Alexander Wilson

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What is social trading and how does it work in forex?

Social trading platforms let traders copy the trades of experienced professionals. Brokers like eToro popularized this model, turning forex into a community-driven activity. Benefits: beginners gain exposure to real strategies without deep knowledge. Risks: overreliance on “star traders” and lack of understanding of risk. Institutions rarely use copy trading, preferring direct allocation to hedge funds. Retail traders should treat social trading as education, studying why strategies succeed rather than blindly copying. Social trading democratizes access but requires due diligence—profits are not guaranteed, and risks must be managed.