5 Best social trading platforms & networks [2020 Guide]
- In this article, we explore the top 5 social trading platforms and networks.
- The social trading platforms allow you to trade multiple types of assets, including cryptocurrency.
- Consider bookmarking our Business Software Hub for more resources.
- Do check out our Trading Software section as we have some up to date and detailed resources for online traders.
Social Trading, also known as Copy Trading or Mirror Trading as the name suggests, is based on the social media model. It allows you to follow an experienced trader to reduce the investment risk.
This kind of trading is popular among the new traders for the very reason that it comes with reduced risk, better analysis as well not having to spend money just to get started in the world of trading.
So, while looking for the best social trading platforms and networks, you must consider a few things.
The first being, the reputation and quality of the platform that would have eventually led to greater trust among its users.
Other things include the free structure, customer support, and simplicity.
In this article, we take a look at the best social trading platforms and networks that offers both investing in stock, crypto assets as well as trading CFD assets.
Top 5 best crypto social trading platforms to try this year
eToro
Pros
- Free stock and ETF trading
- Seamless account opening
- Social trading experience
Cons
- Only one account base currency
- Withdrawals are slow
- High forex fees
eToro is a popular social trading platform established in 2017. The platform is considered to be among the safest because arms are regulated by top-tier financial authorities.
eToro offers the user an opportunity to interact with each other as they would with any other social networking sites like Facebook or Twitter.
The news feeds are an essential tool that users can keep an eye to manually copy a trader they trust the most on the platform.
The platform offers multiple investment products including Stocks & ETFs, Cryptocurrency where you can buy, sell and store Bitcoin and other leading cryptos with ease, and CDFs for long-term and short-term investors.
On the flip side, the users must deal with high forex fees, apart from the time it takes to withdrawing money which is fairly slow among social trading platforms.
ZuluTrade
Pros
- Easy to learn and start trading
- Excellent collection of tools for beginners
- Mobile trading options
Cons
- One trading account per user
ZuluTrade is a Greek fintech company founded in 2007 and has become one of the dominant players in the social trading sub-sector. The company has partnerships with over 64 global brokerages and continues to expand globally.
Given the vast partnership, users have a selection of assets to trade on this social trading platform, including cryptocurrency. ZuluTrade offers two account types, namely Classic and Profit-Sharing Account.
The Classic account consists of higher spreaders to compensate both parties, so that is something to consider.
The Profit-Sharing account type, on the other hand, displays a fixed cost of $30 per month in addition to a 25% performance fee when conditions are met.
Unlike eToro, ZuluTrade doesn’t provide a trading platform. Investors will connect their MT4 trading accounts to their ZuluTrade account.
However, the user does get full statistics of all trader, performance ranks, and risk assessment.
ZuluTrade excels in copy trading function as it allows you to search from 100s of Signal Providers using the feature-rich search tool.
NAGA Trader
Pros
- No minimum deposit
- Proprietary web-based social trading platform
- Good customer support
Cons
- Spreads are comparatively high
- Hidden costs
NAGA Trader, also known as SwipeStox in its early days, is a social trading platform that offers social trading, social networking, copy trading and other investment services that include NAGA Portfolios.
The broker has over 750+ tradable assets covering Stocks, Commodities, Cryptocurrencies.
It also has its own cryptocurrency called Naga Coin which was among the top 20 tokens sold in 2017.
NAGA Trader offers its own proprietary trading platform powered by TradingView.
That said, you can also connect your MetaTrader 4 and MetaTrader 5 accounts to start trading.
For beginners, the broker has a good collection of tutorials and conducts regular webinars to educate the user on how to use the platform.
Collective2
Pros
- Automated trade copying
- Multi-broker AutoTrade feature
- Social communication features
Cons
- No demo accounts
- Not the best commission system
- Now own broke solution
Collective2 is offering social trading services since 2012 and is fully regulated by CFTC. It is also a member of NFA with over 90,000+ currently registered users.
Collective2 is one of the non-brokers services to U.S based traders. It accepts client that have an account with their 20+ patterned brokers.
The user can begin by selecting an AutoTrade plan. However, the price depends on the number and types of strategies to be copied.
The $299/mo plan allows you to sign for Collective2’s Portfolio Plus plan that offers unlimited strategies.
Other features of Collective2 include the ability to trade any system you want, unlimited trade size, multiple systems can be traded at once, AutoTrading supports Forex, Options, Futures, and Stocks for US clients.
Trade 360
Pros
- CySEC regulated
- Commission-free trading available
- Can trade multiple assets class
Cons
- Lacks market analysis
Trade 360 is yet another popular social trading platform. It was founded in 2013 and is regulated by the CySEC.
It offers six different trading accounts that are commission-free and comes with a number of features, including varying minimum deposits.
The pricing structure is usually higher than the competition, which places the trader at a disadvantage.
While the deposit and withdrawals are free from the broker’s side, the broker does not disclose potential third-party costs which represent a serious misstep.
You can trade over 48 currencies along with five commodities. Trade 360 account structure looks complex, and the broker does not grant equal access to all deposits.
So, these are the five best social trading platforms and networks that you can use to start social trade.
Make sure to check out all services, and go through user reviews on Trustpilot before locking on a network that you think will serve you better.