“Social trading” is a popular concept these days, but many people still don’t fully understand what it is. For starters, the main benefit of trading with a CFD broker that offers a social trading platform is that new traders can learn from and copy what other more experienced traders do. With the help of technology, completely new traders can thus emulate the success of the pros in the game.
The disadvantage with social trading, however, is that there is usually a cost associated with copying other traders. How much this cost is varies from broker to broker and from platform to platform, but it is usually calculated as a small percentage fee of the capital that is used. However, it is still a fact that many CFD traders are making money from both copying others as well as sharing their own trades on social trading platforms.