If you have ever bet on sports, you likely found sites which give tips on what you should bet. It's similar to social trading in the world of trading.
Social trading definition
Social trading is a form of investing that allows you to copy investment strategies from others. It's suitable for people who don't want to invest too much time to find good trading opportunities or strategies.
What is a social trading platform?
A social trading platform is a service that let's you copy other people's trades and actually do social trading.
How social trading works?
The way social trading works from your perspective is simple. In the platform of these brokers you just search among other traders who share their strategy, trading ideas, and historical performance. After you find the most suitable trader for your needs you can replicate their activity by one click.
The flip side of it is that you need to be careful when selecting the trader to be followed. Check their historical performance and also the risk level they are taking to have realized that historical performance.
Not every broker provide this service, so you have to find a good one, for example, eToro.
eToro - Best Social Trading
|Summary||eToro is a global social trading broker. It is regulated by top-tier authorities such as the UK FCA or Australia's ASIC.|
|Fees score||4.3 stars|
|Recommended for||Traders interested in social trading (i.e. copying other investors’ trades) and zero commission stock trading|
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal
What is copy trading?
Copy trading is a trading approach in which you copy parts of someone else's strategy. Copied elements can include but are not limited to order types, assets and allocations.