Social trading is a broker feature that involves a range of online investors depend on user-found financial details that have been accumulated from various websites as the primary source of info to help them make a wise decisions. With this tool, investors and potential investors can get to analyze financial data through copying and comparing techniques and trades, among other factors.
What Are the Best Social Trading Platforms in Malaysia?
Social trading helped forex and CFD trading to become popular worldwide, and since then many Social Trading platforms have born. However many of them are not quality enough, and they are simply trying to attract customers with the illusion to offer this new and innovative service. Here, however, there’s no space for those. Here are the best Social Trading Platforms in Malaysia.
1. eToro (Website)
eToro is very popular in Malaysia. It comes with all the social features that a forex trader can ever ask for. The account opening process is easy and straightforward. On this platform, you can take advantage of a wide range of resources, including some of the most experienced forex traders in the world.
2. AvaTrade (Website)
AvaTrade is another great runner-up for Social Trading in Malaysia. In fact, in 2021 it launched its brand new social trading platform. Within the platform you will be able to chat with other traders, create private and public rooms, as well as earning achievements to showoff in your profile.
3. IC Markets (Website)
One of the best brokers in the world offering very low spread is not only available in Malaysia, but also offer a copy-trading service via third party apps. Thanks to the partnership between IC Markets and ZuluTrade, you will be able to enjoy copy trading both through the ZuluTrade platform and MT4.
4. Pepperstone (Website)
This is another platform that is great for both forex and CFDs trading, and its lighning fast ecn execution makes the broker perfect for scalpers. The cTrader platform offered along with MetaTrader 4 and 5, comes with straightforward features that are easy to take advantage of. It is optimized for both desktop and mobile devices, so customers can use it on the go, or connecting it with ZuluTrade.
5. Oanda (Website)
Oanda is not a Social Trading broker, but this doesn’t mean it isn’t a broker suitable for people looking for an user friendly platform to trade on. In fact oanda comes with no minimum deposit and very low minimum lot size that allow everyone to open trades as low as 0,01$.
What are the Basics of Social Trading?
Social trading is a sort of trading that lets users copy the market shifts of others traders. Most of these traders are experienced and know how the industry works; by copying them, novices get to make accurate choices and reduce the chances of accruing losses.
It is safe to state that copy trading and social trading share some similarities, but they also have some differences; we will take a look at the details later.
Meanwhile, the main difference between social trading and copy trading is that element of social interaction. To better understand what social trading is, try to think of it as a copy trading integrated with some element of social media.
In this case, social media is leveraged as a tool that allows for easy interaction among traders.
If you make good use of social trading platforms and brokers, you will enjoy the ability to emulate the trades done by others. The platform also lets you interact freely with the traders of your choice. Since there are many of them, you must choose your mentors carefully.
These are important features that help you learn from market experts as you try to make money through forex trading. Communication ensures that the chances of accumulating risks are greatly reduced.
How Does Social Trading Work?
The principle of social trading is that you will pick a broker, and the broker will then provide you with a trading platform that comes with a wide range of essential features. Some of these features are put in place to help you with things such as enabling you to engage with other forex traders. If you have worked with social network features before, then you should expect to have the same features in social trading.
The social media features will allow you to comment on what other trader s say, send messages, and share your opinions with the rest of the team on the platform.
As far as trading is concerned, social trading works the same way as copy trading, even if the latter doesn’t come with any social features. You have the freedom of choosing the trader to follow, and this is something that you can do based on your convenience.
This is something that comes in handy when you are getting started in forex trading. Generally, forex trading is broad and involves a lot of complex analysis that you can’t learn a single day. Therefore, you need somebody who can teach you.
Have you ever heard of eToro? This is one of the best social trading platforms. It comes fully integrated with social features that any aspiring trader will find useful. eToro is currently ranked as the best social trading platform in the whole world, and you should consider taking advantage of the features that it comes with.
However, if your dream is not to use a platform with a range of social features, you can opt for MT4, which is another great social trading platform. The only disadvantage of this option is that it will leave you with more work.
For example, you will have to collect and analyze data on your own. You won’t have an experienced forex trader to hold on to. But you should know that you can still work on your own and succeed.
Metatrader 4, for instance, comes with an impressive feature known as sentiment trader that lets you study and analyze the market sentiment to help you gain an insight into how others have traded.
How Do You Get Started in Social Trading
There is a process of getting started in social trading, but it is not a complex one. The first step is choosing the best social trading platform that you would want to join.
If you choose a perfectly integrated social broker, you will instantly be able to use the benefits that come with it. Also, there are some third-party trading platforms that you can use. Though not all of them are good, some of them are great and are worth your attention.
The good news is that you can still have third-party platforms linked to your main social trading platform. This connection will make you even a better trader because you will have a wide range of good resources to use.
On the other hand, suppose you are an experienced online trader, it is possible to come up with your own social trading experience. If you have the support of some of the best brokers, then it even becomes easier. In that case, you can register with a range of trading communities such as MQL4 in case you are a Metatrader user.
What Are the Differences between Social Trading and Copy Trading?
Copy-trading and social trading share quite similarities, but they still have the differences that make them unique. It is accurate to state that social trading is a very broad term, and copy trading is just a part of it.
This implies that you would be right by referring to copy trading as a form of social trading. But this is something that causes some confusion. It should be noted that copy trading and social trading are not the same.
To make this even easier to understand, social trading comes with key features like the ones you find on social media platforms, commenting, creating posts, sending messages, etc. Also, in social trading, you have the option of following other traders.
Closing Thoughts
That is everything you should know about social trading in Malaysia. Note that if you are a novice forex trader, then a social trading platform might come in handy. You will learn many things, and you can follow some of the best traders so that you don’t make some petty mistakes that could cost you a lot of money. Do you still have questions about social trading? Make use of the comment section below.