Best Social Trading Platforms

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    Social trading is all the rage. Investors can gain access to all the experience and expertise of sophisticated traders without having to put in the blood, sweat and tears. If you’re a successful trader, you might be able to put your skill set to work for you.

    Trade have compiled a list of the best social trading platforms to make your journey easier. Whether you choose tastyworks, AvaTrade, FXTM, MultiBank, or FP markets, you shouldn’t go wrong with any of these social trading platforms. 

    The Best Social Trading Platforms

    eToro

    eToro-Logo-4

    eToro is a pioneering social trading and multi-asset investment platform that was founded in 2007 by Yoni Assia, Ronen Assia, and David Ring. With its headquarters in Tel Aviv, Israel, eToro has expanded its operations to various countries, providing millions of users with an intuitive and user-friendly platform to trade and invest in a wide array of financial instruments.

    eToro’s primary offering is its social trading feature, which allows users to follow and automatically copy the trades of successful investors within the platform. This innovative approach empowers novice traders to learn from experienced investors and benefit from their trading strategies. The platform also offers a vast selection of assets, including stocks, cryptocurrencies, commodities, indices, and various currency pairs.

    Apart from its social trading capabilities, eToro provides a range of tools and resources for its users, such as advanced charting, market analysis, and educational materials. The platform is accessible through a web-based interface and a mobile app, making it convenient for users to manage their investments on the go.

    In recent years, eToro has gained significant recognition and trust from the global investment community. The company is regulated by multiple financial authorities, including the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the United Kingdom, and the Australian Securities and Investments Commission (ASIC).

    Pros
    • Intuitive and user-friendly platform
    • Social trading for following successful traders
    • Wide range of tradable assets
    • Educational resources available
    • Regulated and secure with multiple financial authorities
    Cons
    • Limited advanced trading tools
    • Withdrawal fees charged by eToro

    Regulation info: eToro is regulated in several countries, ensuring a high level of security and trust for its users. The platform is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 109/10, the Financial Conduct Authority (FCA) in the United Kingdom with registration number FRN 583263, and the Australian Securities and Investments Commission (ASIC) under AFSL number 491139. This stringent regulatory oversight ensures that eToro adheres to strict guidelines and provides a safe trading environment for its users.

    In conclusion, eToro stands out as a leading social trading platform, offering a user-friendly experience and a wide range of tradable assets. Its unique social trading features empower users to learn from and follow the strategies of successful investors, making it an ideal choice for both beginners and experienced traders. With an extensive library of educational resources and a strong regulatory framework provided by multiple financial authorities, eToro has established itself as a secure and reliable platform for traders looking to explore the world of online investing. Despite some limitations in advanced trading tools and withdrawal fees, eToro’s innovative approach to trading continues to attract a growing global user base and solidify its position as a key player in the online brokerage space.


    Tastyworks 

    Chicago, Ill.-based Tastyworks is among the best social trading platforms. It supports trading in options, futures, stocks, ETFs, commodities, indices and cryptocurrencies. Tastyworks believes in empowering investors so that they don’t have to rely on robo advisors or money managers to invest right. Instead, they promote do-it-yourself investing and use tools like social trading to help users be successful. 

    Tastyworks is most synonymous with options trading, where trading fees are attractive. Users can also trade equities or ETFs. However, trading in these assets is more advanced, which is where the social trading feature comes into play. 

    Tastyworks is recommended for beginner traders. This is in part because they have the opportunity to follow more experienced traders who have a track record of generating profits. 

    Tastyworks is behind what’s called a Follow Feed. This allows users to view some of the most successful trades from the top investors. By following select traders, users can gain access to the top strategies and learn the reasons behind the trade. As a result, they will be better equipped to trade on their own. 

    The Follow Feed lets users follow traders across platforms, including desktop, web-based or mobile. Add or remove traders on a Follow page by accessing the tool icon on the trading platform. 

    Tastyworks also offers an in-platform video feed. This is where users can gain inspiration from watching traders in real-time during market hours. By using this feature, investors will gain insight into trading strategies and research while learning from the pros on the platform. 

    Learn more about tastyworks’ fees and commissions here

    Tastyworks is regulated by the U.S. Securities and Exchange Commission, FINRA and the National Futures Association. It was founded in 2017 but its parent company, online financial content network Tastylive, was established in 2011.  

    Pros
    • User-friendly platform
    • Competitive pricing
    • Advanced trading tools
    • Educational resources
    • Focus on options trading
    • Customer support
    • API integration
    Cons
    • Limited asset classes
    • No native social trading features

    Regulation Information: Tastyworks is based in the United States and is regulated by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). It is also a member of the Securities Investor Protection Corporation (SIPC), which provides limited protection to customers in case the brokerage fails. For non-US clients, Tastyworks has a subsidiary called Tastyworks Australia Pty Ltd, which is regulated by the Australian Securities and Investments Commission (ASIC).

    In conclusion, Tastyworks is a competitive online brokerage platform with a strong focus on options trading. Its user-friendly interface, low-cost trading fees, advanced trading tools, and extensive educational resources make it an attractive option for a Best Social Trading Platform looking to open an account. However, the platform’s limited asset classes and lack of native social trading features may require additional development and integration for a comprehensive social trading experience. As a regulated entity in the United States and Australia, Tastyworks offers a secure environment for traders, ensuring compliance with industry standards and providing some level of protection for its users.


    AvaTrade  

    AvaTrade is also included among the best social trading platforms. On AvaTrade, you can trade CFDs on forex, stocks, commodities, cryptocurrencies, indices and options. They provide tools, support and security to users, with reviews saying that customer service is tremendous, professional and friendly.

    Some of the features that AvaTrade offers include tight spreads, zero commissions, as much as 400:1 leverage and real-time execution. Ava Trade is designed for traders of all skill levels, whether you’re a novice or experienced. 

    AvaSocial is a tool that lets users copy the most successful traders on the platform. Users can access this tool on the AvaSocial app. Spend time watching the pros trade before jumping in. In addition to connecting with peers, the app also gives you the chance to automate trades. It’s designed for traders of all levels, from beginners and experienced traders. 

    AvaTrade claims to set a new standard in social trading technology thanks to its innovative app. Like many social trading tools, AvaSocial lets users follow and copy the trades of successful investors. However, it also lets you engage with mentors and groups where you can ask questions so that you can learn and apply new trading strategies yourself.  

    You can learn more about AvaTrade’s fee model here

    Pros
    • A wide range of trading instruments
    • Social trading features through partnerships with ZuluTrade and DupliTrade
    • Multiple trading platforms catering to different user preferences
    • Educational resources to enhance trading knowledge and skills
    • Competitive spreads and low fees
    • Multiple account types, including retail, professional, and Islamic accounts
    • Multilingual customer support 24/5 via phone, email, and live chat.
    Cons
    • Inactivity fees for accounts inactive for 3+ months
    • Limited availability, not accepting clients from certain countries like the US.

    Regulation Information: AvaTrade is a multinational company with several subsidiaries operating in various jurisdictions. It is regulated by multiple financial authorities, including the Central Bank of Ireland (CBI) in Europe, the Australian Securities and Investments Commission (ASIC) in Australia, the Financial Services Authority (FSA) in Japan, and the Financial Sector Conduct Authority (FSCA) in South Africa. This diverse regulatory oversight helps ensure that AvaTrade adheres to strict industry standards and provides a secure trading environment for its users.

    In conclusion, AvaTrade is an attractive option for a Best Social Trading Platform looking to open an account due to its wide range of trading instruments, social trading features, multiple trading platforms, educational resources, competitive spreads and fees, various account types, and responsive customer support. However, it is important to be aware of the inactivity fees and limited availability in certain countries. With robust regulatory oversight from multiple financial authorities across different jurisdictions, AvaTrade maintains a secure and compliant trading environment, making it a suitable choice for social trading platforms catering to users with diverse needs and preferences.


    FXTM  

    FXTM fits the bill as one of the best social trading platforms. This platform supports trading and investing in forex, indices, commodities and other assets. It’s a global broker known for offering FX, CFDs and stocks and has 10 years of operating history behind it. FXTM has over 4 million clients across more than 150 countries. 

    FXTM offers traders spreads from zero, more than 1,000 instruments to choose from and vast educational resources. It is also behind FXTM Copy Trading, allowing users to copy the strategies of the best traders and take advantage of investing opportunities without having to do the legwork themselves. 

    To use FXTM Copy trading, determine the amount you’d like to invest and then follow the moves of the platform’s strategy managers. Users can choose the strategy manager they want to follow. These are experienced FXTM traders who are willing to disclose their strategies with you in exchange for a cut of your profits. As these pros make trades, your account will make the same one for you automatically, so you don’t have to lift a finger. 

    The strategy managers you can choose from will depend on the amount you would like to invest. Begin accessing this feature with a minimum investment of $100. FXTM supports various payment methods including debit cards, e-wallets, bank wire transfers and local payment solutions. You can get a sense of FXTM’s fee and commission model here

    Pros
    • Multiple trading options: Forex, stocks, indices, commodities, and cryptocurrencies
    • Social trading via FXTM Invest platform to follow and copy successful traders
    • Different trading platforms: MetaTrader 4 and MetaTrader 5
    • Educational resources: Webinars, tutorials, market analysis
    • Competitive spreads and fees
    • Different account types: Standard, Cent, ECN, and ECN Zero
    • 24/7 multilingual customer support: Phone, email, live chat, social media
    Cons
    • Inactivity fees charged for accounts inactive for over six months.
    • Limited availability: Not available for clients in certain countries, like the United States.

    Regulation Information: FXTM is a multinational company with several subsidiaries operating in various jurisdictions. It is regulated by multiple financial authorities, including the Cyprus Securities and Exchange Commission (CySEC) in Europe, the Financial Conduct Authority (FCA) in the United Kingdom, the Financial Services Commission (FSC) in Mauritius, and the Financial Sector Conduct Authority (FSCA) in South Africa. This diverse regulatory oversight helps ensure that FXTM adheres to strict industry standards and provides a secure trading environment for its users.

    In conclusion, FXTM is a strong contender for a Best Social Trading Platform looking to open an account, offering a wide range of trading instruments, social trading features, multiple trading platforms, educational resources, competitive spreads and fees, various account types, and responsive customer support. However, potential drawbacks include inactivity fees and limited availability in certain countries. With regulatory oversight from multiple financial authorities across different jurisdictions, FXTM maintains a secure and compliant trading environment, making it a reliable choice for social trading platforms that aim to cater to users with diverse needs and preferences.


    MultiBank 

    MultiBank makes the cut as one of the best social trading platforms. MultiBank offers social trading, giving experienced traders the opportunity to generate additional income by sharing their strategies. In addition to any profits they also get a commission from investors copying their trades. 

    Meanwhile, beginner investors or those who don’t have time to research assets can benefit from the expertise of the successful traders on the platform. To participate, users should choose the trader whose strategies they’d like to mimic and then proceed to replicate those trades on MultiBank. 

    The platform makes it easy to choose a pro trader to follow by ranking successful traders commensurate with the performance of their portfolios. Other factors that weigh into which traders to follow, including the amount you’d like to invest and your risk/return profile.  The fees that copy traders must pay to the pro traders differ, determined by the signal trader you’re following. 

    MultiBank’s social trading platform supports both long and short trades in the financial markets via derivative products across asset classes such as FX, stocks, indices, commodities like metals, and cryptocurrencies. Once you choose a trader to copy, the trades are automatically completed for you. You won’t have to spend time watching the markets to ensure that you catch every opportunity.  

    MultiBank Exchange is a division of MultiBank Group, which was founded in 2005. 

    Pros
    • MultiBank offers multiple trading platforms, catering to different user preferences.
    • MultiBank offers competitive spreads and low fees on various trading instruments.
    • MultiBank provides flexible leverage options up to 500:1.
    • MultiBank offers a range of account types, including ECN, Standard, and Pro accounts.
    • MultiBank provides multilingual customer support 24/5 via phone, email, and live chat.
    • MultiBank keeps client funds in segregated accounts for higher security.
    • MultiBank provides various trading instruments, including forex, stocks, indices, commodities, and cryptocurrencies.
    Cons
    • MultiBank lacks built-in social trading features like copy trading or social interaction between users.
    • MultiBank charges an inactivity fee for accounts that are inactive for three months or more.

    Regulation Information: MultiBank is a multinational company with several subsidiaries operating in various jurisdictions. It is regulated by multiple financial authorities, including the Australian Securities and Investments Commission (ASIC) in Australia, the Financial Services Commission (FSC) in the British Virgin Islands, and the Federal Financial Supervisory Authority (BaFin) in Germany. This diverse regulatory oversight helps ensure that MultiBank adheres to strict industry standards and provides a secure trading environment for its users.

    In conclusion, MultiBank is a solid choice for a Best Social Trading Platform looking to open an account, offering a wide range of trading instruments, multiple trading platforms, competitive spreads and fees, flexible leverage, various account types, responsive customer support, and segregated accounts for added security. However, the lack of native social trading features and inactivity fees may require consideration. With regulatory oversight from multiple financial authorities across different jurisdictions, MultiBank maintains a secure and compliant trading environment, making it a reliable choice for social trading platforms aiming to cater to users with diverse needs and preferences.


    FP Markets 

    FP Markets is also one of the best social trading platforms. FP Markets lets you trade CFDs, FX, stocks, indices, commodities, bonds and metals. They offer low spreads from 0.0 pips, speedy execution, good liquidity and pricing, and access to an education library. FP Markets supports both MetaTrader 4 and MetaTrader 5 for technical analysis. 

    On FP Markets, the copy trader feature lets you copy the trades of their leading traders. You can either copy a pro or become a provider, depending on your experience. If you don’t have the time to research your own trading strategies, FP Markets makes it easy to copy the traders who do, whether you want to invest in fx, gold, oil, indices or stocks. 


    To copy trade, select a successful trader whose strategies you’d like to replicate. FX Markets provides a ranking list of its signal providers, showing their profits and losses, number of followers and win ratio. After you’ve followed the trader, activate copy mode and the trades will be automatically replicated in your portfolio. 

    FP Markets also lets you diversify your strategies by following more than one pro trader at the same time. Place these traders in active or inactive mode to determine whether you would like to copy their trades. 

    Pros
    • Various trading instruments: forex, stocks, indices, commodities, and cryptocurrencies
    • Multiple platforms: MetaTrader 4 and 5, and Iress
    • Competitive spreads and fees
    • Fast execution and deep liquidity
    • Educational resources: webinars, video tutorials, articles, and market analysis
    • Customer support: 24/5 via phone, email, and live chat
    • Segregated accounts for higher security of users’ funds.
    Cons
    • No built-in social trading features
    • Charges inactivity fee for inactive accounts of one year or more.

    Regulation Information: FP Markets is based in Australia and is regulated by the Australian Securities and Investments Commission (ASIC). It is also regulated by the Cyprus Securities and Exchange Commission (CySEC) for its European operations. This regulatory oversight helps ensure that FP Markets adheres to strict industry standards and provides a secure trading environment for its users.

    In conclusion, FP Markets is a strong choice for a Best Social Trading Platform looking to open an account, offering a wide range of trading instruments, multiple trading platforms, competitive spreads and fees, fast execution and deep liquidity, educational resources, responsive customer support, and segregated accounts for added security. However, the lack of native social trading features and inactivity fees may require consideration. With regulatory oversight from both ASIC and CySEC, FP Markets maintains a secure and compliant trading environment, making it a reliable choice for social trading platforms aiming to cater to users with diverse needs and preferences.


    Will I Earn Profits From Social Trading? 

    You certainly could earn profits from social trading. But it depends on the performance of the pro trader’s portfolio. The key is to follow the right traders. Just because someone might have a large following on a social trading platform doesn’t mean that they will help you make profits. Find traders whose risk/reward profile is similar to yours so you have a better chance of getting matched with the right individual. Also be sure and understand the inherent risks in the asset classes you are choosing to trade. 

    What Is Risk/Reward? 

    Risk/reward is a process in which you evaluate the potential risks vs. the potential rewards. There’s also a formula known as the risk reward ratio. This involves dividing the expected profit from a trade by the potential loss you may experience. 

    As an example, perhaps you expect to generate $100 from purchasing the trading pair USD/JPY. By placing a stop loss on the trade so you can’t lose more than $25, you’ve got a risk reward ratio of 4:1.  

    Conclusion  

    Social trading platforms are the latest phenomenon, made possible with the rise of technology. While choosing a platform might seem difficult, you can’t really go wrong with one of the best. Whichever one you choose, the important thing will be selecting a pro trader whose risk and reward profile is similar to your own. 

    Study their performance and make sure it’s aligned with your expectations, and see if you can learn how many other investors are following the same account. Also consider the length of time they’ve been trading so you are sure to be copying an experienced trader.  

    FAQ

    Is social trading a smart idea?

    If you are a novice trader, social trading could be a good idea because you could learn a lot about the markets and securities. Whether or not it’s a good idea comes down to the traders you choose to follow. The more successful they are, the better the habits you are likely to develop.  

    Are copy trading and social trading the same thing?

    They are similar, but copy trading actually falls under the social trading umbrella. Copy trading is mimicking the trades of a successful trader. Social trading could mean learning the strategies of the pros and applying those methods yourself or copying them.  

    What’s a risk of social trading?

    Not being vigilant about performance as you might otherwise be if you were making the trading decisions yourself. By depending too much on a signal provider, you could fail to monitor their performance and overlook when it’s time to make a change.

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