Social trading is a new form of investing, which appeared as a result of technological progress and the growing popularity of social network services. On the one hand, the idea of this kind of trading enables us to share the results of our investing strategies with the rest of the forex community and on the other hand, it facilitates beginner traders to embark their careers on the foreign exchange market more smoothly. In general, the sole principle of social trading is to share. An investor shares his or her trading decisions, investing strategies and their effects and as the result other investors can watch and copy the best schemes on their own forex trading online account. Theoretically, every involved party should benefit from this type of trading. An experienced trader, a person, who supports others with information, can share his or her skills for the prosperity of the whole trading community, create an outstanding reputation or compare his or her investing skills with other traders. They may also receive special perks from their broker. Beginner traders probably benefit the most, since they receive invaluable advice and can learn from the best ones. The last beneficiaries are the brokers, trading platforms like Metatrader and the companies that engineer them, because they get more clients and that means more profits to them.
Anybody can join the network in two ways, either by visiting dedicated web sites, which publish the latest news on the effects of other traders’ decisions and let anyone replicate their choices or by making use of the facilities of a trading platform. Again, Metatrader platforms are the most popular ones, which allow their users to tap the potential of social trading. They are easily manageable and widely accessible since they are offered by most online forex brokers.