Binary Options Have Evolved
Binary options have evolved during last few years. In early stages, trading was very complex and available only to big institutional individuals. After US Securities and Exchange Commission has approved exchange trading in 2007, binary options have expanded rapidly. Today we can see many variations of binary options and its popularity within binary individuals.
We can divide binary options into three main groups:
- Manual or traditional binary trading
- Automated binary trading
- Social trading
New Way of Binary Options Trading
In this article you will find out something about the newest type of binary options trading – social trading and we will mention some of the most popular social trading platforms. As you have already heard, social trading represents the latest and most exciting way for binary options trading. This revolutionary trading system connects traders from all over the world and creates a big trading network. The main idea behind social trading is to share trading knowledge and strategies among traders themselves. By using the collective knowledge traders are empowered and have more trading possibilities.
How Binary Options Social Trading Works?
All social trading platforms have the same essential basis. They form investment networks that bring live feeds of trading activities. This way traders that are part of the network will receive trading results of all traders in their community.
This benefits to all traders because staying informed is a key to success. Social trading enables you to follow traders that have better trading results.
By following other traders you can get valuable insights to their trading strategies and copy them into our portfolio. Tracking of other traders in a social trading network can help you in creating your own strategies and ideas.
Copy Another Trader and Start Learning
Social trading is the best place for beginners in the binary industry. As we have already mentioned, traditional binary trading is more complex than auto trading or social trading. Traders without trading experience can easily lose their investment if they trade manually. Social trading enables you to copy someone more experienced and trade based on their strategies. This way you learn on how to place trades and become experienced and successful. Social trading platforms allow you to track your performance and performance of traders you are following. Social platforms enable you to interact with other traders that you follow and receive helpful tips and advice from them.
Social Trading vs Auto Trading in Binary Options
Social trading and auto trading are both very lucrative ways of trading in binary options market. There is not a single trader who doesn’t like easier and more reliable way of trading, so it is only natural that social and auto trading are becoming increasingly popular. However, some traders find it hard to make a decision which one to use. Every type of trading has some good sides and some bad sides, and traders have to be ready to make their final decision
Binary Options Auto Trading Pros
+ reliable when based on algorithms
+ easy solution for beginners
+ modern approach towards trading
+ additional controlling features
+ human error excluded
Binary Options Auto Trading Cons
– less reliable when based on human signals
– auto trading scams
Binary Options Social Trading Pros
+ possibility to follow binary options experts
+ taking advantage of knowledge of the crowd
Binary Options Social Trading Cons
– takes a lot of effort to find good traders to follow
– traders make mistakes, even the best ones
Traditional Binary Options vs. Social Trading
There are many binary brokers that have started to develop social trading features in their platforms. This shows how important social trading has become in binary options market. Social trading has radically changed the financial trading industry and opened door to traders who would never dare to invest in binary options before. Traders are welcome to trade with stocks, indices, commodities, Forex and currency pairs. From our perspective, social trading brings more features and easier approach towards financial markets.
Social trading has much more to offer and it is involving cooperative trading and monetization of strategies that lead to more opportunities. We have been searching what do financial portals say about social trading and here is what The Telegraph says about social trading in financial markets has concluded. CNBC has also wrote interesting article where they call social trading a “huge industry”.
Leading Social Trading Platforms
- Signal Trader
- FxPro SuperTrader
- IronFX Social Trader
- InstaForex ForexCopy
- Tradency Mirror Trader
- MFX Broker
- NetoTrade Social Trading
- FX Junction
- Gallant Trade Copier
- MetaQuotes MetaTrader