Social trading has emerged as a growing trend in the trading industry, relying on dedicated platforms to facilitate trade execution. Similar to modern social networks, social trading allows users to subscribe to or follow experienced traders with a proven track record. Their trading activity and strategies are publicly accessible, enabling followers to replicate their trades.
However, copying trades is not free—you must pay a subscription fee to follow professional traders on leading forex broker networks. While this can be a worthwhile investment due to the convenience of mirroring strategies with minimal effort, it’s important to remember that copy trading does not eliminate risk. Losses are still possible, and traders should always be prepared for potential setbacks. Some social trading platforms offer risk management features to help minimize losses and protect investments.
Is Social Trading Legal?
Yes, social trading is legal in many countries, but its regulatory status varies depending on the jurisdiction. Since social trading involves replicating the trades of experienced investors, it often falls under financial regulations that govern investment services, copy trading, and automated trading platforms.
In some regions, social trading platforms must comply with strict regulations to ensure transparency and investor protection. For example:
- In the United States, social trading is subject to oversight by the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission).
- In Europe, platforms typically operate under FCA (UK), CySEC (Cyprus), or ESMA (EU) regulations.
- In Australia, social trading is regulated by ASIC (Australian Securities and Investments Commission).
While social trading is widely accepted, some countries impose restrictions or licensing requirements for platforms offering these services. Before engaging in social trading, it’s essential to check local regulations to ensure compliance and protect your investments.
Best Social Trading Platforms
The following list is a result of our extensive research; however, it is essential to do self-research too.
Min. Deposit: $100 Regulated: ASIC, CySEC, FSP, FSCA, CMA Integrating state-of-the-art technology with ECN pricing and a vast array of products on offer, FPMarkets is a genuinely top destination for every type of trader. You can trade Forex, Cryptocurrencies, Equities, Metals, Commodities, Futures and Index CFDs with super user-friendly platforms. Min. Deposit: $200 Regulated: ASIC IC Markets is best known for having some of the tightest spreads in the world. In fact, our EURUSD spread has been the lowest in the world for almost two years, averaging 0.1 pips 24/5. IC Markets is able to offer market leading pricing and trading conditions through its platforms by providing clients with True ECN connectivity. Min. Deposit: $100 Regulated: CySEC, FCA, FSB, DFSA, SCB Founded in 2006, FxPro is a global forex and CFD broker with a great degree of trust, as confirmed by 90+ international awards and an official partnership with the McLaren F1™ team. Min. Deposit: XtremeMarkets has built a solid reputation since 2015 by following three guiding principles: fairness, reliability and transparency. Internationally recognized by its industry peers and clients as one of the world’s largest and most client-centred broker companies Min. Deposit: $10 Regulated: FCA, ASIC, DFSA Axi is an award-winning forex brokerage service, which has been operating in 100 countries and providing service to 42,000 traders. However, Axi changed its name in October 2020, which was known as AxiTader from the beginning.
$10
Regulated: FSC
