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Learn to Trade

Best Social Trading Platforms

By Louis H-P on April 20, 2021

Reading Time: 8 minutes

Social trading is a convenient way to trade in almost any asset, such as forex, crypto, and stocks. Essentially, it allows users to replicate the trades of top performing traders.

But with so many platforms on the market, it’s hard to know which one matches your specific needs. In this article, we review the best social trading platforms, while also helping you to understand what to look for.

With some platforms restricting access to US customers, the article is divided into two sections: worldwide trading platforms and US-friendly trading platforms.

Key Takeaways

To really take advantage of social trading, it’s important to find the best social trading platform for your specific needs.

Before depositing funds into your preferred platform, make sure you’ve researched the pro's and con's of each platform

Make sure you protect your hard-earned cash by only using brokers that are regulated by authorities in your jurisdiction.


The Best Worldwide Social Trading Platforms

eToro

Founded in 2007, eToro is an industry-leading platform that’s most known for its social trading functionality. eToro enables users to trade in over 1,000 assets, which includes free stock and EFT trading. The platform is regulated by FCA and CySEC.

eToro is the best social trading platform if you want an immersive trading experience with no limit to the amount of social interaction. This is thanks to the “feeds” area, which allows for easy sharing of videos, news, and trade ideas. The more you use the feed, the more it will become specifically tailored to your own interests.

Features include the patented CopyTrader™ technology, which allows users to find the top performing traders, and then automatically copy them. There are no extra costs for using this tool, which is great for beginners who want to test things out.

There’s also the machine learning technology, such as the MomentumDD CopyPortfolio, which cleverly identifies all traders who have the highest chance of success, and then groups them together into a portfolio that matches your risk tolerance.

Visit eToro (not for US customers)

 

AvaTrade

Launched in 2006, AvaTrade is one of the best brokerage firms for social trading, especially when you connect it to the ZuluTrade platform (also in our list). They are one of the only brokers to provide forex trading with fixed spreads, which start at just 0.9 pips.

AvaTrade provides a range of social trading features, like the synchronised order executions in real-time. Perhaps the biggest feature is the AvaTradeGO mobile app, which allows you to find new trade ideas on-the-go.

The company is one of the most experienced and trusted in the trading community. In fact, when you look at the trading volume, they are one of the largest brokers in the world, with access to over 200 assets. The trust stems from their regulatory licenses that cover over 5 continents, which protects your assets in nearly all jurisdictions.

There is a minimum deposit of $100 for card and bank transfers.

Visit AvaTrade

 

Naga Markets

Founded in 2015, NAGA Markets has recently entered the world of social trading, but has quickly amassed over 500,000 users and is growing in popularity every day. The fast growth is due to NAGA’s wide product offerings, which include the:

  • NAGA Wallet for safe storage of fiat and assets
  • NAGA Card for free and instant withdrawals (minimum deposit of $250)
  • NAGA Messenger for direct conversation with top traders
  • NAGA Exchange for unlimited and commission-free crypto and fiat trading. Like all good social trading platforms, you can find the top performing traders using their proprietary algorithm. Specifically, the website has a “Leaderboard” section, which means you can see the trading records of the top performances with a single glance.

If you want to dig deeper, you can sort the signal providers by number of followers, managed funds, performance, timeframes, and more.

Alongside the community that offers support for any moment, there is the NAGA Trading Academy, which provides educational materials to both beginners and advanced traders. Materials include videos, webinars, and written workbooks. If the materials are still too advanced, then you can talk with a NAGA account manager for one-on-one lessons.

The only downside of using NAGA is that you can’t currently view a signal provider’s open trades, which means the historic trading performance may sometimes not be accurate.

Visit Naga Markets

 

MultiBank

Founded in 2005, MultiBank is a global trading platform with access to over 1000 markets, including commodities, forex, and cryptocurrency. Users are attracted by the excellent customer service and ease of use.

In fact, you can open an account and get trading with just a few steps. Just fill-in your personal details, select an account option, and then confirm your identity. The company is regulated by the FSC, so you’re in safe hands if your jurisdiction is covered.

Their user-friendly interface allows you to copy as many traders as you want at the same time. Once you have found the signal providers you want to follow, you can assign specific ratios of your capital to each provider.

The minimum deposit of $50 makes this a great social trading platform for beginners who want to start with a small amount of capital.

 

FP Markets

Founded in 2005, FP Markets is a CFD and forex broker based in Australia. It is regulated by ASIC, CySEC, and FSA of St. Vincent and the Grenadines.

This is one of the best social trading platforms for forex trading, due to the low forex fees. With over 10,000 available products, you can also trade on CFDs and cryptocurrencies, although the stock CFD fees aren’t as competitive.

When it comes to social trading, users can use the Autotrade tool, which allows for easy copy trading via the FP Markets MT4 trading account. While incredibly simple to use, the tool offers risk-management features, real-time statistics, and one-click implementation of trading systems.

FP Markets offer a series of educational materials, including e-books, videos, and a daily market report. This is great for learning the basics of trading, like money management, trading systems, and market volatility.

There is a minimum account deposit of $100.

Visit FP Markets

 

ZuluTrade

ZuluTrade is an advanced social trading platform for following some of the top performing forex traders in the game. In fact, ZuluTrade has thousands of professional traders for you to copy. These traders are attracted by ZuluTrade’s wide product offering, which includes:

  • Zulu Rank – This is an algorithm that ranks the top performing traders
  • Lock Trade – This locks an execution after a trade signal has been received
  • Zulu Script – This builds scripts for automatic trade executions
  • Zulu Guard – This automatically triggers to stop copying a signal provider if a change is made to the trading strategy

The company was founded in 2007, with a strong foothold in the social trading community, especially with forex traders. Unlike with other platforms, the ZuluTrade signal providers are only rewarded when they have a profitable month, which incentivises them to perform well for their followers.

You can find the top traders by using their search tool, which allows users to analyse the trading strategy and performance in real-time. You can also interact with these traders by jumping into discussions on their social profile.

Visit ZuluTrade

 

The best US-Friendly Social Trading Platforms

Collective2

Collective2 is a US-based automated trading system with over 78,000 members in their community. To get started, you will first need to sign-up with one of the compatible brokers (Interactive Brokers being the most popular for US citizens).

With Collective2, traders pay a subscription fee to access an automated system that copies the most successful traders. The subscription levels and fees vary based on the amount of strategies you wish to follow. Most newcomers opt for the $49 solo plan to concentrate on one trading strategy. There’s also the Portfolio Plus plan, which gives access to unlimited trading strategies, but it will set you back $299 each month.

With derivatives, equities, and fixed income securities all possible to be traded on, most users are tempted by the Portfolio Plus plan, so that they’re never held back by account limitations.

Users can find the best trading strategies to follow by viewing the historical performance, where they can then set their account to automatically copy the strategy with one click.

Visit Collective2

 

MQL5

Regulation makes it difficult for Forex brokers to offer their service to US citizens. As such, it can be hard for those in the US to find a broker to pair with their chosen platform.

The MQL5 website is compatible with many US-friendly brokers, which makes it a great choice. The platform allows you to subscribe to automated signals and trading systems through MetaTrader4 or MetaTrader5.

Whichever terminal you decide to use, you will be able to set-up an automatic copy trading system. However, you will have to leave your computer running for 24/7 unless a VPS service is used. This VPS utilises a virtual platform for smooth copy trading with no downtime. The good news is that MetaTrader offers a VPS service from just $10 a month. But still, this is extra work that not all traders will appreciate.

MQL5 is a great US social trading platform for traders with experience. It has a range of advanced trading features. However, the technical set-up can be problematic to new traders who aren’t confident. There’s also no guarantee that the system you choose will be compatible with your US broker account.

Visit MQL5

 

eToro

As one of the top social trading platforms, we are pleased to see eToro offer their service to US customers. But before we get too excited, we need to mention that the service only currently applies to cryptocurrency assets, including: BTC, ETH, XRP, ZEC, and ADA – amongst others.

eToro is currently seeking regulatory approval to expand into additional states and asset classes. The CopyPortfolio and CopyPeople tool allows US users to copy the trading actions from other people based in the US.

Regardless of your experience level, eToro’s user-friendly interface makes it easy to get started. Simply open an account, rank the traders by performance, select a successful trader that matches your risk appetite, enter how much capital you want to copy with, and then click the “invest” button to start automatically copying.

eToro is one of the best social trading platforms for beginners in the US. They offer all new customers the chance to trade with virtual equity, which allows you to test the platform before risking any of your own capital.

Visit eToro (USA only)

 

ZuluTrade US

Oh hello – it’s ZuluTrade again. Under a slightly different brand name, ZuluTrade has partnered with US introducing broker, ZYTrade LLC, to build a trading service that conforms to all US regulations.

US citizens can finally take advantage of ZuluTrade’s impressive list of features, including Zulu Rank, Lock Trade, Zulu Script, and Zulu Guard. These four features work together to protect capital, reduce trade errors, and make it easy to find/copy the top traders. The Automator tool allows traders to create their own trading strategy and rules, which will be automatically followed.
You have two brokers to choose from when opening your account, which are currently Gain and TitanFx. These are decent brokers, but the lack of options is a slight letdown, especially with non-US customers having 10x as many options.

While US customers can enjoy most ZuluTrade features, there are still a few limitations on what you can use. For example, US customers can only trade one pair at a time. As such, you will need to make sure the signal provider you’re following doesn’t open multiple trades at once, otherwise you will experience different results from what you expected.

 

What to look out for in a social trading platform?

  • Access to a large community of traders – To find your perfect match, the company should provide access to traders with different risk tolerances, trading strategies, and who trade in different markets.
  • Fees – Some companies charge you to “pay to play” by implementing fees for tools and high trading fees, while others offer a free service with small fees.
  • Regulation and security – It’s vital to only deposit your funds with secure brokers that are regulated by authorities in your jurisdiction.
  • Features – Not all platforms are created equal. As such, look for platforms that come with the features you need, such as automated trading, a mobile app, or direct communication with other traders.
  • Minimum initial deposits – You don’t want to create an account to then realise the minimum deposit amount is too large. As such, check which platform matches what you’re comforting with depositing.
  • Ease of interaction with other traders – Can you message, discuss topics, or even share videos with fellow traders?
  • Synchronise order executions – Consider if the platform executes copy trades (between a signal provider and a copy trader) at the same exact time, instead of a delay.
  • Customer support – Will the company help if you have an issue, or will they be impossible to get hold of?
  • Risk profiles of traders – For efficient asset allocation, it’s important that you can see the risk profile of traders you want to follow.

 

Conclusion

The benefits of social trading are clear to see. But to really take advantage of this new trading strategy, it’s important to find the best social trading platform for your specific needs.

For example, Etoro provides the best social interaction with their user-friendly interface and patented CopyTrader™ technology, while Multibank allows anyone to get started with a small minimum deposit of only $50.

Before depositing funds into your preferred platform, make sure you’re covered with everything you require. As always, the most important requirement is to protect your hard-earned cash, so only use brokers that are regulated by authorities in your jurisdiction.

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Louis H-P

Louis is a portfolio manager and a trader who brings a wealth of experience in private banking to The Lazy Trader. A fundamentalist and a trouble-shooter, Louis makes a firm contribution to the trading team.

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Louis H-P

Louis is a portfolio manager and a trader who brings a wealth of experience in private banking to The Lazy Trader. A fundamentalist and a trouble-shooter, Louis makes a firm contribution to the trading team.

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