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Updated 2 Jul 2021

Social Trading means you can benefit from the knowledge of other, more experienced traders, copy their positions and profit from them if successful. By now various brokers offer Social Trading functionality, but the Social Trading Broker Comparison quickly reveals that the benefits may vary considerably. To help you find the platform that will be the best social trading broker for you, here are some of the criteria we‘ll use in our reviews and that you can consider when choosing a platform.

Beitragsbilder Ratgeber Social Trading

Social Trading Broker Test – the main criteria for choosing a platform

The Range of Products at a Social Trading Broker

Social Trading is an exciting way of trading that has come to the attention of investors in recent years. This is true not only for beginners, but also for experienced traders who are willing to share their knowledge. When looking for a social trading broker, it is particularly interesting to know how his range of products is structured. Social trading providers are now available for many different instruments, such as Forex, CFD, stocks or even cryptocurrencies. Some platforms even offer several instruments all at once.

Becoming a signaler or copying trades

When it comes to social trading, experienced traders can score points with their knowledge, helping beginners to make a good start on the market. Thus, the range of products must of course be adequate. One of the criteria in a comparison is what kind of trading is offered and which underlyings are available. Find out which assets are available and if, for example, cryptocurrencies, which attract interest due to their high volatility, are available. But ETFs or stocks can be interesting for social trading as well.

  • Are different assets represented or is the broker limited to one asset class?
  • Selection of underlyings should be varied
  • Cryptocurrencies are also offered by some social trading brokers

The terms – fees and income opportunities in social trading

In a Social Trading Broker Comparison, fees come first if you want to learn about a platform – for both sides. After all, if you want to follow experienced traders, meaning act as a follower, you must know what costs you will incur in copying trades. On the other hand, anyone providing their knowledge as a signaler receives a commission. As a signaler you should of course be able to assess which trading costs and what profit for the provision of positions to expect.

Contentgrafiken Vergleich Social trading

Checking trading fees and other costs

The use of the platforms is often free of charge, but some providers ask for a minimum deposit. Besides, the trading fees are especially interesting. In CFDs or Forex brokers usually calculate the spread like in conventional trading. However, it would also be conceivable that a margin or a percentage fee is required by the broker. Additional fees may be incurred on the platform, for example, for account management, inactivity or for the deposit and withdrawal. A comparison therefore pays off – quite literally!

  • Trading costs are particularly interesting in a social trading broker review
  • Spread, margin or percentual transaction fees
  • Compare earnings / commissions for signalers

Social Trading accounts – taking a closer look at various models

Originally, social trading was developed to help traders learn from each other and benefit from the knowledge of others. Hardly anything is as effective as adopting the methods of successful traders. Basically, there are always at least two different account models with a social trading broker. On the one hand an account is provided to the experienced trader who is willing to make his knowledge and trades available. On the other hand there‘s an account type for traders who‘d like to benefit from this knowledge. But some providers also offer other account types, like for frequent traders, beginners or VIPs.

In a comparison, it is helpful to get an overview of the different account models to be able to estimate how useful they are for one‘s own purposes. For example, traders who wish to be very active benefit from a special account model with better conditions for frequent traders. Some brokers may even offer accounts for traders according to different levels of experience – this too can be very beneficial. Compare the costs and benefits and decide carefully which type of account will meet your needs.

  • Account models for beginners and experienced traders
  • Accounts for followers and signalers
  • Differences in costs and fees

The trading platform at a social trading broker

The trading platform of a social trading broker may differ slightly from the trading platforms of other brokers. Here it is important for the trader in the first place to have an overview of their own trades. With a social trading broker, you should also be able to see the following details on the platform:

  • Overview of the trades of experienced traders
  • Watch list with favorite traders
  • Overview of the trades copied
  • Overview of the success of the trades copied

Again, a distinction must often be made between professionals and beginners. Anyone who already has experience and wants to share his knowledge has different demands on a trading platform than a beginner. In order to gain social trading experience, the platform should definitely convince by intuitive operation. Traders should not have to search long to find answers. Thus it is an advantage if, for example, there are clearly defined areas to use. And of course it is also important to look at available tools and functions that users can utilize for trading.

  • Structure of the trading platform should be clear
  • even beginners should find their way around easily
  • Tools and functions may be particularly important for signalers

As Best Social Trading Provider a broker convinces with a well structured website

Behind many brokers providing social trading there is a company based abroad. A broker who wants to assert himself as the best social trading provider should make the website available in different languages. Of course it is a benefit if one of these languages is German. In addition, the website should be

  • clearly organized and well structured.
  • Provide information that is relevant to the trader
  • and give an overview of costs and fees.

If traders have to click through the website too long and yet do not find the information they are looking for, they quickly loose interest. Some information should be particularly quick and easy to find, such as support contact information, possible fees, and the account opening and product range buttons. In addition, it is helpful if there is a FAQ section and information about the company itself. Thus traders can inform themselves before signing up and decide whether the offer is appealing to them, where the advantages and possible disadvantages lie.

  • What languages are available for the broker‘s website? Can it be adjusted manually if necessary?
  • Easy navigation is an advantage
  • Is the most crucial information easily found?

Customer Service Test

No questions should be left open about trading. The aim of social trading is that traders act together or at best benefit from each other. However, questions may arise so the support needs to be contacted on occasion. Many platforms now provide a chat or forum where traders can interact. And even looking at the trades carried out by experienced traders is often enough to get a first idea of how trading works.

Contentgrafiken Vergleich Social Trading

In order to establish themselves as the best social trading broker, however, traders should have a contact person when questions arise. In this case, a quick contact should be possible. There are basically different ways – for example, support can often be accessed via live chat or by phone. However, with a hotline you should look for fixed service times on the one hand and the area code on the other hand, since the phone support is sometimes associated with fees. But for all brokers it is possible to contact the support by mail or contact form.

  • Different contact options
  • Pay attention to the times when support is available and if the hotline is chargeable
  • FAQ area usually can answer many frequently asked questions

Deposit and withdrawal on the Social Trading Platform

In order to be able to start trading at all, first money must be deposited in the trading account with the broker. There are varying requirements for the necessity and amount of a minimum deposit. The same applies to the methods of deposit:

  • Online payment services
  • Credit card
  • Transfers

There are some methods that have proven themselves over the years. This includes the credit card, still one of the most popular payment methods on the Internet because it is easy to use and comparatively secure. But alternatives are rather common, as many traders now use online payment services. Particularly well-known are payments via PayPal, Neteller and Skrill. When evaluating a broker, you should make sure that the provider accepts your preferred method of payment.

Usually there are also different options to choose from for withdrawals. But many providers transfer money out only the same way it came in in the first place. This should be checked in advance. Some brokers also set limits for deposit and withdrawal or charge fees for certain payment methods. You should also take this into consideration when comparing.

  • Different methods for deposit and withdrawal
  • Keep an eye on possible fees
  • Pay attention to any limits

Additional offers – an advantage in a Social Trading Broker

Any provider striving to become the best social trading broker should be able to convince in this area. Additional offers can be very versatile – for example, many brokers provide opportunities for training and further education. This way the broker aims to support traders and also help them find their way into trading or clarify questions. Besides, during the training usually various strategies are demonstrated that traders might try – though of course there is no guarantee of success.

Contentgrafiken Vergleich Social Trading

The Social Trading demo account as an additional special offer

Especially if you are new to the social trading experience, a social trading demo account can help you get a feel for social trading without having to engage directly investing your own money. The aim of the demo version is to be able to copy trades from experienced traders and watch what happens, though with virtual credit used instead of one’s own money. Before you open the test account, find out how long you can use it and whether it is permanently available for free.

  • Additional offers also useful in social trading
  • Demo account allows you to familiarize yourself with the platform and trading
  • Education and training are not uncommon in social trading

Whether a social trading broker works reputably and how he ensures the security of client funds is an important aspect. Usually the platforms are similar in these areas. Do you have to be afraid of social trading fraud? Although there are no guarantees, you can expect brokers to be regulated by government agencies. The regulation is an indication that regular controls are taking place and that abnormalities are being investigated. In our reviews and also on the broker websites, you can quickly see if and by which authority a broker is regulated.

Deposit insurance and security through encrypted data transfer

Concerning the question “Is Social Trading Fraud?” you can call check deposit insurance as an additional criterion. Credits and assets should be kept segregated, this means separate from each other. In addition, client funds should be protected to a certain extent, so that the deposits are not lost – like in case of an insolvency of the broker. In addition, traders are also required to contribute to security – although their own actions are limited to data security. Brokers typically transfer data using secure encryption, but it is up to you to use only secure Internet connections, a secure password, and keep your access data safe.

  • Brokers are usually regulated
  • Privacy aspects matter
  • Consider deposit insurance in comparison

Trade press reviews and awards as a possible test criterion

Trade press reviews are very interesting for a broker comparison. Here various brokers are tested repeatedly and crucial information about security and supply issues is given. That’s true for social trading, too. If you would like to know if and how brokers feature in the trade press you can rely on corresponding reports.

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Possible awards like “best social trading provider”

“Best Social Trading Broker” or “Best Social Trading Platform” are examples of awards given on various portals or by specialist magazines. These tests are intended to show which provider is particularly convincing in a certain area – like in terms of trade range, support or trading software. The winners in each category usually receive awards. The awards themselves are mentioned by the respective broker on the website. One should be more careful, though, with blogs or forums – they are certainly useful for general exchange, but experiences with a provider are sometimes subjective and should not be a determining factor.

  • Are there reviews of the broker in the trade press?
  • Has the broker received awards for achievements?
  • Subjective reports from forums or similar should not be crucial

Social Trading – Market Overview and Market Outlook

Social trading is possible in various trading areas, but is particularly popular when trading Forex and CFDs. But now there are some social trading platforms available for stock trading, cryptocurrency trading or ETF trading, too. Thus the market for social trading is broad-based and is constantly evolving. Already there are many interested parties who are taking advantage of this offer to make themselves available as experts or followers who would like to be able to copy the strategies of more experienced traders.

Social trading remains important

Social trading has numerous advantages and also some disadvantages. The advantages are particularly interesting. By copying trades, newcomers will understand quickly how experts work and, at best, will make profits right from the start. In addition, they learn to understand trading better. The danger, however, is to rely too much on copying. In this case, the trader develops not at all or only to a very limited degree. Nevertheless, it is expected that social trading will continue to be an area that is becoming increasingly important in the marketplace and will continue to evolve. Among other things, this is shown by the fact that the comparatively recent trend in cryptocurrencies, for example, was well received.

Social Trading Broker Test: Compare Now & Profit From The Platforms

Based on our social trading reviews and the criteria listed here, you have the opportunity to get an excellent overview of the platforms available and their advantages within a comparatively short time. This is not only about the product range, but also about other issues such as support, possible additional offers, regulation and security. The social trading brokers at hand may vary greatly in terms of supply, so a broker comparison can be revealing. Similar to a CFD broker comparison or a forex broker review, it is primarily about finding the provider that suits you, your budget and your trading goals best. We therefore recommend that you use the points explained above to form an impression of the providers. Start comparing today, try the offer with a free demo account if possible and find the appropriate Social Trading platform!

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