Forex social trading networks - what are they?

The general purpose of a Forex Social Trading Network is to gather collective wisdom about Forex trading; and in order to do that, Social Trading allows each member to post his/her trading activity on the network (such as Buy/Sell/Stop/Exit orders etc.). Thus each member can become a signal provider, while other members can "follow" him/her just like in Twitter, but with an extra feature - the ability to copy everything that the signal provider does on your own account - immediately and automatically. Besides Forex Social Trading networks offer some other useful information to traders, such as: pip counters, calculators, chart analysis tools, and even own trading platforms.

The idea of Forex Social Networks initially was to help out beginner traders and those who haven't yet developed good trading skills, also to aid investors who don't know/want to learn how to trade at all, or have no time to analyze the market; while on the contrary, it's also useful for experienced traders who want to monitor the market sentiment and utilize the knowledge for own more complex strategies. Overall, Social Trading could be useful for everyone in one or another way.

However, before you get too excited and run straight to connect your live trading account to a Social Trading Network account, you may want to know that Social Trading could become a frustrating experience as well. Traders are known to complain about Social Trading Networks having the same outcome as classic Forex: some users think the network is manipulated or feel that they are drawn into loses on purpose (e.g. either finishing with no funds or with a negative balance).

The concept of all Forex Social Networks is almost identical, with some small differences: some networks monitor their "Gurus", "Leaders" or "Signal Providers", so that clients can feel more secure about following them; other networks offer a flexibility of connecting a platform to almost every single MT4 or MT5 broker; and others provide their own proprietary Social trading Network plus brokerage services, which could be considered as additional security and stability to ones trading.

Forex social trading networks Comparison

Social Trading Network	Demo	Difficulty to become a signal provider	Fees	Own brokerage service	Platform	Regulation
Ayondo	Yes	Medium: everybody can become one, but a series of steps is needed to be a top trader.	Subscription free. Trading fees are charged in spreads.	Yes, through Ayondo Markets, a subsidiary of GEKKO Global Markets	Ayondo auto execution	None & not required
Collective2	Yes	Easy: Almost anybody with time to develop a system can do it, it will be listed despite the results. You will need another 90 USD to be registered as a provider.	% per position copied established by the provider. 90 USD for being a provider.	No	MT4, Trade Station, Ninja Trader and Interactive brokers platform	None & not required
Currensee	No	High: the whole process takes at least 6 months.	2% monthly service fee + 15% charged by the signal provider + 5% extra for Currensee	No	MT4 and MT5	NFA in the US, FSA in the UK
eToro	Yes	Very easy: everybody is a provider there, the number of followers depends on results.	Spreads only	Yes, through eToro	OpenBook	CySEC in Cyprus
ForexCopy System	Yes	Easy: They have an established process, but not very strict.	Commission per deal, or share profit	Yes, through InstaForex	MT4	FFMS in Russia
FX Replitrader	Yes	Easy: They have a process, but almost everybody can apply for it.	Spread plus a % depending on the provider	Yes, through Forex-Metal	MT4	IFSC in Belize
Mirror Trader	Yes	Easy: All members are providers, but only the top ones are recommended.	Spreads	No	Trade Station, API based platforms, MT4 and MT5	None & not required
MyfxBook	Yes	Medium: Despite everybody can become a provider, traders are evaluated and graded to detect mistakes and get reviews.	Free	No, but sponsored mainly by FxPro	All platforms - linked to MT4 and MT5 with EAs.	None & not required
ZuluTrade	Yes	Very easy: All members are both followers and providers	Spread if using their brokerage service. Commission if you do not use their brokerage service.	Yes	ZuluTrade, MT4 and MT5	None & not required

. . . To be continued . . .

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