Social Trading Platform Test 2022: Social Trader Broker Comparison

Mark Norgate
October 6, 2021
The best social trading platform provider in 2022. Social networks are an important part of our modern society. The idea of ​​network communities has also reached the financial markets.
Social Trading Platform Test

Social networks are an important part of our modern society. The idea of ​​network communities has also reached the financial markets. More and more are riding the wave of success and trying to benefit from the experience of other investors.

Terms like a social broker, copy trading and social trading are currently on everyone’s lips. Many expect optimized investments and the associated high-profit increases.

However, quite a few are not yet adequately informed and ask with a shrug the question: ” Social trading – what is it?”

We bring light into the dark, make a social trading definition and a comprehensive social trading broker comparison, and report on different social trading experiences.

Table of Contents

The best social trading platform provider in comparison in 2022

Rating

Min. Deposit

Min. Spread

Assets

Views

Positive Reviews

Negative Reviews

Likes

4.9/5
250
0.07
  • Commodities
  • Forex 40 +
  • Metals
  • Stocks
  • Indices
  • Cryptocurrencies
85
2
4.5/5
250
0.07
  • Metals
  • Forex
  • Indices
  • Cryptocurrencies
  • Commodities
  • Stocks

 

254
82
3
58
4.9/5
250
0.07
  • Forex 40+
  • Metals
  • Commodities
  • Stocks
  • Indices
  • Cryptocurrencies

 

480
80
3
50
What is the Best Online Social Trading App 2022? The mobile ETFinance app!

The social trading platform app test winner of the year 2021 is “ETFinance Social Trading”. In the Google Play Store, the app has an above-average rating of 4 stars, with a total of more than 18,3000 reviews. The ETFinance app was also able to convince our critical eyes with its user-friendly design, high level of transparency and successful overall concept.

ETFinance has users from over 140 countries across the globe. This allows investors to benefit from the countless experiences of other users. In addition, the app is very strictly regulated, which is why users can access a very reliable platform.

What is the Best Online Social Trading App

Full-fledged app

In 2011 the ETFinance app was released for Android and iOS. Since then, it has been possible to carry out transactions without any problems while on the move. According to the operator, all functions can be used in the app that is also possible in the desktop version. Compared to other apps, ETFinance stands out particularly positively.

It is not infrequently the case that the app version is significantly slimmed down when you compare it with the desktop version. For example, in 2013, stocks of numerous well-known companies were added, and in 2017 cryptocurrencies such as Bitcoin, Ethereum and others were added. Another advantage of the ETFinance app is the small size of the application.

With only about 69 MB, it requires so little storage space that it can be easily installed on any smartphone. In addition, the exemplary support from ETFinance usually reacts quickly to problems of any kind.

Easily accessible

The founder of the platform ETFinance emphasises that the app was designed from the beginning so that it is accessible to everyone, even without experience in this area. Furthermore, with the option of using a demo account, you can also gain initial experience without having to invest real money.

Opening of the financial markets for beginners too

ETFinance is leading the social trading revolution with the clear goal of opening up the financial markets to everyone. Not only experts but also beginners should benefit from the profits on the stock market. With the ETFinance Social Trading App, investors and interested investors can contact, discuss, trade and, above all, learn from one another.

In contrast to other providers, the app is designed in such a way that it is almost intuitive to use. In addition, the range is very large. As a result, CFD stocks, currencies, commodities, indices and ETFs can trade and copy leading investors.

Real-time notifications

Although it is also possible to use the online broker on a desktop PC or laptop, we strongly recommend using the ETFinance mobile trading app with your smartphone, as you will be notified in real-time when something is crucial.

This ensures that the right decisions can always be made at the right time.

How does the registration with a social trading provider work?

The social trading broker registration

The social trading broker registration

Fortunately, the registration is very simple and can be completed promptly, especially for a Facebook or Google account. You need your first name, surname, user name, email address, password, and telephone number to register. In addition, two-factor authentication takes place, which provides additional security.

There are also other security measures. The user needs a mobile device, for example, a smartphone, which he connects to his ETFinance customer account. When the website is accessed, the user is sent a code to their mobile device – trading can only be started after this code has been successfully entered.

With the users, these precautions consistently score well, as they enable low-risk and simple action.

A user-friendly status display provides information during the entire registration process about how far the registration has progressed.

Trading test mode

In order to be able to use the platform fully, you must also provide data on your own financial situation. This information must be confirmed and verified again. Only after this process has been successfully completed, trades with a volume of over € 2000 can be executed.

In particular, new investors and beginners are increasingly using the opportunity to gain their first trading experience with the demo account. Here, the social trading method grants you € 50,000 in a special area – of course, the transactions are not real. That is, the profits generated cannot be paid out to your bank account with this demo version.

Nevertheless, this option is recommended, especially to avoid beginners’ mistakes. Therefore, we strongly advise you to make use of it. Ideally, the demo trades at the social trading broker provider should be carried out as realistically as possible: If the investor acts exactly as he would with real money, the greatest lessons can be learned.

Download the social trading app and top up your account

Once registration is complete, the ETFinance: Social Trading App can be downloaded from the Google Playstore or the Apple App Store. Here you enter the previously specified login data and login. This step can also be carried out quickly and easily. The account is usually activated within a few hours.

You can then immediately start charging the account with money. The minimum amount is usually 250 euros. There are different payment options: including credit card, PayPal, a standard transfer and many more.

Now the user is faced with whether the buying and selling decisions are made independently or whether a successful investor should copy the transactions. Investors who have opted for social trading usually choose the second alternative.

You then have to select how much credit you want to trade with. In addition, users have to choose a commodity. At ETFinance, you can choose from many investors or social traders and specify the markets individually.

If the user, for example, decides to invest in cryptocurrencies, ETFinance offers a lower point where all available Social traders in this area appear. These are also subdivided into a willingness to take risks as well as profits and losses.

As soon as a social trader is followed, you receive a notification when he makes a transaction. You then have the option of making the exact same purchase or sale.

What is a social trader? The definition

What is a social trader? The definition

Social trading is one of the most innovative concepts in the financial market. Social trading combines the advantages of social networks with stock exchange trading. In the networks, users exchange information on developments in the most varied of financial markets and benefit from their knowledge.

Private investors, in particular, have increasingly used these social trading broker providers in recent years. The basic assumption of all social trading providers is that people know more together and can also act more successfully thanks to their collective intelligence.

Many express a desire for financial freedom through trading stocks and other types of investments, but they don’t really dare. Social trading, sometimes also called copy trading, offers even inexperienced investors the opportunity to invest successfully.

They allow the transactions of successful investors to be copied. There are many different social trading providers. It is worthwhile to compare these with one another, as they sometimes differ considerably from one another.

Scientific research confirms the positive effects of copy trading

As on other social networks, there are followers and influencers or active ” signalers “, also known as social traders, in social trading. The way social trading works is both simple and contemporary, making it quickly accessible to new users. The signal providers implement their trading strategy in public model depots.

All processes in this depot, i.e. all purchases and sales, can be viewed by everyone. Signalers or social traders can be both hobby traders and professional asset managers. Followers, in turn, have the opportunity to analyse different social traders or to observe their strategies. If they are convinced of a certain social trader, they can participate in his performance.

The common social brokers try to generate the greatest possible benefit for all users. This happens, for example, that in the case of a profitable trade, both signalers and investors are rewarded – a classic win-win situation: the investor benefits from the trader’s wealth of experience and draw a profit from the investment, the trader, in turn, receives in the event of a win a success bonus.

Copy Trading Vs. Social Trading Broker: Which Is Better?

At first glance, it seems like copy trading and social trading are the same things. The basic idea is also very similar. However, there are differences. Rather, social trading is the generic term for the other variants, for example, for copy trading.

In social trading, investors publish their personal point of view on certain stocks and investments or even publish their entire portfolio. Investors can therefore find out about the activities of other traders. Several social trading providers are available for this.

With copy trading, on the other hand, the investments of other social traders are copied 1: 1. For this purpose, functions have been set up that make it possible to execute the same trades with a single click. Only the sum has to be determined individually. So if the copied person makes a profit, you make that too.

This process continues automatically until the user decides to end the copy relationship. Copy trading is the most popular form of social trading. Investors should choose social traders with the greatest care. The best social brokers provide a ranking of the top traders for this purpose.

However, it is important to understand that the best traders do not necessarily make the highest profits. An enormously high portfolio growth can in certain circumstances, simply be due to a risky investment strategy.

Our editorial team recommends looking into other people’s social trading broker experiences. This avoids unnecessary mistakes that reduce your return on investment. Those who are informed have a much higher chance of increasing their own capital. We have created a social trading guide.

5 useful tips for beginners and advanced users

Tip 1: Compare the different social trading broker providers with one another

We have already mentioned this aspect, but it still seems so important to us that we have decided to emphasise it again. How much return a social trader can achieve depends largely on which social broker a user is active on. Here, as in other areas, the following applies: Check who is committed.

Tip 2: Find social traders with a suitable risk/reward ratio

Before making any investment, users should be clear about what they are actually aiming for. With a long-term pension plan, other factors are brought to the fore to generate a small fortune in the short term.

Different strategies are recommended depending on your individual needs. For example, if you are looking for quick success, you should look around for social traders who run a higher risk with their focus.

Tip 3: rely on social traders who invest with their own money

So-called real money traders are usually far more reliable than investors who only trade with their demo account. No wonder: if your own losses are possible, the motivation and know-how should be much higher.

Tip 4: critically review the performance of traders

Although it is a great advantage of social trading broker platforms that successful investments are possible without investing a lot of time, we expressly recommend that you keep an eye on the services and transactions of the signal providers.

When in doubt, it can also be a wise decision to redeploy and part with it. Work with watchlists and continuously observe several social traders.

Tip 5: be flexible

Depending on current trends and developments, investors should shift something from time to time. It has proven to be a proven strategy to pursue social traders with different focuses. Diversification should also be aimed here.

Social Trading Broker Pros and Cons

Social Trading Broker Pros and Cons

  • Exchange of information
  • Helpful for beginners and advanced users
  • Food for thought for all investors
  • Useful extras such as charts, analyse and expert tips
  • Can be used free of charge
  • Simple use can lead to wrong decisions

Social Trading can be as beginners slowly but surely to the financial market brought up to be. Thanks to the function, you learn how trading works thanks to other traders, and you can also copy strategies and even entire portfolios. The social network behind it should make it easier for all investors to invest their money safely and well.

Social trading should create more transparency and, above all, a network where you can exchange ideas with other traders. Above all, this is intended to stimulate discussions and also encourage beginners to get into trading. After all, you can learn from good investors thanks to social trading.

The Social Trading function ETFinance enables easy introduction to securities trading. Although most of the parts are self-explanatory, you can get help and advice when trading riskier assets. But it is also important that you deal with the matter before you start trading. So everyone wanted to bring a basic knowledge with them.

Usability is also another advantage: ETFinance also offers an intuitive and user-friendly platform with which you can easily get in touch with others and use the social trading function.

One disadvantage, however, arises precisely from this simplicity – you give up control. Before doing social trading, you should find out about other traders you want to copy. You can do this with the help of a demo account. It is important to be clear about your own goals.

What are the costs of social trading?

The trading software used for social trading is free in most cases. This means that social trading is not subject to any additional costs. For example, you don’t pay any fees for copying other portfolios or strategies – you can, for example, easily and free of charge transfer these to your portfolio with ETFinance.

Costs and fees are then only incurred for the respective order. In other words, if you actually carry out the trades. With ETFinance, however, you have the advantage that you don’t pay any fees on stocks and CFDs, and that custody accounts and deposits are completely free of charge.

How do you become a social trader, and why?

If you trade successfully, you can become a social trader. Again, this can have some advantages. With our test winner ETFinance, you can become a social trader with few requirements. Here social traders are divided into different levels: Cadet, Champion, Elite and Elite Pro.

Before you can even become a social trader, you need a verified account with a picture, real names and a brief description of your trading strategies. In addition, to become a social trader, you have to have a low-risk score, have not suffered a loss of more than 20% in the last few months, do not copy other users, have an average capital of $ 1000 and other requirements.

As soon as you meet certain requirements on ETFinance, you can start earning money as a so-called popular investor. So you earn money when other users copy your own strategies and use them. Depending on which level you reach, you can also generate passive income.

How do social traders follow? Guide to social trading at ETFinance

With the Social Trading at ETFinance, investors may follow other investors and automatically copy their trades.

The traders can easily be found on the trading platform. For an overview of the most popular traders and traders who pursue different strategies, investors must click on the “People” button in the menu. When investors are looking for a specific trader, they can easily find that trader using the search box.

On the overview page, investors can get an idea of ​​the often copied traders or look for traders pursuing a specific strategy. In addition, feeders can select various filters in the menu. Here, for example, the asset class and past performance can be specified as filters. This enables investors to find the right trader whose strategy they may want to copy.

When investors have found the right trader, they can view more information about the trader on the detail page. The traders publish notices for their investors on this page, and the entire portfolio can also be viewed. In addition, past trades and the trading activities of the trader can be precisely tracked here.

With a click on the “COPY” button, investors are forwarded to the order page. Here investors can enter the investment amount and a loss amount from which the trader should no longer be copied in the event of losses.

With a click on ” COPY ” all trades of this trader will be copied automatically from now on. This enables investors to automate their investments and no longer have to worry about their own trades.

So we see that social trading via ETFinance is very easy. Investors can find the right trader with just a few clicks and automatically copy their trades. Thanks to the protection, investors can also set a loss amount from which the trader should no longer be copied.

Social trading experiences: Opinions of users from the Internet

You come across countless reviews of numerous social trading broker platforms on the Internet, with ETFinance clearly standing out. Most users on the Internet praise ETFinance for the modern and designed platform and the numerous tools that are available for social trading.

Many users refer to ETFinance as the best social trading platform, not least because you can copy entire portfolios and strategies for free and transfer them to your own portfolio. In addition, the support is praised and how easy it is to orientate yourself to other traders.

What Are the Best Social Traders on ETFinance?

The best traders on  ETFinance right now  are:

TraderTo the trader
RubymzaCopy traders now
LiborvasaCopy traders now
Slow and steadyCopy traders now
RayvaheyCopy traders now
Olivier DanvelCopy traders now
fifty-fiveCopy traders now

Social trade in South Africa – is it legal?

“What is a Social Trader?” After we have thoroughly clarified this question, we will answer the question that reaches us the second most frequently. Quite a few have concerns about whether the new trend of social trading is even legal.

This can be answered briefly and concisely: Yes, social trading is definitely not illegal in South Africa. In our research and tests, we were unable to establish any suspicion of fraud with any of the social brokers we examined.

Certain criteria can be used to determine whether a social trading broker provider is reputable:

  • The broker’s headquarters should ideally be in Europe
  • The brokerage offers should be regulated
  • Transparent conditions, especially when it comes to the payment process
  • Many other traders use the broker
  • Information about successes and failures of the respective signal generator

The future of social trading networks and communities using the example of Wallstreetbets

Until recently, the prices of public companies were mainly driven by large funds. However, it has become clear within the last year that social trading networks and communities can also play an important role in the markets.

Over the past year, investors who met and exchanged ideas in the Reddit forum r / Wallstreetbets have had a major impact on the share prices of, for example, Gamestop and AMC. This exchange between private investors and their joint action is a new feature of the stock markets and is due to the growing popularity of social media and social trading networks and communities.

Many private investors have become aware that they can influence companies’ prices with other private investors and sometimes compete with traditional hedge funds and large institutional investors.

Many investors are therefore wondering how they can benefit from these developments. Due to the growing popularity of social trading, there are now also broker providers offering social trading functions. The most popular provider in this sector is ETFinance. This broker combines the functions of a social network with those of a classic broker.

At ETFinance, investors can copy the trading strategies of other successful investors. With this function, investors are no longer dependent on advice from an investment advisor, but can easily and automatically take over the investment strategies of other traders.

Within these communities, investors can communicate directly with one another and develop strategies together or follow traders who have already proven successful strategies. These features are extremely important for the investment, especially for the younger generation of investors. While classic banks are often perceived as old-fashioned, outdated and expensive, brokers can score with community content and social trading functions.

Therefore, this area will continue to gain importance in the future. Furthermore, investors can coordinate on these platforms and invest in different asset classes at the same time.

Social Trading Broker Comparison: The Bottom Line

 

Social Trading Broker enables users to benefit from other investors’ experience and achieve high profits with their help. The innovation is like a revolution because beginners also have the opportunity to invest their capital sensibly without professional and expensive financial advisors. For this reason, social trading is becoming more and more important in South Africa and even worldwide – the number of users is constantly increasing.

In a comprehensive social trading comparison, the test winner ETFinance turned out to be a particularly suitable social trading provider. With this, the collective knowledge and social broker experience of over 6 million users from over 140 countries can be accessed. Moreover, with the user-friendly and intuitively designed social trading app, entering the financial world is almost playful.

Joint trading offers a number of advantages over other investment options. The ease of use is a weighty argument for many users. In addition, by observing different social traders, it is very easy to diversify the portfolio ideally. Not for nothing has the motto prevailed in the financial world, not putting all your eggs in one basket.

Last but not least, the high level of transparency in all transactions plays an important role for investors. The test winner reveals the portfolios, forms a risk score and a track record. This means that users always know what they are getting into and can tailor their strategy individually.

While there are many similarities between social trading and copy trading, it is a mistake to equate the two. Rather, copy trading is a form of social trading in which a signaler’s transactions are copied. On the other hand, social trading generally stands for the new trend that investors make their portfolios transparent and provide other users with insights.

The already dubious phrase that one does not talk about money and investments is fading more and more into the background. We think: for a good reason. Through social trading and copy trading, investors learn from each other and benefit from their wealth of experience. This makes it possible for private hobby investors to make profitable investments and benefit from proven investment strategies.

4.9
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Our recommendation: Trading at Investby

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4.5
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Our recommendation: Trading at ABInvesting

  • Acknowledge the financial markets through education material 
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4.9
4.9/5

Our recommendation: Trading at PrimeFin

  • Fifth decimal available 
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FAQs

The term describes the trading of stocks, cryptocurrencies or other assets together in a community. Here, social trading is separated from copy trading

No, among the multitude of platforms on the market there are only a few that actually offer real social trading. Some of them are presented in the article.

That doesn’t necessarily have to be the case. But it is definitely a great advantage to be able to benefit from the experience of other traders

Social trading is also possible with smaller sums. According to surveys, the average trading account of a private hobby trader is between € 3,000 and € 12,000

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