A social trading broker is someone who facilitates an environment in which market participants can speak with one another to gain knowledge from one another and share their knowledge with other market participants.
Who is a Social Trading Broker?
Social trading brokers are responsible for the formation of communities of traders as well as the facilitation of trading activities such as the replication of trading methods and the analysis of various trading techniques. Traders are brought together by these brokers.
It enables traders, even those with less knowledge, to participate in trading financial markets by merely copying the orders of experienced traders, which provides the opportunity for professional traders to gain popularity and commissions, and it empowers traders with less expertise to participate in trading. These are only two of the many benefits that can be received because of utilizing it, and there are many more.
Users of social trading platforms have access to a variety of different traders that they can copy their trading strategies and follow through with the use of features such as copy trading and auto trading. This indicates that users have the option of letting software execute orders on their accounts in a manner that is identical to the master account that they choose to utilize.
When searching for a suitable social trading broker, it is essential to take into consideration the number of Top traders that have realized regular profits. This suggests that their strategy for trading is solid and is being managed efficiently. Most of the time, social brokers will provide assessment metrics. Some examples of these metrics include a percentage of successful operations for each financial instrument, synchronization across accounts, and the requirement that brokers provide user-friendly forex trading interfaces for beginners.
The only payment made is a very modest markup that is paid to the trader who is being copied on successful deals. Social Trading is a service that is provided by social trading broker that is available at no cost to customers. In addition to the well-known Social Brokers and communities, there is currently a large variety of social platforms that are accessible for use by forex copy trading brokers.
Most social trading platforms provide nearly comparable capabilities, such as straightforward copy trading; the only thing that differentiates these platforms is the size of the trading community that they cater to. However, only brokers that are suitably regulated and have a solid reputation can guarantee the safety of both the trading community as a whole and the trading activity itself. This is because these brokers are the only ones that can protect their clients.
5 Reasons to Go Public with your Social Trading Brokerage
It is common knowledge that we have successfully entered the Social Age. It doesn’t matter if you’re hoping to reacquaint yourself with an old flame from high school, find a new companion, or simply boast about the tasty dinner you prepared: social media is the route to just go. What came as a surprise was the rapidity with which it became the medium of choice for public figures to communicate with the public as well as for companies to publicize their wares and accomplishments.
To maintain one’s relevance in today’s world, one must participate in social media, which has had an unprecedented effect on the economy of the entire world. The trading business was quick to follow suit, and one can identify a brokerage that supports democracy by the presence of an integrated social network within its forex trading platform. It is a brokerage that is up-to-date, technologically sophisticated, and just enough to provide traders with the tools, information, advantages, and transparency they require to genuinely hold all the cards.
The answer to the question of whether you should incorporate the social function into your online brokerage is a straightforward “yes.” If you are still debating the issue, however, the easy answer is that you should.
Your top five reasons are as follows!
A brokerage gains credibility it couldn’t get anywhere else thanks to the objective display of its successful past performance. There’s an ancient adage that says you can’t debate with results. When a top trader is highlighted on the site, other users are more likely to mimic his actions. The original authors of the approach are the ones putting their own money into it. Not like the conventional forex brokers who are cowards with their own money but bold with their clients’. In cases where the peers are also successful, their credibility can even surpass that of the brokerage.
If you ask any HR professional, “a significance of community” is what they’ll say is the most important factor in a pleasant working environment. Everyone enjoys feeling like they have a place in a team or a community of people working toward a common objective. Brokers that have embraced social media have seen a dramatic boost in client involvement because of appealing to traders’ fundamental human desire to belong to a group.
Naivety and Benevolence
It seems that traders’ interest in social trading stems from more than just a search for reliable advice. It’s also about wanting everyone to know how successful you are. The concept of social trading mirrors the popularity of social media as a place to flaunt one’s wealth. Forex traders are eager to brag about their wins because doing so gives them a rush of dopamine and because seeing their name as a guru on the leader boards legitimizes their achievements. There are also people who want nothing more than to see other people succeed the way they have, and imitation is the highest form of flattery.
Traders’ inner sense of competition is stoked by features like leader boards, objectives, badges, and scores. When there are peers involved and records to beat, the competition heats up and participation rates rise. There is no regulatory issue with the gamification of brokerages so long as the competition is between traders and not between the brokerage and the trader. A successful trade in and of itself can be rewarding, but the gratification gained through gamification can exceed that.
When given the option between doing their own study or copying a nerdy classmate’s work, most students will opt to copy the nerd. After learning that being a nerd is not only acceptable, but actively encouraged, almost every student will go for that path. In this regard, traders are no different from everyone else.
Even seasoned forex traders can learn from others who have had more success than they have, which can greatly shorten their own learning curve. With risk control instruments such as Stop Loss and Take Profit, selling a trading platform with a social element to customers who are seeking for the quickest and easiest route to trading success is a breeze. Your forex sales crew will have less work to do and more money coming in. Having this social component is a selling point in and of itself.
The Bottom Line
You think it’s important for your brokerage to get involved in social media? You can differentiate yourself from competing brokerages by giving your traders access to a unique and engaging social feature they won’t find anywhere else, and you’ll also have use of a web trader that has won multiple awards for its user-friendliness and can be accessed from any web-enabled or downloadable device.