Forex trading is more popular today than trading stocks due to the faster price movements. However, many investors draw back from investing in this market due to a lack of experience. With social trading, however, you can simply copy the trades of the foremost successful traders and invest your money without special knowledge.

In our test, eToro quickly turned out to be the most effective social trading platform. The reason for this was the excellent combination of trading offer, bonus, demo account and user-friendly service.

Find out more about social trading now or choose your platform directly from our top providers.

Top SA Social Trading Brokers

Broker
Rating
Regulated
Min. Deposit
Demo
Max. Leverage
1.
Admiral Markets

FCA, CySEC, ASIC

Min $100 Deposit

1:500

Review » Visit » Visit
Terms & conditions apply
Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using Admiral Markets UK Ltd, Admiral Markets Cyprus Ltd, Admiral Markets AS Jordan Ltd or Admiral Markets Pty Ltd services, please acknowledge all of the risks associated with trading.
2.
Deriv

VFSC, FSC, IBFC

Min $5 Deposit

1 000:1

Review » Visit » Visit
Terms & conditions apply
CFDs are considered complex derivatives and may not be suitable for retail clients. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The products mentioned here may be affected by changes in currency exchange rates. If you invest in these products, you may lose some or all of your investment, and the value of your investment may fluctuate. You should never invest money that you cannot afford to lose and never trade with borrowed money.
3.
ActivTrades

FCA

Min $100 Deposit

50:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4.
Vantage FX

FCA, ASIC, CIMA, SIBL

Min $200 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Trading Forex and CFDs involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
5.
XM Broker

ASIC, IFSC, DFSA, CySEC

Min $5 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.28% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
6.
Blackbull Markets

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.
7.
Fusion Markets

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
8.
Eightcap Review

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment).
9.
Libertex

CySec

Min $100 Deposit

30:1

Review » Visit » Visit
Terms & conditions apply
Trading leveraged products such as CFDs involves substantial risk of loss and may not be suitable for all investors. 83% of retail investor accounts lose money when trading CFDs with this provider. Trading such products is risky and you may lose all of your invested capital.
10.
Capital.com

FCA, CySEC

Min $20 Deposit

30:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Facts to Consider When Choosing a Social Trading Provider

When choosing your social trading platform, concentrate to the following points in order to search out the best provider. Choosing the proper platform determines the long-term success of copy trading.

  • Performance & transparency of the offers
  • Choice – how many Traders Are There?
  • Bonus – additional trading capital

The Principle of Social Trading

In order to see the principle of social trading, it first helps to orientate oneself to the approach of funds. Ultimately, a financial organization issues an investment portfolio during which investors can participate if it meets their needs.

The principle of social trading

A start line is that all investors can potentially benefit from one another with their individual strategies. Basically, two groups of investors come together. On the one hand, there are the experienced, sometimes professional, investors who are trying to find followers with their respective strategies. While the first group speaks of top traders or so-called signal providers, the passive investors are followers.

On the other hand, there are simple investors who are trying to find suitable patterns and strategies to orientate themselves on. Both sides find one another on platforms on the internet. Additionally, to the function of bringing the top traders and also the followers together. Many social trading providers also see themselves as communication platforms. This implies that investors can discuss with one another or with top traders. in the meantime, variety of different providers, each with a particular focus, have established themselves. We explain what’s important when choosing the correct provider and what else to think about with regard to social trading.

Social trading comes in several forms and facets

In order to participate in social trading, there are several options for easy investors to become a follower. this relies on the one hand on the provider but also on personal preferences. In the simplest version, the follower simply tracks the information and activities of the signaler or signalers he has chosen and tracks them in his own portfolio.

This strategy is the easiest and most non-binding. However, it also has its pitfalls. especially, it’s not always possible to choose the same breakdown of shares because the signal provider, since the same budget isn’t usually used for trading. In addition, there’s inevitably a time delay, in order that small price differences between the buy signal. Therefore, the reaction of the follower can make sure that the portfolios of signaler and follower don’t develop identically.

Although this easy sort of replicating certain behavior patterns is taken into account the original form of social trading, it hardly plays a role nowadays

Copy trading

In contrast, so-called automatic trading, also referred to as mirror trading or copy trading, is far more common. The follower’s trading strategy is fully linked to the activities of the highest trader. this will happen in several ways. Some providers, such as ZuluTrade or wikifolio, act in this context as pure platforms that bring the 2 groups of investors together, but don’t offer any portfolio management themselves.

copy trading South Africa

The follower must therefore have a separate depot via which the transactions are carried out. An agreement between the custodian bank, social trading platform and investor then establishes a connection between the signal provider and also the follower’s custody account.

In theory, the investor no longer has to worry about anything. Additionally, there also are variety of providers in the field of social trading who also offer their customers custody accounts. I.e. manage the money or financial products themselves. One of these providers is ayondo.

What else do you need to consider?

The whole range of investments is also possible in social trading. Anyone getting into social trading should first be clear about their risk appetite and preferred trading strategy so as to settle on the proper provider supported this.

The most important principle should therefore always be to affect the respective risk and to regulate the trade budget to be used accordingly. Any products are quite suitable as an exciting addition. However, whether investors should entrust a large a part of their money to a highly speculative top trader is by no means recommended, even in sight of a dream return achieved in the past.

Conclusion – Social trading South Africa

Social trading will establish or expand as an integral part of the financial investment. However, it’s not suitable as a mass model, because it is linked to certain conditions. This includes, in particular, a particular previous training of the investor in order to be ready to assess trading strategies aside from the sheer number of a return.

It is particularly interesting for investors who don’t feel addressed by the conventional offers. But who, because of their living situation, cannot find enough time resources for active trading around the clock.