In the last couple of years, it is seen that online forex trading has gained a huge popularity. Most of the trading platforms are enhancing their features which make them user-friendly and simple to use. Evidently, some of the fx trading platforms have added a new feature to their platform and are called Forex Social Trading Network.
There are some fx trading platforms available in the market, but out of them, social trading has emerged as one of the convenient and easy trading platforms. Social trading allows traders to observe that what position expert traders are opening in real time. They can even follow those trades manually, or they can also start following the trades of the particular trader.
Through this post, readers will be able to get an insight on how to benefit from forex social trading network.
Copying other traders
Suppose you are following a trader who is doing well then being a rational trader you have to keep in the mind risk of copying a trader. It is also suggested that one should start copy trading with a little investment and after that one should increase the percentage of the investment capital to the higher level.
Copying trades of your favorite trader is very simple as you just have to find the right trader and allocate a certain portion of your fund to copy his/her trades.
Helpful for both the followers and the leaders
In most of the fx trading platforms, one can get leaders and followers. It is crucial to mention that in most of the occasions both of them find themselves at disadvantages. But social trading is only trading environments which reward both, leaders and followers. As a trader being copied, one gets the rewards based on the number of copiers one can sustain. And as a copier, one gets the perks of having other’s trading strategies.
Better than practicing on demo accounts
In case of demo account trading, traders can only learn but in case of social trading traders can learn as well as get profit from the market. From demo account trading you can earn as you will be dealing with the virtual money but in case of social trading platyform the scenario is totally different. You’re dealing with real money and therefore can earn real profits.
No management or performance fees
It is evident that investing in different proprietary funds charges 20% to 30% performance fee on the top of 2% to 5% management fees. But it is great to mention that social trading is completely free of cost and traders don’t have to pay anything charges.
Helps in eliminating personal bias
Personal bias is one such thing which forced most of the traders to miss out the profitable trades. They even enter into losing trades. But with the help of social trading, one can modify or alter the way he/she view different assets by trading in conjunction with different traders.
Now you have learned the advantages of fx trading platforms, so you should start forex trading without any hesitation. You can also ask for support from different trading websites available over the internet.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.