Best Social Trading Platforms In Canada 2024: Top 7 Picks & Reviews
Reviewed by Randolph Vialva, MBA
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Social trading is a form of online trading where traders connect with each other on a social network or platform, share information and ideas, and copy each other’s trades. It allows less professional traders to follow and learn from more traders, while novice traders can earn additional income by sharing their strategies. Always seek independent financial advice before beginning to trade forex, stocks, options, or socially; these advisors can help you develop a diversified portfolio that most social trading platforms will not provide.
What is Social Trading?
Social trading platforms offer a modern approach to online trading that enables traders to interact with each other on social trading networks or dedicated trading platforms using copy trading software. The concept involves sharing trading ideas, information, and insights, as well as copying the trades of more successful traders. Social trading provides an opportunity for both novice and experienced traders to learn from each other, share knowledge and techniques, and potentially increase their trading profits.
What is a Social Trading Platform?
There are many social trading platforms available today. Some of the most popular platforms include eToro, ZuluTrade, Trading 212, and Tickmill. Each platform has its own unique features and benefits, but they all share the common goal of providing traders with a community where they can interact with each other, share knowledge, and copy trades. Traders can choose the platform that best suits their needs based on factors such as the platform’s user interface, available trading tools, social features, and the types of assets available for trading.
7 Best Social Trading Platforms In Canada 2024
- eToro: Best Overall
- Public.com: Best Commission Free
- Zulu Trade: Best Copy Trades
- Trading 212: Best Demo Options
- TradeZero: Best Short Sell Options
- AvaTrade: Best Pairings
- Tickmill: Lowest Fees
Top 7 Best Social Trading Platforms In Canada April 2024
Etoro
eToro is a global social trading and multi-asset brokerage company that offers services to retail and institutional clients. The broker provides a platform where users can interact with and copy the trades of successful traders.
- User friendly
- Wide range of trading options
- Highly regulated
- Limited analytics
- High minimum investment
- Complicated fee structure
eToro offers a wide range of trading instruments, including the stock market, forex trading, cryptocurrencies, commodities, and indices, and is regulated by multiple financial authorities.
Public.com
Public.com is a social investment platform that allows users to buy and sell stocks, ETFs, and cryptocurrencies commission-free, as well as follow and share ideas with other users. It emphasizes community-driven investing and offers educational resources to its users.
- Commission-free trades
- Community-driven investment features
- User-friendly interface
- Limited investment options
- Limited research
- No mutual fund or options trading
Public.com focuses on community-driven investing, providing a platform for users to share ideas and learn from each other, making investing more accessible and engaging for all. Additionally, its commission-free trading and educational resources make it a great option for beginner investors.
ZuluTrade
One of the best things about ZuluTrade is its social trading feature, which allows users to follow and copy the trades of other successful traders, potentially increasing their own profits. Additionally, ZuluTrade offers a range of analytical tools and resources to help users make informed trading decisions, including a proprietary ranking algorithm that helps identify top-performing traders.
- Follow and copy trade features
- Proprietary ranking algorithm
- Analytical tools
- High minimum deposit
- Limited customization
- Complaints of slipping/trade delays
ZuluTrade is a social trading platform that allows users to follow and copy the trades of other traders, as well as create and share their own account strategies. It also offers a range of analytical tools and resources to help users make informed trading decisions.
Trading 212
Trading 212 is a London-based brokerage account firm that offers trading commissions free of stocks, ETFs, trading forex, and cryptocurrencies. Its user-friendly platform offers a range of analytical tools, educational resources, and a demo account for practice trading.
- Commission free trades
- User-friendly interface
- Demo accounts
- Limited investment options
- Limited country availability
- Slow customer service
One of the best things about Trading 212 is its commission-free trading, which allows users to buy and sell stocks, ETFs, forex, and cryptocurrencies without paying any fees. Additionally, Trading 212 offers a user-friendly platform with a range of analytical tools and educational resources, as well as a demo account for practice trading, making it a great option for beginner investors.
TradeZero
Through TradeZero users can buy and sell stocks, options, and cryptocurrencies without paying any fees. Additionally, TradeZero offers access to short selling and provides a range of analytical tools and resources to help users make informed trading decisions, making it a great option for active traders.
- Commission free
- Short sell options
- Analytical tools
- High minimum deposit
- Limited country availability
- Slow trade execution
TradeZero is a US-based online brokerage firm that offers commission-free trading of stocks, options, and cryptocurrencies. It also provides access to short selling and offers a range of analytical tools and resources to help users make informed trading decisions.
AvaTrade
AvaTrade is a global forex and CFD broker that offers trading services to retail CFD accounts and institutional clients. The broker provides multiple platforms, including MetaTrader 4 and AvaTrader, and offers a wide range of trading instruments, including forex, stocks, commodities, and cryptocurrencies.
- Large pairing selection
- Ties into the social trading platform
- Highly regulated
- No VPS
- Fee structure
AvaTrade is regulated by multiple financial authorities and has won several industry awards, including Best broker and Best Trading Experience.
Tickmill
Tickmill offers low spreads and commissions. Tickmill offers some of the lowest spreads and commissions in the industry, making it a cost-effective option for traders. This allows users to trade with more flexibility and better risk management while keeping costs low.
- Low spreads and commissions
- User-friendly interface
- Regulated by multiple authorities
- Limited investment options
- No stock or crypto options
- Slow customer service
Tickmill is a UK-based online brokerage firm that offers trading groups in forex and CFDs. The company’s platform is user-friendly and offers a range of analytical tools and resources, as well as competitive pricing.
How Does Social Trading Work?
A social trading platform allows traders to connect with each other on social trading networks. Traders can share information about their strategies, techniques, and performance, as well as follow and copy the trades of others. This allows less experienced traders to learn from more experienced ones and potentially increase their profits. Remember, most accounts lose money when trading CFDs, options, stocks, mutual funds, and other properties before they begin to earn.
Pros & Cons of Social Trading
There are several reasons to consider social trading platforms. These include:
- Learning opportunities: Social trading platforms provide a valuable learning opportunity for new traders to observe and learn from experienced traders, as well as to engage in discussions and ask questions.
- Access to market insights: Social trading allows traders to stay up-to-date with market trends and news by following others who are experts in specific markets or asset classes.
- Time-saving: Social trading can save time for traders who lack the experience, knowledge, or resources to conduct market research or analysis. By following others’ trades, they can avoid the need to perform their own research.
However, understanding the nuances of social trading is important:
- Risk of copy-trading: Copying trades blindly without understanding the strategy behind them can lead to losses. Traders need to conduct their own research and analysis before copying others’ trades.
- Reliance on the community: Social or copy trading relies on the quality of the community, and the expertise and performance of others. A weak or unreliable community may not provide good trading opportunities or insights.
- Platform risks: Social or copy trading platforms can be vulnerable to hacking or other security breaches, leading to the potential loss of funds or personal information. Traders need to ensure they use secure and reputable platforms.
How to Improve Your Trading Strategies through Social Trading Platforms?
These platforms will help you learn trading strategies and investment strategies. Here are five ways to improve your own trading strategies:
- Research and analysis: Conduct thorough research and analysis of the markets, the instruments you want to trade, and the traders you want to follow. This will help you to identify profitable trading opportunities and make informed decisions.
- Diversification: Don’t rely on just one trader or one strategy. Instead, diversify your portfolio by following multiple traders with different trading styles and strategies.
- Risk management: Implement risk management techniques to minimize your losses and maximize your profits. This includes setting stop-loss orders, monitoring your portfolio regularly, and adjusting your positions accordingly.
- Consistency: Stick to your trading plan and don’t make impulsive decisions based on emotions. Be consistent in your trading approach and follow the strategies that have worked for you in the past.
- Communication: Engage with others on the platform and exchange ideas and insights. This can help you to gain new perspectives and improve your strategies.
- Continuous learning: Stay up-to-date with the latest market trends and news, and continuously educate yourself on new trading strategies and techniques. Attend seminars, read books, and follow industry experts to enhance your knowledge and skills.
These strategies will help to improve your trading strategy as you learn.
How to Choose The Best Social Trading Platform?
Consider the platform’s reputation, regulation, fees, available instruments, user interface, and community engagement when deciding which copy platform is right for your needs. Compare options and choose the one that fits your comfort level.
Regulation
Regulation of financial markets refers to the oversight and enforcement of laws and rules governing financial transactions and institutions to protect investors and ensure stability. A good platform will be regulated.
Track Record
Track record allows users to evaluate a trader’s performance and risk profile, helping them choose the best trading platform and traders to follow for potential profits and minimize risks.
Costs & Fees
The best copy trading platform will typically charge fees for spread, commissions, and overnight financing. Some platforms may also have account maintenance fees or inactivity fees. Traders should carefully review and compare fees across different platforms to find the most cost-effective option.
User-Friendly Platform
A user-friendly and popular copy trading platform has a simple and intuitive interface, comprehensive tools for analysis and management, and a supportive community with clear communication channels.
Customer Support
Social trading platforms typically offer customer support services through email, phone, live chat, and FAQ sections. Some platforms may also provide educational resources such as webinars and tutorials. Make sure the platform you choose has the support options that best fit your needs.
Customer Reviews
Customer reviews are important for the best copy trading platforms as they provide valuable feedback on user experiences and can influence user perception and decision-making when choosing a platform to use.
Final Thoughts
Social trading platforms allow traders to follow and copy the trades of other experienced traders, also known as signal providers. It combines social media with trading, allowing users to share strategies and interact with others in a community setting. Users can follow, comment, and share ideas with other traders. It provides a platform for novice traders to learn from experienced traders, potentially leading to increased profits and reduced risks.
Frequently Asked Questions (FAQs)
Social or copy trading and automated trading features differ in their approach to trading. Social trading relies on following and copying the trades of other traders, while automated trading platforms use pre-programmed algorithms to execute trades automatically. While copy trading involves human decision-making and interaction, automated trading relies on computer-generated signals and may not require as much manual intervention. Some popular automated trading tools used by traders include MetaTrader 4 and 5, NinjaTrader, TradingView, and ProRealTime.
Is copy trading legal? Yes. The copy trading method and mirror trading are similar, but not exactly the same. Copy traders directly copy the trades of another trader in the financial market, while mirror trading involves replicating the trading history of a selected strategy or system, which may not be executed by a single copying trader. In mirror trading, the trades are automatically copied by the user’s trading account without requiring real-time intervention. Use copy trading platforms to find other traders to copy; they allow filtering and sorting of traders based on performance, risk, and other criteria. Be sure you understand the knowledge of the mirror or copy account so that you do not begin losing money rapidly.
Algorithmic trading and mirror trading are similar in that they both use pre-programmed rules to execute trades automatically. However, algorithmic trades involve mathematical models and statistical analysis to develop strategies, while mirror trades involve replicating the trades of a selected strategy or system, which may not be based on complex algorithms.
Trade signals are trading ideas or recommendations based on technical or fundamental analysis, used by traders to make trading decisions. To learn how to use trade signals, traders can take courses, read books, or follow experts on social media or other platforms that offer trading signals. They are a part of analyzing financial markets and market risk, which is the broader research and examination of economic indicators, industry trends, and geopolitical events that may impact the market.
Trading fees can vary depending on the copy trading app and the type of trading you engage in. Some common fees to expect are spread (the difference between the buy and sell price of an asset), commissions (a fee charged by the broker for executing trades), and overnight financing charges (charged for holding positions overnight). Additionally, some social trading platforms may charge trading account maintenance fees or inactivity fees. It’s important to carefully review and compare fees across different platforms to find the most cost-effective option.
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