Social trading is an evolving, innovative concept that allows you to share ideas and collaborate with others who have similar ideas and mindsets regarding trading. It is based on the simple principle of networking, similar to any other social media platform. As technology improved, the accessibility and platforms supported for social trading have increased exponentially.
As technological innovations improved and increased, a wide range of platforms with different tools and features were introduced into the market. Some of the top social trading platforms that offer advice and secure features to users are Bidsbee, eToro, ZuluTrade, Freetrade, and Trading 212.
If you feel confused about your choices, this guide will help you understand the pros, cons, and features of these platforms in detail.
1. Bidsbee
It is one of the latest platforms. Launched in late 2022, with a wide range of functionalities and options to enhance the user experience.
Pros
- Allows diversification and supports a wide range of cryptocurrencies.
- Offer advanced encryption and multiple authentication measures to prevent third-party access.
- Allows a wide range of public crypto exchanges to connect. Thus offering the best inter-connectivity services.
- It offers you historical data regarding the success rate, loss, and other strategic information regarding a trader. Thus helping you make an informed decision regarding which trader to rely on.
- Allow and support multiple innovative features such as automated trade copying, loss signals, and live tracking and monitoring.
- You will have access to a wide range of crypto networks, Thus helping you to focus on multiple networks.
- The very friendly user interface allows any beginners to practice and get familiar with relative ease.
- Exclusive market news and updates regarding cryptocurrency.
Cons
- Since it is a relatively new application, only limited historical data is available. Thus, choosing the right trader to follow can sometimes be tricky.
- It promotes automated trading. Thus, if you prefer to do it on your own, you might find yourself lacking control.
- Since the platform offers a lot of features, the plan pricing and service charges can be a tricky situation.
- This platform solely focuses on cryptocurrencies, so exploring other options is limited.
- No foreign exchange fees (since transactions are more focused on cryptocurrency)
2. eToro
One of the oldest platforms, founded in 2007. It was created with the aim of creating a community of traders and to promote investing within the society. It has over 30 million customers in around 100 different countries.
Pros
- Automatically Copy your preferred trader’s strategy and plans
- A wider availability of asset selection, including stocks, shares, cryptocurrencies, and other commodities
- The social feed allows you to explore and communicate with other traders
- There are no trading or platform fees
- Offers advanced options for professional traders
Cons
- Foreign exchange fees are quite high(around 0.5%).
- A withdrawal fee of 5$ is applicable
- If you remain inactive for more than 12 months, an inactive fee of 10 per month will be applicable
3. ZuluTrade
It started its operations back in 2007. They are well known for being signal providers for the community of traders. They have a keen focus on forex trading.
Pros
- They allow options to follow and copy signals of expert traders,
- They allow the option to automate trading. Thereby reducing the risk and time delays.
- Users have the ability to analyze the historical performance of signal providers to make an informed decision.
Cons
- ZuluTrade has quite a complex interface. Their user interface is not user-friendly. Thus, it can be difficult for new traders to manage and operate.
- Since the focus is on forex trades, users interested in other commodities might need to find other platforms.
4. Free trade
It is a privately owned com that raised its initial funding through crowdsourcing. They are one of the original creators of the commission-free trading concept. Within a short period, they have managed to gain over a million customers.
Pros
- They have no trading fees or platform fees
- They have zero inactivity fees and withdrawal fees
- They have a well-supported forum with wider access to a wide range of stocks and shares.
- Low-cost platform for social trading (functionalities may be limited)
Cons
- Trade can only be placed within the application
- They have one of the highest foreign exchange fees of 0.99% for basic plan users.
- Advanced trading tools are not available for basic plan
Functionalities and associated deposit costs are high for basic plan customers.
5. Trading 212
Trading 212 has over 2 million customers. They are a FinTech startup based in the United Kingdom that offers commission-free trading. They are very popular with stock options and ETFs spanning mainly over the US, UK, and Europe.
Pros
- An active, friendly community of traders.
- There are no hidden fees, platform fees, or trading fees.
- Wider choice of investments in different countries.
- Lowest foreign exchange fees offered by any other application in the market.
- Good level of basic information with advanced tools at minimal cost.
Cons
- More focus on providing basic information and research.
- It might not be a great option for professional community traders,
- Less extensive, in-depth discussions.
How These Platforms Prove Revolutionary?
Social trading applications and communities have revolutionized the financial market and the approach of normal people towards trading. These applications and communities play an integral role in promoting healthy financial choices in the community. Accessibility and innovation in technology have led to the growth of these applications.
The improvements made in this field have enhanced and increased the user base to a much wider strata of society. Common people who are very concerned regarding their retirement plans have started to explore the market by investing and making wise choices.
Conclusion
Before finding a social trading platform, it is essential to experiment with it to ensure that there is a reliable trader who can help you achieve your financial goals. It is important to pay close attention to the terms and conditions of the platform and ensure there are no hidden fees and that the platform has all its legal basis and insurance to operate within your region.
Despite all these, it is always important to be financially responsible and understand the risks when trading for profit. Always play safe and be financially responsible with your investment. Instead of unquestioningly trusting someone else, take your time, study the market, research properly, and invest your money with utmost caution.
