Social trading can also be suitable for experienced traders. For example, if you do not have much time yourself, but still want to actively use your trading account. Through social trading, your account can have activity "all by itself" - automatically - so that you can still achieve overall returns and profits. After the one-time "dividing" of social trading, you do not need to show any activity per se - in the best case, however, stop signals are used here, so that you are protected from high losses. In the meantime, social trading has become very popular, and not only among beginners.
With relatively little time and almost no preparation, you can benefit from social trading and earn money through trading in this way. However, automated trading is currently only offered by a few brokers, so you do not have too wide a choice. In addition, social trading is currently (still) criticized by various experts, because in many cases every trader can offer his strategies to follow. So this also refers to inexperienced traders. For this reason, you should take a close look at the profiles of the possible influencers and also pay attention to previous successes when making your decision. Otherwise, you might mistakenly follow someone who is as clueless as you are - this, in turn, can put your capital at risk.
Become active as an influencer in social trading yourself
However, social trading offers even more potential for you. Should you be successful as a trader, you can of course make your strategies available and thus offer other traders an advantage. Thus, you can make a name for yourself as a trader on the one hand and receive a commission on the other hand, which the broker distributes to the influencers. Overall, this offers a good opportunity to earn even more money through successful trading. The more traders follow you, the higher the commission you can receive will be.
To participate in social trading in this way, you simply set your profile to public with most social trading brokers and thus make your own trading strategies and histories available to other traders. They then have the opportunity to access your profile and follow your trades. Thus, there is a chance for other traders to participate in trading through your trading patterns and thus achieve a positive return. Basically, social trading therefore offers you two different ways to profit: Either as a follower who follows other strategies - or as an experienced trader who gets involved in trading as an influencer.
Security and regulation in social trading
Before you can even participate in social trading, you have to give permission to the respective broker for them to access your account. Otherwise, the trading patterns of other traders cannot be adopted. In principle, you have a high potential, but it also carries risks. This is when you follow an inexperienced trader and he executes inferior strategies and trades in his account. You should not disregard the risk of losing money at login exness personal area through this. For this reason, it is also recommended that you always follow several influencers and use their strategies - a single negative trade will then not weigh too heavily and can be offset by positive trades.
In any case, you should also have the invested capital available in any case. Another important aspect is also the regulation. While brokers are regulated per se, this often does not apply to social trading providers. This is due to the fact that these are rather networks that only enable the exchange with other traders. Many social trading providers are therefore not active as brokers themselves. You should definitely pay attention to this when registering and, if possible, choose a regulated social trading broker.
