So you’ve been exploring or trading in the forex market for a while. You have heard about forex social trading. But, is it the same as forex signals?
No, they aren’t the same. You might have a forex signal already but, social trading might be what you’ve been looking for.
Knowing the differences between them is very important. That’s the best way to make an informed decision and, choose the option that suits you the most. Ready to learn about forex social trading and signals?
Social Trading vs. Forex Signals: What Are The Major Differences?
Forex social trading is like the social media of forex. You’ll be in constant contact with other traders. A forex signal is different.
This service will analyze the market and, provide profitable trades. Both platforms are different in 3 major aspects. These differences are:
When you buy a forex signal, you buy consistency. This service will analyze the market and send you trades constantly. It will include the currency pairs, price, and timing.
In forex social trading, you’ll discuss trades with other fellow traders. During these interactions, other traders will tell you about their research and trades they place.
If you decide to place these trades, you can’t be 100 percent sure about their consistency. Remember the emotional factor can get the best out of any trader. When you use a forex signal, you won’t have to worry about that.
When you decide to trade based on the information from a social trading platform, you might not know the timing to place the trade. Also, you might hear about the possible trade when it’s too late.
A foreign signal will be sending you trade information constantly with the exact timing for you to place the trade. Like they say if you snooze you lose. If you’ve been trading for a while, you know timing is very important for profitable trading.
3. Placing Your Trade
Many forex signals come with the option to automate your trades based on their signals. This ensures precision when placing your trades. Remember that when you place a forex trade, you’ve to input a lot of information.
If you make a mistake when inputting, you’re exposing yourself to unnecessary loses. When you use a forex social trading platform, you’ll have to place the trades yourself. This won’t be a problem if you’re used to placing your own forex trades.
Should You Choose Forex Social Trading over Forex Signals?
There’s no right or wrong answer to this question. Social trading isn’t for everyone. It’s all going to come down to how you trade and get your information.
Do you want to interact with other traders? Are you looking for proven consistency? These are some of the questions you should ask yourself to decide which suits you better.
Before deciding to use forex social trading or forex signals, it’s recommended you do your research. You should learn how both platforms work and how they’ll fit your trading style.
Are you considering getting your own forex signals service? Check out our blog post to learn about the best signals available.