Investor education

Social Trading

Social trading lets investors observe, discuss, and sometimes copy the positions of other traders through a platform. It can be a way to learn, but it also carries the risk of copying decisions you do not fully understand. This guide explains the idea and the checks worth making before you rely on it.

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How social trading works

Social trading platforms display the activity or performance of selected traders, and some let you automatically mirror their trades. The appeal is transparency and convenience, but past performance shown on a profile does not predict future results, and figures may be selectively presented or measured over short windows.

Feeds and profiles show other users' positions or performance history.
Copy features can mirror trades automatically in your own account.
Displayed returns may cover limited periods and exclude fees or slippage.

What to check before following anyone

Before copying a trader, understand what you are actually agreeing to. Copying transfers decisions to someone whose goals, risk tolerance and time horizon may differ from yours. Review how performance is calculated, what happens during losses, and how much control you keep over position sizes and stops.

Confirm how long a track record is and whether drawdowns are shown.
Understand fees, spreads and any charges tied to copy features.
Check whether you can set limits, pause copying or exit at any time.
Remember that a strong past run does not guarantee future results.

Verify the broker and platform terms

Feature availability, regulation and product types differ widely between providers, and social trading is often linked to margin or CFD products in some regions. Do not assume any feature is available or safe; confirm it in the broker's own current documents and disclosures before committing funds.

Verify social or copy features exist and how they are regulated in your region.
Check the product wrapper, since some copy trading uses leveraged instruments.
Use the Glossary for terms and Find my broker to build a verification workflow.

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FAQ

Is social trading suitable for beginners?

It can help beginners observe how others trade, but copying decisions you do not understand carries real risk. Learn the underlying instruments and confirm all terms before relying on any copy feature.

Does a good track record mean a trader is reliable?

No. Past performance does not predict future results, and displayed figures may cover short periods or exclude costs. Treat track records as one limited data point, not a guarantee.

Are social trading features available with every broker?

No. Availability, product types and regulation vary. Confirm whether a broker offers social or copy trading, and under what terms, in its current official documents.