Social trading networking – a new vector in effective market communication

Social trading networking – a new vector in effective market communication

Have you noticed how the digital world has changed in the last ten years? Everything went online and is amenable to maximum openness and discussion of a particular trend. And trading was not an exception. Each manager shares his results with a professional environment, accumulates like-minded people and seeks to popularize his approach among the other market players. Even the one who reads these lines came under this influence, including me, writing precisely for you.

I consider this an excellent manifestation of the modern world and one of the achievements of the mankind. We are able to share our opinions instantly, without leaving the home or from any other corner of the world with the help of mobile devices, through which we can also trade (but that’s a different story). If earlier, it took time to learn market news, today all the information is publicly available. The trader should only use it competently, and there will be a positive result.

In the modern world, each trader has several key sources of communication. They can be forums, personal blogs or themed websites. I would like to stop on each of them in more details.

Forums are a kind of databases, in which a lot of useful content was collected for a huge number of years. If you are just starting to get acquainted with the market, here you can emphasize for yourself the reviews of many traders and analysts. Also, on these sites, some people exhibit their achievements and a description of ready-made trading systems, which can become the first tool for working in the financial market.

Themed sites and blogs allow you to track more personalize the opinion of key “persons” from the world of social trading . This tool can be used by both beginners and professional players to monitor the results and analyze their forecasts. Typically, more useful content on these resources has a certain fee in the form of a subscription or material consisting of training, sales of ready systems or trading robots.

However, if we consider each of these platforms, there is a key nuance – the absolute absence of a broker. The broker is a platform for trading operations, but to discuss these operations, we, the stock speculators, need to look for outside resources. And here there is a logical question: why is the broker not interested in forming such a community within his company?

In fact, this approach gives a number of advantages and key features for the broker:

  1. It enables you to increase your trading activity. If you increase the social component within one broker, it will allow everyone to share their opinions and conduct collective trading. Increased trading activity will allow the broker to increase the net profit of the company at the expense of additional commissions that customers will pay the broker for the greater number of trading operations, as well as the transfer of positions.
  2. If all the clients write about their trading and most customers open transactions in a single direction, this will allow the broker to overlap such trading operations. To put it simply, if a dealer keeps track of such transactions, he will have the opportunity to respond immediately to the changing situations and, in the event of growing brokerage risks, he will be able to control them through both internal and external overlapping;
  3. Internal communication will also allow to preserve the client base, to become a tool for sales, as well as to increase the customer loyalty, because it will indicate that the broker is interested in the positive result of his clients. Thus, the broker becomes an intermediary not only in the performance of trading operations between the trader and the market, but also between the trader and trader who are serviced on the same platform;
  4. Such communication between the market participants allows to increase the expertise within the company. I would not mind to talk to like-minded people at the broker I trade with. I will be frank that this would help me demonstrate my profitability indicators and raise additional capital under management. Earlier, I wrote that I have a PAMM, so I could discuss its results with my broker’s clients, and show examples of my trading.

I’m more than sure that this is not all the advantages that a broker can get for implementing a social platform. I even found special programs in the form of plug-ins that allow you to connect to mt4 social and accumulate the community of traders directly into the trading terminal. That’s great! Just imagine how you could increase your importance if each broker had this tool. Similar plug-ins also allow you to duplicate the trading operations and act as a copy trading platform. Thus, in this system there are signal providers, as well as subscribers who for a small fee have the opportunity to receive all the advices and trading recommendations that the trader makes on his account. Thus, a trader who has a profitable trading strategy can accumulate additional funds on his own trading, and the subscriber receives a passive source of profitability with the ability to determine the boundary risk threshold and the ratio when opening more and more trading transactions. At their core, these plug-ins work as copying resources for trading signals, such as MQL. But they work exclusively for clients of one broker and the whole meaning is just concluded in this.

To summarize, I want to note that networking in trading is an excellent tool for both broker social and for traders. And if it is an opportunity for the trader to show himself and show his results to increase the managed capital, for the broker it is an opportunity to attract new customers and keep the current ones.


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