Best Social Trading App 2023 - Social Trading Platform Review

Jhonattan Jiménez

Pro Investor

Updated: 28 October 2022

Disclosure

Through social trading apps , you can communicate with other investors in a way similar to social media. It is a platform that allows you to share and discuss investment opportunities with other traders and learn from pros. It is also possible to passively invest through social trading platforms by ‘copying’ successful traders.

This guide reviews the best social trading apps to consider in 2023 and how you can set up an account today!

What is Social Trading?

Social trading platforms are social networks designed for traders. People post their trades and strategies instead of selfies. It is possible to learn from others who have similar philosophies to your own by watching what they do and following them.

In some cases, you can not only follow traders and connect with other investors, but you can also execute trades on these platforms, copying what others do and hopefully make some profit.

However, social trading isn’t widely accepted in the United States, so you may not have the same trading options available as non-US traders. Although you are not able to make trades, you are still welcome to take part in the community and learn about trading strategies

Benefits

Social trading platforms are great for beginners. It’s often easier to learn by following the decisions of more experienced traders. Most social trading platforms offer a simple copy trading option, and you can automate your trades if this suits your strategy.

The benefits of social trading platforms are also relevant to experienced traders. Professionals can earn passive income by allowing other users to copy their trades. Additionally, they can copy or engage with other traders with a successful track record to increase their profits.

Most social trading platforms also allow you to track your performance. Keeping track of copied trades and profits is easy with this feature. You can copy trades from different assets and build a portfolio of the best traders on each network. Social trading platforms can spread your money across different investments while benefiting from someone else’s expertise.

Risks

Considering your entire financial situation, including financial commitments, is important when making an investment decision. You should be aware that Social Trading involves high levels of speculation, and you can sustain significant losses, exceeding the amount spent copying an investor’s strategy. Replicating an investor’s strategy does not guarantee the same return.

The stock market may work for you, but you may not understand why investors make trades. So make sure you do your analysis before making any investment, based on your own opinions and individual circumstances. Consult an independent financial advisor as well.

Here are some important investment warnings.

Investments and shares can lose value as well as gain, and their income can fluctuate
There is a risk of losing the amount you invested – you may not get it back
Performance in the past does not guarantee future results

Best Social Trading App 2023 List

Would you like to start investing with the best social trading platform of 2023 right now? To find out which social trading platforms to consider, see the list below. Then, for a full review of each platform, scroll down.

eToro – Overall Best Social Trading Platform
IG – Useful Platform to Buy and Sell Trading Signals
TD Ameritrade – Relevant Platform with Some Social Trading Features
SoFI – Investing Platform for Social Trading

Best Social Trading App 2023 – Reviewed

Even though social and copy trading is gaining more and more popularity with the average Joe investor, the number of active top-rated platforms in this space is still rather small.

As a result, you need to pay attention to a platform’s social trading features and other key indicators such as regulation, tradable markets, fees, payments, etc.

Following are some of the best social trading platforms to consider in 2023. So we have you covered whether you are searching for a social forex trading platform, a stock market trading platform, or a Bitcoin trading platform.

1. eToro – Overall Best Social Trading Platform

Looking at the numbers, there is no competition in the social trading platform space. This means eToro is undoubtedly the market leader in this field, with more than 17 million clients now using the social trading platform.

In addition to being one of the best forex brokers in the industry, eToro is heavily regulated. FCA, ASIC, and CySEC licenses are in place, as well as FINRA registration. As a result, you can engage with its social trading tools safely and securely. Over 17 international marketplaces, eToro supports a wide variety of asset classes – including more than 2,400 stocks and 250 ETFs.

eToro also offers cryptocurrency, forex, commodities, and more. eToro’s market platforms include a social component each. For example, if you click on Apple stocks, you will see a list of relevant threads that other eToro traders have posted. On each thread, you can “Like” and “Comment” like on social media! Furthermore, you can choose to ‘Follow’ the traders you like on eToro.

Accordingly, eToro’s Copy Trading tool is one of the most innovative and attractive social features it offers. As a result, you can create your eToro trader by copying another trader. Thousands of verified eToro users have joined the Copy Trading program, so you can find an investor who meets your financial goals and appetite for risk. There’s also plenty of data to draw from – including past performance, historical trades, risk profile, average trade duration, and preferred assets.

When you copy a trader on eToro – which requires a minimum investment of $200 – every action they make will be reflected in your account. A trader who risks 15% of their portfolio on IBM stocks and you invested $1,000 in the trader will add $150 worth of IBM stocks to your portfolio! In terms of fees, things get even better – as eToro is a 100% commission-free platform.

In addition to avoiding commissions when you buy, sell, and trade assets, you will also avoid them when using the Copy Trading feature to copy trades. Regarding eToro’s payment options, you can choose from various debit/credit cards, eWallets, and bank transfers. In addition, you will not be charged any fees if you use a USD payment method. Otherwise, you will be charged 0.5% FX fees.

eToro still hasn’t convinced you? To learn more about what eToro offers, read our eToro app review.

Pros

Online trading platform and broker that is very user-friendly
It lets you trade thousands of assets with tight spreads
Completely commission-free
Trading stocks, indices, ETFs, cryptocurrencies, and more is also available
Use a debit- credit card, e-wallet, or bank account to deposit funds
Social trading and copy trading
According to its legal disclaimer, FCA, ASIC, and CySEC regulate the company

Cons

Not suitable for technical analysts or experienced traders

Visit eToro Now

67% of retail investor accounts lose money when trading CFDs with this provider.

2. IG – Useful Platform to Buy and Sell Trading Signals

IG does not offer a full-featured social trading platform, including a news feed and the ability to follow other traders. However, you can buy and sell trading signals on the platform. They can be especially useful for day traders since you can mix and match signals or modify them to suit your trading strategy.

IG offers several options for trading, such as buying shares and ETFs outright for long-term investing, trading with CFDs, or spread betting. Spread betting, and CFD trading are commission-free, while direct investing carries a small fee per trade. Additionally, you can trade futures and options on IG.

Spread betting is only available to clients in the UK

Additionally, IG gives you access to some of the most advanced trading platforms available. MetaTrader 4 offers the ability to create custom indicators and backtest your trading strategies, for example. Another option is ProRealTime, which provides a powerful charting interface and personalized dashboards.

Pros

Variety of features
Accepts US customers
Regulation by FCA (UK) & CFTC, NFA (US.)
Education and research priority
Protection for U.K./E.U. clients

Cons

No account protection for US clients
No guarantee of stop losses for US clients
IG platform does not support copy trading or backtesting
Fees for share-CFDs are high

Visit IG Now

Your capital is at risk.

4. TD Ameritrade – Relevant Platform with Some Social Trading Features

You should strongly consider TD Ameritrade if you are an experienced trader looking for solid research and a well-equipped desktop trading platform.

Established in 1975, the company is regulated by top authorities such as (SEC), the Securities and Exchange Commission, (FINRA) Financial Industry Regulatory Authority, and (CFTC)Commodity Futures Trading Commission.

It is a safe choice as an online broker with a long track record, a stock exchange listing, a banking background, financial disclosure, and being regulated by top-tier regulators.

With TD Ameritrade, you can trade stocks and ETFs for free, while bonds, options, and forex are available at low fees. Futures trading, however, has a high fee with many asset classes to trade, from stocks to futures and forex, and nice extras such as social trading and robo-advisory. However, only the US market is covered.

Investors and traders looking for well-developed desktop trading platforms and solid research should consider this service.

Pros

Low trading fees (free trading of stocks and ETFs)
Excellent desktop trading platform
Excellent customer service

Cons

You can only trade on US markets
Accounts are mostly limited to US residents
There is no use of credit/debit cards and electronic wallets for money transfers

Your money is at risk.

5. SoFi – Investing Platform for Social Trading

Founded in 2011, SoFi is a fintech startup headquartered in the United States. Since 2018, it has expanded into the broker space from its initial focus on student loans. The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) regulate SoFi. SoFi Invest provides a discount or zero-fee brokerage services.

SoFi Invest also offers automated and active investment services. Self-directed accounts allow you to trade stocks, ETFs, and cryptocurrencies independently. Contrary to SoFi Invest automated investing, SoFi Invest’s robo-advisory service takes care of your investments. This review focuses on the active investing service.

Consequently, SoFi Invest is considered safe since it is regulated by top-tier financial authorities and offers up to $500,000 in investor protection (including a $250,000 limit for cash) as part of the SIPC protection scheme.

Pros

Access to free stocks and ETFs
Quick and easy digital account opening
Excellent customer service

Cons

Only available to US customers
Limited product selection
Simple research tools

Your money is at risk.

How To Choose The Best Social Trading App For You?

Even though eToro dominates the industry by a wide margin, you might come across a social trading platform in the future that we haven’t yet discussed.

Before opening an account, you must ensure that the platform is right for your trading goals. In choosing a social trading platform, you should consider the following factors.

Regulation

It is important to keep in mind that social trading apps are a type of brokerage platform. In other words, they give you access to the financial markets, so reputation and trust are vital. Because of this, reputable financial bodies heavily regulate the best social trading platforms.

eToro, for example, has a license from the FCA, ASIC, and CySEC. This means all funds are kept in segregated bank accounts, and all users must provide documentation. eToro also monitors the fairness and transparency of its social and copy trading features.

Assets available

You’ll need to check if the platform supports specific stocks or exchanges to start.

eToro, Interactive Brokers, Schwab, and Fidelity are some of the top-rated brokerages because they not only boast a wide variety of US stocks but also provide access to international exchanges. You will then be able to diversify across a wide range of markets.

Platform Fees

The aim of social trading platforms is to make money. Therefore, you should find out what fees you will have to pay before opening an account.

Here are the main fees you need to consider:

Commissions: The social trading platform you select may still charge a commission even if you choose to copy a trader. That is usually a percentage of the amount you trade. When your chosen trader purchases and sells an asset, you might need to pay 0.10%. eToro offers commission-free trading on all markets offered by the platform.
Copy Trading Fee: If you use eToro Copy Trading, you won’t have to worry about additional fees. Some platforms, however, charge a commission. NAGA, for instance, charges a 5% commission on any trade that yields profits over €5.
Deposit and Withdrawal Fees: A fee is usually charged when you deposit or withdraw funds from social trading platforms. The fee, however, may vary based on your payment method.
Overnight Financing: There will be additional fees if your copy trader keeps a leveraged CFD position open overnight. Investing in the copy trader will reflect in your social trading account.

Ultimately, if your copy trader incorporates fees into the transaction, you should expect to pay a proportionate amount.

User Experience

You must proceed with the application after you have spent the necessary time assessing fees. It would help if you determined whether the investment app is user-friendly first.

If you invest for the first time, you don’t want to be overwhelmed by advanced features and tools. A live demo account is particularly valuable in an investment app. Ultimately, you can test the app without risking your own money.

Tools and Features

Let’s say you’re looking for the best stock trading platform for beginners. Consequently, it is important to consider whether the provider offers tools or features to help you make better investment decisions.

For example, eToro offers a copy trading service that allows you to copy the investments of successful investors. The company also offers smart portfolios and custom pricing alerts.

Education, Research & Analysis

If you’re a novice looking to take a slow and steady investment approach, you should choose an app with in-house educational materials. For example, videos and investment guides.

eToro, for example, offers regular webinars as part of its investment app. Furthermore, Robinhood’s app allows you to listen to live earnings reports.

An investment app that offers fundamental research tools would be a major plus. You can avoid using a third-party research provider by accessing real-time news, earnings reports, and market insights.

Payment Methods

Last but not least, if you are hoping to use social trading tools to make money, you will have to deposit before you can start trading. You can fund your social trading account with a credit or debit card, as such transactions are usually processed instantly.

NAGA and eToro also offer e-wallets. However, you might have to wait a couple of working days before your funds are credited on some social trading platforms since they only accept bank wire deposits.

Copy Trading Features

The purpose of copy trading is to provide exposure to financial markets to investors who lack time to learn how to trade. It is a form of account management, and several regulators are investigating the possibility of reclassifying copy trading platforms as investment advisors. Therefore, never blindly trust a strategy and always monitor your account.

Copy Trading Tools

It is possible to ‘copy’ other members in the trading community on the best social trading platforms online. Many brokers now offer this service as they realize that some people want to invest passively. The copy trading feature offers a wide range of factors that will determine whether or not it is worth considering.

This includes:

Choice of Traders

Several social trading platforms allow you to copy the trades of other traders on the site. However, you are usually limited to a handful of traders to copy. As a result, you have little chance of finding a trader who fits your financial goals and appetite for risk.

Over 700,000 eToro’s 17 million social investors are verified copy traders. Therefore, when you perform some research on a trader before investing, you can gain a better understanding of the person. You can view, for example, the average monthly returns of the individual trader.

In addition, you can view the average trader duration, which illustrates whether they are day traders, swing traders, or long-term investors. eToro users can also explore their preferred asset class, risk rating, and full biographical information regarding their trading goals and experience.

How to Get Started with a Social Trading App

After reading this guide, you should be able to identify the features you want to look for in a social trading platform. The next step is to outline the process of getting started.

Here’s a step-by-step walkthrough based on eToro – a regulated and commission-free social trading platform.

Step 1: Install the App

You can start the process by visiting the website and downloading the app. You will be redirected to the respective Google Play Store or Apple Store once you select your operating system (Android or iOS).

Step 2: Open a Trading Account

Click the ‘Create Account’ button after the app has been installed.

Following that, you will be asked for some personal information, including:

Full Name
Country of Residence
Home Address
Date of Birth
National Tax Number
Contact Details
Username and Password

Regulated platforms require you to prove your identity, so you’ll have to upload a copy of your government-issued ID and proof of address. Then, using your mobile phone camera, you can take a picture of the documents and upload them straight to the app.

Step 3: Fund Your Account

Now you must make a deposit. You can pay with a debit/credit card, e-wallet, or bank transfer. The minimum deposit is $200, and there is a conversion fee of 0.5% for non-US payments. All deposit methods, except a bank wire, are instantly credited to your account, allowing you to start investing immediately.

Step 4: Search for Other Traders to Copy

Once you have made a deposit, it’s time to browse eToro’s many verified copy traders. The first step is to click the ‘Copy People’ button. Because there are more than 700,000 traders, it is advisable to use some filters on the screen.

This includes:

‘Who Invests In’: You can choose the type of asset you want to trade via the investor of your choices – such as stocks or forex.
‘Gained at Least’: You can specify how much profit the copied trader has made in percentage terms.
‘During the’: You can select the period for your target profit percentage based on the above metric. For example, you might want to hire a trader who has made at least 10% over the past year.

Click the ‘Go’ button once you have selected your filters.

Once that is done, it is best to select additional filters to find a social trader that meets your financial goals.

This includes:

Risk Score: Based on historical trades, eToro automatically assigns a risk score to copied trades. Scores range from 1 to 6 – with 1 being the lowest risk.
Copy AUM: The AUM (Assets Under Management) shows how much money has been invested into a trader
Average Trade Duration: As a result, it is an important filter that tells you what kind of trading strategy the individual uses. By investing in a day trader, you know the average trade duration is 5 hours. The average duration of 10 months indicates that the investor is long-term.

There are many other filters on the platform, so look around to find a trader who meets your requirements.

Start Trading

To invest in social trading, you need to click the ‘Copy’ button on the respective trading profile page of your chosen eToro trader.

An order box will appear, as shown below. The first step is to choose the investment amount, which should be at least $200. By default, you will only be able to copy the individual’s ongoing trades.

Consider checking the ‘Copy Open Trades’ box if you want to experience social trading fully. As a result, you will also be copying the ‘current’ portfolio of the trader.

As long as you add and remove assets from your social trading portfolio, you always maintain full control over your investment funds on eToro.

Finally, confirm your order to begin copying your preferred social trader!

67% of retail investor accounts lose money when trading CFDs with this provider.

Best Social Trading Apps 2023 – Conclusion

Casual investors are becoming increasingly interested in social trading platforms. Most importantly, you can trade the financial markets without lifting a finger. You simply choose a trader you like, choose how much you want to invest, and that’s it – so you can start enjoying passive investing.

As a result, you should spend some time researching a social trading platform that meets your needs. For several reasons, eToro stands out from the crowd. With over 17 million clients and 700,000+ verified copy traders, the platform is highly regulated, offers thousands of markets, and doesn’t charge any trading commissions.

Visit eToro Now

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

What is the best copy trading platform??

The leading social trading platform of choice is often eToro. Its simple interface, commission-free offering, and support for thousands of tradable markets have attracted more than 17 million clients.

What is copy trading?

The name says it all! With copy trading, you can copy the positions taken by other traders. Your account will also make the same trade when that trader makes a trade. You automatically decide the amount you wish to invest and copy everything they do.

What is eToro?

The leading social trading network eToro allows traders to copy the trades of experienced investors and receive exclusive perks for sharing their trading strategies.

What is social trading?

The concept of social trading is to observe how your peers and trading experts behave to copy their trading strategies using mirror trading or copy trading. In addition to saving money over hiring traditional wealth managers, this method requires opening a trading account.

Jhonattan Jiménez

English Language professional with a vast experience teaching English as a second language, English translator to Spanish, Cryptocurrency enthusiast, interested in geopolitics and economy.

View all posts by Jhonattan Jiménez

Best Social Trading Apps 2023