It used to be that foreign exchange FX traders worked alone to try and beat the markets but now an increasing number of individual traders are using different forms of social media to try to increase their levels of success.
According to a report by Reuters news agency new websites, social media forums and Twitter are being used by traders to exchange information and to follow trends on the markets.
Social media has allowed specialist in FX Trading to be able to come together to be able to chat about what the general mood of the market is while also allowing people the chance to copy moves made by the most popular and successful of the traders.
Some of the most popular FX trading forms of social media have been found to be Tradeo, eToro and Currensee.
These social media networks are not open to everyone and usually users will have to pay a subscription fee to be able to take part in the chat but they are proving to be increasingly popular for FX traders all around the world.
It is common for traders to be ranked on these sites for their level of success and this will encourage more people to follow what they are doing and therefore increase their chances of being able to sell their FX trading moves to others who believe in their methods.
One of the newest sites Tradeo, was only set up three months ago but according to Reuters the site has already posted around half a million dollars worth of trade from about 10,000 different traders since it began.
Jonathan Adest, the CEO of Tradeo said: “It’s not a broker, but a network for brokers – a bit like an online trading room.
“The idea of creating a niche social network for forex traders is to help verify commentators usually found in chat rooms and comment boards.”
While certain social media network are drawing large amount of FX traders to them Twitter continues to be a very useful way for traders to be able to read the market.
By analysing tweets from around the world traders are able to gauge the feeling of a large amount of people in one quick strike which in turn allows them to make more informed choices about the market based on large numbers of opinions.
Social media is quickly becoming the way that informed FX traders look to increase their chances of success in the market and this phenomenon only looks like growing in the future.