Any experiences of Social Trading? (ZuluTrade, eToro etc)

dellboy102

Hi All

I've come across these social trading sites and thought i'd ask if anyone here has tried them and what their experience has been.

I'm not actually looking to invest in it myself at the moment (for my current investment goals will probably go for VanGuard LFS 60 in my ISA) but I am curious from people who have tried it how they found it as will be useful info for the future

Malthusian

Wrong forum. People who have no money because they've thrown it away on online bookmakers don't have any reason to hang around a "Savings and Investments" forum.

As with all "trading" it's not investment, it's gambling, and the house always wins.

You are no more likely to make money by copying what other mugs are doing than by betting on whoever the Racing Post tips to win the 3.30 at Epsom.

A cynic would question how you would verify that the "top traders" these platforms claim you can get rich quick by following even exist.

Trustpilot makes interesting reading.

dellboy102

Thanks Malthusian, those were my initial thoughts too but thought i'd ask the question to see if anyone has actually tried it even as a gamble.

mark13

I've tried n eToro virtual account following some successful traders, seemed a good way to make money however no such luck, money just got sucked away so decided against using real money.

Malthusian

mark13 wrote: »

I've tried n eToro virtual account following some successful traders, seemed a good way to make money however no such luck, money just got sucked away so decided against using real money.

I'm surprised by that, the way it usually works is that your virtual portfolio delivers terrific imaginary returns, then you invest real money and lose your shirt.

But to be fair I'm thinking more of binary options platforms whereas eToro is a legitimate bookmaker.

george4064

Never tried it, wouldn't touch them with a bargepole.

sorcerer

Yep, I tried etoro for real with a small amount, I found it was a waste of time. You would copy the trades of other people, and then find you would normally lose.

At the time their was no way of working out how much risk you were taking. So for example if I had £100 and I bet £50 on one guy, I am risking half my money. But is he also risking 50% of his money, you would have no idea. £50 for him could be 0.01%, which is a very different risk.

Also it's hard to get you money out of them, they make you jump through hoops.

dealer_wins

Spam off George!

James_Green_1982

I was under the impression that some trading sites (NOT saying any specific companies!) operate in this manner:

1. Website owner buys a certain stock.
2. 'Customers' follow the website owners in and buy more of this stock.
3. Stock rises in value.
4. Website owners sell the stock. Make a gain.
5. Stock falls in value. 'Customers' still own the stock. 'Customers' are left holding a loss.

See also - 'Bitcoin' !

Mr.Saver

James_Green_1982 wrote: »

I was under the impression that some trading sites (NOT saying any specific companies!) operate in this manner:

1. Website owner buys a certain stock.
2. 'Customers' follow the website owners in and buy more of this stock.
3. Stock rises in value.
4. Website owners sell the stock. Make a gain.
5. Stock falls in value. 'Customers' still own the stock. 'Customers' are left holding a loss.

See also - 'Bitcoin' !

Don't forget this one:
0. Let you play with virtual money and then win big virtual rewards