading knowledge.

Getting Started

If you're interested in exploring Social Trading, consider reviewing these resources:

  • Starter's Guide for Investors

  • Starter's Guide for Signal Providers

  • Social Trading Glossary

Social Trading offers a simplified entry into financial markets with transparent performance metrics and customizable risk management tools, putting control of your investments firmly in your hands.

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