ForexNewsNow – One of the leading forex brokers, eToro, has recently made a foray into the world of social networking by introducing a mobile Trade Alerts app and by integrating its WebTrader 2.0 with the eToro OpenBook. These launches have catapulted eToro into the category of leading social forex brokers who offer traders the tools to execute trades with a higher probability of turning a profit.
The features of the new tools have helped traders improve their earnings by 6%-10% compared to traders who don’t use these tools and platforms. These were the results of a research carried out by Dr. Yaniv Altshuler, a researcher at the MIT. This article will explain the details of these new features and evaluate how social forex brokers can benefit traders.
Combining Social Forex Trading With Mobile Trading
The mobile app, Trade Alert, uses technical analysis to create actionable notifications that can be used as guidance while trading. The app allows these notifications to be shared with other members using eToro’s platform for trading.
These notifications can be rated and commented on by other traders. This allows traders to understand how other traders react to market events, which in turn helps them make better informed decisions about their trading calls. By combining social forex trading with mobile trading, eToro has created a platform that allows traders to stay in touch with the market at all times using their mobile phones and react in the shortest possible time.
Follow & Copy Top Traders
The integration of eToro’s WebTrader 2.0 with eToro OpenBook has created a trading platform that allows traders to see, follow and copy the trades of leading traders. Users can see detailed information on trades carried out by the best performing traders on eToro’s platform.
Once the user identifies a particular leading trader whose trades are consistently profitable, the user can start duplicating the expert’s trade to achieve similar results. eToro’s market dashboard provides a visual indication of the prevailing market sentiment which allows traders to understand the market conditions a lot better.
To make trading even simpler, the new social forex trading platform offers automatic notifications of price based events, detailed information on instruments and interactive charts to study price changes in a variety of time frames.
Higher Gains With Social Forex Trading
As previously mentioned, Dr. Yaniv Altshuler carried out an experiment with 6000 active traders. The experiment allowed one group of traders to trade a small amount of money by copying the trades of well established ‘trading gurus’. Another group of traders were told to trade without following any other trader or any other social indicator.
The results of the experiment showed that the group who copied trading gurus fared 6%-10% better than the other group who didn’t follow anyone else. Since the launch of CopyTrader, eToro has noticed an increase in the win ratio of traders to the tune of 8%-12%. In fact, this tool has gained a lot of popularity and already accounts for over half the trades placed on eToro’s trading platform.
This feature is particularly useful for new traders who don’t have a lot of experience in trading forex and would like to learn while trading. Following established traders allows these traders to learn the tricks or trading currency while minimizing the chances of losing their money.
Advantage of Integrating Forex With Social Networking
At first look, it might seem odd to integrate forex trading with social networking. However, if one moves past the stereotype of social networking as a platform for teenagers to hang out, the value that it brings to any field of activity becomes clear. Following are some of the advantages that forex social networks bring to trading professionals:
- These platform help traders understand the existing market sentiment and let them factor this in while trading.
- New traders can now look at the trades of trading gurus to learn and understand how to trade forex.
- New traders can copy trades of the trading gurus in order to minimize their risk.
- Traders can use these platforms to increase their win ratio and profits.
- The integration of this platform with mobile phones allows traders to keep abreast of all market events and react quickly to maximize any opportunity that arises.
- Users of this platform gain a distinct competitive advantage over other traders who can’t benefit from the social indicators.
To sum it all up, the new features launched by eToro to integrate forex trading with social networking provides immense value to traders, especially the new ones. It has already proven to increase the profits of traders significantly. As it matures with time, it promises a completely different and more profitable trading experience for forex traders.