Blog

Is the term social trading the same as social media? To answer this question, it is better if you listen to the following brief explanation.

Social Media and Its Relation To Social Trading

Talking about social media, of course, cannot be separated from the various activities of the Indonesian people or even the world today. Because there are so many users who provide information or even their daily moments in the media.

Social media itself comes with several forms of platforms that differ from one another. With the platform, of course, each user’s interaction can be done easily.

With a variety of developments that it presents. Now social media is even integrated with various types of platforms for forex trading. This is what came to be known as social trading.

Get to Know Social Trading and How It Works

When viewed from the form it has, this activity is included in modern investment. In addition, its use also provides good benefits to traders. Because they can monitor what other traders are doing in the same network.

This is done so that he as a trader can follow the same steps. This action is known as copy trading, mirror trading or even various other trading replication systems.

To do this, of course, you as a trader must join or register on one of the trading platforms. After that, then you can follow other traders. Also make sure to follow profitable traders.

By taking these actions, of course you as a young trader can get a higher profit opportunity.

Characteristics of Social Trading

When viewed from the way it works and its existence is starting to attract the attention of novice traders. Indonesian social trading comes with several basic characteristics it has. Want to know anything? Here’s the explanation:

Free exchange of information

By interacting in one or even more social trading platforms. Of course, making the process of exchanging information easier and free. You can do this through the homepage in general, the comments column to the chat feature or private message.

Cooperation opportunities

Another basic character that is also shown by this form of trading is the wide open opportunity for cooperation. In this case, some investors can combine their funds to be traded by professionals.

High transparency

The last part of the characteristics of this one trading is the form of high transparency. That’s why you as a novice trader can see the history of other traders. Not only that, you can also see several things related to:

• Winning percentage
• Percentage of loss
• Profit generated on average
• Best trading results
• Worst trading results
• Number of followers
• Trader rating

The Current Social Trading System

For social developments in today’s trading world. There are several main systems that are commonly used by it. The system consists of:

Social Trading

In this one system, you can see how transactions made by other participants. But if you want to emulate it, you also have to place orders and carry out transactions independently.

Copy Trades

To imitate transactions made by other traders. You have to follow the trader first. Meanwhile, you can choose the imitated transaction according to what you want

Mirror Trading

Apart from following the selected traders, this system also requires you to follow all the actions taken by other traders.

That’s presumably a brief explanation of social trading that the author can explain this time.

For traders or traders, the term copy trading is certainly not foreign. Because many of them have started doing these activities. But if you are a beginner and don’t know what that means, be sure to watch the following explanation:

Introducing Copy Trading

According to its name. This activity is generally done by imitating the actions of other traders. This can be done using a social trader platform and taking advantage of the network of traders in it.

In own copy trading activities. You can also select some specific actions. In other words, although this one activity works in an automatic way. However you as a user can choose some actions that you think are much more profitable.

By utilizing this one trading system. Of course, even novice traders benefit. Because they can get higher profit opportunities, even without having to do any analysis.

Advantages of Using a Copy Trading System

In addition to the convenience as mentioned in the section above. Using this one system can also give you many other advantages. As well as some of the following advantages:

1. Low risk

Because this one activity is a reflection of the trading strategies carried out by top traders. Of course, even beginners can reduce the risks that must be faced more easily. In fact, he can also rely on the knowledge of people who are experienced in it.

2. Learn to trade easily

Basically the process of learning to trade is quite difficult. It may even take a long time for you to understand it properly. With the media in the form of a trading platform and also the best copy trading system, of course, investment activities can be learned easily.

3. Expand Adoption

By reducing the risk as previously mentioned. It is certain that the expansion of adoption will run more easily. It also helps in building trust in the trading field itself.

4. Expert Traders Can Earn Commissions

Other advantages are also obtained by previous traders or professionals. Because they can get a commission from every action imitated by other traders. This is clearly profitable, mainly because it can increase income from daily activities that it can do.

Disadvantages of Copy Trading System

Besides being known by several forms of advantages at the top earlier. This trading system also has several weaknesses. As well as :

1. There is a time lag when placing an order

The first weakness that arises from this one system is related to the trading market conditions that move very quickly. Even changes can be made quickly too.

2. Using the same platform

The next part that is also stated as a weakness is the use of the same platform. Because to use this copying service or system, you also have to use the same platform as the trader of your choice.

Meanwhile, many traders are lazy to switch to certain platforms. Because generally they are comfortable with the use of the social trading platform they use.

Conclusion

From the brief explanation above, you can see that the copy trading system is able to bring many advantages. Especially for novice traders. But you also have to be careful, because it also comes with some drawbacks

A Forex Broker is never at his wits end in developing strategies to retain and increase the interest of his clients, and potential clients. Instead of making their clients who are unable to trade give up, forex brokers create services that can indeed be used by all circles and can be used to make money from the financial market which is usually called copy trading.

Copy trading itself is a service that is provided by a broker that functions as an imitator in trading activities carried out by experts or masters in the trading world. If you want to make money in the trading world but have very limited time or always experience a loss in the trading world. Copy trading forex can help in making it happen.

What Are The Advantages Of Copy Trading?

Indeed, copy trading will create an opportunity that aims to take advantage of other people’s trading knowledge and experience. Therefore, you don’t have to observe the movement and analysis of trends in the money market so you can decide what transactions you will take and when you should be able to close the transaction, you just need to follow the pro traders.

The picture is like this, for example, you have chosen someone who has consistently produced very high profits on their trading activities. Then there is a great possibility for you to be able to make money consistently because you have followed the trader.

Criteria for Selecting Traders to Copy

1. How long have they been trading.
2. Pay attention to the trading track record.
3. Using lots that are so scalable.
4. Risk Reward used by the trader.
5. Currency pairs that are actually traded.

Tips For Investing

1. Be selective in choosing the traders you will follow, pay attention to the use of lots, money management, and duration of trading.
2. Arrange lots in a professional way so that your capital will be safer later because in use it adjusts to the capital you use.
3. Be verified when choosing an expert trader that you will follow, because choosing a few traders who are really good will definitely reduce your losses later.

Several Copy Trading Brokers

FBS

The copy trading platform that has been provided by the FBS broker is very complete and not inferior to the others. In fact, FBS is much safer because the transactions that are opened will adjust proportionally to the capital we have. It can be illustrated like this when there is a master account that has funds of $ 1000 while we as a copying account only have funds of $ 100 and when later the master account gets a profit of $ 10 which is 1% of the capital worth $ 1. It will be profitable if later the master loses 10% your account will not lose $10 but will only lose $1.

INSTAFOREX

In Instaforex you will be provided with a more informative copy trading service. Like broker services in general, InstaForex will display a trading account page that we will follow and what is more important is the aggressiveness of the trading that you will follow is very clearly listed so that you can choose very skilled traders with careful consideration. Because on an aggressive trader’s account it will be more dangerous if we follow it later.

METACOPYTRADE

With this platform, you can connect any trading account of any broker in the world, copy orders for any products such as Forex, Cryptos, Stock CFD’s, Commodities and Indices without any restrictions, and what’s more interesting is for a copy trading system, you don’t need a VPS, Expert Advisor (EA) copytrade and additional software, all systems run automatically and realtime 24 hours.

MetaCopyTrade was established to help all Traders and Followers to create a perfect copy trading system starting from open orders, order modifications to order closing, due to rampant fraudulent actions carried out by individuals who act in the name of copy trading, MetaCopyTrade as a Real Copy Trading system.

The terms copy and social trading are sometimes still considered the same. In fact, the two are actually two different trading strategies in the forex market, you know! Then, what’s the difference and what benefits can you feel by becoming a copy trading investor, huh? Let’s see the full explanation below. Happy reading!

What is the difference between Social and Copy Trading?

Actually, the term copy trading is not a completely new term, you know! Because this one term seems to have appeared and was known by investors in other financial markets in the 2000s, such as in the forex trading market. And over time, this term has also expanded and has also begun to be known among crypto currency traders, aka cryptocurrencies.

While the difference between copy and social trading mainly lies in the flow or system that occurs in it. For social trading itself, here the pro traders will only share their trading strategies. After that, other traders will copy the strategy of the pro trader with the aim of making a profit.

Meanwhile, it is different with copy trading. Because here, investors copy traders will be able to copy alias copy trading positions made by other traders who are more pro and experienced. This can be done by linking or linking the accounts you have.

Therefore, this method is most often used by beginners who have just or recently been in the trading world. Because, this one method is very profitable, and of course you can also feel it by becoming a copy trading investor.

Advantages of Being a Copy Trading Investor

1. Saving Time

One of the advantages that you can feel through this copy trading method is the shorter trading time, especially when compared to the trading process that you do yourself. You see, you only need to mirror the trading activities of pro traders to your account, so that your trading activities will also run on their own.

However, this also means that you have to be careful in choosing a trader, yes! Because if it turns out that the trader whose activities you copy or mirror to your account is not a reliable trader, of course you will also feel the impact.

2. Can Trade While Learning

Of the various methods, tips, and ways of learning to trade that are out there, there is no doubt that learning by doing is one of the most effective ways. And by becoming a copy trading investor, you can actually feel these benefits, you know. Why? Because you can not only jump straight into the trading market, but also learn by observing the positions and actions taken by pro traders when trading in the market, in any situation.

3. Less Risk Of Loss

As a beginner, you certainly don’t want to lose immediately when you start trading, right? Especially if the loss is large. And fortunately, you can avoid this risk by becoming a copy trading investor, you know!

Well, that’s a brief summary of copy trading investors, including the 3 main advantages that you can feel too. How, are you getting more interested in trying?