Social trading networks and tools are used by traders for the purpose of sharing knowledge and trading strategies with each other. These tools are quite new and play a significant role in online trading.
Joining the ranks is Enfinium, the award-winning Australian registered financial institution, who have announced the launch of FX Copy, a free online social trading community that allows traders to share their trading activity with traders from all over the world.
The new platform is suitable for all types of traders, from beginners to the more experienced.
FX Copy is being touted, as the the first social trading network launched by an Australian-based financial services provider that allows traders to directly connect MetaTrader 4 (MT4) and live trading accounts to the social platform quickly and enable real-time trading. FX Copy is wholly interactive, traders will be able to meet, interact, and view each others activities.
There are many interesting features, including real-time pricing, detailed trading profiles and instant messaging to name but a few. One of the key features of this new community is that traders will have the opportunity to learn from the successes of fellow traders. They will even be able to copy trades in a set-and-forget manner using the “auto-copy” function. FX Copy has two further registered partners in addition to Enfinium: the recent IB Times award-winning retail Forex broker, Vantage FX and the triple investment Trends award winner GO Markets.
“FX Copy is Facebook meets Forex,” commented Natalie German, Marketing Manager at GO Markets. “All of GO Markets clients can access this free tool giving them full control and transparency of their MT4 trading account on a user-friendly, customisable interface. We’re incredibly excited about the partnership.”
According to wikipedia, “Social trading is the process through which online financial investors rely mostly (or solely) on user generated financial content gathered from various Web 2.0 applications as the major information source for making financial trading decisions. Social trading introduces a new way of analyzing financial data. Until recently investors and traders were relying on fundamental and technical analysis to form their investment decisions.”
“Now they can weave into their investment decision process social indicators that are fueled by a transparent real-time trading data feed of all the users in the social trading network.This is now being introduced as social financial analysis. Social trading has also been associated with a variety of online social trading networks. These social trading networks can be considered a subcategory of online social networks”.
Some social trading networks and tools include eToro – the original social trading network, OpenBook, Currensee, and Stock Twits. General social networks such as Twitter and Facebook can also join the club as trading tools, since they are applicable as social networks in almost any industry. Traders and brokers can connect with each other through groups and companies that they join, like, follow or comment on. EToro encourages users to trade like gurus and considers itself to be “the world’s largest investment network” and “the leader in social trading.”
This network gives access to investing and trading in currencies, commodities, and indices online. Its 1.5 million users worldwide can follow traders and learn from them. Once you make a trip to eToro, there are three roads to take: learning to trade through interactions with traders, following and copying the best traders, or sharing knowledge and profiting from it.
Other social trading tools and networks follow a similar path. OpenBook is an eToro platform also, and allows users to follow and copy traders, compete with traders in trading challenges, exchange useful knowledge, and spot opportunities. Currensee is a Forex trading social network that connects traders through real-time trades. Through Currensee, users can become Investors, Leaders, or can simply join the Social Network to interact with users. StockTwits operates in a similar manner. This social network allows users to join a community of investors and traders, obtain information on stocks, connect with investors and traders who they can follow and learn from, and share ideas. Recently Markets.com Launched its Own Social Trading Tool Powered by Leverate.
Enfinium is a financial institution known for providing online trading and managed account capabilities to retail, high-net worth and institutional clients in Australia and all over the world. Traders using Enfinium can gain access to a global financial market from just one account, and can also take part in margin FX trading via the MetaTrader 4 and MetaTrader 5 platforms.
Related articles: Markets.com Launches its Own Social Trading Tool Powered by Leverate. The Basics of Social Investing – An Introduction to the Social Stock Market. Investing with Social Media: Social network trading in FX markets.
Hayden Richards is the Associate Publisher, Chief Operations Officer and Co-founder of IntelligentHQ. He specialises in finance, trading, investment, and technology, with expertise in both buy-side, sell-side. Contributing and advising various global corporations, Hayden is a thought leader, researching on global regulatory subjects, digital, social media strategies and new trends for Businesses, Capital Markets and Financial Services.