There has been a rise in social trading in the last few years, and this is something that is not just limited to one specific region on the globe. This is a phenomenon that has been observed all around the world.
This is something that can be observed on social media platforms as well, with more and more average investors discussing their trades and investment with their friends and followers.
A lot of the credit for this can be laid down on the rise, and the vast success of trading apps that have, in a way, democratized trading.
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They have made it possible for anyone to start trading. A review of Public.com shows how social trading features can increase engagement and provide a unique selling point for certain services.
But as one can understand, where there are too many fish in the pond, there is bound to be competition. This has resulted in brokerages opting to add many new and exciting features that make their application a lot more user-friendly.
And if one observes closely, many of these features are focused on social networking. They have become more of a social trading platform. Here are some common ways brokerages have incorporated social trading features to stand out from their competitors.
Copy Trading
Copy trading is a kind of trading strategy where a trader simply copies another trader's investment with their permission.
Now, it has been a typical strategy for amateur traders and many retail investors to earn some quick money without spending much time researching stocks and cryptocurrencies. There is also a caveat to this as one is hedging their bets on someone else performing well on the market with their trades.
However, it is something that many investors like to apply, and brokerages understand it pretty well. Now, many brokerage apps offer copy trading features right on the app where one can ask for access to view another person's trade.
Alternatively, there are also features where one can make their trade available for public viewing.
News Feed
Up-to-date information is of paramount importance in trading, whether it is of stocks or cryptocurrency.
There are many different business news portals that an investor can take advantage of. But what if they do not even need to get out of their app and still get updated information?
Now, this is something that is possible with many brokerage apps opting for syndicated feeds to assist their user in making suitable trades. This is an invaluable addition to the brokerage app.
Personalized Social Feed has always been slowly but surely incorporated by brokerage applications. Since any broker would prefer to have more transactions done via their platform, it is not surprising that they would allow their users to share their views on the platform.
A social feed where one can follow their friends, family, and even top investors on the platform is a successful idea that is utilized by many brokerage apps. This social feed is tailored-fitted according to the user's trading and investing interests.
So, no one can forget about their social media channels for advice and listen to the views of top investors when they can find everything right on their brokerage app.
Conversing with friends
Don't you just hate having to screenshot a potential trade and then share the info with your friends on another app? Yes, brokerages understand that as well, which is you will find chat features part of the brokerage apps nowadays.
Now all the discussion, sharing of trades, etc., can be done in one place and without one needing to screenshot everything. Users can now share their preferred stock info, news articles, etc., within their app. The only thing one needs to do is add their friends to their profile to be able to converse with them.
Learn About investing
Investing is a challenging task, something no one would deny. There are so many things for an investor to learn before they can start trading. Brokerage apps would want to break this wall and make more people aware of how they can trade on such platforms.
That is why you will find many brokerages investing in educating their users on how they can trade on their platform and what signs they should look for.
They do this via their YouTube channel or even stream live webinars where one can ask questions from experts, and they would help them out. The more knowledgeable their users are, the more trade they would make on the platform.
