In this technology age, people are always trying to be up-to-date. Thanks to the advanced communication tools, the trends are changing in milliseconds and those who cannot catch the train will be eliminated in everyday life. 4.2 billion people, nearly 53% of the world population, are currently using social media and the number is still increasing. The need for being in interaction with other people is irrefutable and the Forex industry has also found a solution in itself: Social Trading.
The Basics of Social Trading
Social trading is the type of trading system where the traders can connect to the other traders and their transactions. While people are sharing their photos and comments about everything on social media platforms, traders share their investment strategies, trading ideas, and analysis on different alternatives by social trading platforms. Moreover, it should not be confused with copy trading. Copy trading means imitating the transactions of a specific user. However, social trading differs in the way that it also includes a lot of give-and-take. Traders can contribute to each other and exchange their knowledge to find the best trading options.
The acquisition of a new trader is essential for FX brokers, but it becomes meaningless if this trader does not trade on your platform. Lots of people have a fear of losing money in the FX industry since they do not know so much about the market. At that point, social trading can end their hesitation to trade. If you provide a social trading platform, you create a space for inexperienced users to copy other traders and gain money. New traders can also ask questions to the older ones to understand how the FX world works. This contribution can keep the traders in and increase your popularity among other traders.
Another advantage is that people can trade anytime they want by social trading. If their trading master is in another timezone, people can still copy the master’s transactions and keep trading in their downtime. This will definitely result in a higher number of trades made on your platform.
Social trading is also a major factor for a better user experience. When people meet other people on your social trading platform, their perception of your broker will start to change. The service that you offer to them will be not only about money but also about entertainment and socialization. Thus, they tend to stay with your broker and enjoy the fun side of FX trading.Share this article