Binary options auto trading is considered as the latest version in this online investment. However, this guide article will show you how things are moving rapidly forward and online trading industry is expanding each day.
Introduction to Binary & Forex Social Trading
So what is social trading and how can it be used to earn money with binary options? Thanks to powerful technology improvements, binary options industry now presents option for traders to use social and copy trading, and not just binary auto trading.
This way, South Africans have access to more possibilities which can lead them to higher payouts and easier trading experience.
With copy trading, traders have opportunity to follow professional traders and copy their successful trades. They only need to find and follow successful traders and copy their trades. This will enable them to maximize profit if the trade turns out to be profitable.
Both social trading and copy trading are considered as excellent choice for inexperienced South African traders who are new to binary options trading. Through social trading, they can connect with pro traders and expand their trading knowledge.
Best Forex and CFDs broker supporting social trading is AvaTrade.
Biggest social trading platform for forex is eToro
How Does Social Trading Work?
Simple – you deposit, in the list of best traders select the ones to follow and let the software copy their trades according to your own conditions (amount in total, amount per trade…).
Traders who start using social trading will experience that binary trading has never been easier. As an innovative way of participating on financial markets, South Africans can learn from the best traders and get better trading results.
Statistics show how there is an increasing number of social media connectivity where traders want to communicate via blogs, social networks etc. therefore it shouldn’t surprise no one why social trading became popular among binary options traders in South Africa and worldwide.
With social trading and copy trading, traders should first learn more about trading platform and tools, which can be used to execute trades in a right way. Afterwards, traders should select a successful trader to follow who has constant success rate.
Once South Africans select traders to follow, they can begin to use copy trading. While copying successful trades, traders can achieve better trading results and earn money.
Is Social Trading Safe?
We can say that social trading is safe as the trading platform itself. Just as with regular binary options trading, it is also important to select reliable platform for social trading and copy trading. Such platform should be technically equipped and secure. However, it is important for traders in South Africa to understand all trading instruments and available features.
Therefore, we on Binary Options South Africa, recommend social trading platforms, such as CopyOp.
Besides having just a trusted platform, traders also have to select a reliable trader to copy trades from. We advise to check trader’s success rate and see what is his knowledge of financial market. If everything checks fine, this is type of trader to follow.
It is also significant to mention how in most cases, copied trades have limits in terms of investing. This means that traders can invest only a specific percent of their funds.
Popular Social Trading Platforms
In binary options industry, there are several social trading platforms, which offer social trading and copy trading, such as:
These social trading networks are single standing sites, specialized in social networks for traders worldwide, including those residing in South Africa. On their platforms, they publish successful traders so that it becomes simple for new traders to find them and copy their trades.
Advantages of Social Trading
For this review, we found out how binary options social trading is especially popular and widespread among new inexperienced traders. It is a form of online trading which enables South African traders to improve their trading skills by copying trades of top recommended traders.
One of social trading advantages is the fact traders don’t require any special trading expertise to begin trading. Traders only need to detect a successful pro trader and follow him. If he has good winning rate, so will a particular trader profit from social trading. Better than learning different tricks and attending seminars, on social trading platforms, South African traders have an amazing opportunity to interact with pro traders and follow their actions.
With social trading and copy trading, traders can monitor, ask questions and learn from the best traders on the market. This review shows how social trading has more benefits that we didn’t see in auto trading, which only demonstrates how binary options industry is changing each day.
Social Trading vs. Copy Trading
South African traders might get confused about terms of social trading and copy trading. Although the basic principle is the same, binary options social trading and copy trading are not the same thing.
There are significant differences that each trader should have in mind.
What is copy trading actually?
It can be simply explained as copy/paste option. Traders in South Africa have option to follow traders and according to settings available on trading platform, directly copy trades.
Since many experienced traders place successful traders, then question rises, why not to copy them?
With social trading as the word says itself, it is based on trading on social networks. Some trading platforms enable traders chats and forums where South Africans can discuss about current financial markets or latest market updates. Traders have opportunity to select which peer to follow and monitor their trades.
For money management, this type of online trading is far more convenient, but requires a certain level of trading knowledge. The goal is to distinguish potential unsuccessful trade from successful one, since traders will finally be responsible for the trading results.
Overall, we can say how both social trading and copy trading are the next big step in binary options trading. Thanks to many advantages, this type of trading is also available on South African market.
For more about binary options automated trading, check Binary Options Robot software.