Online retail trading brings millions of investors together and makes it easier than ever to access the forex markets. An increasing number of retail forex brokers are now maintaining vast social trading networks spanning millions of customers from all corners of the globe. Social trading community members can exchange trading ideas, strategies, and insights to potentially improve their long-term performance and boost their gains. Traders get the opportunity to examine each other’s stats, create investment portfolios, and seek assistance devising new trading strategies.
However, finding a reliable social trading broker is no easy task and requires plenty of time and research. Testing several networks is often necessary to make the right pick. Our team explored multiple platforms to identify the best retail Forex brokers that support social trading. Read on to learn more about this practice and what makes our top picks the go-to brokers of social traders.
Fusion Markets74-89% of retail CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
IC Markets70.64% of retail investor accounts lose money
AvaTrade76% of retail investor accounts lose money
Pepperstone75.5% of retail investor accounts lose money
eToro51% of retail investor accounts lose money
CMC Markets71% of retail investor accounts lose money
BlackBull Markets
Vantage FX
AxiThe vast majority of retail client accounts lose moneyWhat Is Social Trading?
As the name suggests, social trading is a practice where investors rely on user-based Forex trading content collected from different sites to aid their decision-making process. Armed with this information, forex traders can make smarter investment choices and develop new trading strategies. To join one such community, investors must subscribe to a social trading service and connect their online trading accounts.
This allows them to analyze market trends, compare strategies, provide input, and exchange ideas with fellow community members. The method is particularly beneficial for beginner traders as it can significantly accelerate their learning curve and help them refine their skills. Social traders follow other market participants, much like social media users follow each other on platforms like Facebook.
They can keep track of their fellow traders’ performance over time, see what positions they open, join discussions, and seek and provide advice. Community members can post updates on their results and comment on the posts of fellow traders. This collaborative environment, coupled with access to many different approaches, renders social trading suitable for novice and well-versed investors alike.
How Is Social Trading Different from Copy Trading?
While copy trading is a popular form of social trading, some notable differences exist. Copy trading is ideally suited to the needs of individuals looking to profit from passive investing. It enables them to follow successful traders and have their positions automatically replicated in their portfolios.
It considerably streamlines the investment process for forex novices, allowing them to choose proficient traders whose strategies align with their risk appetite, budget, and investment goals. There is very little involvement in the trading process beyond the initial setup. You simply register an account with a copy trading platform, select traders (signal providers) to follow, and have their positions mirrored in your account in real-time.
This hands-off method requires no in-depth knowledge of the forex markets as users rely on the expertise of seasoned investors. By contrast, social trading requires greater engagement on traders’ behalf. The focus here is on cooperation and interaction with fellow community members.
Social trading platforms serve as meeting spots for traders from all walks of life to come together, allowing them to exchange ideas, provide input, discuss market trends, and share strategies in real-time. This creates a collaborative environment where traders can engage with and learn from each other rather than just passively copying other peoples’ positions. One key thing the two approaches have in common is that they both facilitate and encourage greater market participation.
10 Best Forex Brokers for Social Trading
- 1. AvaTrade
AvaTrade emerges as a reliable option for all traders who wish to explore the forex markets in a regulated environment. The broker provides over 1,000 financial instruments and has procured licenses from tier-one regulators like ASIC and CySEC. It delivers a next-level social trading experience via its dedicated AvaSocial platform, launched in late 2020. It enables you to trade over 250 currency pairs, equity indices, stocks, commodities, and more.
The mobile platform quickly picked up steam as it allows users to connect, copy trades (automatically and manually), receive updates, and showcase their results via a single centralized network. Creating your own chat groups of followers is also possible with AvaSocial. The platform comes equipped with a dedicated instant messaging feature, making the communication with traders you follow a breeze.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 2. eToro
A true pioneer in social trading, eToro has been offering reliable copy trading services since 2010 when it launched its proprietary OpenBook platform. The company brings together over 30 million customers from more than 140 countries, allowing them to interact, exchange ideas, and copy each other’s trades. The broker offers state-of-the-art tools for crowd trading and a personalized social news feed that features social media elements.
Platform users can post updates, tag instruments and fellow traders, comment on their posts, and receive push notifications. The sophisticated CopyTrader of eToro enables you to follow and copy up to 100 users simultaneously, with the option to invest as little as $200 per trader. We should mention that you must verify your account for others to copy you. Preserving privacy is an option for users who do not wish others to follow them. They must tackle the privacy settings of their profiles.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Fusion Markets is a multi-instrument online brokerage that welcomed its first retail customers in 2019. It provides a selection of over 250 tradable assets, including more than 90 currency pairs, with licenses granted by the authorities of Vanuatu, Seychelles, and Australia. The broker enjoys great renown for its industry-leading commissions and low spreads. Fusion Markets additionally has a dedicated platform for copy trading called Fusion+.
New Fusion+ users can register within seconds and share their profiles with fellow traders to copy. Emailing invitations is also an option for those wishing to spread the word and attract more followers. The biggest advantage of Fusion+ is that the platform is free to use but only on condition copiers and signal providers trade at least 2.5 lots of forex and metals per month. Less active users incur a fixed monthly fee of $10.
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.- 4. FP Markets
FP Markets is a multi-licensed global broker providing a choice from hundreds of tradable instruments, including over 60 currency pairs. The company carries the stamp of approval of notable financial regulators like CySEC, ASIC, and FSCA, further adding to its immaculate reputation. The renowned broker facilitates social and copy trading via MT4 and MT5. New customers can choose to act as copiers or signal providers during registration.
You can copy positions automatically or select which top-performing traders to follow and receive updates from. The broker has a dedicated rating page where copiers can compare the performance and profits of signal providers, along with their detailed trading histories. Users can copy as many providers as they like. Turning off the copy trading functionality is beyond simple and only takes a couple of clicks in the broker’s social trading portal.
10 per quarter for non-AU traders; 20 per quarter and notional volume of AU$1,000,000 per 4 quarters in the last 1 year 73.85% of retail CFD accounts lose money BlackBull Markets is a highly regarded online brokerage regulated in New Zealand and the Seychelles. It provides a choice from a mind-blowing range of over 26,000 financial instruments, maximum leverage of 500:1, and seamless execution with average speeds under 20 milliseconds. The broker offers copy trading services via an award-winning proprietary platform users can connect to their MetaTrader 4 or MetaTrader 5 accounts.
The platform gives you access to top-performing signal providers with proven track records of success. It comes with various sophisticated tools for risk management, allowing copiers to tailor it to their unique needs. There is no limit on the maximum number of signal providers customers can copy simultaneously. The platform offers transparent leaderboards where users can examine the past performance and trading strategies of all featured signal providers alongside their overall returns and the equity of their investors.
- 6. Pepperstone
Trusted by thousands of traders from over 160 countries, Pepperstone compels attention with its razor-sharp spreads and ample product lineup spanning more than 1,200 tradable markets. Social trading is also possible at this multi-licensed brokerage, where customers can pick from thousands of verified signal providers and copy their positions directly into their MetaTrader 4 or MetaTrader 5 accounts.
The brokerage developed its copy trading application in collaboration with Pelican Exchange, a renowned provider of social trading solutions. Signal followers will benefit from the flexibility to set up risk parameters they are comfortable with, including adjusting the number of copied trades, their drawdown, and trade volume. You can become a signal provider yourself and collect performance fees from your followers. Said charges cannot exceed 50% at Pepperstone.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 7. Vantage FX
With over 15 years of market experience behind its back, Vantage has established itself as a reliable broker that delivers competitive prices for a wide range of products, including over 40 currency pairs. It is a legit online trading destination regulated in South Africa, Australia, and Vanuatu. In 2022, the broker expanded its product lineup yet again with the addition of V-Social, a dedicated copy trading platform created in partnership with Pelican Trading.
Customers must set up separate live accounts to delve into the exciting world of social trading. The US dollar is the only base currency currently available. The user-friendly V-Social platform connects seamlessly to MT4 accounts, enabling users to subscribe and copy top-performing traders or provide signals in exchange for performance fees. Copiers can replicate all trades of their chosen signal provider or select individual trading strategies from their profiles, a feature that facilitates mirror trading.
- 8. CMC Markets
Launched in 1996, CMC Markets is a good fit for traders across the board as it provides a broad product offering encompassing over 11,000 instruments. The FCA-authorized brokerage boasts an impressive selection of over 330 currency pairs tradable with competitive spreads as low as 0.7 pips. The broker prioritizes customer education, transparency, and flawless order execution.
CMC Markets is home to a thriving community of social traders, allowing them to copy trades, provide signals, and interact in dedicated forums accessible after registering a live account on its proprietary Next Generation platform. The forums serve as a meeting spot where seasoned and amateur traders can discuss strategies, major news releases, and indicators. Customers can access social news feeds and trade chats to exchange opinions on various market-related topics.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. - 9. IC Markets
IC Markets poses an attractive option for discerning traders seeking competitive spreads, lightning-fast order execution, and deeper liquidity in an ECN trading environment. It shines as one of the most reliable retail brokers in the industry, operating with licenses from the FSA, CySEC, and ASIC. The trusted brokerage showcases a selection of over 2,200 tradable symbols, with raw spreads from zero pips. Customers will benefit from an award-winning suite of trading platforms, including IC Social.
The broker’s dedicated social trading app enables you to copy trades, provide signals for others to copy, and share your strategies with fellow community members. Customers can join discussion groups or create their own. The instant messaging feature facilitates seamless communication between traders, allowing them to easily exchange ideas, submit questions, or challenge each other’s trades. All in all, this is an excellent app that combines usability with many great social trading features.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 10. Axi
Axi is an award-winning online broker dedicated to delivering transparent and fair trading conditions to customers from over 100 countries. The brokerage operates with authorization from several highly-regarded financial regulators, including the FCA, ASIC, and CySEC. Its product lineup encompasses over 220 instruments, ranging from forex and shares to commodities, indices, and cryptocurrencies.
The trusted broker offers an intuitive copy trading app compatible with Android and iOS devices. Connect your MetaTrader 4 account to the app and you are good to go. Signal followers can start copying trades with any amount they deem appropriate as long as it suffices to cover trade specifications. Signal providers must deposit at least $500 for others to copy them. Axi charges no commissions for copy trading but signal followers may pay performance fees on their profits from copied trades.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Comprehensive Comparison of the Top 10 Forex Brokers for Social Trading
| Forex Broker | Min Deposit | Regulators | Number of FX pairs | Min Spread | Platforms | Fees | Features | Trust Pilot Rating |
|---|---|---|---|---|---|---|---|---|
| 1. Fusion Markets | $0 | ASIC, FSA (Seychelles), VFSC (Vanuatu) | Over 200 | 0.9 pips Classic; 0.0 pips Zero | Fusion+ | $10 monthly fee for accounts with less than 2.5 lots activity on forex/metals | Copy Trading, Signal Provision | 4.8 ⭐ |
| 2. FP Markets | $50 (AU$100) | ASIC, CySEC, FSA (Seychelles), FSCA | 70+ | 1.0 pips Standard; 0.0 pips Raw | MT4, MT5 | Free | Copy Trading, Signal Provision, Signal Provider Ratings | 4.8 ⭐ |
| 3. IC Markets | $200 | FSA (Seychelles), CySEC, ASIC | 61 | 0.8 pips Standard, 0.0 pips Raw Accounts | IC Social | Monthly performance fees of up to 50% | Copy Trading, Signal Provision, Instant Messaging, Inverse Trade, Interactive Profiles, Group Chats | 4.8 ⭐ |
| 4. AvaTrade | $100 | FFAJ (License No.1574),CySEC (No. 347/17) ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC(No.406684) | 250+ | From 0.9 pips (retail), 0.6 pips (pro) | AvaSocial | Signal providers may charge performance fees | Copy Trading (Automatic, Manual), Signal Provision, Instant Messaging, Group Chats, Real-Time Performance Monitoring, Trade Updates | 4.5 ⭐ |
| 5. Pepperstone | $0 | UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA | 100 | From 0.0 pips (Razor Accounts), 1 pip (Standard Accounts) | Copy Trading by Pepperstone | Performance fees of up to 50% may apply | Copy Trading, Signal Provision, Risk Management Tools | 4.5 ⭐ |
| 6. eToro | $10 | FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN | 55 | 1 pip | OpenBook | Free (performance fees may apply) | Copy Trading, Signal Provision, Social News Feeds, Popular Investors Program | 4.2 ⭐ |
| 7. CMC Markets | $0 | ASIC, MAS, FCA, BaFin, IIROC | 330+ | From 0.0 pips (UK), 0.3 pips (SG, AU), 0.2 pips (IE) | Next Generation | Performance fees may apply | Copy Trading, Signal Provision, Live News Feeds, Social Trading Forum, Client Sentiments | 4.2 ⭐ |
| 8. BlackBull Markets | $0 (Standard)$2,000 (Prime)$20,000 (Institutional) | SFSA (No. SD045), FMA (No. FSP403326) | 70+ | 0.8 pips Standard; 0.1 pips Prime; 0.0 pips Institutional | BlackBull CopyTrader | Free to join and use BlackBull CopyTrader | Copy Trading, Signal Provision, Advanced Risk Management Tools | 3.6 ⭐ |
| 9. Vantage FX | $50 | FCA (license no. FRN: 590299), VFSC (reg. No. 700271), ASIC (license no. no. 428901), FSCA (license no. 51268), CIMA (no. 1383491) | 40+ | 1.1 pips on Standard Account; 0.0 pips on Raw, Cent, and Pro Accounts | V-Social | Free | One-Click Copy Trading, Auto Copy Trading, Signal and Strategy Provision | 3.4 ⭐ |
| 10. Axi | $0 | FSA, FCA, CySEC, DFSA, ASIC | 80 | From 0.0 pips (Elite and Pro Accounts), 0.9 pips (Standard Account) | Axi Copy Trading (connects to MT4) | Free | Copy Trading, Signal Provision | 3.3 ⭐ |
Common Forms of Social Trading
We already discussed copy trading where you select investors to follow based on their performance and have their positions replicated in your trading account. Copy trading is perhaps the most widespread form of social trading, ideally suited to people lacking the expertise or time to explore the intricacies of the forex markets.
- Elaborating on Copy Trading
With this approach, you choose signal providers whose trading style aligns with your risk tolerance, allocate a portion of your balance, and have their trades mirrored in your portfolio. With access to the historical results of signal providers, “copiers” can make informed decisions on who to follow and copy. The position replication process is often automatic, although copying trades manually is an option in most cases.
The signal providers sometimes collect commissions or performance fees from the copiers but not necessarily always so. If any charges apply, they will be explicitly listed in the copy trading platform. Copiers can monitor their portfolio’s performance in real time, including any resulting profits and losses, and switch to new signal providers if unsatisfied with their success rates.
- Mirror Trading
Mirror trading is similar to copy trading, only here you replicate concrete strategies devised by different strategy providers. First appearing in the early 2000s, this branch of social trading is broadly implemented by forex traders, although it also works for investing in the stock market. People who adopt this approach use brokers’ trading platforms to access historical data on different strategies and examine the results they have yielded over time.
After conducting thorough research, the person selects an algorithmic trading strategy from the list of available options. Various factors govern their choice, including risk appetite, budget, and investment goals. The currency pairs strategies focus on also play a role. When the strategy developer opens and closes positions, their actions duplicate automatically in the portfolios of mirror traders.
Reliable brokers facilitating this style of social trading extensively test and verify long-term results before uploading new strategies to their databases. In many cases, strategies must have yielded positive results for at least one year before gaining approval. Keep in mind that evolving market conditions and emerging trends can significantly impact the performance of a given strategy.
- Crowd Trading
Crowd trading is another popular form of social trading, where you make investment decisions based on the collective sentiments of a wide circle of traders. It can potentially provide valuable insights into the future direction of the market. People implementing this approach collect and analyze data from social trading platforms to spot emerging trends or existing patterns in crowd behavior.
Here are a couple of examples. If a large group exhibits bearish sentiments toward a currency pair, this may indicate a favorable opportunity to go short because the crowd believes prices for said pair would fall. Conversely, if the crowd is bullish, believing prices will rise, a crowd trader would open a long position.
Crowd traders tend to frequent dedicated message boards and social media platforms to collect information from larger groups of market participants. Collective pessimism and optimism can influence market movements and guide savvy traders into making more informed investing decisions. Some online brokers aid crowd traders by regularly posting up-to-date market sentiment information.
Who Should Engage in Social Trading?
Social trading could prove beneficial for novices and well-versed traders alike. It fast tracks market participation for beginners lacking sufficient understanding and knowledge to trade successfully. Novices can duplicate the performance or strategies of experienced traders with a proven track record and hone their skills by participating in discussions or exchanging ideas with other members of the social trading community.
Forex beginners can harness the insights from successful traders to make informed decisions on what orders to place next. On the other hand, seasoned traders often use social trading platforms to passively generate additional income without breaking a sweat. Copy trading, for instance, commonly appeals to individuals with prior market experience who have no time to actively trade themselves. Signal providers can earn extra on the side by charging those who copy them.
Are There Any Downsides to Social Trading?
Social trading offers multiple benefits, including reducing the learning curve and providing valuable opportunities to socialize with fellow traders. However, there are downsides to this approach that are also worth considering. Accessing some social trading tools requires a paid subscription, which may deter beginner traders working with a limited budget.
Copy trading, in particular, is often associated with additional expenses like signal-provider commissions or performance fees. Also, traders should not forget that forex is risky, and long-term success is not guaranteed no matter how much time one spends discussing the markets with other community members. Not all traders can be trusted for insights or advice, as some people exaggerate their knowledge and results.
Social Trading Brokers Q&A
All good social trading platforms are compatible with mobile devices, allowing traders to interact and share ideas with fellow users while away from home. This enables you to stay on top of the forex markets without necessarily being bound to your desktop computer. You can always seek advice from more experienced traders, keep track of the trades you copy, or discuss new strategies before testing them with your live account.
Adopted by many retail brokers, MetaTrader 4 (MT4) has functionalities that facilitate certain types of social trading. One prominent example is the Sentiment Trader, which allows users to perform detailed market sentiment analyses and browse comprehensive charts with historical sentiment data.
The feature provides information on the number of traders who have opened long and short positions on particular currency pairs, among other assets. It pulls data from actual trading accounts rather than relying solely on price action.
You can sometimes incur additional charges when copying someone else’s trades but the exact price structure depends on who you follow and what profits you generate from copied positions. Consider these extra expenses beforehand when planning your trading budget.
Getting started is easy. All you must do is find a reliable social trading platform, register an account there, and select traders to follow. The brokers shortlisted on this page are all licensed and facilitate copy and social trading in a regulated environment. They work with verified and vetted signal providers with proven track records.
Much like standard social media, you will get notified whenever the traders you follow update their feed, start discussions, and open new positions, especially if you copy them. Conversely, you will receive push notifications if someone starts following you and replicating your trades.