SMFX Social Trading
Social Trading is a new investment model based on connecting the users community where the most advanced traders share their strategies while beginners can see, follow, learn and copy what the most successful investors do.
This model incorporates the basics of social network but applied to the trading world. We live in a social world where everyone is connected permanently to the Internet, relating with people who share the same interests and hobbies, and who are part of the community. Social Trading is a way to connect traders all around the world to share their strategies and be able to discuss them with other traders.
For a beginner it has the great advantage to follow the most experienced traders, analize their strategies and copy their trades and thus obtain better results taking advantage of the knowledge and experience of people who have been a long time investing in the markets. Due to this possibility of copying other investors trades, social trading is also known as copy trading.
How does Social Trading work?
- If you are willing to start investing through the SMFX Social Trading, the first thing you need to do is to have a Live Account in SMFX.
- The SMFX Social Trading works with Elite accounts type. You can select a new one if needed.
- Next you will have to find a trader whose results are interesting for you and connect your account with this investor account.
- Before you follow a new trader, you need to choose the type of copy you wish, since you can increase or reduce risk that will affect your account.
- Once the trader to whom you are connected opens a new trade, this will be copied to your account according to the risk proportion you had choosen.
- You can stop following a particular trader at any moment and stop copying their trades. You can also choose to follow many traders at once, which by the way, is a good way to diversify risk.
We recommend the following advice to take into account:
- Diversify the risk by searching distinct traders profiles.
- Search for traders with the minimum possible drawdown.