Social trading, a type of investing technique that helps investors to take note of their peer's or standard traders’ trading patterns. Copy-trading and mirror trading is commonly used to observe their regular trading plans. One doesn’t have to know much about financial markets to enter the social trading arena.
It is a very economical and advanced alternative to the traditional investment manager by the World Economic Forum. Social trading is merely coping or mirroring experienced traders’ trading techniques and policies. It helps the novice traders to gain experience and learn from the experts over time.
The 3 Forms of Trade
Single Trading (Non-Social): A trader places a trade based on their analysis of the current market situation.
● Copy-trading: It can be explained with an example. Suppose, there are 2 traders, A and B. In a single trade, the trade set by the Trader A is copied by Trader B, and Trader B, therefore, places the same trade as that of A.
● Mirror trade: Taken the same situation into account as that of copy trading. Here, Trader B copies every trading strategy from Trader A in a motive to incur the same profit.
These tools are revolutionary in their approach. The people who want to earn quick money can depend on these tools without much expertise in the field of the stock market. It is considered best for novice traders.
Pros of Copy Trading
● Via copy trading, people may access the experience of an accomplished trader. They can also make the most out of the seasonal movements that one would not otherwise see as a potential opportunity.
● Copy-trading helps you to broaden your portfolio into stocks to which you are inexperienced and like to be exposed.
● It is considered risk-free and there are very less chances that one will incur any major loss.
Cons of Copy Trading
● Copy trading doesn't quite eradicate risk – and often copy trading platforms can also be used by investors trying to manipulate market rates for their financial benefit.
● Copy-trading may offer investors less motivation to do their research and educate more about the stock market.
Exploring the World of eToro
eToro is a well established and reputed social trading and multi-asset brokerage company. They provide their customers with financial and copy trading and mirror trading services. The company was founded in Israel in 2007 by Yoni Asia, Roni Asia, and David Ring and was initially named Retail FX.
eToro copy trade helps a novice investor to acquire enhanced insight into the trading strategies from a skillful trader. It's quite convenient to use.
As per our customer reviews, eToro is deemed to be trustworthy. eToro provides the customer with free stock trading with low Forex and CFD fees. One of the advantages of choosing eToro copy trade over any other company is that here we don’t charge commission or any sort of broker fee.
How to open an investing account on eToro?
- Firstly, sign up on eToro.com
To register, you need to enter your username, phone number, and your details. This constitutes the basic personal information. Now, after setting up your account, some basic trading questions would be asked.
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Tip: Just be honest.
- Deposit Fee
A minimum of 200 USD must be deposited to start your trading journey. eToro accepts 20 currencies
- Explore the Platform
Brief description of the options provided in eToro:
● Watchlist- Choose the people or markets where you would like to invest or copy from.
● Portfolio- Gives an evaluation of your overall trading performance.
● Newsfeed- To keep up with what the traders are up to.
● Trade Markets- Research and trade in the markets available to you.
● Copy people- Mirror other traders’ strategies and techniques.
Investments into the stock market are always subject to risk but eToro lends the best guidance for your money. So, Don't Fret, INVEST!!