MT5 and other reliable trading platforms can be used for social trading, which combines online trading and social networks on the financial market. The most important thing here is to follow in the footsteps of other successful traders. Since it doesn’t require you to make hard selections, it has caught the attention of inexperienced traders. There are, however, some drawbacks to keep in mind.

It can be difficult to identify a signal provider you can follow. The trading platform must be able to handle the dangers connected with trading, increase profits, or protect your trading funds when selecting a signal source.

Trading Concepts

The terms copy trading, mirror trading, and social trading are sometimes misunderstood, and understanding the differences between these trading principles is essential.

Copy Trading

The only difference between copy-trading and mirror trading is that the participants are actual traders who share the same signals via a trading platform that records all of their activities. Copy trading now takes place on the trader’s personal computer or mobile device.

Mirror Trading

An algorithmic trading method is employed in this notion. Transactions frequently take place away from the investor’s desk and on the trading servers.

Social Trading

Trading ideas, thoughts, comments, and other trading actions are all encouraged under this model. Instant messaging and social media sites are the most common venues for these kinds of exchanges.

The Best Social Trading Platforms

MQL5

MetaTrader 4 and MetaTrader 5 are supported by this trading platform. With two of the most dependable and reputable trading platforms currently available, you can be certain of getting the finest outcomes with this platform. If you follow a signal provider/trader worth between USD30 and USD500, you will have to pay for the service because MT5 activities are completely free of charge. Web portals shared hosting, social trading, and other additional features are provided by MQL5.

eToro

Since it was created in 2007, this social trading network has been based in Cyprus, Israel, and the United Kingdom. Forex and CFD firms are the primary users of this platform. It makes use of Machine Learning to help you get the most out of your trading. There is a USD200 minimum deposit at eToro. Using a demo account is permitted for US citizens, but a genuine account is not. The disadvantages of eToro include the lack of risk limits for social trading and the fact that it is still in its infancy.

ZuluTrade

ZuluTrade was established in the United States in 2007. Copy trading is the focus of this social trading platform, which gives users access to Forex traders’ techniques and performance evaluations. It’s also possible to keep tabs on other traders and follow their lead. ZuluTrade’s biggest drawbacks are its inability to serve US customers and the risk of losing all of your money.

It should be easier to choose the best social trading platform if you are familiar with the most popular ones and their advantages and disadvantages. Always keep in mind that you should make your choice depending on your trading style and requirements.