What is a social trading network?

Social trading networks are transparent as they provide a platform where traders share ideas.

Not everyone is familiar with the term Social Network Trading, but chances are you've used the concept in the past or are doing it now. It is simply a type of investment where you observe how your peers or trading gurus perform. 

You not only learn from them, but you copy or mirror their business behaviours. This way, you don't need to know everything about the market you are investing in or spend the time it takes to become an active trader. While it is a common way for newbies to learn the tricks of the trade, some investors strictly rely on social trading networks to transact.

How Forex Social Trading Networks Operate

While it may sound immoral to copy others' exchanges, it works well. In reality, it is a two-way street, because the concept has been organized in official networks. 

Both investors and traders have the opportunity to find each other through these networks. For a flat fee or a percentage of profit, you can tag together with a professional and take advantage of profitable trades. 

So whether it's learning from a professional investor or capitalizing on an investor's successes, it's a win-win. Plus, it helps bridge the gap between new entrants and those who are very successful.

Unlike managed accounts, social trading networks are transparent as they provide a platform where traders share ideas, follow signals, evaluate charts and market direction. 

On this open platform, traders discuss market knowledge and allow other traders to copy what they are doing. In fact, it is a collaboration of sorts, with the joint goal of succeeding together. 

There are many social trading networks available, but each plays by its own set of rules. For example, some of them only use mirror trade. Some of the other open platforms offer a greater degree of flexibility or more intensive communication between operators. 

Even with all the professional talk, you should never take what you hear for granted. Check the merchant's profile and carefully review the merchant's history. 

Try to locate traders who have established themselves as savvy and have several years of successful trading.

Join a Network

Forex brokers can take you to the trading platforms that are available or you can go the third party route. 

There are service providers you can sign up with for copy trading, mirror trading, trading statistics, signal services, or market analysis. Check acorn2oak

With a forex trading account that has been funded, you can join a social trading network. If it is a third party platform, you may be required to join your real trading account with a specific social network. However, it is wise to be careful here. 

When you are ready to open your own social trading account, be sure to go to a regulated broker to support you.

In short, you can learn about successful trading styles, tips and tricks through social trading networks.