Think social trading, think client acquisition and retention. Until recently, social trading networks have been used as a means by which brokers can generate more trading volume and increase the lifetime value of a client by engaging newcomers to the word of FX with seasoned experts.

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As is often the case with such concepts, with popularity comes evolution, an example being today’s launch of TradeCrowd, which integrates social networking with trading platforms with the intention of enabling traders of all levels to share knowledge, experiences and views before investing in the markets.

FCA Regulation

Popularity of a product within the financial sector often catches the attention of regulatory authorities, and a current topic of discussion among industry participants is emerging which has been a topic within the Forex Magnates Meet The Experts forum, with questions as to whether social trading and copy trading may require registration with financial regulators. TradeCrowd therefore arrives on the market with Financial Conduct Authority registration which has been facilitated under FX broker Tradenext’s license, but with its own Financial Conduct Authority registration number.

According to TradeCrowd, the functionality of the new network ensures that traders can make trading decisions based on the latest news, commentary from experts and others in the TradeCrowd community. Traders can also follow and copy more professional traders.

The launch of this new social trading network could be considered somewhat timely, just one day subsequent to Twitter’s inaugural appearance on the New York Stock Exchange yesterday, whereby at close of business yesterday Twitter shares had a value of $44.90, giving the company a valuation of around US$31 billion, 8 years after its establishment as a private company.

Based in London, TradeCrowd plans to officially unveil its social trading platform at the Forex Magnates SUMMIT in London which commences on Monday, during which the firm intends to emphasize that by creating an all-in-one social trading network, traders are able to read real-time market data and immediately execute trades without changing the platform. As with other social media networks, like Facebook and Twitter, TradeCrowd has a timeline layout which gives instant updates on all activities and trades.

When choosing to follow a specific instrument, a trader’s timeline is populated with the most relevant news and market updates from TradeCrowd’s intelligence providers and community members.

Conveying Analysis To New Traders

Part of TradeCrowd’s intention is to be able to provide novice traders with the ability to learn new and successful trading strategies as well as make the most of the latest market data. More experienced traders can share their thoughts and trading tactics in the Forex, indices and commodities markets.

The new social trading platform is initially partnering with Tradenext, and on that basis TradeCrowd members will automatically be given a Tradenext account to execute their trades.

Aleksandar Kudic, co-founder of TradeCrowd, emphasizes the importance of making trading simple by making a corporate statement that: “We will introduce new customers to trading and make them comfortable being a part of the TradeCrowd community and help them graduate from simple trading to more complex trading using advance tools. We are focused on providing the simplest and most elegant trading experience in a familiar social networking environment. And, as part of the TradeCrowd family traders will be able to invest with confidence on a secure platform.”

TradeCrowd’s co-founder, Stefan Pajkovic, further added: “Over the last 12 months, we have developed the platform that caters for requirements of all types of traders and provides a one stop shop for every trading enthusiast. TradeCrowd will excite them from the moment they join. The platform will constantly evolve as new features are added to make sure we continue to meet needs of members. For example, traders that have programming knowledge will be able to trade directly with TradeCrowd using our trading API.”

Jason Gibson, Head of Trading and Sales at Tradenext explained that: “Our partnership with TradeCrowd offers traders of all levels a unique opportunity to share strategies, views and expertise in real-time as well as allow them to maximise their chances of profiting from the changing markets conditions.”