Social Trading vs Copy Trading: Which Strategy is Worth It?


Different copy trading platforms employ different copy trading logic. All trades are proportional to one’s budget—that is, if a copied investor spends 1% of their portfolio, copiers also do so. The main distinction between social trading and copy trading is that, in the latter, a different trader actually does the follower’s task.

There are differences between the two even when some people use both terms interchangeably and both forms of trading share the same basis. To put things into perspective, social trading is a broader term that includes copy trading. Read the most useful article for a trader and bring your chart analysis to a new level. Just click on the Stop copying button on the trader’s page in the Client Profile.

Download the app today

Many platforms provide a list of top traders, with personal risk scores and historical returns. You could potentially pick one or more traders to copy and leave the rest to them. While social trading lets you see other traders’ investments, copy trading means that your account will make whatever trades theirs does. Copy trading is a subset of social trading that allows users to mimic the trades of other investors. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.

You can succeed by simply following others — there is no steep learning curve in trading. There is no psychological factor because you do not make your own trading decisions. To get more details on the service, click here or contact the company’s support team.

Social trading is more about listening to others and their trading ideas and deciding whether you should follow. Social Trading and Copy Trading are both viable options for investors of all levels of expertise. Stay up to date with our latest exchange reviews, promotions, how-to guides and educational articles on Bitcoin, cryptocurrency & more. Visit the FXTM Invest page for Investors to learn more, or read on to find out more about the perks of being a Strategy Manager.

Copy Trading

To become a managing trader, you need a minimum deposit of $300 (a deposit of $500 is recommended). Each position of the trader can be displayed in a separate price chart. Investors must pay for subscriptions to copy trades of other traders. Risk management in social trading is another important aspect as it allows you to figure out whether the profit is worth the dangers you’re exposing your capital to. This is a set of rules that will help you make an informed decision. The trader is not responsible for any loss of the client’s funds, as the client simply repeats the trading behaviour on their account.

This feature allows investors to enter into crypto positions of other verified traders automatically. CopyTrader is quite beneficial to beginners who know little about the market but want to analyze the trading strategy of other traders and also profit from it. Once it’s set up, the trader benefits once the investor profits.

Best Fiat To Crypto Exchanges

One thing to note is that Phemex’s copy trading is still in its initial product launch phase. Less than 40 professional traders are available on the copy trading feature. But, this could change in the future once the full platform has been launched. As expected, KuCoin S allows traders to share posts and insights on the market, comment on posts, and interact with other traders directly. One of the few limitations we found is the social platform is limited to the mobile app only. Find and follow the most profitable crypto traders with a copy-trade platform.

  • When you have a query about why something may have happened, it can be found in the log files.
  • Learn, develop yourself and use the LiteFinance broker to your advantage.
  • Fundamental analysis means inspecting the issuer of the stock or currency, the purposes it serves, and the future applications.
  • Trade in the same way on the same account but get paid in fees at the end of the month.
  • This flexibility allows you to keep greater control over your risk, and makes it one place to get started if you’re not sure about copy trading just yet.
  • For those who are new to trading or those who are new to trading and are not yet comfortable trading on your own, Titan FX Social is the perfect solution.

Hard Choice A social trader should choose the skilled trader to follow. However, the experts sometimes manipulate the ratings to be more attractive. They pretend to be more successful than they are, and following them is a greater risk. Relying on Others Skills The warm bath of the supporting community helps start but prevents successful individual trading.

Social Trading vs Copy Trading

Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. The Trality Wallet—enjoy all of the benefits and functionality of your Binance account while being able to deposit, withdraw and manage your funds all in one place. Since it’s powered by Binance, the Trality Wallet is built on the industry’s safest and most secure custodial wallet infrastructure. Any and all funds deposited into the Trality Wallet are backed by Binance. Enhanced security and risk mitigation protocols mean that your funds are always safe and always yours. Bot Creators can now monetize their bots and earn passive income from investors around the world by having their bots listed on Trality’s Marketplace.