Social Investing - reshaping the face of Retail FX

At home in the spare room, all alone, day in, day out. That can be the lonely life of the retail trader. Or rather, that is what has been the lonely life of the retail trader until recently. As Heather McLean discovers, things are changing now with the rapid growth of social investment trading platforms, also known as copy and mirror trading networks, which are becoming ever more popular as they connect individuals from around the world in a hub of virtual social activity that relieves the feeling of isolation.

First Published: e-Forex Magazine 47 / Retail e-FX Client / April, 2012

At its core, all trading and investing can be a pretty solitary activity. Most traders operate on their own, yet social networks provide a way for people to connect with others with similar interests and objectives.  John Forman, senior foreign exchange analyst at Thomson Reuters IFR Markets and author of The Essentials of Trading, comments: “They can share their triumphs and tribulations. They can share information and insights gained from experience in the markets. This is stuff that could not so easily be done in years gone by, when traders connecting with each other was much more of a challenge.” Expected norm “Above and beyond that, though, we have to also consider the general social pattern,” continues Forman. “People today readily connect via social networks, as we can see from the growth of the likes of Facebook. This is particularly true of the younger generations who are now moving into the markets. It’s natural that they would want to take the social...continued

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