“Social trading” means a type of trading that allows traders to observe the actual trading of other traders and to follow their trading strategies using “Copy trading” or “Mirror trading”.
- Copy trading: A trader executes same trade as another trader’s single trade.
- Mirror trading: A trader automatically executes another trader’s every trade.
Advantages of social trading are effective, sophisticated, and low-cost. But at present few brokers offer social trading. Through our review of many reliable brokers, we will pick up one big broker, HotForex, which has the best service of social trading service as follows.
Answer: Best forex broker for social trading is “HotForex”
Social trading service of HotForex
HotForex offers 6 types of Accounts (“Micro”, “Premium”, “Zero Spread”, “Auto”, “PAMM”, “HFCopy”).
“Micro”, “Premium”, and “Zero Spread” accounts are normal trade account.
Other three accounts are special accounts related to social trading as follows.
“Auto” account is related to subscription of trading signals from the MQL5.
“PAMM” account is Percentage Allocation Management Module.
“HFCopy” account is for both Strategy Providers (SPs) and Followers who have joined HFCopy.
|Trading Platform||MT4, Webtrader and Mobile Trading||MT4, Webtrader and Mobile Trading||MT4, Webtrader and Mobile Trading|
|Spreads||From 1pip||From 1.1pip||From 1pip|
|Trading instruments||All available||All available||All available|
|Execution||Market Execution||Market Execution||Market Execution|
|Minimum opening Deposit||USD200||USD250||$500 for Strategy Provider, $100 for Follower|
|Minimum Trade Size||0.01 lot||0.01 lot||0.01 lot|
|Trade size increment||0.01||0.01||0.01|
|Maximum total trade||60 standard lot||60 standard lot|
|Max Simultaneous Open Orders||300||500||300|
|Margin Call / Stop our level||40% / 10%||50% / 20%||50% / 20%|
|Account Currency||USD, EUR, NGN||USD|
|Personal account manager||Yes||Yes|
|Maximum followers||100 – 400|
Even novice investors have opportunity to subscribe to free and paid Trading Signals from the MQL5 Community, which is built-in to the HotForex MT4 trading terminal. Investors can automatically copy the signals of any Signal Provider with paid Signals being subject to a one-month performance verification period.
As a HotForex PAMM Manager, clients (=investors) open a HotForex PAMM Account and allocate funds to clients’ Manager Account – this is known as the Manager’s Capital. When a PAMM Manager successfully manages investors’ funds by generating a profit, the Manager will receive a Success Fee – a pre-agreed percentage of the investor’s share of the profit. To choose a PAMM Manager, Investors can review the PAMM Performance Rankings page and select the PAMM Managers who match their investment goals. It’s easy to find a Manager from the customizable PAMM Performance Table by filtering results by active/ inactive strategies, current ranking, PAMM strategy name, minimum deposit, gain and maximum drawdown.
The HFcopy Account is available to both Strategy Providers (SPs) and Followers who have joined HFcopy. SPs can open an HFcopy Account aiming to build their inventory of Followers and trade in exchange of a Performance Fee, as high as 50%. Followers, on the other hand, by opening an account will be able to deposit funds and start copying the trades of their selected SPs.
Social trading, copy trading and mirror trading have great potential, because even newbie traders can follow experienced traders’ behavior. But it has other risk because it has based on other one’s trading decision. It might be focused by traditional regulation body in any country. But it is clear social trading is effective and sophisticated. Please evaluate the risk by yourself, if you enter social trading.
In case you are interested in social trading service of HotForex, please open account to follow below.
Also, please refer to our review of HotForex as follows.