What is social trading?

Social trading is where investors can copy the trades generated by other experienced traders. It’s also known as “copy trading” or “crowd trading.” This form of finance capitalizes on two critical concepts: diversification and experience.

This innovative financial tool has been available to traders in Australia since July 2014, when economic forecaster IG Group Holdings plc provided it on its platform. The first day of social trading was chaotic due to the high demand for IG’s new product, but once things got started, investors loved it.

According to IG CEO Peter Hetherington, people had been asking for this sort of service for years because they were wary about risking their money online with an unproven trader—so being able to copy the trades of an experienced trader helps alleviate that fear.

IG has also seen significant growth in its social trading product, with more than 20% of all new IG … Read more