Also known as copy trading or mirror trading, social trading is a tool in which traders are given the ability to copy the actions of other traders automatically. Social trading isn’t a new tool per se. Its introduction to the market took place a little over a decade ago, but it wasn’t until recently that social trading began experiencing rapid adoption.
It is deeply ingrained in human nature the desire to fit in, to be part of a larger community. It is also common human behavior to ask for peer approval and opinion. Social trading answers both needs. Moreover, social trading lowers the barriers of entry and shortens the learning curve not only for newbie traders, but also for seasoned traders looking to begin trading a different instrument or to shift their strategy.
As a broker, implementing a social trading tool within your platform, can boost your conversion levels by reassuring new traders that even without much trading knowledge in their baggage, they can follow the success of other more experienced traders until they learn to fly solo. Social trading can also help you increase engagement, by making the platform more interactive, thus lengthening client stickiness and lifetime value.
Leverate’s SIRIXSocial is the first-ever regulation compliance social trading platform. By working under EU regulation parameters, traders can be confident that the broker is keeping a responsible handle on their funds. Through a series of qualifying questions, SIRIXSocial helps traders determine what their stop loss levels should be, the proportion of funds that should be allocated per master, per instrument and between social trading and traditional trading. SIRIXSocial is also cross-community, allowing traders from one brokerage to follow the actions of another trader in a different brokerage. This creates a much more dynamic platform that increases the chances of traders come back time and time again to the platform.