I guess we have reached the point that it’s no longer a matter of if as much as when major brokers will launch a Social Trading network. Following on the trend, Alpari becomes the newest member of brokers providing a social/copy trader product. With no press release yet that we have seen, TraderConnect appeared on the UK site.
Tilting towards a social look, rather than the copy trade appearance of a product like Tradency, TraderConnect lets users share their trades, comment about others, follow and copy traders, and includes trading stats and performance.
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One of the knocks against social trading is the lack of uniform pricing which can lead to underperformance of copied traders. As such, they smartly included this paragraph on their site “Your trading experience, including execution and tradable instruments, may vary depending on your account type, available margin, account equity, leverage, and the regulatory or trading restrictions of your or your broker’s home jurisdiction. You are, therefore, advised to regularly refer to back to your MT4 platform to obtain live tradable prices.”
Following Alpari, Forex.com may be the next large broker to launch a social trading product as it had previously mentioned that it was working on it. While similarly FXCM just launched Tradency. As such, we’ve probably reached the point that the question isn’t “whether a broker is launching social” as much as “why they haven’t yet”. As we learn more about Alpari’s TraderConnect we’ll update the post.