What is social trading?
Social trading in general has been around for some time now, not uncommon to the Forex Industry. Leading website such as “eToro” offers a social trading network for traders to follow and copy each other based on performance stats. Trade4me has used the same principle creating the very first Binary Options social trading network.These social trading networks can be considered a subcategory of online social networks. The “network” part is much like we consider Facebook, Twitter and Instagram to mention a few. A bunch of users like we see on social media sites can in this instance be seen as, providers, copiers and followers forming “the community”, no different than the latter mentioned social media websites. This network consists of a global audience of traders. Social trading introduces a new way of analyzing financial data by providing a ground to compare and copy trades, techniques and strategies.
Copiers and Followers can benefit by receiving automatically executed trades or instant notifications from Providers with a few simple clicks. A monthly fee is charged for both the copy and follow option, where the copy option is more expensive due to a hands-off approach and capability offered.
Providers are the exact opposite of Copiers and Followers. They are the experienced traders that have been successful in the sense of being profitable not only short term but long term as well. Providers choose and set the monthly fee they consider reasonable for their loyal Copiers and Followers across the network of traders. No form of “monopoly” can take place as Provider prices and profitability effectively even out prices to an acceptable value across the leaderboard.
The more profitable a specific trader is, the more popular they will get among the community, thus building a respectable following and reputable reputation. Trading profitability and statistical data are pulled directly from the providers’, also referred to as the master accounts, broker account ensuring legitimacy and verification from the broker’s trade history database for the selected providers’ trading accounts.
Social Trading is a perfect yet cost effective way for signal providers and clients alike to benefit from each other in a profitable manner. Since Trade4me is a third party this is without a doubt the best way to eliminate conflict of interest between broker and trader. This is just one of the many reasons why Binary Options Social Trading has become so vastly popular in such a short period of time.