Social trading is the guy you take home to meet your parents. Good on paper, but ultimately, a risky endeavor. Social trading offers a multitude of benefits, including a shorter learning curve for new traders and a way to get a pulse on market sentiment for both new and seasoned ones. It does however, offer some great risks as well, which to the unseasoned trader, could represent a great loss of control and money. By signing up with a broker that offers a regulation-compliant social trading platform, the risks involved in social trading are diminished through the use of set exposure limits, risk identification, better matching between traders and masters, diversification tools, warnings and oversight.
Read our article in LeapRate and find out how regulation-compliant social trading platforms are fixing the flaws in social trading