What is Social Trading?
Social Trading is a process through which online traders rely on user generated financial data gathered from various web platforms as a primary information source for making trading decisions. This new and revolutionary way of analyzing financial data provides a ground to compare and copy trades, strategies and techniques.
eToro is one of the most popular Social trading platforms currently available in the market, which allows a user to trade currencies, commodities, indices and stocks in a very user friendly, simple and social manner. etoro has three types of trading platforms depending on the investor’s interest. They are Web based, Social Trading and Mobile Trading Platform.
The above is a screenshot of how the new etoro Social Trading Platform looks like. It is a form of trading platform that is unique in the sense that it rides on the social networking principle like what is found in Facebook. A live News Feed keeps all etoro members up to date with all the happenings in the market by the traders.
Overview on How to use Etoro Social Network
The etoro social network is a community a more than 5 million traders who benefit from the wisdom of the collective group potential. You can reach heights which you would otherwise not reach if you were alone. Being the world’s largest investment network, the opportunities are immense; one may not be able to exhaust them. But with the structures in etoro, one is able to maximize the use of this network. The new etoro Social Trading Platform is fast, easier to navigation with organized user interface.
Everyone who uses etoro, gets their account enlisted on Social Trading, your activity on the etoro is viewed by the users on etoro. The data on etoro social Trading Platform is updated on real time basis. With this you can keep practicing copying.
Since you are able to view all traders with together with their activities, you can identify best traders you want to copy. You can find them using Clicking People under the Discover. You can find the top performers on live rankings which are based on total gain. Once you identify the trader to copy on their profile, you will see a blue color button with ‘Copy’, it is just next to the profile image, a click on this will give you the steps to completing the process of copy trader.
You can copy a trader with $100 or 40% of your equity-the sum total of available funds and invested amount. To view this activity, click on ‘Portfolio’. From here you are able to view all the activity going on. This way you can keep on copying or even close from the webtrader platform or social media platform when you no longer want to copy. You can also add funds to the copy trader by editing the amount to the copy trader. All trades that are from the copy trader will always have a link on them.
New Features in the etoro Social Trading Platform,
- You can easily switch between Real and Practice account by clicking the Portfolio menu item.
- You can choose to trade wide range of Currencies, Commodities, Stocks and Indices as CFD’s.
- Have access to the other etoro members through ‘news feed’ and share your views, opinions etc, on the current status.
- By clicking on the ‘portfolio’, an access will be opened to your contemporary transactions and also the traced activities of the popular traders.
- ‘Watchlist’ Which means, your trading dash board. You can visit, browse and survey the currencies, stocks, indices and commodities, and you are at the complete command whether to add/delete any instrument. Thus, you are at your own discretion to buy and/or sell any instrument by opening the chart and indentify or choose the relevant instrument.
Copy Trading-Key points:
- You can choose to copy a trader in either real or virtual mode.
- You need to choose whether you want to copy all current open positions of that trader or not. Remember, trades will be opened at the current market price and not at the price at which trader has opened it. This feature is very important as if you do not copy all the trades of a trader, then you can face money allocated synchronization issue as copy trader system copies the trades in same proportion to that of the trader copied.
- Minimum amount required to copy a trader is $100.
- You can choose the amount to copy a trader. This amount cannot be more than 40% of your total equity in your account.
- You can use eToro to copy up to 20 different Popular investors.
- At any point of time, you can stop copying a trader(Popular investors) with the close button in the Webtrader.
- You can also change the copy amount any time. You can do that inside the Webtrader or from the Social Trading Platform.
Advantages of etoro Social Trading
- Social trading, there are many opportunities offered by virtue of the copy trader function that maximizes profits and minimizes losses. It promotes responsible trading.
- There is much more harnessed from the collective wisdom from the millions of users of the social trading platform.
- Live rankings-they work based on aspects of performance on the etoro platform and are used to rank the best performing traders to the benefit of all users on the platform. It helps new users to choose those they want to copy.
- People based portfolio-this is the portfolio you manage consisting of the trades you have with copy trader.
- The etoro new Social Trading copy trader ensures greater profitability as well as minimal losses for new users. The risk is greatly reduced for the novice traders.
- The cost of learning is greatly reduced for those who want to enter into online trading.
- The Popular Investors can recruit new traders on social trade network and get recognized for their excellent skill. With joining the popular investor program, you will earn commissions for all who want to copy you.
Deposits and withdrawals are fast and efficient and there is a wide range of payment methods are available.
eToro provides 24 hour customer support via telephone and email.Unlike other brokers, etoro customer support staff is very professional and well trained.
The etoto new Social Trading Platform is an excellent place for both new as well as season traders on the forex market. All new traders are encouraged to try Social trading through etoro practice account; they are better off at etoro and will learn much faster without any cost.
For more information and to open your free account click here