What is a social trading platform provider
A social trading platform provider is a company that offers a platform where traders can interact, share ideas, and copy the trades of experienced traders. These platforms typically integrate social networking features with trading functionalities, allowing users to follow and replicate the trading strategies of others.
Social trading platform providers are the developers of the software that combines the features of a social network and the copy trading tools. As a rule, they work with many brokers at once, which helps increase the scale and options of the network.
The largest and most popular providers are MQL5, ZuluTrade, MyFxBook and DupliTrade. They work with dozens of partner brokers, which substantially expands the options and geography of their use.
Copy trading features lie at the core of such platforms, where experienced traders perform trades and novice traders can subscribe to them. Essentially, once you subscribe to a trader, you receive signals, which you can copy either automatically or manually.
Two types of social trading platforms
There are two types of social trading platforms.
Such brokers as eToro, RoboForex, InstaForex, FXTM, Naga, FBS and Forex4You offer their customers proprietary platforms, which means that the ecosystem of this specific social network for traders targets only the customers of one broker.
This model has proven to be quite successful as evidenced by eToro. The broker’s platform is currently the most advanced and successful one in the market. It has several million members and over 100,000 signal suppliers.
The majority of brokers do not have proprietary social platforms, instead using the services of one or several social trading platform providers.
For example, XM offers access only to MQL5, while IC Markets works with three providers at once (MQL5, ZuluTrade, MyFxBook).
Best social trading platform providers in 2024
We have compiled a rating of the best providers currently offering social trading services for the customers of the top world’s brokers.
| Social Trading Provider | Developer | Review | |
|---|---|---|---|
| 1 |
|
MetaQuotes | Read Review |
| 2 |
|
ZuluTrade | Read Review |
| 3 |
Autotrade |
MyFxBook Ltd | Read Review |
| 4 |
|
DupliTrade Limited | Read Review |
Social trading platform providers comparison
We have also prepared a short review of social trading platform providers from our rating and drew a comparative table on key features.
MQL5 platform is a product of MetaQuotes, the developer of MetaTrader, the most popular family of platforms on Forex. To date, the signals from MQL5 are extremely popular and available on the majority of the brokers that use MT4 and MT5.
- Universal copy trading platform on MT4 and MT5
- Attractive design, good usability
- Large amount of information for analysis
- Convenient filters
- Traders’ commission is charged as a subscription fee, not as a percentage of profit
- Weak control of the signal providers by the platform
- No regulation
Provider Main Features
This is the second most popular social trading platform provider, currently working with more than 30 European and international brokers. This platform is regulated in Greece, USA and Japan, which makes it a leader in terms of reliability and regulation. In addition, ZuluTrade offers one of the most convenient and sophisticated social trading networks.
- User-friendly interface
- Detailed statistics and features for its comparison
- Regulation in the USA, Japan and EU
- Automation and risk control services – ZuluTrade Automator and ZuluGuard
- Convenient set of features for communication between traders and discussion of trades
- Blog and forum are updated rarely
- Refined filters for selecting traders are ineffective
Provider Main Features
Combos service – from $2,000
Classic plan – depends on the chosen broker. An average of $20 per standard lot in a currency pair.
This service is distinguished by its multifunctionality. Here, you can find not only the signals and in-depth analytics on the traders, but also a slew of useful information about the top brokers. In addition to copy trading, MyFxBook also features a developed community, forums, blogs and other features for communication and experience and knowledge exchange.
Provider Main Features
This is the most specialized provider boasting the strict selection of signal suppliers. There are only 12 of them on the platform, but DupliTrade assures that they have all passed a long selection and personal interviews. This allows to avoid random people from getting on the platform.
- Simple and user-friendly platform, which is well-suited for the novice traders
- Strict selection of strategy providers
- Regulation in CySEC
- No commission for using the service
- High minimum threshold for copying
- Small selection of signal suppliers
- Weak set of features for communication and exchange of experience
- Small number of signal suppliers
- Basic level of statistics
- No in-depth settings of risk criteria and exiting the position
Comparison of social trading platform providers
*You need to contact the partner brokers to specify the conditions.
How to choose social trading platform provider
The first step is to read the reviews of the platforms on our website. We advise that your choice is based on a number of criteria.
Can I make money with social trading?
Yes, social and copy trading is one of the most popular ways to earn passive income on the Forex market. Top platforms are distinguished by excellent trader search features and simplicity of use. However, as any investment area, copying trades involves risks.
The profit of the traders in the past is not a guarantee of the same result in the future.
Summary
Social trading platform providers enjoy unwavering popularity and have hundreds thousands of users. This is not surprising as they offer an undeniable advantage for the novice traders – a possibility to copy trades of experienced traders, communicate and exchange knowledge.
However, selection of a provider needs to be approached quite seriously, as this type of investment, just as any other type, involves risks. It would be a good option to try a demo version first in order to gain some experience.
Expert commentary
Social trading is a good choice for the people wanting to benefit from the opportunities the financial markets offer without spending too much time on learning. It is possible to earn a profit here indeed. However, you should approach selection of the provider with great caution, review and analyze all pros and cons, commissions and statistics of the traders.
It is important to understand that copy trading is one of the types of investment. It will not be suitable for all, which is why it needs to be considered, maybe, as a part of a wider portfolio.
Social trading platform providers reviews
Andy Beck, 25, San Diego, Banker
ZuluTrade is a really cool platform. I’ve been here for over a year. The choice of strategies is huge; there are a bunch of all kinds of filters and useful statistics. The only drawback is that you have to dish out 25% to the trader and another $30 for the subscription. That is a real hit on the financial result, but I’m still in the black almost every month.
Jennifer Casta, 46, São Paulo, Investor
I’ve been using DupliTrade for six months now. I trusted my friend’s recommendation and haven’t regretted it. True, the minimum amount is a bit high - $5,000 is not a small amount to me. However, top traders on this platform are clearly professionals and have not given me a reason to worry about losing my deposit once. On the contrary, I have plus 3-4% every month.
Emmanuel Sanchez, 42, Barcelona, Investor
I have mixed feelings after several attempts to make money on MQL5. The top traders seem to have outstanding statistics. But after paying the subscription fee, broker’s commissions, all kinds of slippages, I barely broke even. Although an acquaintance of mine boasted that he earned 54% over the past year.
Roman Andreev, 29, Moscow, Financial Advisor
I worked with MyFxBook through Axi for two months. You have to take into account that the broker charges an increased spread for the customers of this platform! I didn’t work it out right away, but then I noticed that I was barely breaking even when I should have been earning profit. Overall, the platform is not bad and very user-friendly, but you have to research brokers in detail to find the ones offering the best conditions.
FAQ
Which platform is the best now?
eToro’s platform is currently the leader. The broker is not a provider, instead offering its platform only for its customers. You can review its pros and cons by following the link.
How much money can I make on the social trading platforms?
There is no average figure. Everything depends on conditions of the provider and your broker, the chosen signal supplier, and market situation. It is important to understand that the profit is not guaranteed and that this type of investment, just like all others, involves risks.
What is the minimum deposit for copying trades?
Everything depends on the chosen platform. Although many platforms set a token amount, in reality, it is desirable to have at least $1,000-$2,000 in order to subscribe to at least 2-3 traders. On the DupliTrade platform, the minimum threshold is $5,000.
Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.