Social Trading platforms are a great way to connect with other traders and learn more about the world of finance. By following other traders, you can watch them, copy them and learn from them. So what is the best social trading platform? I've tried a bunch and this is my review of the best one I've found so far:
What is Social Trading
Social Trading is where you combine a trading platform with social features. It's a bit like if Facebook and your broker had a baby. Social Trading platforms let you follow other traders, see their trades and interact with them. And the best social trading platforms also let you copy the trades made by other traders.
The Best Social Trading Platform
In my opinion the best social trading platform is eToro. These are some of the reasons why I think it makes the best platform for social trading:
- Large User Base – eToro has over 13 million members. One of the big problems I've found on other platforms is a lack of quality traders to follow. On eToro there are lots of quality traders from all over the world.
- Copy Trading – eToro isn't just a social trading platform. It's also a copy trading platform. So yes, you can just follow other traders and see the trades they make. But you can also automatically copy these trades.
- Social Features – on eToro you can follow traders, ask them questions via wall posts, like trades/posts and leave comments. eToro has the right amount of social features.
- Well Designed Platform – eToro is a nicely designed platform. Most trading platforms feel utilitarian and are difficult to use. eToro is easy to use. And even if you're familiar with online trading, you'll still be able to work your way around the site. They make finance approachable.
Trading through eToro
As well as being a social network, eToro is also a trading platform. Here are some of the reasons I like to use eToro as a trading platform.
- Large Range of Assets – on eToro you can trade a large range of assets. In the U.K you can trade real stocks, forex, cryptocurrency, ETFs and more. The assets available to trade vary on where you live.
- Trade Cryptocurrency – Crypto is becoming more of an established asset. It's nice to be able to trade crypto alongside more traditional assets.
- Copy Trading – You can automatically copy the trades made by other users on the platform. And you browse and search for traders based on their past performance. You can see every trade they've made and how profitable they have been.
- Build a Diversified Portfolio – On eToro you can build a truly diverse portfolio. For example you could CopyTrade multiple people and buy stocks and ETFs – all in the one account.
- Start with a Virtual Account – eToro gives users a free virtual account. This means you can practice copy trading or manual trading without risking any of your own money. Trading isn't for everyone, and using a virtual account is a great way to find out if it suits you.
- Large range of deposit options – you can deposit using PayPal, Credit Card, Bank Transfer and various other online wallets. This makes it quick and easy to get started trading.
In my opinion eToro is currently the best social trading platform out there. It has the right mix of social features and is also a great place to trade a wide range of assets.