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Social Trading Overview
MFX has partnered with numerous social trading platforms for forex and CFD traders who wish to follow and copy trades made by others. Sometimes referred to as “copy trading”, Social Trading is a recent innovation to Forex and CFD trading.
What is Social Trading?
Social trading is a fairly recent development in the forex markets whereby traders follow and copy trades made by others, direct into their myFXplan trading account. Essentially, Social Trading may be an ideal service for traders who are interested in the markets yet may be short of time or education, or just simply wish to have someone else trade on their behalf. It’s also praised for being cost-effective due to it not involving any performance or admin fees being charged that can be common with fund managers in other asset classes.
Why Social Trading?
We believe part of the reason MetaTrader remains so popular with traders is because of its ability to automate trades easily. You might be thinking you like the forex markets but don’t know enough about them or don’t have enough time to trade. Or perhaps you might be trading another asset class and wish to diversify into forex and CFDs. Here are five of the top reasons traders have found social trading to be beneficial for them:
- Low start-up costs: You don’t necessarily need to have a large starting deposit to begin trading with automated signals or copy trading. Some providers allow you to start with as little as $200.
- Diversifying your risk: Because you can allocate different strategy providers with certain social trading platforms, there is an ability to diversify risk rather than rely on a single provider.
- Benchmarking your performance: You might be successfully trading using your own strategies and just wish to see whether you can beat the performance of other traders through social trading. A bit of competition can be beneficial to your trading.
- Save on fees: Traditional money management with experienced traders can sometimes attract administration fees or performance fees for example. Social trading providers can often charge a fixed fee, or fees in the way of slightly wider trading spreads.
- Verified results: Certain social trading websites only publish/work with traders who are on live accounts. That means there’s no demo or virtual accounts being used and there is a clear track record of results (often with the products they traded) over a designated time period for you to make a decision with which one you prefer.
How does Social Trading Work?
If you haven’t done so already, you’ll need to sign up for a myFXplan Live Account, as well as with one of the Social Trading platforms found below. Depending on which provider you choose, you may need to submit your myFXplan Login and Master or Investor (read only) password for them to start copying the trades into your account. You may also be required to sign a document stating that you wish for them to trade on the account. Any trader you choose to follow will typically have their trades automatically copied into the account and you can view the account in real time using read-only access.
Want to learn more? Feel free to contact our expert Support team if you had any questions on Social Trading or how to get started…
It allows traders easy and immediate access to thousands of trading strategies and signals.
- Diversifies your trading with multiple strategies.
- Reduces your portfolio risk by employing signal providers that have different approaches.
- Removes the need to constantly monitor charts.
- Fees are very low (and sometimes free) for MT4 signals.
- No paperwork required.
- You maintain total control of your account and can intervene in any moment to close trades, change capital allocation to a strategy, change the stop-loss inserted, or remove the strategy.
Create your own portfolio without paying any performance fee or management fees.
What makes Myfxbook AutoTrade a great tool for copy trading?
You don’t need to run any software on your end since AutoTrade runs on its own dedicated servers.
- It includes only hand-picked systems which have made it through the rigorous screening process.
- It includes systems that have traded on real money and not demo.
- It provides accurate statistics allowing you to quickly analyse and improve your performance.
- It lets you add and remove any system at any time, providing full control of your account.