The best social trading brokers

The social trading or social investment it is an innovative form of investment made possible by new technologies and specifically the internet. The concept is simple, on a platform where you can carry out this type of investment, you have the possibility to follow other investors or traders, as if it were a social network, with the extra functionality of being able to automate the investment process if you wish. Since it seems to us a very interesting idea to carry out a successful investment, in Estafa.info we offer you our analysis of the best social trading brokers , so that you can choose the one that best suits your needs without fear of falling into scams or scams.

From now on, we can tell you that we recommend you eToro as the best broker to do social trading safely.

In addition, below we offer you a table with the best brokers for social trading available in New Zealand according to our opinion.

In the rest of this article we reveal the criteria that we have used to make the table, with the intention that you yourself can evaluate the security that investing in any broker you can find would entail.

What is social trading?

As we told you at the beginning, the social trading it is nothing more than the possibility of copying the investments of other investors, thanks to an investment platform. In other words, it offers you the possibility of getting free financial advice from international experts whose performance you can easily evaluate thanks to the statistics offered by each user's broker. This type of investment implies some advantages which are certainly interesting. We explain them to you below:

Advantages of social trading

1. The main advantage is that it allows diversify investments in a very efficient way, since although it is impossible for a single user to dominate all the markets, with social trading, by being able to copy other users, you can make a selection of experts in different markets. For example, you could follow a user who is an expert in commodities, another in currencies and another in the North American stock market, while you take care of the investments in the New Zealand or dollarpea stock exchange, which are surely the ones you master the best.
2. Another important advantage is that the advice what you get with social trading is not as interesting as the one offered by a traditional investment entity. When you go to an entity to be recommended an investment, you are asking a salesperson about their products. Can you imagine going to a real estate agency and asking them if you should buy the house they have in the window? They would tell you yes, right? Well, that's exactly what you do when you go to your investment entity. On the contrary, with social trading, what you do is copy investments that a particular person is making with their money and that, therefore, they will not want to lose under any circumstances.
3. It's also a great way to stay on top of the market sentiment . In a broker of this type, you will be able to see opinions of investors from all over the world and if you have a certain ability to detect the moments before euphoria or panic, you can get very good trades.
4. In addition it allows to operate to users who do not have much experience with the investment. Although careful, when investing you should make sure that you understand the investment instrument and its risks well. Social investments are a great option so that, once you have done those two previous steps, you can check how other investors develop their strategies and learn from them.
5. Finally it is a way of prove your worth to the world of financial investing . Many traders gain prestige on these social investment networks and end up working for major firms or developing their own investment fund. In addition, platforms such as eToro encourage the most followed users to continue adding value to the investor communities of their websites by paying them an amount of money, which can be fixed or proportional to the volume of operations.

How to trade in social trading

To operate taking advantage of the advantage that we have just commented, you just have to open an account on some platform that is dedicated to this type of investment and make an income of money to have cash available for investments. In this regard, it is important selecting an investment broker i'm sure No suppose a risk of falling for a fraud or a scam . To do this, you must follow the security checks that we indicate below on this page, or simply select one of the brokers that we have already analyzed. We recommend that you read the reviews that we have available to the public and access the broker that seems best to you.

Once you have your account with cash, you should take a look at the user statistics. Generally, brokers offer a ranking, so that it is easy to identify the investors who are making the best profits in recent times. The only thing you need to do is select which users you want to copy automatically or, if you prefer, just follow them and copy the operations that seem appropriate to you manually. As in any investment, it must be borne in mind that to make money, you have to risk it and that past returns do not ensure future returns.

As a general rule, social trading platforms offer their users the possibility of investing in CFDs or in binary options trading , because these are the financial products that, due to their particularities, allow all investors to diversify properly, thanks to their leverage and the accessibility they give the small investor to international markets that they cannot access through traditional investment, unless with affordable commissions.

Criteria for selecting a social trading broker

The fundamental criteria to properly select a broker that allows investing benefiting from the investments of other users do not differ much from the criteria that must be taken to opt for any other type of investment platform: security, quality of service, customer support and other factors .

Security it is, without a doubt, the most important thing in everything that has to do with investment. We must clarify that when we talk about security, we are not referring to the security of the investment itself, since this is something that each user must manage depending on the risk and profitability they want to assume, but to the security that the investment platform entails intrinsic when entrusting our money to it. In addition, in the case of social trading, there is an extra factor linked to the transparency of the statistics of the users that we want to follow. We will go into detail later.

Secondly, you should take into account the quality of service offered by the broker . For them, it is necessary to answer questions related to the offer of available assets, usability and simplicity of the website, general conditions of use of the website, etc. It is also highly advisable to opt for a company that has a good customer service and that, in addition, it is operational long enough or, at least, during the hours in which each user personally will be operating.

Finally, we should not ignore other factors, such as the possible offers, bonuses and promotions that the broker can get. Although they should not be the most important factor, all other things being equal, they could tip the balance one way or the other.

How to tell if a social trading broker is a scam

Absolutely always before depositing your money in any type of broker or website, you must check if there is no risk that it is a scam . Unfortunately, internet frauds are still common and in everything related to investing in the financial markets, caution must be exercised. In this section we show you how to know if a specific social investment broker is a reliable company or, on the contrary, is a fraud.

1. Regulations - Brokers that allow reliable social investment comply with certain mandatory regulations that depend on the country in which they are registered. If you are going to invest from New Zealand, the most advisable thing is that the platform you choose is registered in a country of the Dollarpea Union and, if possible, also in the CNMV. In any case, it is always advisable to check which regulations the broker follows and how they protect users.
2. Physical address and contact details : Even if a company is not fraudulent, it may happen that an investor needs to contact it by a formal means to make a claim. Therefore, it is important that the company you choose does not hesitate to offer its physical address and phone number to all those who want to contact by these means.
3. Encryption of information : Without a doubt, any online economic transaction requires that the information be encrypted. It is a simple check but one that should never be overlooked.
4. Terms and conditions : Basically they are the contract that you accept when using the website and you must treat it with the same interest as you read any other type of contract to which you are going to give consent. They usually do not usually pose many problems, except for welcome bonuses. In them, there may be difficult-to-fulfill conditions that make it more interesting to refuse the bonus than to accept it.
5. Methods of entry, withdrawal and requirements - It is important to have a good diversity of methods of income and withdrawal of money. In addition, in Estafa.info we always make sure that brokers perform the necessary identity checks for cash withdrawals. Although they may seem tedious, they are a real guarantee of safety.
6. Customer service - Another factor related to security, since they will be responsible for solving problems that may arise. It is important that the broker has this service available as much of the time as possible.

After checking these aspects of each broker you will be able to make a much better decision than if you just take a look at the good or bad aspect of their homepage. As not everyone has the time or the necessary knowledge to do so, in Estafa.info we put at your disposal analysis of the main social investment brokers , so you can easily find out which ones are the safest and fraud-free.

How to choose a social investment broker

Choosing a social investment platform should be based on a methodical and as objective as possible. Sometimes it's easy to get carried away with a nice website, or a succulent welcome promotion, but you have to think long-term about investing and not get carried away with more subjective or less important aspects.

Security

As we have explained the details in the previous section, we are not going to repeat them again here, but we do want to emphasize that avoiding scams it should be the main decision factor.

Transparency in user statistics

There are two fundamental aspects here. The list of the users with the best returns , since you will probably decide to follow several of them, and the particular statistics of each user . In the first, you must check that the list conforms to reality. To do this, you can do a trial with the demo account if the platform offers it. In addition, if the classification of users is not due to the benefit achieved effectively, it is important that the platform explain in detail on which the classification is based . For example, some platforms do the classification using an algorithm, which can be very optimal, but it lacks transparency if it is not explained how that algorithm calculates the values. Others, can count the open operations or only the closed ones. In short, it is important to know how the classification is carried out to decide if it offers us credibility. Regarding user statistics , we must have access to long-term statistics, 3 months is not enough!, in addition, it is convenient that the operations can be broken down to check which investments the user benefits the most and in which markets he invests, in order to have a idea of your risk and diversification .

Availability of assets

If you are only going to follow users, this may not be such an important factor, since logically the users you follow will only invest in the accessible assets, but since you may also want to make your own investments, you should check that you have access to your favorite markets.

Mobile application

It's up to you how important this factor is. But in general it is a good idea to have access to a good mobile application, even if we are not going to use it much, to be able to trade at any time if the market situation requires it and surprises us away from the desktop computer.

Customer service

As we said in the security section, it is another important factor on which to base our decision.

User incentives and promotions

Many social investment platforms are willing to reward users with followers that offer profitability . If you are going to propose your own investments and get a good volume of followers, you can get a significant extra money thanks to these incentives. As for promotions, they are less common than in binary options brokers, but if they are interesting, why not take them into account?

Finding

The social investment or social trading it is an absolutely recommended investment strategy that can provide you with an important return. However, all its advantages can fall apart if you fall into the networks of a fraudulent website. Estafa.info he has made his broker reviews with this type of offer, based mainly on investor safety. Be sure to read them to help you opt for the best social trading broker for you.